Waya initiates coverage on Interarch Building Solutions Ltd. with a BUY recommendation. Waya expects an upside of 50% in 1 year and sets a target price of ₹2,361.

Interarch is one of India’s leading pre-engineered building (PEB) companies, offering complete steel building solutions from design to manufacturing and on-site installation. The company serves major industries like manufacturing, automotive, renewables, logistics and data centres, with 1,000+ customers and over 70% repeat business. Interarch operates five manufacturing plants and is expanding capacity from 141,000 MT to 201,000 MT by FY26.

Interarch has strong financials with sales growing steadily from ₹835 crore in FY22 to ₹1,293 crore in FY24, while profits jumped from ₹17 crore to ₹86 crore over the same period. The business is almost debt-free with over ₹178 crore net cash, and profitability has improved sharply with RoCE rising from 8% to 26% in just two years. H1 FY25 results show rising margins and healthy demand momentum.

We believe Interarch is well-placed for long-term growth, with revenue expected to increase from ₹1,293 crore in FY24 to nearly ₹2,000 crore by FY27E, driven by new capacity, strong order inflows of ₹1,300+ crore and rising demand for fast, efficient steel construction across India.