Interarch Building Solutions Ltd Management Discussions

Global Economy

The global economy is undergoing a period of complex recalibration, shaped by the interplay between a powerful technological expansion and persistent geopolitical and trade-related disruptions. CY 2025 was characterised by a pronounced trade pivot, as significant tariff measures were introduced across major advanced economies. Global growth still exceeded earlier expectations, reaching 3.40%, sustained by robust consumer demand, inventory front-loading ahead of tariff implementation, and an unprecedented surge in artificial intelligence-related capital expenditure, particularly in digital and infrastructure capacity.

Entering CY 2026, geopolitical tensions in West Asia and the disruption of transit through the Strait of Hormuz have reintroduced acute supply chain constraints and heightened volatility in global energy markets. These developments are expected to moderate global growth slightly to 3.10%, as reduced energy shipments and rising maritime logistics and insurance costs weigh on economic activity. The services sector continues to provide an important stabilising effect, yet industrial output, particularly in energy-dependent Europe and trade-intensive parts of Asia, faces mounting constraints linked to disrupted energy supplies. Economies have nonetheless

demonstrated a degree of adaptability, supported by the accelerated adoption of AI-driven technologies that are enhancing productivity and partially offsetting cost pressures.

Concurrently, a gradual shift in the world order including renewed supply chain diversification, firms efforts to onshore or friend shore critical production, and a reconfiguration of strategic trade partnerships is creating new export, investment, and technology transfer opportunities for emerging economies, notably India, which stands to benefit from near-shoring trends, increased foreign direct investment into manufacturing and services, and demand for digital infrastructure and skilled labour.

Amid continued uncertainty, global headline inflation is expected to moderate more gradually than previously anticipated. Inflation came in at 4.2% in CY 2025, is projected at 4.4% in CY 2026, and is expected to ease to 3.4% in CY 2027, a trajectory shaped by the combined impact of trade protection measures introduced in CY 2025 and the subsequent surge in energy prices in CY 2026.

Inflationary pressures remain elevated in advanced economies due to higher imported energy costs, though tighter fiscal policies in several emerging markets are partially offsetting these effects. Many of these economies continue to face challenges from rising prices of essential commodities and increasing debt servicing burdens, which constrain their ability to absorb external shocks.

Outlook

The global outlook for CY 2026 and CY 2027 points towards moderate yet fragile growth, with downside risks remaining elevated. Geopolitical tensions in the Middle East are keeping energy prices high, adding pressure on inflation and tightening financial conditions across economies. These developments are creating stagflation pressures across several major economies, making the global macroeconomic environment increasingly difficult to navigate.

The impact is expected to remain uneven across regions. Energy-importing economies and countries with limited fiscal space are likely to face greater strain, as higher energy costs and tighter liquidity conditions weigh on economic activity. Commodity-exporting nations may experience partial offsets through improved terms of trade. Meanwhile, the reordering of trade and investment linkages offers a strategic opening for India to attract manufacturing relocation, expand services exports, and deepen digital infrastructure partnerships, provided policymakers sustain reforms that improve ease of doing business, upskill labour, and enhance logistics capacity.

Against this backdrop, policymakers, particularly central banks, continue to face the difficult task of balancing inflation control with the imperative to sustain economic growth. Any prolonged disruption in energy markets could place further pressure on output, heighten recession risks, and amplify volatility across the global economy.

Indian Economy

Indias growth trajectory remains robust, with real GDP growth recorded at an estimated 7.7% in FY 2025-26, as per the provisional estimates. This performance highlights the economys underlying strength and continues to position India among the fastest-growing major economies globally.

Steady gains in productivity and a sustained policy emphasis on inclusive and stable development continue to support this outlook. Both priorities sit at the centre of the governments long-term Viksit Bharat 2047 vision, which focusses on achieving developed economy status through structural transformation and broad-based growth.

The industrial sector grew by 6.2% in FY 2025-26, supported by sustained infrastructure investment and strong policy backing. The Union Budget 2026-27 raised capital expenditure to a record 12.2 Lac Crore, nearly 9% higher than the previous year. This allocation, equivalent to about 3.1% of GDP, is anchored in the PM Gati Shakti National Master Plan, supporting multimodal logistics, industrial corridors, and infrastructure development. Together with ongoing investments in high-speed rail, logistics parks, and urban infrastructure, this is creating a robust foundation for industrial expansion.

(Source:

Manufacturing grew by 10.7% in FY 2025-26, improving from 9.3% in FY 2024-25. The sector remained the key driver of industrial growth, supported by Production-Linked Incentive (PLI) schemes and continued investment across sectors such as semiconductors, electronics, and specialty chemicals. Supply- side pressures from elevated energy costs and global shipping disruptions, particularly along strategic routes such as the Strait of Hormuz, weighed on the sector during this period. Structural policy support has absorbed much of that pressure, with Production- Linked Incentive (PLI) schemes now maturing to the point of yielding tangible outcomes in high-potential sectors such as semiconductors, electronics, and specialty chemicals.

New-age sectors are emerging as disproportionately strong growth drivers.

The services sector is estimated to have grown by 9.1% in FY 2025-26 up from 7.2% in FY 2024-25

IT and technology services continue to lead, reinforced by India becoming the worlds seventh-largest exporter of services with a global share doubling from 2% in FY 2004-05 to 4.3% in FY 2023-24

Digital and fintech services are expanding rapidly alongside the scaling of Digital Public Infrastructure, while electric vehicles and battery manufacturing are gaining momentum through production incentives and charging infrastructure expansion

Renewable energy and green technology are accelerating as India pursues its net-zero and energy-security goals, and life sciences and biotech services are advancing through contract research, vaccine manufacturing, and increased domestic R&D

These new-age sectors are reinforcing overall resilience, offsetting subdued external demand in traditional markets, and capturing the benefits of the global China Plus One strategy, thereby actively redirecting supply chains towards India. Additionally, initiatives such as Make in India 2.0 and the scaling up of Digital Public Infrastructure in supply chain management are enhancing efficiency, transparency, and competitiveness across the sector.

Outlook

FY 2026-27 is expected to witness growth moderate to the 6.6%-6.9% range, with geopolitical tensions in West Asia and energy market volatility accounting for much of that moderation. The underlying macroeconomic conditions remain stable, supported by strong fundamentals and ongoing tax rationalisation that is steadily improving the operating environment.

Trade relationships with key partners, including the United Kingdom, the European Union, and the United States, are expanding, offering new export avenues that partially offset softer demand elsewhere. The digital economy and services sector continue to provide resilience against external uncertainty. At home, a favourable monsoon is restoring rural purchasing power while urban consumption holds steady,

producing the kind of balanced demand dynamic that reduces the economys exposure to any single pressure point. These conditions support a medium- term growth trajectory of around 7% through FY 202728, underpinned by domestic demand and structural policy continuity that together make Indias economic momentum something more than cyclical.

Pre-Engineered Steel Buildings Industry Overview

The pre-engineered steel buildings (PEB) industry is witnessing strong global and Indian adoption, driven by advances in construction technologies and increasing demand for cost-efficient, sustainable infrastructure. Their usage in process plants, commercial buildings, heavy manufacturing, data centres and allied manufacturing has transformed PEBs into a scalable alternative to conventional construction methods. With increasing emphasis on faster project execution, cost optimisation, and environmental sustainability, PEBs are becoming the preferred choice across industrial, commercial, and infrastructure applications.

Global Pre-Engineered Steel Buildings Market

The global pre-engineered steel buildings (PEB) market is advancing on the strength of two sectors that have long defined industrial ambition: manufacturing and commerce. Both continue to seek construction solutions that are fast, scalable, and financially disciplined, and PEBs answer that demand with a precision that conventional methods cannot match. Investments in public infrastructure are increasing in parallel, and rapid urbanisation is adding urgency to timelines that traditional construction simply cannot accommodate. As awareness grows around the efficiency and cost advantages of offsite fabrication, market penetration deepens, reinforced further by a global shift towards buildings that perform better and consume less, in both developed economies and emerging ones alike.

Indian Pre-Engineered Steel Buildings Market

Indias PEB market is unfolding as a multi-segment growth story, one grounded in industrial momentum and expanding steadily into infrastructure and built-environment applications. The industrial sector remains the anchor. Automobiles, cement, oil and gas, and a range of other core industries have adopted PEBs as the preferred structural system, drawn by the combination of speed, scalability, and engineering precision that large-scale production environments demand.

Infrastructure is emerging as the markets next significant frontier. The growing need for modern logistics and utility assets is channelling PEB adoption into warehouses, cold storage facilities, data centres, power plants, aircraft hangars, and railway infrastructure, a transition that reflects a broader industry conviction that large-scale projects require standardised, faster construction methodologies. The building construction segment is adding its own momentum, as developers and businesses weigh the advantages of pre-engineered solutions and find that reduced timelines, optimised costs, and design flexibility make PEBs an increasingly central part of Indias modern construction ecosystem.

The Indian pre-engineered buildings industry is entering a phase of accelerated growth, with domestic demand expected to outpace global market expansion over the coming years. While the global PEB market is projected to exhibit a CAGR of around 10.5-11.5% between FY 2023-24 and FY 2027-28, the Indian market is expected to expand from approximately 195 billion in FY 2023-24 to 330-340 billion by FY 2028-29, implying 10-14% CAGR across key end-use segments.

This growth is being driven by increasing investments in manufacturing, warehousing, logistics, data centres, infrastructure, and commercial construction. Notably, infrastructure and building- related applications are expected to grow faster than the industrial segment, reflecting the broadening adoption of PEB solutions across sectors. The infrastructure segment is projected to witness a 12-14% CAGR, while the building segment is expected to exhibit a 10-14% CAGR through FY 2028-29.

Within this Indian Pre-Engineered Buildings market, the organised segment holds a decisive competitive edge. Its established project execution track record, integrated supply chain depth, and capacity to deliver high- quality engineering solutions and standardised products give organised players a structural advantage in meeting the demands of large-scale, time-sensitive projects, one that reinforces their leadership as the market evolves.

Construction Process for PEBs

The construction of pre-engineered steel buildings follows a streamlined, three-phase approach built around speed, precision, and execution efficiency. Each stage connects seamlessly with the next, allowing projects to move from design to installation with greater coordination and control.

Integrated

Design

The process begins with integrated design, where digital technologies such as Building Information Modeling (BIM) and parametric design are used to conduct detailed engineering analysis and develop optimised structural plans. Early-stage coordination supports faster approvals and reduces design- related uncertainties, creating a stronger foundation for execution.

Rapid

Manufacturing

Once the design is finalised, structural components are fabricated in controlled factory environments using automated processes. This enhances precision, minimises material waste, and allows parallel progress between off-site manufacturing and on-site preparation. As a result, overall project timelines are significantly reduced.

Streamlined

Installation

Pre-fabricated components are then transported to the project site and assembled using advanced equipment and ¦arefully planned logistics. This phase ensures faster project completion, reduces on-site disruptions, and improves cost control throughout execution.

Design Plan of Pre-Engineered Steel Construction

Phase	Category	Activity
Phase 1	Design Phase	Integrated BIM and Conceptual Design Phase
Phase 2	Rapid Manufacturing	Manufacturing Fabrication
Phase 3	Installation Phase	Streamlined Component Installation and Assembly

Advantages of PEBs over Traditional Construction

Industrial Sector

Parameter	Traditional RCC (Conventional Construction)	Pre-Engineered Steel Construction
Clear Spans & Layout	Frequent internal structural columns are required, which can obstruct heavy machinery layouts and assembly lines.	Clear spans of 30-100+ meters can be achieved without internal columns, maximising floor utility and layout flexibility.
Equipment Integration	Mounting overhead cranes or modifying machine layouts often requires extensive structural alterations and retrofitting.	Brackets, framing systems, and crane runway beams can be integrated or modified with relative ease.
Construction Speed	On-site concrete works and curing periods can delay equipment installation and production commencement.	Rapid erection of prefabricated steel components enables earlier equipment installation and commissioning.

Data Centres
Parameter	Traditional RCC (Conventional Construction)			Pre-Engineered Steel Construction
Speed to Market	Dependence on on-site construction activities and curing periods can extend project delivery timelines.			Prefabricated structural systems can significantly reduce construction schedules and accelerate deployment.
Load-Bearing & Utilities	High server rack loads can be accommodated, but routing HVAC ducts, cable trays, and utilities may require core drilling and modifications.			Structural systems can be designed with preengineered openings that simplify utility routing and future expansion. The composite design offers unmatchable optimisation and strength.
Multi Storey Buildings
Parameter		Traditional RCC (Conventional Construction)	Pre-Engineered Steel Construction
Weight & Foundation Cost		Higher structural dead loads generally result in larger and more expensive foundation systems.	Composite design results in reduced structural /eight can lower foundation requirements and associated construction costs.
Usable Floor Area		Larger columns and structural elements can reduce the net usable floor area.	Slimmer structural members and longer spans help maximise usable floor space and planning flexibility.
Structural Optimisation and Strength		Heavier structural systems often require larger members to achieve the required performance.	The composite design offers unmatched optimisation and strength, delivering high structural efficiency while maintaining excellent load carrying capacity.
Environmental Impact		Construction activities typically generate higher levels of material waste, dust, and site disruption.	Off-site fabrication and recyclable steel components help reduce waste and support sustainability objectives.
Return on Investment (ROI)		Longer construction durations can delay occupancy, leasing, and revenue generation.	Faster project completion enables earlier occupancy and accelerates revenue realisation.
Logistics and Warehousing
Parameter		Traditional RCC (Conventional Construction)	Pre-Engineered Steel Construction
Cubic Storage Capacity		Internal columns can limit racking configurations and reduce operational efficiency within warehouse spaces.	Large clear spans and greater vertical clearances support high-density storage and automated material handling systems.
Environmental Impact		Construction activities typically generate higher levels of material waste, dust, and site disruption.	Off-site fabrication and recyclable steel components help reduce waste and support sustainability objectives.
Return on Investment (ROI)		Longer construction durations can delay occupancy, leasing, and revenue generation.	Faster project completion enables earlier occupancy and accelerates revenue realisation.

Rising Global Presence and Momentum of PEB Exports

The global construction industry is witnessing a significant rise in demand for Pre-Engineered Buildings due to their cost efficiency, sustainability, and faster project execution. To capitalise on this growing demand, Indian PEB manufacturers and exporters have embraced advanced technologies and modern fabrication techniques to deliver high-quality structures that meet international standards. As the world increasingly shifts towards sustainable construction practices, PEBs have emerged as a preferred solution.

The impact of these developments is clearly reflected in Indias PEB export performance. The consistent growth in exports from FY 2018-19 to FY 2024-25 reflects Indias strengthening position in the global PEB market, supported by enhanced manufacturing capabilities, increasing production capacity, and adherence to international quality standards.

Looking ahead, the combination of rising global demand, supportive government policies, and technological innovation is expected to further accelerate the growth of Indias PEB export industry. As exporters continue to expand their presence in established and emerging markets, India is well-positioned to strengthen its role as a leading global supplier of pre-engineered building solutions.

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Interarchs Approach

Interarch has identified exports as a key growth driver and is steadily building a meaningful international business alongside its domestic operations. In FY 2025-26, the Company secured export orders worth a record 40.2 Crore, marking its strongest year yet in overseas markets. Geographically, these export order wins are distributed across key emerging and developed regions: a significant portion of 14.5 Crore originated from Canada (comprising two distinct contracts valued at 10.9 Crore and 3.6 Crore), followed by an order of 12.7 Crore from Nairobi, Kenya, an order of 6.6 crore from Myanmar, and an order of 6.5 Crore from Ghana. This diversified global footprint spans high-value

end-user industries including steel, healthcare, industrial manufacturing, pharmaceuticals, and packaging. Encouraged by this early traction, management is targeting over 100 Crore of export orders in FY 2026-27.

Beyond order wins, Interarch is laying the foundation for long-term global expansion through strategic partnerships and capability building. The Company has signed a collaboration agreement with ER Steel Inc. to strengthen its presence in North America and has proposed a 50:50 joint venture for design, manufacturing, and selling Open Web Steel Joists (OWSJ), a product category facing supply shortages in the North American market. Its partnership with

Mold-Tek Technologies further enhances its ability to execute international projects.

Exports also offer attractive economics, with higher margins, shorter execution cycles, and a more efficient working capital profile due to supply-only contracts backed by Letters of Credit or advance payments. To access regulated markets, Interarch has secured key certifications for the United States and Canada, positioning the Company to scale exports and establish a sustainable global growth platform over the coming years.

Growth Drivers

Indias Untapped Potential in Steel Consumption

Indias per capita steel consumption reached 115 kg in FY 2025-26, a figure that reflects steady progress built on expanding infrastructure and a strengthening manufacturing base. It also reflects the distance still to travel. The global average sits at around 215 kg, and that gap represents substantial headroom for a country continuing to urbanise, industrialise, and invest in large-scale infrastructure at pace. Recognising this potential, the government is actively advancing the National Steel Policy, which targets an increase in per capita consumption to 160 kg by FY 2030-31.

f Structural Shift towards Faster, Greener Construction V	The construction ecosystem is moving decisively away from conventional Reinforced Cement Concrete (RCC) towards PreEngineered Buildings (PEBs), propelled by the twin imperatives of execution speed and sustainability. PEBs reduce project timelines by 30-50%, while aligning naturally with green building priorities through steel recyclability of up to 90% and minimal on-site water usage. As Environmental, Social, and Governance (ESG) considerations become central to how projects are evaluated and funded, PEBs are consolidating their position as the preferred construction methodology for organisations serious about both performance and responsibility.
Industrial Expansion Backed by Policy Momentum V	Indias manufacturing ambitions are gaining scale through initiatives like Make in India and Production Linked Incentive (PLI) schemes spanning multiple sectors. Capital expenditure is rising in industries such as metals, cement, automotive, and electric vehicles, generating demand for large, efficient industrial facilities. PEBs, capable of creating wide clear-span structures quickly and cost-effectively, have become the default choice for new-age manufacturing plants.
Semiconductor Ecosystem Driving Precision Infrastructure V	The semiconductor sector is ushering in a new category of high- specification construction. With significant investments under the India Semiconductor Mission (ISM), including multi-billion-rupee fabrication and assembly units, there is a growing requirement for precision-engineered, vibration-controlled environments. PEBs offer modularity, speed, and design flexibility, making them well-suited for building advanced semiconductor facilities and supporting Indias ambitions to become a global chip manufacturing hub.
Data Centre Boom and Time-to-Market Advantage V	Indias data centre capacity is expanding rapidly, fuelled by data localisation requirements, cloud adoption, and 5G rollout. In this sector, speed of deployment directly impacts revenue generation. PEBs enable facilities to become operational up to 60% faster than traditional construction methods. Their ability to support heavy mechanical, electrical, and plumbing (MEP) loads while allowing scalable expansion makes them critical to the next phase of digital infrastructure growth.

Infrastructure Acceleration Under Integrated Planning V	Large-scale infrastructure development is being streamlined through integrated planning frameworks such as the PM Gati Shakti National Master Plan. This coordinated approach across railways, highways, and ports is generating substantial demand for steel-intensive structures. Projects like cargo terminals, logistics hubs, and multimodal facilities require fast, durable construction solutions, positioning PEBs as a key enabler of infrastructure rollout. J
Logistics, Warehousing, and Cold Chain Transformation V	The rapid growth of e-commerce, organised retail, and supply chain modernisation is driving demand for high-quality warehousing. Grade-A warehouses and cold storage facilities are increasingly adopting PEB technology due to its flexibility and efficiency. In cold chain applications, PEBs allow seamless integration of advanced insulation systems, improving thermal performance and reducing operating costs. This is especially critical as the cold storage market scales significantly over the next decade. ,
Expansion into Urban and Multi-Storeyed Applications V	PEBs are no longer limited to industrial sheds. With rising urban land costs and increasing density requirements, their application is expanding into multi-storeyed buildings. Commercial complexes, educational institutions, and healthcare facilities are increasingly leveraging steel- based construction. Advances in high-strength steel, fire-resistant coatings, and seismic design have made multi-storeyed PEBs a viable, safe, and cost-efficient alternative to traditional high-rise construction. J
Enabling the Renewable and Green Hydrogen Economy V	Indias transition towards clean energy is creating new infrastructure needs. Initiatives in solar manufacturing, green hydrogen production, and related supply chains require specialised facilities. PEBs are being widely used for such applications due to their adaptability and structural efficiency. Their ability to support rooftop solar installations and accommodate heavy industrial loads makes them integral to sustainable industrial development. J
Global Supply Chain Realignment and Policy Support V	A Shifts in global trade dynamics, including the China+1 strategy, are positioning India as an alternative manufacturing hub. This transition is supported by government policies that encourage industrial growth and infrastructure development. Additionally, initiatives in affordable housing and standardisation in steel usage are lowering barriers for prefabricated construction. These factors are accelerating the adoption of PEBs across both industrial and non-industrial segments. ,

Outlook

The pre-engineered steel buildings (PEB) market is entering a decisive high-growth phase in FY 2025-26, driven by the widespread adoption of Building Information Modelling (BIM) and the rise of hybrid construction models that blend off-site precision with on-site efficiency. As India targets a

doubling of steel consumption

by FY 2029-30, factory-controlled fabrication has moved beyond a niche industrial choice to become the default approach for fast-track infrastructure delivery.

Growth is further reinforced by the convergence of digital and physical systems, with IoT-enabled smart buildings enhancing lifecycle performance

and operational intelligence.

At the same time, a growing Green Premium is reshaping demand, as developers and occupiers prioritise recyclable materials, energy efficiency, and ESG-aligned construction. These forces are redefining PEBs as a cornerstone of scalable, sustainable industrial and

commercial expansion.

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Interarchs Approach

Interarch positions its PEB steel buildings within a rapidly industrialising economy where speed, scalability, and capital efficiency are critical. In the broader industrial context, PEBs align with supply chain expansion, logistics modernisation, and manufacturing growth driven by initiatives like Make in India and the Production

Linked Incentive scheme. Interarch responds by offering standardised yet flexible building systems that reduce project timelines and upfront costs, enabling faster commissioning of factories, warehouses, and data centres.

At a macro level, its approach reflects shifts toward organised industrial infrastructure,automation, and global competitiveness. By integrating design, fabrication, and erection, it supports just-in-time project delivery and predictable quality, which are increasingly demanded by multinational and domestic firms. The model also aligns with sustainability trends, optimising steel usage and facilitating energy- efficient industrial spaces.

Steel Industry

Steel remains the backbone of the Pre-Engineered Buildings (PEB) industry, which achieved new milestones in FY 2025-26. Demand for PEB structures across industrial, commercial, and emerging urban applications has accelerated, driven by cost efficiency, faster project delivery, and superior sustainability outcomes. This growing adoption has directly amplified Indias steel consumption, which reached a record 164.2 million tonnes (MMT) in CY 2026, underscoring steels central role in enabling large-scale infrastructure development.

Indias steel sector has also consolidated its position as a global force. In FY 2025-26, the country transitioned into a net exporter of finished steel, with exports rising 35.9% to 6.6 MMT, while crude steel production climbed to 169.2 MMT, reflecting strong double-digit growth. This shift highlights structural progress under Atmanirbhar Bharat, alongside sustained investments in modernisation, capacity expansion, and greener production processes.

Policy direction has consistently reinforced the sectors strategic importance in advancing the vision of Viksit Bharat 2047. The expansion of steel demand is closely tied to mega infrastructure programmes, industrial corridors, logistics networks, and rapid urbanisation, positioning PEBs as a key enabler of efficient, scalable, and future-ready construction across the economy.

Outlook

The Indian steel industry is firmly on track to achieve 300 MMT by 2030-31, reflecting strong policy support and sustained private investment.

A defining shift has emerged in trade dynamics, as India regained its status as a net exporter of finished steel in FY 2025-26. Exports rose sharply by 35.9%, with key markets

including Italy, Vietnam, and the UAE, signaling improved global competitiveness. The industry narrative is also evolving, moving beyond cost arbitrage towards value leadership, innovation, and product sophistication.

Central to this transition is the Production Linked Incentive scheme for specialty steel, which has attracted over 23,000 Crore in investments. The scheme is aimed at reducing reliance on imports of advanced steel grades while embedding Indian producers into high- value global supply chains. These developments position the steel sector as a critical driver of industrial upgrading, export strength, and long-term economic resilience.

Interarchs Approach

Interarch approaches the steel industry through a lens of efficiency, integration, and forwardlooking demand alignment. Rather than treating steel merely as an input, the Company positions it as a strategic lever to optimise

design, lifecycle performance, and scalability of built assets. Its model emphasises precision engineering, digital design integration, and controlled fabrication to maximise yield and reduce material intensity. Interarch also aligns with evolving industry priorities such as high-strength steel adoption, supply chain resilience, and low-carbon construction practices. This enables it to support next-generation infrastructure while adapting to pricing cycles, policy shifts, and global competitive dynamics.

Construction

Industry

Indias construction sector is in the midst of one of its most consequential growth phases. Urbanisation, industrialisation, and large-scale infrastructure development are converging to create sustained demand for construction solutions that are faster, more cost-efficient, and environmentally responsible. Prefabrication and modular techniques are gaining ground as the preferred response to these pressures, backed by significant public investment nd an enabling policy environment. Tier-2 and Tier-3 cities are emerging as key growth frontiers, where the need for affordable housing and stronger public infrastructure connectivity is being addressed through programmes such as the Smart Cities Mission and the Urban Infrastructure Development Fund, bringing Pre-Engineered Buildings (PEBs) firmly into the mainstream.

The sectors expansion draws from multiple, reinforcing directions.

With over 283 GW of non-fossil capacity now installed, renewable energy has become a significant driver of specialised construction demand, particularly for solar and wind projects. Simultaneously, the rapid growth of e-commerce has reshaped warehousing and logistics as a strategic infrastructure priority, with scalable storage and cold chain facilities at the centre of that investment story. These forces are further amplified by increased capital expenditure, propelled by a policy ecosystem that actively supports industrial and infrastructure growth.

That ecosystem spans the National Logistics Policy, the PM Gati Shakti Master Plan, and the Production Linked Incentive Scheme, along with strategic frameworks including the National Steel Policy and the National Infrastructure Pipeline. Programmes such as PMAY Urban, Atmanirbhar Bharat Abhiyan, Sagarmala, and Bharatmala Pariyojana are accelerating connectivity, driving capital expenditure, and advancing ESG-aligned construction practices. Together, they are cementing PEBs as a central feature of Indias evolving built environment.

Outlook

Indias construction market is projected to surpass USD

1.2 trillion by FY 2029-30, positioning the country as the worlds third-largest construction market. Growth is being propelled by front-loaded public expenditure and deepening private capital participation, transforming the sector into a technology-led engine that already contributes nearly 9% to national GDP.

Regulatory reforms are accelerating this trajectory. The evolution of Interfaces Approach

Interarch has positioned itself at the intersection of these shifts, building its offering around industrialised, technology- led construction. Its integrated model brings together design optimisation, off-site fabrication, and rapid on-site assembly, addressing the sectors demand for speed and cost efficiency. Digital tools such as BIM and automation are embedded across its project workflow, enabling the precision and scalability that large, complex builds require. With a deliberate focus on high-growth segments including logistics, manufacturing, and urban infrastructure, and with resource efficiency and sustainable design at the core of its practice, Interarch is equipped to deliver resilient, future-ready construction solutions at scale.

Real Estate Regulatory Authority frameworks and streamlined single-window clearances are improving project execution timelines and driving greater transparency. These changes, combined with a 22% year-on-year rise in FDI equity inflows recorded in late FY 2024-25, are drawing global developers and contractors from Southeast Asia and Europe to establish a meaningful on-ground presence in India.

Structurally, the industry is shifting decisively towards Modern Methods of Construction (MMC), with prefabrication and Building Information Modelling (BIM) redefining how complex infrastructure is designed and delivered. These approaches are compressing timelines, improving precision, and supporting the sectors broader transition towards digitalisation, scalability, and sustainable construction practices.

Company Overview

Interarch Building Solutions Limited (Interarch or the Company) was established in 1983 and has played a key role in bringing advanced steel building solutions to the Indian market. With more than four decades of experience, the Company has consistently driven innovation across segments such as metal ceilings, blinds, metal roofing, and pre-engineered steel buildings (PEBs), steadily expanding

Certifications

both its product range and execution capabilities.

Today, Interarch stands as the second-largest integrated PEB player in India, with a total installed capacity of 2,01,000 MTPA and a market share of around 14% in the domestic PEB industry. The Companys execution track record remains strong, with 800+ PEB projects completed between FY 2015-16 and FY 2025-26.

Interarch continues to strengthen its capabilities through strategic partnerships and expansion into adjacent areas such as advanced steel solutions to address evolving industry needs. Supported by an integrated execution model spanning design, manufacturing, logistics, supply, and on-site installation, the Company is well- positioned to deliver large-scale and complex construction projects with efficiency and consistency.

Certificate for Inspection Programme for Manufacturer of Metal Building System issued by IAS used to supply the preengineered buildings in USA.

ISO 45001: 2018 -

International Certificate for Occupational Health and Safety (OH&S) Management.

ISO 14001: 2015 -

International Certificate for Environmental Management Systems (EMS).

International Code Council - Certificate issued to supply LGFS products in the USA.

Certificate of Compliance - HPSS- 2000F Standing Seam Roof System.

CSA A660-10 -

Certification of Manufacturers of Steel Building Systems.

ISO 9001:2015 - CSA Standard

International W47.1 Division :

Certificate for Quality 2 - Manufacture Management System. of pre-engineered buildings.

Operational Performance

After a phase of strong operational growth, Interarch commissioned Phase II at its Athivaram facility in Andhra Pradesh during the year. The Company also acquired additional land in Gujarat to fast- track the development of its sixth fully integrated manufacturing plant. As of March 2026, the order book stood at 1,552 Crore, supported by rising demand from segments such as data centres and semiconductor facilities, along with its first major export orders from Ghana and Myanmar.

To support its expansion plans, the Company initiated a 100 Crore Qualified Institutional Placement (QIP) for capital expenditure. The planned investment is expected to double heavy steel structure capacity and support its targeted revenue milestone of 2,500 Crore by FY 2027-28.

Capacity expansion during the year was matched by a stronger focus on manufacturing efficiency and automation. Across facilities, advanced machinery enabled high- precision processes such as 3-axis drilling and automated cutting of complex steel sections, reducing workforce requirements by more than half. Automated box welding systems with auto-flippers and automatic shot blasting systems also improved material handling and surface quality across plants.

The Company further strengthened integration across its operations through its proprietary K Series automation platform. Structural designs can now move directly into fabrication workflows, reducing fabrication drawing time by 50% and improving coordination between design and production teams. Interarch also partnered with Mold-Tek Technologies to strengthen detailing capabilities for large-scale projects, particularly as it expands into North American and African markets.

Execution efficiency at project sites also improved through the adoption of the POD, or pre-assembled on ground, methodology. By carrying out assembly at ground level before lifting structures into place, the Company reduced work at height by 50% and shortened project timelines by nearly 30%.

Financial Performance

Particulars ( in Lacs unless stated otherwise)	FY 2025-26 (as per Ind AS)	FY 2024-25 (as per Ind AS )	FY 2023-24 (as per Ind AS)	FY 2022-23 (as per Ind AS)	FY 2021-22 (as per IGAAP)
Revenue from	1,89,800.10	1,45,383	1,29,330	1,12,393	83,158
Operations
EBITDA	17,634.63	13,624	11,301	10,638	3,254
EBITDA Margin (%)	9.29%	9.37	8.74	9.47	3.91
Profit Before Tax (PBT)	18,499.43	14,270	11,589	10,895	2,927
Profit After Tax (PAT)	13,452.49	10,783	8,626	8,146	2,198
PAT Margin (%)	6.98%	7.31	6.60	7.17	2.60
Earnings per	80.41	68.51	58.68	54.31	14.65
Share (?) - Basic
Earnings per	79.86	68.03	58.68	54.31	14.65
Share (?) - Diluted

Risks and Mitigation Strategy

No business of Interarchs scale and ambition operates without exposure to risk, and the Company makes no claim otherwise. Economic cycles, shifting infrastructure demand, competitive pricing pressure, geopolitical disruption, regulatory evolution, and the operational realities of running five manufacturing facilities across the country all present risks that require active management. Interarch addresses these through a governance framework built for systematic identification, assessment, and response, one designed to keep the organisation both resilient and capable of moving when opportunity arises.

Risk	Impact	Mitigation Strategy
Industry and Macro Risk	Interarch remains exposed to economic cycles, infrastructure demand, and competitive pricing pressures. While Indias postelection infrastructure push continues to support growth, geopolitical tensions across regions like the Middle East and Europe continue to disrupt freight movement and supply chains. The increasing scale of operations also heightens sensitivity to market fluctuations.	\u25a0 Leveraging strong brand equity, execution capabilities, and a pan-India presence, supported by the new Athivaram in Andhra Pradesh, to strengthen presence in South India while reducing logistics costs \u25a0 Maintaining a net-cash, zero-debt balance sheet to remain resilient to interest rate cycles \u25a0 Ensuring continuous focus on diversification, customer relationships, and operational scale to strengthen business stability
l J Price and Supply Chain Risk	Volatility in raw material prices and global supply chains can impact procurement costs, margins, and project execution timelines. Dependence on international trade movements also increases exposure to pricing fluctuations and supply disruptions.	\u25a0 Adoption of variable pricing models, strategic sourcing, and dynamic procurement practices \u25a0 Increasing reliance on domestic suppliers to reduce exposure to global volatility \u25a0 Efficient inventory and cost management to protect margins against price fluctuations
Design and Engineering Risk	Rising complexity in multi-storey and heavy steel structures increases execution risk. Errors during the design stage can result in structural failures, rework, delays, and higher financial as well as reputational impact due to larger project sizes.	\u25a0 Deployment of AI-driven design and analysis tools along with automated box welding machines to enhance precision \u25a0 Use of BIM (Building Information Modelling) for digital engineering and material passports that enable lifecycle tracking \u25a0 Strong in-house engineering expertise, global certifications, and detailed shop drawings to maintain quality and accuracy
Environmental and Regulatory Risk	Regulatory focus on sustainability continues to increase, including Extended Producer Responsibility (EPR) requirements under upcoming waste management rules effective April 2026. Projects are also subject to environmental certification requirements such as LEED and IGBC standards.	\u25a0 Integration of circular economy practices, including Design for Deconstruction (DfD) and partnerships with authorised recyclers to support recycling mandates \u25a0 Promotion of eco-friendly and sustainable building solutions, increased use of recycled materials, and alignment with green certification standards
Safety and Operational Risk	Expansion across five manufacturing facilities and continuous operations increase exposure to workplace hazards, including electrical, fire, and heavy material handling risks. Compliance with ISO 45001:2018 remains critical, especially for green building projects.	\u25a0 Strengthening OH&S systems through a zero- harm approach, supported by automation such as automatic shot blasting and robotic fencing to reduce manual handling by up to 50% \u25a0 Continuous safety training, strict adherence to ISO standards, and proactive risk assessments across operations

Corporate Social Responsibility

Interarchs approach to Corporate Social Responsibility (CSR) is grounded in the same rigour as it applies to its business operations: clearly defined principles, structured governance, and accountability for outcomes. The Companys CSR policy, framed in accordance with Section 135 of the Companies Act, 2013, and the Ministry of Corporate Affairs CSR Rules, establishes womens empowerment, public health, and education as its primary focus areas, chosen for the depth of impact they can deliver in the communities where Interarch operates.

The work is guided by commitments to fairness, environmental stewardship, gender sensitivity, and inclusivity, including the inclusion of persons with disabilities, ensuring that stakeholders from across the social spectrum are recognised in how the Company directs its community investment.

Environment, Health & Safety (EHS)

Interarchs Occupational Health and Safety (OH&S) system is built to the ISO 45001:2018 standard and managed as a core operational discipline rather than a compliance exercise. The framework addresses incident prevention, injury risk, occupational illnesses, while also supporting environmental protection initiatives.

Active involvement of employees, suppliers, and erectors is a key element of this approach, encouraging shared responsibility in maintaining a safe working environment. Interarch treats accident prevention and health protection as core business priorities and continues to strengthen a safety-oriented culture, reinforcing its commitment to the well-being of its workforce and all stakeholders. As of March 31, 2026, the Company had a total workforce of 3,242 on its payroll.

Internal Control Systems and their Adequacy

Interarchs internal control framework is designed around three things: safeguarding assets, ensuring that every transaction is properly authorised and documented, and keeping financial reporting accurate and reliable. Its effectiveness is evaluated regularly, with internal and external agencies auditing across a wide range of operational processes. Findings are presented to the Board, which reviews compliance levels, system reliability, authorisation procedures, and asset protection measures. In addition, statutory and internal auditors work alongside senior management to turn observations into corrective actions, maintaining a system that evolves rather than simply repeats itself.

Cautionary

Statement

Investors are cautioned that this discussion contains statements that involve risks and uncertainties. Words like anticipate, believe, estimate, intend, will, expect, and other similar expressions are intended to identify such forwardlooking statements. The Company assumes no responsibility to amend, modify, or revise any forward-looking statements on the basis of any subsequent developments, information, or events. Besides, the Company cannot guarantee that these assumptions and expectations are accurate or will be realised. Actual results, performance, or achievements could differ materially from those projected in any such forward-looking statements.