Interarch Q1 FY27: PAT flat YoY, margin below guidance despite 20.7% revenue growth
PAT -0.47% YoY · revenue +20.72% · margins compressing
₹459.65 Cr
+20.72% YoY
₹28.25 Cr
-0.47% YoY
6.11%
-1.1pp YoY
₹16.84
Interarch Building Solutions posted standalone Q1 FY27 (quarter ended June 30, 2026) revenue of ₹459.65 Cr, up 20.7% YoY from ₹380.77 Cr, but standalone PAT of ₹28.25 Cr was essentially flat YoY (-0.5%) against ₹28.38 Cr a year ago — a sharp divergence between topline and bottom-line growth that makes this a margin story, not a growth story. Sequentially, revenue fell 8.7% and PAT fell 22.8% versus the seasonally strong Q4 FY26 (₹503.62 Cr revenue, ₹36.60 Cr PAT), consistent with the monsoon-quarter softness typical of an erection/installation-heavy PEB business — this QoQ dip should not be read as deterioration.
Q1 FY-2027 vs prior quarters
The YoY profit stall traces almost entirely to other income, which collapsed to ₹3.00 Cr from ₹9.93 Cr a year ago (-70%), rather than to core operations: the operating cost base actually improved slightly, with total expenses at 92.5% of revenue versus 92.7% a year ago, holding EBITDA-level margin (PBT + finance cost + depreciation − other income, over revenue) at roughly 8.6% versus 8.3% YoY. Net profit margin, however, compressed to 6.1% of total income from 7.3% YoY (and 7.2% in Q4 FY26) once the weaker other-income line flowed through. The other-income drop lines up with the company's unutilised IPO proceeds shrinking to just ₹14.98 Cr as of June 30, 2026 (from a much larger base earlier), meaning less FD interest income — a base effect, not an operating problem, but one that continues to shrink each quarter as capex draws down the remaining balance.
The stock went into the print at ₹1,860.4, up 4% over the past month of trading.
Interarch Building Solutions projects revenue of ₹2,150-2,200 crores for FY27 and ₹2,500 crores for FY28, driven by significant capacity expansion in both pre-engineered buildings (PEB) and heavy structures. The company anticipates continued strong order flow, with the current order book of ₹1,700 crores expected to be
— This quarter: missed
Management's FY27 guidance (from the Q4 FY26 concall) calls for ₹2,150-2,200 Cr revenue and EBITDA margins of 9.3-9.7%. Q1's 20.7% YoY revenue growth is running ahead of the ~14-16% pace implied by that target, but the quarter's ~8.6% operating margin sits below the guided band, so on the margin dimension the print falls short even as the topline outpaces plan — management gives no formal quarterly margin guidance, so this is judged against the annual band. No press release or management commentary accompanied this filing (none extracted yet), and no analyst consensus estimate for this specific quarter could be found in a web search; broker previews referenced only the same FY27 revenue/margin guidance rather than a quarter-specific number, so vsStreet is unknown rather than assumed.
W1
Other income run-rate: watch if it stabilizes near ₹3 Cr/quarter as the ₹14.98 Cr unutilised IPO-proceeds FD balance (as of Jun 30, 2026) is drawn down further for capex.
W2
FY27 EBITDA margin guidance of 9.3-9.7% vs Q1's ~8.6% print — needs to converge over the next three quarters as Kheda capacity ramps.
W3
Execution of the ₹1,700 Cr order book (guided nine-month timeline) and shareholder approval of the ₹250 Cr QIP and 1:5 stock split at the Sept 10, 2026 AGM.
Standalone only — no consolidated statement in this filing. Figures converted from ₹ Lakhs (÷100). No exceptional item this quarter (the ₹3.24 Cr Labour Code past-service-cost exceptional item sits only in the FY26 full-year column, not any single quarter shown). Auditor's Emphasis of Matter flags an Aug 2025 Income Tax search/survey; management states no material adjustment or demand as of this filing.
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