₹130 Crore Order Lifts Interarch Building Shares Amidst Volatility
Overview
Interarch Building Solutions' stock saw a modest gain after securing a ₹130 crore order for pre-engineered steel building systems, to be completed in 10 months. This order offers a positive offset to recent share price declines and a tax demand from authorities, though the company intends to appeal.
Interarch Building Solutions shares climbed Wednesday as the company announced it has secured a significant order worth ₹130 crore. The stock rose as much as 3.50 per cent to ₹2,145.90 on the National Stock Exchange of India (NSE), attempting a recovery from a 4.51 per cent dip in the prior session.
Order Boosts Stock
The order involves the design, engineering, manufacturing, and supply of a pre-engineered steel building system. Interarch Building Solutions confirmed receiving a 10 per cent advance payment as per the Letter of Intent (LoI). The company expects to complete the project within 10 months. This new contract comes at a time when the scrip has been struggling, having declined approximately 19.50 per cent from its 52-week high of ₹2,762.60.
Financial Performance
The company's financial results for the second quarter of the current financial year (Q2FY26) showed robust growth. Profit after tax (PAT) surged to ₹32 crore from ₹21 crore year-on-year. Revenue also saw a significant increase, rising to ₹491 crore from ₹323 crore in the same period. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) improved to ₹42 crore from ₹25 crore in Q2FY25. At the close of the quarter, Interarch Building Solutions' order book stood at ₹1,634 crore.
Tax Headwinds
Despite the positive order news, Interarch Building Solutions is also navigating tax-related challenges. Earlier this month, the company received a tax demand of ₹46.11 lakh, including penalty and interest, from Jaipur's CGST Division. Authorities cited alleged short payment due to credit note issuance in 2019-20. A separate demand of ₹45.78 lakh was received from Uttar Pradesh Tax Authorities. Interarch Building Solutions plans to file appeals for both demands, stating that no short payment was made for the relevant periods.
