Now Reading: Interarch shares fall 4% as Q1 profit flat despite revenue jump
-
01
Interarch shares fall 4% as Q1 profit flat despite revenue jump
Interarch shares fall 4% as Q1 profit flat despite revenue jump
Shares of Interarch Building Solutions dropped 4.08 per cent to ₹1,700.50 on Monday as the market reacted to its Q1 FY27 results. Revenue rose 20.7 per cent to ₹459.6 crore and EBITDA…
The Story in Brief
Shares of Interarch Building Solutions dropped 4.08 per cent to ₹1,700.50 on Monday as the market reacted to its Q1 FY27 results. Revenue rose 20.7 per cent to ₹459.6 crore and EBITDA grew 24.6 per cent, but profit after tax slipped marginally to ₹28.2 crore from ₹28.4 crore a year ago, hit by lower other income and higher depreciation. The stock opened higher at ₹1,812 before sellers took over, with sell orders at 57.22 per cent of the book.
The company's order book stood robust at ₹1,864 crore as of July 31, 2026. It commissioned Phase 1 of a new PEB facility in Kheda, Gujarat, adding 20,000 MT capacity, and announced a joint venture with Canada's ER Steel Inc. for North American markets. The stock has lost 26.17 per cent year-to-date and trades at a trailing P/E of 22.12, with a market cap of about ₹2,852 crore.
The Indian Opinion
A 20.7 per cent revenue jump yet flat net profit, this is the sort of result that makes retail investors wonder if growth is just a headline. The businessline report shows PAT margins shrank 131 basis points to 6.1 per cent, a number the company's presentation likely played down. The stock has lost over a quarter of its value year-to-date, far worse than the Nifty's 5.89 per cent fall. Until the Kheda plant and Canada joint venture actually lift earnings, the P/E of 22 looks expensive. The real test: will Q2 show operating leverage or more margin compression?
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
