Pre-Engineered Buildings (PEB) are no longer just a niche, low-cost substitute for traditional construction. In fact, they have become the critical “bottleneck solution” for India’s ongoing infrastructure boom.
The Semiconductor, Data Center, and Renewable Energy Tailwind
As India aggressively scales up “sunrise sectors” like semiconductor manufacturing, data centers, and renewable energy, the speed of execution is non-negotiable. Companies in these sectors simply cannot afford the prolonged timelines of traditional Reinforced Cement Concrete construction.
The ESG Play
Labor constraints and massive scale are forcing industries to adopt prefab solutions. PEBs aren’t just an infrastructure play; they are a prime ESG (Environmental, Social, and Governance) play as well. Traditional RCC construction contributes heavily to pollution and waste, whereas prefab offers 52% reduction in embodied carbon 25% less onsite manpower.
The India PEB industry has historically grown at a CAGR of 8.3% (FY19 to FY25E), but growth is accelerating rapidly. It is projected to compound at 9.5%-10.5% between FY25E and FY30P. As a result, the market size is expected to grow from ₹21,000 crore to ₹34,500 crore by FY30.
About the PEB Sector
Overall, PEB penetration is expected to rise from just 3-5% currently to 5-7%. The surge in PEB demand is directly tied to the massive capital expenditure cycles currently unfolding in India’s highest-growth industries.
The semiconductor market also aims to reach $100-110 billion by 2030, supported by the India Semiconductor Mission (₹76,000 crore). These highly complex cell plants, wafer factories, and ingot facilities require extremely rapid construction that only PEB can provide. Data Centers also demand specialized, fast-to-deploy PEB and insulated panel structures.
As India’s data center capacity is expected to grow at a staggering 30% CAGR, reaching 2,000-2,300 MW by FY27 (up from 900-950 MW in FY24), demand for PEB is expected to grow robustly. For listed players, the shift from unorganised to organised presents an opportunity to capture market share.
The organized sector’s market share has grown from 35-40% in FY19 to an estimated 42-47% in FY25E and is projected to reach 47-52% by FY30P. With the market already at ₹20,000+ crore but penetration still in low single digits, the headroom for expansion remains significant.
Against this backdrop, this article discusses two PEB companies leading the shift.
#1 The PEB Powerhouse: Analyzing Interarch’s Building Solutions Integrated Business Model
Interarch Building Solutions is a premier turnkey provider of pre-engineering steel construction solutions in India. It is the second largest among integrated PEB players in India with 6.5% share and installed capacity (201,000 Metric Tons Per Annum (MTPA)). Interarch distinguishes itself by operating as a vertically integrated company.
From Reliance to Tata Projects: A Blue-Chip Portfolio with 82% Repeat Orders
The company operates primarily through two main segments: PEB Contracts and PEB Sales. Its major clientele includes corporate groups like JSW, Safexpress, Reliance Industries, and Tata Projects. It serves a broader range of end-user industries, with the industrial and manufacturing sector accounting for 77% of revenue in FY25.
Expansion Roadmap: Why Interarch is Fast-Tracking its Gujarat CapEx
To ensure capacity constraints do not bottleneck growth, Interarch has strategically preponed its capital expenditure. The company’s fifth PEB facility is scheduled to start commercial production by Q2FY27. A second 40,000 MTPA plant in Gujarat is targeted for completion by Q1FY28.
In addition, phase 1 of the heavy steel structures plant (20,000 MTPA) is slated to start production by Q2FY27. Concurrently, Phase 2 is being fast-tracked to double the heavy-structure capacity to 40,000-45,000 MTPA, with an expected completion between December 2026 and January 2027. The company’s facilities are secured by a strong order book.
Order Book Deep Dive: Decoding the ₹2,200 Crore Bid Pipeline
As of 31 January 2026, Interarch’s order book stood at ₹1,685 crore. Interarch enjoys customer trust, as 82% of FY25 orders are repeat purchases from existing clients. The forward-looking bid pipeline is exceptionally strong. Pipeline 1 (short-to-medium gestation) stands at ₹1,200 crore, while Pipeline 2 (Long Gestation) is ₹1,000 crore.
The Data Center Tailwind: How Interarch is Pivoting to High-Growth Tech Infrastructure
Data center and renewable energy are actively driving its order book. Especially, the increase in demand for data centers across India is a major tailwind for the PEB market’s infrastructure segment. Interarch is capitalizing on this by demonstrating its execution capabilities.
To this end, Interarch was an early entrant into steel data center construction. About three years ago, it built a ground-plus-five-story data center for the American company Iron Mountain in Mumbai, one of the first facilities of its kind to be built with steel.
The company is currently executing a data center project in Greater Noida for Techno Electric, an EPC contractor, with the final facility intended for RailTel. It also lists a data center building in Navi Mumbai, Maharashtra, as part of its extensive track record.
Multi-story data centers were one of the top three industries that drove over ₹500 crore in new orders during Q3FY26. Data centers and multistory steel buildings currently account for at least 15% of Interarch’s order pipeline. The company is actively working with both EPC contractors and direct data center companies to secure future projects.
Just like data centers, the renewable energy sector is a major contributor to Interarch’s recent revenue growth. Its demonstrated track record includes the construction of large-scale Solar PV module manufacturing facilities located in Dholera, Gujarat, and Jaipur, Rajasthan. It is also eyeing the electric vehicle sector.
The Road to ₹3,500 Crore Revenue
The company’s revenue outlook is positive. Interarch expects to report revenue of around ₹1,900 crore (up 30%) in FY26, exceeding the guidance of about ₹1,710 crore. Further, revenue is expected to grow 12-15% to ₹2,100 crore and eventually reach ₹2,500 crore in FY28.
Management noted that newly added capacities might even enable them to surpass this figure. Once these expansions are complete by early FY28, Interarch projects its total utilizable capacity will translate to a sales potential of approximately ₹3,500 crore.
9MFY26 Financial Performance: 41% Growth Across All Key Metrics
From a financial standpoint, revenue rose 41% year-on-year to ₹1,394 crore in 9MFY26, driven by strong execution capabilities and higher capacity utilization. EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) increased 41% to ₹124 crore, with the margin at 8.9%. Net Profit increased by 41% to ₹98 crore.
#2 EPack Prefab: A Deep Dive into India’s Fastest-Growing PEB Player
EPack Prefab is a leading turnkey provider of pre-engineered steel buildings and prefabricated solutions in India. It is one of the fastest-growing players in the industry, holding an 8% market share with an installed PEB capacity of 133,922 MTPA. It also has 13,10,000 Square Meters for sandwich insulated panels, and 8,400 MTPA for EPS packaging.
Epack distinguishes itself by offering comprehensive end-to-end capabilities, from in-house design and engineering to manufacturing, transportation, and on-site installation.
From Avaada to Royal Enfield: High-Trust Portfolio with 45% Repeat Orders
The company operates primarily through two segments: PEB and EPS Packaging. Its clientele includes corporate groups like Avaada, Reliance Industries, Waaree, CG Power, JK Cement, and Eicher Motors (Royal Enfield).
The industrial, engineering & consultancy, and automobile & transportation sectors collectively account for 65% of the prefab segment’s revenue in 9MFY26. Notably, the company maintains strong client retention, with 40% to 45% of its orders coming from repeat customers.
Sunrise Sector Dominance: Capturing the Semiconductor and Renewable Boom
Epack is positioning itself as the preferred vendor for high-growth “sunrise” sectors. Currently, 25-28% of the company’s order book is driven by the renewable energy sector, while another 18% comes from the electronics, semiconductor, and electrical industries.
The 150-Hour World Record: Why Speed is EPACK’s Competitive Edge
Clients in these sectors often demand a fast execution speed to capture market opportunities. Epack has demonstrated its ability to deliver on these stringent timelines. It has a Golden Book of World Records certification for erecting a 1,50,000 sq. ft. pre-engineered factory at Mambattu in just 150 hours.
To meet a surge in demand from sunrise sectors such as renewable energy and semiconductors, Epack has strategically planned its capital expenditure.
Gujarat to Mambattu: Decoding the ₹160 Cr Capacity Expansion Roadmap
To meet the growing demand in Western India, the company has acquired 39 acres of land in Vithalapur, Gujarat. The first phase of this new facility is targeted for completion by the end of FY27. It will add a PEB capacity of 50,000 MTPA with an estimated capital expenditure (CapEx) of approximately ₹55-60 crore.
The company is investing about ₹101 crores in an 800,000 SQM continuous sandwich-insulated panel line, alongside an 11,300 MTPA addition to its structural PEB capacity. The expansion remains on track for commercialization by Q3FY27.
In addition, Epack is rapidly expanding its southern footprint by adding 25,500 MTPA of PEB capacity at its Mambattu facility. This is scheduled to commence commercial production within Q4 FY26. The expansion roadmap will push the company’s total PEB capacity to 2,20,000 MTPA and its panel capacity to 21,10,000 SQM by the end of FY27.
The company’s expanding facilities are secured by an order book of ₹1,215.5 crore, providing a clear runway for future execution.
The ₹1,215.5 Crore Order Book
9MFY26 Financial Audit: 58.9% PAT Growth Signals Strong Operating Leverage
From a financial standpoint, revenue rose 31.3% year-on-year to ₹1,055 crore in 9MFY26 (with the core Prefab segment revenue rising 41%), driven by strong demand from the renewable sector and improved capacity utilization. EBITDA increased 38% to ₹113 crore, with the margin at 10.8%. Net Profit increased by 59% to ₹62 crore.
20% Growth Target: Management’s Vision for a ₹1,800 Crore FY27
Looking ahead, management aims to report revenue of ₹1,500-1,550 crore in FY26, and 20% year-on-year growth in FY27 to reach ₹1,800 crore revenue. Long-term, the company plans to maintain a 30-35% year-on-year growth rate. It states that if the broader market grows at 10%, EPACK intends to outpace it, growing at 20%.
Sector Comparison: Efficiency vs. Valuation
While both companies maintain a robust Return on Capital Employed (ROCE) above 23%, EPACK demonstrates superior capital efficiency with a Return on Equity (ROE) of 22.8% compared to Interarch (18%).
Valuations of both companies have eased post-recent correction.
Epack is trading at a price-to-earnings multiple of 21.4x, down from a peak of around 36x. Interarch, on the other hand, is trading at 23.2x, down from a peak multiple of around 39x. Both are newly listed companies and lack appropriate historical data.
| Valuation Comparison (X) | ||||
| Company | P/E | Industry Median P/E | RoCE (%) | RoE (%) |
| Interarch | 23.2 | 18.3 | 24.8 | 18.0 |
| Epack Prefab | 21.4 | 28.2 | 23.7 | 22.8 |
| Source: Screener.in (Data as of 7 April 2026) | ||||
Conclusion: A Multi-Year Structural Opportunity
With the market expected to grow from ₹21,000 crore to ₹34,500 crore by FY30 and penetration still at just 3-5%, the headroom remains significant. As capex cycles strengthen, PEB adoption is set to rise steadily, making this a structural opportunity for organised players. While the structural shift is evident, investors must monitor execution risks and margin sustainability.
It’s worth keeping these stocks in your watchlist.
Disclaimer:
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data were unavailable have we used an alternative, widely accepted, and widely used source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities, or other related investments of issuers and/or companies discussed therein. The articles’ content and data interpretation are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources, and only after consulting such independent advisors as may be necessary.