Ion Exchange (500214) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 consolidated operating income rose 20% year-on-year to INR 7,005 Mn, but EBITDA declined 49% to INR 318 Mn and net profit was INR 31 Mn, with a PAT margin of 0.44%.

• The company implemented a new segment reporting structure: Treatment Solutions, Industrial Products, Lifecycle Services, Specialty Chemicals, and Consumer Products.

• Legacy projects, especially in Treatment Solutions, continued to impact profitability, but order book and bid pipeline remain robust.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, were approved by the Board on August 5, 2026.

• Results have been reviewed by independent auditors, with no material misstatements identified.

Financial highlights

• Consolidated revenue from operations was INR 7,005 Mn (up 20.1% YoY); EBITDA: INR 318 Mn (down 49.3% YoY); EBITDA margin: 4.54%.

• Net profit: INR 31 Mn (down 93.6% YoY); PAT margin: 0.44%.

• Order book at INR 97,770 Mn as of June 30, 2026, excluding a $52.83 million Hyundai contract won post-quarter.

• Bid pipeline at INR 9,777 crores.

• Basic and diluted EPS for the quarter were INR 0.347 (consolidated).

Outlook and guidance

• Management expects improved profitability as Roha plant utilization ramps up and legacy projects wind down.

• Double-digit profitability is a medium-term goal, with focus on higher-margin projects and international expansion.

• Growth expected from liquidation of existing backlog, new segments, and overseas expansion.

• Consumer Products segment targets breakeven in FY27.

• The company has realigned its portfolio to focus on technology-led water and environment solutions.