Ion Exchange (India) Limited reported consolidated operating income of INR 7,344 million for Q3 FY26, marking a 6% YoY increase. EBITDA declined by 21% YoY to INR 593 million. Management highlighted strong budget support for the water sector, expecting benefits for pending Jal Jeevan Mission projects. Growth was seen in the Chemical (16% YoY revenue) and Consumer Product (28% YoY revenue) divisions, while Engineering faced temporary headwinds from deferred international contracts.
Q3 and Nine Months Consolidated Financial Snapshot
For the 3rd Quarter under review (ending December 31, 2025), Ion Exchange reported consolidated operating income of INR 7,344 million, representing a 6% year-on-year (YoY) increase. However, EBITDA stood at INR 593 million, marking a 21% YoY decline, with the EBITDA margin at 8.07%. Net profit was INR 206 million, yielding a PAT margin of 2.81%.
For the nine months of FY2026, operating income reached INR 20,516 million (an 8% YoY increase). EBITDA for the nine months was INR 1,902 million, down 9% YoY, with an EBITDA margin of 9.27%. Net profit stood at INR 1,189 million (PAT margin 5.8%).
Management noted an exceptional item of INR 169 million recognized as a provision towards gratuity and leave-related employee benefits arising from the notification of the Labour Codes on November 21, 2025.
Quarterly Segmental Performance Analysis
Engineering Division
Revenue for the quarter was INR 4,297 million, flat YoY. EBIT declined by 28% YoY to INR 186 million. Order inflows showed sequential growth, driven by medium-sized opportunities, including securing two domestic solar sector contracts totaling INR 2,050 million. However, quarterly performance was impacted as dispatches for some high-value international contracts were deferred to the fourth quarter of FY25-26, and UP Jal Nigam execution remained muted.
The current total order book stands at INR 28,330 million, with an order inflow of INR 5,160 million during the quarter.
Chemical Division
Revenue increased by around 16% YoY to INR 2,307 million. EBIT declined by 18% YoY to INR 431 million, attributed to product mix and costs related to the commissioning of the Roha facility. The company expects the Roha facility to progress steadily, supporting long-term growth and margin improvement.
Regarding the Roha plant (total estimated CAPEX Rs.450 crores, with Rs. 285 crores capitalized), the cation stream is stabilized, and the remaining product lines are being commissioned sequentially. Management anticipates reaching 25% capacity utilization by the next financial year (FY’27), with an expected payback period of four to five years. The higher CAPEX is due to conscious decisions ensuring the plant is a model of sustainability and zero liquid discharge.
Consumer Product Division
This segment showed strong momentum, with revenue increasing by 28% YoY to INR 987 million. The loss for the quarter widened slightly to INR 33 million (from INR 29 million last year) as the company continues to invest heavily in advertising, such as the “Bharat Ka Paani” campaign, to sustain its 30% YoY growth.
Management Commentary on Budget Implications
Management noted that the Union Budget strongly supports infrastructure, sustainability, and the water sector, which bodes well for Ion Exchange. Specific positive indicators include:
- Reinforced support for the Jal Jeevan Mission (JJM) project, extended till 2028, which should improve fund flow for pending projects like the UP JJM backlog (currently Rs. 400 crores).
- Investment in sunrise industries like semiconductors (Rs. 40,000 crores outlay), boosting demand for ultra-pure water and ZLD solutions.
- Focus on critical mineral processing, benefiting the Ion Exchange Membranes and Resins portfolios.
- Opportunities arising from the setup of five mega-textile parks.
Regarding legacy project profitability, management stated that while the worst is not entirely behind them, they have tightened the order selection process in engineering. They expect the profitability of new orders to be in the high single digits, acknowledging that highly attractive margins are rare in the current competitive project environment.
Source: BSE
