Ion Exchange (500214) Q2 25/26 earnings summary

Executive summary

• Operating income for Q2 FY26 rose 14% year-on-year to INR 7,339 million; H1 FY26 income up 9% to INR 13,171 million.

• Q2 EBITDA was INR 685 million, flat year-on-year; net profit declined 1.4% to INR 499 million.

• H1 net profit increased 3% year-on-year to INR 984 million; PAT margin at 7.47%.

• SAP migration completed, normalizing operations.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY26 were approved and reviewed with no material misstatements.

Financial highlights

• Q2 FY26 consolidated operating income: INR 7,339 million, up 13.9% YoY; Q2 PAT: INR 499 million; H1 FY26 income: INR 13,171 million; H1 PAT: INR 984 million.

• Q2 EBITDA margin at 9.33%; H1 EBITDA margin at 9.95%; Q2 PAT margin at 6.8%.

• Standalone Q2 FY26 revenue: INR 6,782 million; PAT: INR 479 million.

• Basic EPS (consolidated) for Q2 FY26 was INR 4.18, and for H1 FY26 was INR 8.29.

• Standalone and consolidated revenue and PAT both showed year-on-year growth.

Segment performance

• Engineering: Q2 FY26 revenue INR 4,562 million; order book at INR 27,110 million; execution improved but margins hit by legacy projects.

• Chemicals: Q2 FY26 revenue INR 2,184 million; EBIT up 13%; new resin plant at Roha commissioned.

• Consumer Products: Q2 FY26 revenue INR 858 million; segment loss reduced to INR 27 million; continued volume growth and market share gains.

• Services: Growth driven by new long-term O&M contracts.

• Segment results for Q2 FY26: Engineering INR 2,089 lacs, Chemicals INR 5,369 lacs, Consumer Products loss of INR 275 lacs.