Ion Exchange (500214) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated operating income fell 8.1% YoY to INR 6,747 million; EBITDA loss was INR 848 million and net loss INR 828 million, largely reflecting legacy Treatment Solutions cost revisions.

• H1 operating income rose 4.4% YoY to INR 13,752 million, while EBITDA loss was INR 530 million and net loss INR 797 million.

• Delayed GCC dispatches and Specialty Chemicals input-cost inflation also weighed on results; H2 Treatment Solutions execution is expected to improve.

Financial highlights

• Q2 consolidated revenue was INR 67,473 lacs versus INR 73,394 lacs a year earlier; net loss was INR 8,276 lacs versus net profit of INR 4,992 lacs.

• H1 consolidated revenue rose to INR 137,519 lacs from INR 131,713 lacs; net loss was INR 7,970 lacs versus net profit of INR 9,836 lacs.

• Q2 order inflows were INR 8,130 million; order book was INR 29,690 million and bid pipeline INR 93,700 million at September 30, 2026.

• Hyundai Engineering & Construction’s Middle East filtration-unit contract was valued at $52.83 million and described as having a favorable margin profile.

Outlook and guidance

• Higher H2 execution is expected to lift Treatment Solutions turnover; management targeted higher-single-digit H2 EBIT margin and FY revenue near the prior-year level.

• Industrial Products growth is expected to continue on healthy order inflows; improving Roha offtake and customer cost pass-through are expected to support Specialty Chemicals.

• Consumer Products is planned to break even by FY-end; digital solutions are commercialized and expected to support Services growth.

• A portion of Hyundai project revenue is expected in FY27, depending on execution progress.