Ion Exchange (500214) Q3 25/26 earnings summary

Executive summary

• Operating income for Q3 FY26 was INR 7,344 million, up 6% year-on-year; nine-month income was INR 20,516 million, up 8% year-on-year.

• EBITDA for Q3 declined 21% year-on-year to INR 593 million; nine-month EBITDA was INR 1,902 million, down 9% year-on-year.

• Net profit for Q3 was INR 206 million (PAT margin 2.81%); nine-month net profit was INR 1,189 million (PAT margin 5.8%).

• Exceptional item of INR 169 million recognized due to new Labour Codes impacting employee benefits.

• Order book stands at INR 28,313 million, with INR 5,160 million order inflow in Q3.

Financial highlights

• Gross margin declined by 260 basis points year-on-year in Q3, mainly due to adverse product mix and cost increases.

• Q3 EBITDA margin was 8.07%; nine-month EBITDA margin was 9.27%.

• Q3 net profit margin was 2.81%; nine-month net profit margin was 5.8%.

• Standalone revenue from operations for Q3 FY26 was ₹66,893 lakhs, up from ₹64,993 lakhs in Q3 FY25; nine-month revenue was ₹186,500 lakhs, up from ₹175,495 lakhs year-over-year.

• Standalone profit after tax for Q3 FY26 was ₹2,406 lakhs, down from ₹5,333 lakhs in Q3 FY25; nine-month profit after tax was ₹11,881 lakhs, down from ₹14,990 lakhs year-over-year.

Outlook and guidance

• Q4 expected to be stronger due to deferred international project execution and improved order inflow.

• Roha facility expected to reach 25% capacity utilization in FY27, with full commissioning by next financial year.

• Engineering segment profitability expected to improve as legacy projects taper off and new selective orders are executed.

• Chemical segment margins anticipated to recover as price increases are passed on and Roha ramps up.

• The company continues to monitor the impact of new Labour Codes and will evaluate further effects on employee benefit liabilities.