Ion Exchange (500214) Q3 25/26 earnings summary

Executive summary

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

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

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

• Exceptional item: INR 169 million (₹1,697 lakhs) provision due to new Labour Codes for gratuity and leave benefits.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved by the Board on January 29, 2026.

Financial highlights

• Q3 EBITDA margin at 8.07%, down from previous year; nine-month EBITDA margin at 9.27%.

• Gross margin declined 260 bps year-on-year, mainly due to adverse product mix and cost increases.

• Interest and depreciation costs increased, primarily due to Roha facility commissioning.

• Order book at INR 28,313 million; Q3 order inflow INR 5,160 million.

• 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.

Outlook and guidance

• Q4 expected to show improved invoicing and profitability, especially from international projects.

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

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

• Engineering segment profitability to gradually improve as legacy projects taper off and order selection tightens.

• Deferred dispatches of high-value international contracts expected to benefit Q4 FY26.