IONEXCHANGNSEQ2 FY 2025-26November 12, 2025

ION Exchange (India) Limited

7,853words

101turns

11analyst exchanges

0executives

Key numbers — 40 extracted

rs,

investor relations of Ion Exchange (India) Limited. On behalf of the company and Valorem Advisors, I would like to thank you all for participating in the company's earnings conference call for the

INR 7,339 million

he completion of migration to the SAP environment and the company reported an operating income of INR 7,339 million, an increase of around 14% year-on-year. The EBITDA stood at INR 685 million, which is largely on

14%

ironment and the company reported an operating income of INR 7,339 million, an increase of around 14% year-on-year. The EBITDA stood at INR 685 million, which is largely on the same line year-on-year

INR 685 million

rating income of INR 7,339 million, an increase of around 14% year-on-year. The EBITDA stood at INR 685 million, which is largely on the same line year-on-year. The EBITDA margin stood at 9.33% and net profit

9.33%

od at INR 685 million, which is largely on the same line year-on-year. The EBITDA margin stood at 9.33% and net profit was INR 499 million, a decline slightly by 1.4% year-on-year, while the PAT margin

INR 499 million

ich is largely on the same line year-on-year. The EBITDA margin stood at 9.33% and net profit was INR 499 million, a decline slightly by 1.4% year-on-year, while the PAT margin was 6.8%. For the first half o

1.4%

ear. The EBITDA margin stood at 9.33% and net profit was INR 499 million, a decline slightly by 1.4% year-on-year, while the PAT margin was 6.8%. For the first half of financial year 2026, the com

6.8%

t profit was INR 499 million, a decline slightly by 1.4% year-on-year, while the PAT margin was 6.8%. For the first half of financial year 2026, the company reported operating income of INR 13,171

INR 13,171 million

was 6.8%. For the first half of financial year 2026, the company reported operating income of INR 13,171 million, an increase of 9% year-on-year. The EBITDA stood at INR 1,310 million, down 1% year-on-year. The

financial year 2026, the company reported operating income of INR 13,171 million, an increase of 9% year-on-year. The EBITDA stood at INR 1,310 million, down 1% year-on-year. The EBITDA margin st

INR 1,310 million

ted operating income of INR 13,171 million, an increase of 9% year-on-year. The EBITDA stood at INR 1,310 million, down 1% year-on-year. The EBITDA margin stood at 9.95% and net profit was INR 984 million, an

f INR 13,171 million, an increase of 9% year-on-year. The EBITDA stood at INR 1,310 million, down 1% year-on-year. The EBITDA margin stood at 9.95% and net profit was INR 984 million, an increase

Guidance — 20 items

Vasant Naik

opening

“Regarding the Sri Lanka project, with the resumption of funding by the customer and with their satisfaction with the company's ongoing progress of work, we are now expediting the completion of the contract.”

Vasant Naik

opening

“These were planned investments to support higher future volumes, as well as the continuing effect of a legacy project that has influenced the margins for the period.”

Vasant Naik

opening

“This will be under a co-branding arrangement between the HYDRAMEM brand and MANN+HUMMEL.”

Vasant Naik

opening

“Leveraging MANN+HUMMEL's global proven membrane technology, we will produce these advanced membranes locally at our state-of-the-art manufacturing facility, thereby reducing the import dependence and enhancing cost efficiency and competitiveness in the water treatment project across India.”

Indraneel Dutt

“And we had informed the stakeholders that we expect to continue for some more time..”

Indraneel Dutt

“The current order book includes several projects with better -margin which will start getting executed in the third and fourth quarters, and we expect these to enhance overall profitability.”

Indraneel Dutt

“So, we hope that going forward, it will slowly start normalizing.”

Chetan Vohra

“And till then, whether we will be seeing the margins of 5%?”

Indraneel Dutt

“But we have mentioned in the past that we expect the execution of these one or two projects to continue till the end of this financial year.”

Indraneel Dutt

“We expect the second half performance to be better than 2nd quarter performance and expect engineering margins for second half in the region of 6/7 % .”

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Risks & concerns — 6 flagged

The EBITDA margin stood at 9.33% and net profit was INR 499 million, a decline slightly by 1.4% year-on-year, while the PAT margin was 6.8%.

— Vasant Naik

The segment EBIT was INR 224 million, a decline of 5% year-on-year.

— Vasant Naik

Again, sir, the first half was, I would say, quite in contrast to the quarter 1, where there was a revenue decline whereas the margin stood at 9% because of some one-off thing.

— Chetan Vohra

It is a function of the market pricing as well as the raw material, which again is very volatile and we keep track of the commodity prices as well as on the exchange rate.

— Indraneel Dutt

But it is still a very dynamic situation and I would just be conservative and cautious that we continue to watch out for the market scenarios and try to do our best to ensure we are able to continue giving the same rate of returns on the business.

— Indraneel Dutt

So, I do not think there is really a big concern from the break-even standpoint.

— Indraneel Dutt

Q&A — 11 exchanges

Yes. Hi, hello sir. Sir, on the engineering front, we saw the execution picking up at 18% growth rate. But whereas the margins were like all- time low at 4.8%, how should we understand these two situations wherein the execution has improved but the margins are going lower and lower and these margins were like never heard of.

Indraneel Dutt

Good afternoon, Chetan ji. Thank you for your question. This is Indraneel Dutt speaking. So, your observation is valid. So, let me answer both parts of the question. I think on the revenues, as you know, as we reported in the first quarter results, that we were in the process of implementing the SAP system. And as a result, our first quarter performance was muted on account of that implementation. And the engineering business obviously picked up those latent or pending order backlog and we were able to bring forward the execution in the 2nd Quarter. So, that is why you see a decent growth ther

Yes, ma'am. This is the last question. How much we would have incurred for the Roha plant in total?

Vasant Naik

We have indicated in the past that our total CAPEX on the Roha plant is in the region of Rs. 450crores roughly. Okay. Thank you, sir.

Yes. Hi, sir. Sir, a question on the consumer product business. Last two quarters, we have shown good growth in the segment. Can you help us understand what are the levers driving this segment and what is the kind of break-even timeline that we are looking at? And also, if you would reiterate the timeline on the Rs. 500 crore guidance for the segment.

Indraneel Dutt

Thank you for the question. So, for the consumer product division, I think it is a very, very big market that we are playing in. And we believe that there is enough for us to still go and get share from the market. We have strong confidence in our product portfolios, some of which are market leaders in their own areas. And I think it has been, I would say, a consistent journey of gaining more customer share. Our service contracts also are increasing quarter-on-quarter. And I think also we are investing in our brand promotions. You will possibly hear us on some of the FM channels. You will hear

Yes. Thank you for the opportunity. Am I audible?

Indraneel Dutt

Yes. Yes. Hi, sir. So, sir, first question is in our strategic partnership, which you have mentioned in the presentation of MANN+HUMMEL water membrane. So, could you just elaborate on this opportunity? Because we are talking about producing it locally. So, it is in form of import substitution for us. I just wanted to understand what was the, let us say, quantum of import of this MANN+HUMMEL membrane solution or components in India, let's say, in FY’25. And how well are they penetrated in, let us say, Indian water treatment solution? And what are the primary applications which goes into? This p

Yes, sir. Good afternoon. Sir, in the notes to account, we have highlighted this cost of material consumed includes great expense on some contract. What is this? Is this a legacy cost that we are calling out the onerous contract or is this something else?

Vasant Naik

No, this is part of the accounting standard requirement of disclosing the costs, which are directly attributable to the engineering contracts under execution. So, these are basically direct costs on the engineering EPC contracts, which are reclassified to COGS from the operation expenses side. And this is a standard norm which is followed across all EPC companies. Correct. And just, I mean, even if we conclude this onerous contract by end of FY’26, but even then we would not be back on margin track next year, right? I mean, given UP, assuming that ramps up, I mean, it is a question of when. Bu

We are seeing clear, strong demand in this particular segment. Across both our businesses, we see good capacity utilization. The reason for the company to invest in this state-of-the-art new resin plant was that we were maxed out in capacity in our current plant. We are in a supply- constrained market. As we scale up, we see good demand picking up for our supplies. And the same applies to our chemical business as well. Raghav Maheshwari:Sir, will you be able to give what has been the utilization of the new added capacity at the Roha plant?

Indraneel Dutt

We are selling whatever we are making. We will continue to sell whatever we make. Also, it needs to be understood that a plant of this nature is not like flipping a button. It is a chemical process plant. It requires to be optimized. You have to get the right quality. These are export products that we are shipping out to customers. They are facing global measures. That requires a lot of preparation and ensuring that quality is best in class in the world. So the scale-up has to be done in the right way using our technology and IP knowledge to ensure that we can give our customers across the wor

Yes, sir. Sir, we look at the capital work-in-progress closing balance at Rs. 200 crores. So, all these are pertaining to the Roha facility only or since we have capitalized on the project, if you could just clarify once again, what does this Rs. 200 crores balance attribute to?

Vasant Naik

We have capitalized the Roha plant partially to the extent we have been able to commercialize the streams. So, the balance of the plant is still lying in the capital work-in-progress. And the large part of the capital work-in-progress balance which you just mentioned is related to the Roha plant only. And that should get capitalized over the next few months. And before the year-end, we should have the entire plant capitalized. Okay. With respect to the bid pipeline, I think some number was mentioned, sir, in the presentation. I am just making it about the order book bid pipeline. Can you give

Thank you, sir. My question is on the Roha plant commissioning. Sorry if you had answered this already. We had commissioned around 10% of the expansion. When are we planning to commission the remaining? Can we expect the remaining to be commissioned by the end of this year, gradually?

Indraneel Dutt

Our plan is to get the commissioning of the plant done by this financial year. But as I said, the full scale-up of production of this plant is envisaged over the next three to four years. But as far as commissioning of the plant is concerned, including the unique technology that we are trying to unveil, that should get done by the end of this financial year. That is what we are targeting for. Got it sir. And for the capacity that is already commissioned, what is the year-end exit capacity utilization that we are targeting? The capacity that already been commissioned will be fully utilized well

That is just a follow-up. Thank you.

Management

Hi. Thank you for the opportunity. Being a little long-term investor, I repeatedly heard and listened to management actively by Mr. Sharma and Mr. Patni. What I understand is this segment of engineering, which during the last 10 years moved from 2% to 10% margin, going back to around 4%, 5%. We are a very engineering-driven company, technology-driven company. And so we do not take a very low margin in some projects which are not having any scale added. So what lessons have we learned in the last two, three years? And when you see, will we be going back to those very respectable margins of mayb

Indraneel Dutt

So thank you, sir. Looks like you have been really long associated with the company and your observations are valid. And the company, as I said, has taken lessons from a couple of those legacy projects, which is why you see us becoming very selective in the kind of orders we pick up. And I am happy to share that some of the projects we picked up in the last quarter, definitely a lot more comfortable from a profitability standpoint for us. You also rightly said, sir, that we are a technology company. And engineering is one of the segments, but even in engineering, it is a composite segment. It

Thank you all for participating in this earnings conference call. I hope we have been able to answer your questions satisfactorily. If you have any further questions or would like to know more about the company, please reach out to our investor relations manager at Valorem Advisors.

Management

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Speaking time

Indraneel Dutt

Moderator

Chetan Vohra

Vasant Naik

Deepak

Saket Kapoor

Pratik Kothari

Ruchit Agrawal

Kishore Kumar

Sunil

Opening remarks

Purvangi Jain

Good afternoon everyone and a warm welcome to you all. My name is Purvangi Jain from Valorem Advisors. We represent the investor relations of Ion Exchange (India) Limited. On behalf of the company and Valorem Advisors, I would like to thank you all for participating in the company's earnings conference call for the 2nd Quarter and first half of the financial year 2026. Before we begin, let me mention a short cautionary statement: Some of the statements made in today's earnings call may be forward- looking in nature. Such forward-looking statements are subject to risk and uncertainty, which could cause actual results to differ from those anticipated. Such statements are based on management belief as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings call is purely to educate and bring awareness abo

Vasant Naik

Thank you, Purvangi. Good afternoon, everybody. It is a pleasure to welcome you all to the Earnings Conference Call for the 2nd Quarter and first half of Financial Year 2026. For the 2nd Quarter under review, on a consolidated basis, the operations normalized with the completion of migration to the SAP environment and the company reported an operating income of INR 7,339 million, an increase of around 14% year-on-year. The EBITDA stood at INR 685 million, which is largely on the same line year-on-year. The EBITDA margin stood at 9.33% and net profit was INR 499 million, a decline slightly by 1.4% year-on-year, while the PAT margin was 6.8%. For the first half of financial year 2026, the company reported operating income of INR 13,171 million, an increase of 9% year-on-year. The EBITDA stood at INR 1,310 million, down 1% year-on-year. The EBITDA margin stood at 9.95% and net profit was INR 984 million, an increase of 3% year-on-year, while the PAT margin was around 7.47%. Now let me tak

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