ION Exchange (India) Limited Earnings Summary — Q1 FY2027
Ion Exchange (India) Faces Sharp Profit Compression Amid Revenue Growth and Margin Headwinds
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 18.9% sequentially in Q1 FY2027.
- Revenue of ₹700 Cr is 20.1% higher year-on-year.
- Revenue has compounded at -4.8% annualised over the last 10 quarters.
- Net profit of ₹4 Cr is 91.6% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -72.1% annualised across the period.
- Operating margin stands at 4.5% in Q1 FY2027.
- Operating margin compressed by 619 bps year-on-year.
- Over the last two years operating margin has contracted by 678 bps.
- PBT margin is 1.1%.
- Expenses grew 28.4% against revenue growth of 20.1%.
- Operating profit of ₹32 Cr is 49.2% lower year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 39/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 700 | 863 | 734 | 734 | 583 | 835 | 691 | 644 | 568 | 782 |
| Expenses | Stable | 669 | 844 | 675 | 665 | 521 | 749 | 615 | 576 | 503 | 690 |
| Operating Profit | Softening | 32 | 20 | 59 | 68 | 63 | 86 | 75 | 68 | 64 | 92 |
| Operating Margin | Stable | 4.5% | 2.3% | 8.1% | 9.3% | 10.7% | 10.3% | 10.9% | 10.6% | 11.3% | 11.8% |
| Other Income | Volatile | 6 | 43 | -4 | 15 | 18 | 15 | 9 | 15 | 11 | 17 |
| Interest | Volatile | 9 | 11 | 8 | 3 | 3 | 4 | 3 | 4 | 3 | 3 |
| Depreciation | Accelerating | 22 | 20 | 19 | 12 | 12 | 12 | 11 | 11 | 10 | 10 |
| Profit Before Tax | Declining | 7 | 32 | 29 | 68 | 66 | 85 | 70 | 68 | 62 | 95 |
| Tax | Declining | 4 | 8 | 8 | 18 | 17 | 22 | 20 | 18 | 17 | 23 |
| Net Profit | Declining | 4 | 24 | 20 | 50 | 49 | 63 | 49 | 51 | 45 | 73 |
| Net Margin | Declining | 0.6% | 2.8% | 2.8% | 6.8% | 8.3% | 7.6% | 7.0% | 7.9% | 7.9% | 9.3% |
Key Takeaways
- Revenue grew 20% YoY to ₹70,046 Lacs, showing steady demand for water and environmental solutions.
- Net Profit plummeted by 93.7% YoY, heavily impacted by higher operating costs and tax provisions.
- The Treatment Solutions segment reported a significant loss of ₹1,735 Lacs compared to a profit of ₹1,681 Lacs in the same quarter last year.
- Effective April 1, 2026, the company reorganized its segments to focus on being a technology-led water solutions provider.
- Specialty Chemicals remains the strongest margin contributor, though its segment results halved YoY from ₹4,625 Lacs to ₹2,227 Lacs.
- Finance costs increased significantly from ₹256 Lacs to ₹895 Lacs YoY, reflecting higher borrowings for capacity expansion.
- Auditors highlighted a persistent legal matter regarding a subsidiary (IEEFL) and a SEBI directive to deposit ₹2,202 Lacs.
Management Guidance
Management is transitioning from a conventional EPC model to a technology-led water and environment solutions provider, focusing on driving growth in high-value Chemicals, Services, and Solutions.
Sentiment Shift
Deteriorating
While revenue remains resilient, the sharp contraction in margins and profitability, particularly in the core Treatment Solutions segment, suggests significant near-term execution and cost challenges.
Outlook
The company is in a heavy CAPEX phase, investing in new infrastructure which is currently diluting short-term earnings. Long-term outlook depends on the successful integration of new capacities and margin recovery in the engineering/treatment divisions.
From the Annual Report (Key Quotes)
“Effective from 1st April, 2026... the Company has realigned its portfolio positioning as technology-led water and environment solutions provider.”
“The matter is currently pending, with the next hearing scheduled for 12th August, 2026.”
“The figures for the quarter ended 31st March 2026 are the balancing figures between audited figures in respect of the full financial year and the unaudited year to date figures.”
Official Quarterly Documents
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This summary is AI-generated from ION Exchange (India) Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.