ION Exchange (India) LimitedCapital Goods & EngineeringIONEXCHANG
Q1 FY27 concall · earnings callION Exchange (India) Limited
The company faced a challenging quarter with profitability significantly impacted by legacy projects, high input costs, and geopolitical issues, despite 20% revenue growth.
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Operating Income | ₹701 Cr | 20% YoY | |
| EBITDA | ₹32 Cr | -49% YoY | |
| EBITDA Margin | 4.54% | — | |
| Net Profit | ₹3 Cr | — | |
| PAT Margin | 0.44% | — | |
| Order Book | ₹2,473 Cr | — |
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹690.51 Cr+24.7% YoY+7.1% QoQ | ₹49.59 Cr+5% YoY-2.1% QoQ | ₹4.10+2.5% YoY-4.7% QoQ |
| Q2 FY25 | ₹644.47 Cr+20.9% YoY+13.5% QoQ | ₹50.64 Cr+19.6% YoY+13.1% QoQ | ₹4.30+19.8% YoY+13.5% QoQ |
| Q1 FY25 | ₹567.57 Cr+18.4% YoY-27.4% QoQ | ₹44.78 Cr+34.4% YoY-38.2% QoQ | ₹3.79+34.9% YoY-38.3% QoQ |
| Q4 FY24 | ₹781.81 Cr+20.7% YoY+41.2% QoQ | ₹72.45 Cr-10.8% YoY+53.4% QoQ | ₹6.14-91.1% YoY+53.5% QoQ |
| Q3 FY24 | ₹553.85 Cr+8.1% YoY+3.9% QoQ | ₹47.24 Cr-0.9% YoY+11.5% QoQ | ₹4.00-90.1% YoY+11.4% QoQ |
- Operating income grew 20% YoY to INR 701 crores, but EBITDA declined 49%.
- Profitability was hit by legacy projects in Treatment Solutions, startup costs at the Roha plant, and higher raw material prices.
- All five new reporting segments showed double-digit revenue growth.
- Order book stood at INR 2,473 crores with a strong bid pipeline of INR 9,777 crores.
- Management aims to improve execution, scale new capacities, and focus on less risky, higher-margin businesses.
“The performance in the first quarter has been disappointing, and it is a combination... of legacy projects which continue to grind through... of Roha coming up to speed... and also a combination of the current geopolitical situation.”
| Topic | What management said |
|---|---|
| Legacy Projects | The UP project and at least one other large project continue to impact Treatment Solutions profitability; a significant part of the work is done but substantial work remains, with the UP project likely spilling into next fiscal. |
| Roha Plant Impact | The Roha facility impacted Specialty Chemicals segment margin by approximately 6%; utilization is softer than expected due to geopolitical issues, but the 25% first-year utilization target is still being pursued. |
| Segment Reporting & Profitability | The reclassification aims for transparency; lifecycle services margins appear low because significant profitability sits in products and chemicals segments, not reported one-to-one. |
| Input Costs & Geopolitics | Higher petrochemical input costs hurt margins; some softening is seen with lower crude, but the situation remains fluid. Geopolitics also delayed some invoicing and dispatches. |
| Growth Segments | Management highlighted focus on advanced/emerging solutions (semiconductors, green hydrogen, resource recovery) and building scale in Industrial Products, Specialty Chemicals, and Lifecycle Services to improve business mix. |
- Aim to break even in the Consumer Products segment in this financial year.
- Expect a substantial increase of at least 50% in Specialty Chemicals capacity over the next couple of years as Roha achieves full utilization.
- Target double-digit profitability over time by focusing on products, chemicals, services, and higher-margin advanced solutions.
- Continue to be selective in picking up projects, especially in Treatment Solutions, to improve risk profile and profitability.
Summary written from the transcript filed by ION Exchange (India) Limited for the call held on 17 Aug 2026; published 18 Aug 2026, 20:21 IST.
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