Ion Exchange (India) Limited reported a sharp decline in profitability for the financial year ended March 31, 2026, even as revenue continued to grow. The company's standalone net profit after tax fell to INR 13,837.92 Lacs from INR 21,448.27 Lacs in the previous year, weighed down by higher finance costs linked to the new Roha resin manufacturing plant, elevated raw material costs, and the non-recurring impact of newly notified Labour Codes. Standalone revenue from operations grew to INR 2,67,890.54 Lacs from INR 2,54,006.25 Lacs, representing growth of approximately 5.5%.

Financial Highlights

The following table summarises the key standalone and consolidated financial metrics for FY26 and FY25 (INR in Lacs):

On a standalone basis, EBITDA margin contracted as earnings before interest, taxes, depreciation fell to INR 27,928.38 Lacs from INR 33,639.64 Lacs. Finance costs more than doubled to INR 2,054.06 Lacs from INR 838.46 Lacs, and depreciation rose to INR 5,758.37 Lacs from INR 3,999.23 Lacs, both primarily attributable to the commissioning of the Roha resin manufacturing facility.

Performance Highlights (Management Discussion)

The Management Discussion and Analysis report disclosed the following standalone and consolidated performance highlights:

Standalone:

• Total Income: INR 2,774 crores
• EBITDA: INR 279 crores
• EBITDA Margin: 10%
• Net Profit After Tax: INR 138 crores
• PAT Margin: 5%
• Diluted EPS: 11.257 (face value INR 1 each)

Consolidated:

• Total Income: INR 3,001 crores
• EBITDA: INR 297 crores
• EBITDA Margin: 9.9%
• Net Profit After Tax: INR 143 crores
• PAT Margin: 4.8%
• Diluted EPS: 12.034 (face value INR 1 each)

Exceptional Item: Labour Codes

On November 21, 2025, the Government of India notified four Labour Codes consolidating twenty-nine existing labour laws. The resulting increase in gratuity liability from past service cost and leave liability together amounted to INR 1,454.41 Lacs on a standalone basis and INR 1,689.04 Lacs on a consolidated basis. Ion Exchange has presented this incremental amount as an exceptional item — "Impact of Labour Codes" — in its financials for the year ended March 31, 2026, given the non-recurring nature of the enactment.

Dividend

The Board of Directors recommended a final dividend of INR 1.25 per equity share of face value INR 1 each for FY26, compared to INR 1.50 per equity share in FY25. The record date for dividend entitlement has been fixed as Monday, August 31, 2026. Dividend, if declared at the Annual General Meeting scheduled for September 11, 2026, will be paid within 30 days of declaration.

Segment-Wise Performance

The company operates across three business segments:

The Engineering segment secured significant orders from the solar sector and progressed on desalination projects in North Africa. The Chemical segment recorded marginal sales volume growth, with margins under pressure from elevated raw material costs and the ramp-up costs of the Roha facility. The Consumer Products segment delivered strong performance, with the Home Water Solutions business recording robust growth and institutional order bookings rising over 65%.

Roha Plant and New Capacity

A key development during FY26 was the commissioning of both cation and anion resin production at the greenfield resin manufacturing facility at Roha, Maharashtra. Out of the total planned production capacity of 42,600 cubic metres per year, a portion with a capacity of 3,696 cubic metres per year was started from September 30, 2025. The facility incorporates non-solvent manufacturing technologies and features an Effluent Treatment Plant with Zero Liquid Discharge capacity to treat 3,000 KLD of wastewater. The plant supports the company's Make in India alignment and is expected to serve growing domestic and international demand.

Key Subsidiary Performance

Selected subsidiary results for FY26 are summarised below:

Ion Exchange & Co. LLC, Oman was awarded a long-term contract by Petroleum Development Oman under a Design, Build, Own, Operate and Maintain agreement for a Potable Water Facility and Sewage Treatment Facility in the South PDO Concession Area. The aggregate contract value is OMR 73.46 million (approximately INR 1,730 crore over the contract period), with a tenure of twenty years.

CSR and Governance

The company's total CSR obligation for FY26 was INR 5,30,87,216. Total CSR expenditure amounted to INR 5,31,36,196, resulting in a marginal excess spend of INR 48,980 over the statutory requirement. CSR initiatives covered education, health and hygiene, drinking water, rural development, and skill development, collectively benefiting over 60,955 beneficiaries across more than 50 projects. The Board met seven times during FY26. No complaints were received under the Sexual Harassment of Women at Workplace Act during the year. Foreign exchange earnings for the year were INR 57,023.97 Lacs and foreign exchange outgo was INR 28,519.22 Lacs.

Annual General Meeting

The 62nd Annual General Meeting of Ion Exchange (India) Limited is scheduled for Friday, September 11, 2026 at 11:00 AM through Video Conferencing/Other Audio Video Means. The AGM will consider adoption of audited financial statements for FY26, declaration of dividend, re-appointment of Mr. Dinesh Sharma (DIN: 00051986) as director retiring by rotation, and ratification of remuneration of INR 4,75,000/- payable to M/s. R. Nanabhoy & Co. as Cost Auditors for the financial year ending March 31, 2027.

August 18, 2026

Ion Exchange Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-2026 with the Bombay Stock Exchange and the National Stock Exchange of India Limited. The submission, made pursuant to Regulation 34(2)(f) of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, outlines the company’s environmental, social, and governance performance.

Strategic Sustainability Targets

The report emphasizes a systems-level approach to conserving resources through water and environmental management solutions. Ion Exchange has established aspirational targets to achieve carbon neutrality by 2030 and net-zero greenhouse gas emissions by 2050. Additionally, the company aims to achieve water positivity across its operations within defined long-term timelines.

These commitments are embedded within the company's strategic roadmap, influencing product innovation and operational efficiency. The report notes that progress against these ESG targets is periodically reviewed by dedicated internal committees with representation from senior management and the Board of Directors.

Governance and Oversight

Mr. Indraneel Dutt, Managing Director & CEO, serves as the highest authority responsible for the implementation and oversight of the Business Responsibility policies. The company has constituted a dedicated core group under his leadership to drive the ESG strategy and monitor performance.

TÜV SÜD South Asia Pvt. Ltd. provided limited assurance for the disclosures in the report. The filings cover standalone operations for Ion Exchange India Ltd., reflecting activities across its engineering, chemical, and consumer product segments.

What the Numbers Show

The BRSR filing indicates a structured integration of sustainability metrics into corporate governance. By linking board-level oversight directly to specific environmental targets such as carbon neutrality and water positivity, the company signals that these non-financial metrics are treated with similar rigor to financial performance indicators. This alignment suggests that capital allocation and operational decisions are increasingly influenced by long-term sustainability outcomes rather than short-term compliance requirements alone.