Ion Exchange Reports 14% Revenue Growth in Q2, Commences Roha Plant Commissioning

Ion Exchange (India) Limited , a leading player in the water and environment management sector, has reported a 14% year-on-year increase in operating income for Q2, reaching INR 7,339 million. The company's performance was marked by growth across segments, strategic expansions, and technological advancements.

Financial Highlights

Metric	Q2	YoY Change
Operating Income	7,339.00	+14%
EBITDA	685.00	Flat
EBITDA Margin	9.33%	-
Net Profit	499.00	-1.4%
PAT Margin	6.80%	-

For the first half of the fiscal year, Ion Exchange reported:

Operating income of INR 13,171.00 million, up 9% year-on-year
Net profit of INR 984.00 million, a 3% increase
EBITDA of INR 1,310.00 million, down 1% year-on-year
EBITDA margin of 9.95%

Segment Performance

Engineering Division

Revenue: INR 4,562.00 million (+16% YoY)
Segment EBIT: INR 224.00 million (-5% YoY)
Secured orders in ultra-pure and high-purity water projects for solar and pharmaceutical segments
Strong growth in services division with high-value long-term O&M contracts

Chemical Segment

Revenue: INR 2,184.00 million (+11% YoY)
EBIT: INR 591.00 million (+13% YoY)
Maintained margin profile with consistent operational performance

Consumer Products Division

Revenue: INR 858.00 million (+24% YoY)
Reduced loss to INR 27.00 million from INR 35.00 million in the same period last year
Maintained leadership in the softener segment and expanded market share in other segments

Strategic Developments

Roha Plant Commissioning: Ion Exchange commenced stage-wise commissioning of its greenfield manufacturing plant at Roha, Maharashtra in September. The total CAPEX for this project is approximately INR 450.00 crores.
Strategic Partnership: The company entered a partnership with MANN+HUMMEL Water Membrane Solutions for manufacturing advanced membranes in India. This collaboration aims to reduce import dependence and enhance cost efficiency in water treatment projects across India.
Order Book: The current order book stands at INR 27,110.00 million, with an order inflow of INR 4,700.00 million during the quarter.

Management Commentary

Indraneel Dutt, Managing Director and CEO, commented on the results: "Our engineering division saw improved execution this quarter, with a 16% growth in revenue. While margins were impacted by elevated infrastructure costs and legacy projects, we are focusing on higher-margin products and services to improve profitability."

Regarding the Roha plant, Dutt added, "We plan to gradually ramp up the commissioned capacity to reach the proposed levels by the end of the current financial year. We expect to reach a capacity utilization of around 25% in the first 12 months of production."

Future Outlook

Ion Exchange remains optimistic about its growth prospects, particularly in the chemical segment and consumer products division. The company's strategic investments in advanced technologies and manufacturing capabilities are expected to strengthen its market position and drive future growth.

The management expects the engineering segment's performance to improve in the coming quarters as new, higher-margin projects begin execution. The company continues to focus on expanding its presence in technology-intensive areas such as ultra-pure water, high-purity water, desalination, and wastewater treatment.

As Ion Exchange progresses with the commissioning of its Roha plant and leverages its new strategic partnerships, it aims to capitalize on the growing demand for water and wastewater treatment solutions both domestically and internationally.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.11%	-1.00%	-8.53%	-34.69%	-42.14%	+96.81%

Ion Exchange (India) Limited , a pioneer in water and environment solutions, has reported a robust 31% year-over-year increase in consolidated operating income for Q2 FY26, reaching INR 7,339 million. The company's financial results, released on November 6, 2025, showcase significant growth despite some margin pressures.

Financial Highlights

Metric	Q2 FY26	Q2 FY25	YoY Change
Operating Income	7,339.00	5,832.00	+31.00%
Operating EBITDA	685.00	627.00	+9.30%
Operating EBITDA Margin	9.33%	10.75%	-142 bps
Net Profit	499.00	484.00	+3.10%
Diluted EPS	4.18	4.11	+1.70%

For the half-year period ending September 30, 2025, Ion Exchange reported consolidated revenue growth of 8.7%, reaching INR 13,171 million, with a net profit of INR 984 million.

Operational Developments

The company has made significant strides in expanding its manufacturing capabilities:

SAP Migration: Ion Exchange completed the migration to a SAP environment, enhancing its operational efficiency.
New Manufacturing Plant: The company commenced stage-wise commissioning of its greenfield resin manufacturing plant at Roha, Maharashtra, strengthening its production capacity.
Strategic Partnership: Ion Exchange entered into a partnership with MANN+HUMMEL Water & Membrane Solutions for local membrane manufacturing, aiming to reduce import dependence and enhance cost efficiency in water treatment projects across India.

Segment Performance

Engineering

The segment showed sequential improvement in order flow, driven by medium-sized opportunities. The company secured orders in ultra-pure and high-purity water projects for solar and pharmaceutical segments.

Services

The division recorded strong growth, acquiring several high-value long-term Operation & Maintenance (O&M) contracts.

Chemicals

This segment maintained its margin profile while recording sequential and year-on-year improvement in turnover.

Consumer Products

The segment continues to record volume growth, maintaining leadership in the softener segment and expanding market share in other segments through focused marketing strategies.

Order Book and Future Outlook

As of September 30, 2025, Ion Exchange's engineering order book stands at INR 9,011 crores, indicating a strong pipeline of projects. The company's focus on expanding its standard system facilities and innovative off-the-shelf engineering products suggests a strategy for sustained growth.

While the company faces some margin pressures due to elevated infrastructure costs designed for higher volumes, its diverse product portfolio and strategic expansions position it well for future growth in the water treatment and environmental solutions market.

Ion Exchange's continued investment in research and development, with over 50 patents and 100+ commercialized products, underscores its commitment to innovation in the water and wastewater treatment sector.

As the company navigates challenges such as the execution of the UP Jal Nigam Order and the completion of its Sri Lanka contract, its strong order book and strategic initiatives provide a solid foundation for future performance.