Ion Exchange (India) Limited has disclosed a significant development in its ongoing legal proceedings with Angeripalayam Common Effluent Treatment Plant Limited (ACETP). The company informed both BSE and NSE on March 6, 2026, about an appeal filed against a previously favorable arbitral award.

Appeal Filed Against Arbitral Award

ACETP has approached the Hon'ble High Court of Judicature at Madras (Commercial Division) seeking to overturn an arbitral award that had dismissed its claims against Ion Exchange. The original arbitral award, delivered by a Sole Arbitrator, had ruled in favor of Ion Exchange by rejecting ACETP's financial claims.

Regulatory Compliance and Disclosure

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Ion Exchange has been regularly updating stakeholders about this litigation matter, with previous intimations filed on August 28, 2023, and January 12, 2026.

Company Secretary and Compliance Officer Nikisha Solanki signed the regulatory filing, ensuring adherence to the latest SEBI circular requirements dated January 30, 2026. The company emphasized that this update continues its commitment to transparent disclosure of material litigation matters.

Current Status and Implications

The appeal represents ACETP's attempt to challenge the arbitral award that had previously protected Ion Exchange from the substantial financial claim. While the original arbitration had concluded in Ion Exchange's favor, the matter now moves to the High Court level for judicial review.

The company has indicated that no settlement discussions are currently underway, and the matter does not involve key management personnel or promoters. Ion Exchange will continue to monitor the proceedings and provide updates as required under regulatory guidelines.

Ion exchange reported mixed financial results for the third quarter of FY26, with revenue growth offset by margin pressures across key business segments. The water treatment solutions provider faced headwinds from project execution delays and facility ramp-up costs during the quarter.

Financial Performance Overview

The company delivered consolidated operating income of INR 7,344 million for Q3 FY26, representing a 6% increase year-on-year. However, profitability metrics showed pressure with EBITDA declining 21% to INR 593 million, resulting in an EBITDA margin of 8.07%. Net profit stood at INR 206 million with a PAT margin of 2.81%.

For the nine-month period, operating income reached INR 20,516 million, up 8% year-on-year, while EBITDA decreased 9% to INR 1,902 million with a margin of 9.27%. Net profit for nine months was INR 1,189 million with a PAT margin of 5.8%.

Engineering Division Performance

The Engineering division reported revenue of INR 4,297 million for the quarter, remaining flat year-on-year. Segment EBIT declined 28% to INR 186 million due to project mix challenges and execution delays. The division secured two major domestic solar sector contracts aggregating INR 2,050 million, covering ultra-pure water systems, effluent treatment plants, and zero liquid discharge solutions.

The planned dispatches of high-value international engineering contracts were deferred to Q4 FY26, impacting quarterly performance. Additionally, execution of the UP Jal Nigam order remained muted due to funding constraints.

Chemical Division and Roha Facility Progress

The Chemical division generated revenue of INR 2,307 million, showing 16% year-on-year growth. However, EBIT declined 18% to INR 431 million due to product mix challenges and Roha facility costs. The stage-wise commissioning of the Roha facility continues progressing steadily, with 40-45% capacity now operational.

The facility is being developed as an industry benchmark for product quality and sustainability, with full capacity utilization planned over four years. Management expects the facility to deliver better margins than the existing Ankleshwar facility once fully operational.

Consumer Products Growth Momentum

The Consumer Product division demonstrated strong growth with revenue of INR 987 million, up 28% year-on-year. The segment reported a loss of INR 33 million compared to INR 29 million in the previous year, as the company continues investing in advertising and promotion to build market presence. The division maintains healthy volume growth trends with continued investments in the "Bharat Ka Paani" brand campaign.

Budget Impact and Future Outlook

Management highlighted positive implications from the Union Budget, particularly the extension of the Jal Jeevan Mission until 2028 with increased allocation. The budget's focus on semiconductor development with INR 40,000 crores additional outlay, establishment of five mega-textile parks, and revival of 200 industrial clusters presents growth opportunities across Ion Exchange's business segments.

The company remains selective in order intake while pursuing opportunities in ultra-pure water, semiconductor, solar, and data center segments. With order inflows already exceeding the previous year's annual intake in nine months, the company maintains a cautious but optimistic outlook for sustainable growth.