ION Exchange (India) Limited has informed the Exchange about the Earnings Call Transcript
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Ion Exchange reported Q1 FY26 consolidated operating income of INR 5,832 million, up 3% YoY, with net profit rising 8% YoY to INR 484 million, but EBITDA declined 2% to INR 627 million (margin 10.75%). Performance was partly hurt by transition challenges from migrating to SAP, which cost the chemical segment nearly the entire April month of revenues. Engineering segment EBIT grew 48% YoY to INR 278 million, but this was boosted by a one-time cost rebate; underlying margins are below last year. Order book stood at INR 26,640 million with a bid pipeline of over INR 92,000 million, though large order finalizations are delayed. The greenfield Roha resin plant (Rs 400 crore capex) is on track for commissioning in Q2 FY26, primarily to serve export markets, with full capacity ramp-up targeted over 3-4 years.
Mixed quarter with topline growth but margin pressure persists. Engineering segment's apparent margin strength is not sustainable without the one-time benefit, and legacy/UP Jal Nigam projects will continue to weigh on profitability through FY26. However, the Roha plant commissioning and strong consumer products growth (36% YoY) provide future growth levers. Investors should watch order inflows and margin trajectory once SAP transition effects fully normalize.