ION Exchange Q2 FY27 results: net loss of ₹82.76 crore vs ₹49.92 crore profit, revenue down 8.1%

How did ION Exchange perform in Q2 FY27?

ION Exchange reported consolidated revenue of ₹674.73 crore in Q2 FY27, down 8.1% from ₹733.94 crore in Q2 FY26 and 3.7% from ₹700.46 crore in Q1 FY27. EBITDA moved from a profit of ₹68.49 crore to a loss of ₹84.76 crore, while EBITDA margin fell 21.9 percentage points to -12.6% from the year-ago quarter. The company reported a net loss of ₹82.76 crore and basic EPS of -₹6.84, against a net profit of ₹49.92 crore and EPS of ₹4.18 in Q2 FY26.

On a standalone basis, Q2 FY27 revenue was ₹615.73 crore, down 9.2%, and the company reported a net loss of ₹71.35 crore. Standalone profit before tax was ₹47.87 crore, compared with consolidated profit before tax of -₹108.38 crore in the quarter. The consolidated loss narrowed from the previous quarter’s net loss of ₹3.06 crore to a net loss of ₹82.76 crore, and basic EPS moved from ₹0.35 to -₹6.84.

What changed in ION Exchange's costs and profit?

Total expenses rose 16.2% to ₹790.91 crore in Q2 FY27 from ₹680.70 crore in Q2 FY26. Cost of materials increased ₹33.70 crore, or 7.4%, to ₹486.64 crore; employee cost rose ₹15.20 crore, or 15.4%, to ₹113.79 crore; finance costs rose ₹6.34 crore, or 205.8%, to ₹9.42 crore; depreciation rose ₹9.83 crore, or 80.8%, to ₹22 crore; and other expenses rose ₹13.87 crore, or 12.9%, to ₹121.36 crore. Other income fell ₹6.46 crore, or 45.3%, to ₹7.80 crore, and there was no exceptional item.

Management said that changes in estimated completion costs for a few legacy Treatment Solutions projects significantly affected Q2 financials. It also said that dispatches to GCC markets were delayed because of the ongoing Middle East crisis, while input costs increased and gross working capital was affected. Specialty Chemicals margins remained under pressure because of West Asia input-cost inflation and costs associated with the Roha facility. Tax was -₹24.71 crore in Q2 FY27, against tax of ₹17.94 crore in Q2 FY26.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹1,375.19 crore, up 4.4% from ₹1,317.13 crore in H1 FY26. Total income rose 3.0% to ₹1,388.94 crore from ₹1,349.13 crore, but profit before tax turned to a loss of ₹101.39 crore from a profit of ₹132.96 crore, and net profit turned to a loss of ₹79.70 crore from a profit of ₹98.36 crore. Basic EPS was -₹6.49, against ₹8.29 in H1 FY26.

Management’s investor presentation reported consolidated H1 operating EBITDA of a loss of ₹530 million and net profit of a loss of ₹797 million, with operating EBITDA margin of -3.85% and PAT margin of -5.80%. The same presentation said that H1 operating income rose 4.4% year on year, while expenses rose 14.1%.

What do the balance sheet and cash flow show?

At 30 September 2026, consolidated total assets were ₹3,403.25 crore, compared with ₹3,379.93 crore at 31 March 2026. Total equity fell to ₹1,246.52 crore from ₹1,340.32 crore, borrowings declined to ₹443.26 crore from ₹454.41 crore, and cash fell to ₹115.33 crore from ₹184.56 crore. Inventories were ₹433.12 crore against ₹441.39 crore, trade receivables were ₹1,057.26 crore against ₹1,074.69 crore, and trade payables were ₹880.51 crore against ₹899.67 crore.

H1 FY27 operating cash flow was ₹39.76 crore, compared with an outflow of ₹8.26 crore in H1 FY26. Investing cash flow was an outflow of ₹53.46 crore against an outflow of ₹10.16 crore, while financing cash flow was an outflow of ₹50.93 crore against an inflow of ₹70.97 crore. Capital expenditure was ₹49.07 crore, compared with ₹156.39 crore in the year-ago first half.

How has ION Exchange done over the last 8 quarters?

Revenue peaked at ₹863.27 crore in Q4 FY26 and was ₹674.73 crore in Q2 FY27. Profit before tax moved from a profit of ₹67.50 crore in Q2 FY26 to a loss of ₹108.38 crore in Q2 FY27, while net profit moved from ₹49.92 crore to -₹82.76 crore. EBITDA margin declined from 9.3% in Q2 FY26 to -12.6% in Q2 FY27, following 4.5% in Q1 FY27. The latest quarter therefore showed lower revenue and a wider loss than the preceding quarters.

Which businesses drove the quarter?

Treatment Solutions reported revenue of ₹149.77 crore and EBIT of -₹121.54 crore in Q2 FY27, with an EBIT margin of -81.2%. Industrial Products reported revenue of ₹136.0 crore and EBIT of ₹8.56 crore, while Lifecycle Services reported revenue of ₹70.64 crore and EBIT of ₹5.86 crore. Specialty Chemicals reported revenue of ₹254.61 crore and EBIT of ₹22.48 crore, an EBIT margin of 8.8%. Consumer Products reported revenue of ₹100.54 crore, up 17.2% from ₹85.79 crore, and EBIT of -₹4.14 crore against -₹2.67 crore; its EBIT margin was -4.1%.

The company’s presentation gave segment movements for Treatment Solutions, Industrial Products, Lifecycle Services, Specialty Chemicals and Consumer Products. It said Industrial Products grew approximately 35% YoY, Specialty Chemicals improved sequentially and year on year in turnover, and Consumer Products delivered volume growth. Treatment Solutions turnover was affected by the scheduling of certain high-value contracts for H2 and delayed GCC dispatches.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the second quarter and half year ended 30 September 2026. It also approved a change in Rajesh Sharma’s designation from Executive Chairman to Non-Executive Non-Independent Chairman with effect from 1 January 2027. The company said the change followed his expressed desire to transition to a non-executive role and would be put to shareholders through a postal ballot. No dividend, fund-raising or other appointment was stated in the same-day filings.

What did the auditors point out?

The auditors’ report for the interim standalone financial results stated that nothing had come to their attention causing them to believe that the statement had not disclosed the information required by Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, or contained any material misstatement. The review was conducted under Standard on Review Engagements 2410, and the auditors said it was substantially less in scope than an audit and did not enable them to obtain assurance that they would become aware of all significant matters that might be identified in an audit.

The auditors also included an Emphasis of Matter relating to Ion Exchange Enviro Farms Limited. The matter concerned the Supreme Court dismissing the company’s appeal against an order directing refund of monies and the winding up of the scheme, SEBI’s directions regarding pre-deposit of amounts due to farm owners, and the pending SAT hearing scheduled for 4 November 2026. The auditors stated that IEEFL did not envisage any liability on this account and that the matter had also been included in the consolidated review.

What did ION Exchange's management say?

Management said that revisions to estimated completion costs for a few legacy Treatment Solutions projects significantly affected Q2 financials. It also cited delayed GCC dispatches amid the Middle East crisis and increased input costs. The company said the Treatment Solutions order backlog and planned execution schedules were expected to drive improved H2 turnover and a better margin profile, while healthy order inflows were expected to sustain Industrial Products growth momentum in the coming quarters.

Management said improved cost pass-through to customers was expected to support Specialty Chemicals margin recovery in the coming months. It said offtake from the new resin manufacturing facility at Roha was gradually improving and was expected to contribute increasingly to segment growth. Management also said continued investments in Consumer Products were aimed at significantly scaling the business and expanding its revenue base, and that investment in overseas organisation structures was intended to improve market reach, with benefits expected in the coming months.

The investor presentation identified risks including legacy Treatment Solutions project cost revisions, the Middle East and West Asia crisis, Specialty Chemicals margin pressure from input-cost inflation and Roha facility costs, and deterioration in profitability. It also said H1 FY27 consolidated operating EBITDA margin was -3.85% and PAT margin was -5.80%, against 9.95% and 7.47% in H1 FY26. The presentation was made to investors and analysts at a group meeting on 5 November 2026.

How did ION Exchange shares react?

By the next day’s close, the stock was down 7.8% from its pre-results close, while the Other Utilities industry median was up 4.1%; the stock’s excess move was -11.9 percentage points. Earlier reaction-day moves were down 6.8% on 5 August 2026, down 6.8% on 26 May 2026, down 1.4% on 29 January 2026 and down 2.9% on 4 November 2025.