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Earnings Call Transcript

Ion Exchange (India) Earnings Call Transcript: Key Takeaways

Ion Exchange is repositioning from an EPC-heavy firm to a product and services leader, though legacy project losses and Roha plant ramp-up costs are currently suppressing margins despite healthy revenue growth.

Guidance and delivery
Management target Revenue FY27
Highlights
Revenue growth20% YoY growth driven by consumer and engineering segments.
MarginsTemporary contraction due to Roha startup and legacy project overhang.
Order bookHealthy order backlog of 2,473 Cr excluding recent 52M USD win.
Demand visibilityStrong pipeline in semiconductors, green hydrogen, and international markets.
Management confidenceBalanced, acknowledging short-term margin pain for long-term structural shifts.

Growth

Revenue grew 20% YoY to 701 Cr, with Consumer products up 33% and Engineering up 14%.

Outlook

Targeting 25% utilization for Roha plant in FY27; aiming for double-digit specialty chemical margins long-term.

Risks

Margins under pressure from legacy UP projects and 6% specialty chemical erosion due to Roha costs.

Last quarter's promises, checked

Delivered

  • Guided Roha commissioning → Fully commissioned and certified (WQA) (= BEAT)
  • Guided 34% Consumer growth → Delivered 33-34% growth (= BEAT)

Partly delivered

  • Guided margin stability → EBITDA down 29% YoY due to Roha/Logistics (= PARTIAL)

Missed

  • Guided legacy project closure in FY26 → 30% scope still pending (= MISS)
  • Guided 25-30% Roha utilization → Not achieved due to West Asia crisis (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: IONEXCHANG. Summary written with AI assistance from the document.

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Ion Exchange (India) Ltd: key numbers

Share price
₹420.15
Market cap
₹6,162 Cr
Revenue (annual)
₹2,915 Cr
Net profit (annual)
₹142.7 Cr
P/E (TTM)
62.8×Sector 25.1×
Promoter holding
25.43%-0.09% QoQ
FII holding
4.86%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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