Slides
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EARNINGS PRESENTATION – Q1-FY26
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2 Executive Summary • Ion Exchange (India) Ltd (Ion Exchange), formed in 1964, is a pioneer in water, wastewater treatment & environment solutions and caters to various industries, institutions, homes & communities. • Headquartered in Mumbai, the company has 7 manufacturing and assembly facilities across India, 1 manufacturing facility in Portugal and 1 assembly facility each in UAE, Indonesia, Bangladesh and Saudi Arabia . It also has presence across other key geographies. • Engineering (61%) – Provides comprehensive and integrated services and solutions in water & wastewater treatment including Sea Water desalination, Recycle and Zero liquid discharge plants to diverse industries. • Chemicals (29%) – Provides a comprehensive range of resins, speciality chemicals and customized chemical treatment programmes for water, non-water and specialty applications. • Consumer Products (10%) – Caters to individuals, hotels, spas, educational institutions, hospitals, laboratories, railway and defence establishments providing safe drinking water and a clean environment. FY25: Operating Income* INR 27,371 Mn FY25: Operating EBITDA* INR 2,939 Mn FY25: PAT* INR 2,083 Mni BUSINESS & FY25 REVENUE MIX (%) - CONSOLIDATED *Consolidated • Industrial – NTPC, NPC, Reliance, IOCL, JSW , CPCL, L&T , ArcelorMittal, Nippon Steel, Nayara Energy, IRCTC , BHEL, Tata Group. • Institutional – Leela, Military Engineering Services, Taj Hotels, Holiday Inn, Hyatt Regency, Oberoi Hotels, Apollo Hospitals, Escorts Heart Institute, DLF , Puravankara. • International – Cargill, Technip France, Unilever Group, Jurong, Thyssenkrupp (Uhde), Jacobs, Kawasaki, Mitsubishi, PDO Oman, Emirates Steel, IKPP Indonesia, JESA, Hyundai Engineering, MCT Dubai and Saudi Arabian Mining. MARQUEE CLIENTS
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3 Consumer Products 10% Chemicals 29% Engineering 61% FY25 CONSOLIDATED REVENUE BREAKUP* FY25 CONSOLIDATED GEOGRAPHICAL BREAKUP Exports 35% Domestic 65% Company Overview • Ion Exchange was originally formed as a subsidiary of Permutit, UK in 1964. It became a wholly owned Indian company in 1985. • The company has a global presence with diverse product portfolio, offering comprehensive water and non-water treatment solution for industries, institution, municipalities, homes and communities across urban and rural. • It offers a wide range of solutions across the water cycle from pre-treatment to process water treatment, wastewater treatment, recycle, zero liquid discharge, sewage treatment, packaged drinking water, sea water desalination etc. • Ion Exchange is also engaged in manufacturing ion exchange resins, membranes, speciality chemicals for water and wastewater treatment as well as non-water applications. • It has two facilities for in-house R&D and two applications and testing centers. • It has over 50 patents to their credit and 100+ products commercialized. • It has a global presence apart from presence in major cities in India with 36+ sales & service centers and 100+ Channel Partners. • It exports to Africa, Japan, Middle East, Russia, Southeast Asia, Europe, UK, USA, Canada and neighbouring countries.
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4 Q1-FY26 Financial Highlights INR 5,178 Mn Operating Income INR 562 Mn Operating EBITDA 10.85% Operating EBITDA Margins INR 469 Mn Net Profit 9.06% PAT Margins INR 3.814/Share Diluted EPS Q1-FY26 Performance (Standalone) INR 5,832 Mn Operating Income INR 627 Mn Operating EBITDA 10.75% Operating EBITDA Margins INR 484 Mn Net Profit 8.30% PAT Margins INR 4.108/Share Diluted EPS Q1-FY26 Performance (Consolidated)
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5 Q1-FY26 Operational Highlights The Company has migrated to SAP environment in the first quarter . Transition issues faced during the changeover partly affected the business volumes. The operations are now largely stabilized. ENGINEERING • The enquiry bank remains steady; however, delayed finalizations of some large value opportunities has impacted the order inflow/order backlog. • The execution of the UP Jal Nigam Order remained muted. • Regarding Sri Lanka order, we have received funds from the customer authorities against approved bills. This will enable expeditious closure of the contract. CHEMICALS • The segment has maintained the margin profile. • The Company is on track to commission the greenfield manufacturing plant at Roha for manufacture of Resins in Q2 of FY 25-26. CONSUMER PRODUCTS • The segment continues to record volume growth. Engineering projects^ ~ INR 21,730 Mn Total Orderbook ~ INR 26,640 Mn Outstanding Sri Lanka ~ INR 1,250 Mn ^Excluding Sri Lanka and UP SWSM Order. Outstanding UP SWSM ~ INR 3,660 Mn Bid Pipeline ~ INR 92,670 Mn ENGINEERING ORDER BOOK AND PIPELINE (As on 30th June, 2025)
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FINANCIAL OVERVIEW
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7 Quarterly Standalone Financial Performance INCOME STATEMENT (INR Mn) Q1-FY26 Q1-FY25 Y-o-Y Q4-FY25 Q-o-Q Operating Income 5,178 5,161 0.3% 7,851 (34.0)% Expenses 4,616 4,554 1.4% 7,019 (34.2)% Operating EBITDA 562 607 (7.4)% 832 (32.5)% Operating EBITDA Margins (%) 10.85% 11.76% (91) Bps 10.60% 25 Bps Depreciation 110 94 17.0% 107 2.8% Finance Cost 17 17 NA 25 (32.0)% Other Income 195 126 54.8% 152 28.3% PBT 630 622 1.3% 852 (26.1)% Tax 161 164 (1.8)% 206 (21.8)% Profit After Tax 469 458 2.4% 646 (27.4)% PAT Margins (%) 9.06% 8.87% 19 Bps 8.23% 83 Bps Other Comprehensive Income - (2) NA 6 NA Total Comprehensive Income 469 456 2.9% 652 (28.1)% Diluted EPS (INR)# 3.814 3.729 2.3% 5.253 (27.4)% #Earnings per equity share includes impact of equity shares held by IEI Shareholding (Staff Welfare) Trusts. & HMIL Shareholding (Staff Welfare) Trusts: (No. of Shares- 2,37,36,140)
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8 Quarterly Standalone Segmental Breakup ENGINEERING (INR Mn) CHEMICALS (INR Mn) CONSUMER PRODUCTS (INR Mn) R E V E N U E E B I T 3,145 2,944 Q1-FY25 Q1-FY26 1,570 1,471 Q1-FY25 Q1-FY26 660 902 Q1-FY25 Q1-FY26 224 275 Q1-FY25 Q1-FY26 430 411 Q1-FY25 Q1-FY26 (35) (11) Q1-FY25 Q1-FY26
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9 Quarterly Consolidated Financial Performance INCOME STATEMENT (INR Mn) Q1-FY26 Q1-FY25 Y-o-Y Q4-FY25 Q-o-Q Operating Income 5,832 5,676 2.7% 8,346 (30.1)% Expenses 5,205 5,035 3.4% 7,488 (30.5)% Operating EBITDA 627 641 (2.2)% 858 (26.9)% Operating EBITDA Margins (%) 10.75% 11.29% (54) Bps 10.28% 47 Bps Depreciation 123 104 18.3% 118 4.2% Finance Cost 26 29 (10.3)% 36 (27.8)% Other Income 177 111 59.5% 148 19.6% PBT 655 619 5.8% 852 (23.1)% Share of Profit of equity accounted Investee 4 4 NA (1) NA Tax 175 175 NA 219 (20.1)% Profit After Tax 484 448 8.0% 632 (23.4)% PAT Margins (%) 8.30% 7.89% 41 Bps 7.57% 73 Bps Other Comprehensive Income 21 (4) NA 10 NA Total Comprehensive Income 505 444 13.7% 642 (21.3)% Diluted EPS (INR)# 4.108 3.792 8.3% 5.344 (23.1)% #Earnings per equity share includes impact of equity shares held by IEI Shareholding (Staff Welfare) Trusts. & HMIL Shareholding (Staff Welfare) Trusts: (No. of Shares- 2,37,36,140) and shares held by Subsidiary companies: (No of Shares: 43,78,740)
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10 Quarterly Consolidated Segmental Breakup 3,235 3,180 Q1-FY25 Q1-FY26 1,994 1,889 Q1-FY25 Q1-FY26 660 902 Q1-FY25 Q1-FY26 188 278 Q1-FY25 Q1-FY26 498 467 Q1-FY25 Q1-FY26 (34) (9) Q1-FY25 Q1-FY26 ENGINEERING (INR Mn) CHEMICALS (INR Mn) CONSUMER PRODUCTS (INR Mn) R E V E N U E E B I T
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HISTORICAL FINANCIAL OVERVIEW
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12 Historical Standalone Financial Performance INCOME STATEMENT (INR Mn) FY22 FY23 FY24 FY25 Q1-FY26 Operating Income 15,094 18,923 21,800 25,401 5,178 Expenses 13,123 16,544 19,129 22,549 4,616 Operating EBITDA 1,971 2,379 2,671 2,852 562 Operating EBITDA Margins (%) 13.06% 12.57% 12.25% 11.23% 10.85% Depreciation 268 281 330 400 110 Finance Cost 76 90 67 84 17 Other Income 461 450 470 512 195 PBT 2,088 2,458 2,744 2,880 630 Tax 545 607 703 735 161 Profit After Tax 1,542 1,851 2,041 2,145 469 PAT Margins (%) 10.22% 9.78% 9.36% 8.44% 9.06% Other Comprehensive Income (15) (23) (9) (1) - Total Comprehensive Income 1,527 1,828 2,032 2,144 469 Diluted EPS (INR) @ 12.544 15.060 16.603 17.447 3.814 @Earnings per equity share includes impact of equity shares held by IEI Shareholding (Staff Welfare) Trusts. & HMIL Shareholding (Staff Welfare) Trusts: (No. of Shares- 2,37,36,140)
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13 Historical Standalone Balance Sheet PARTICULARS (INR Mn) FY23 FY24 FY25 EQUITIES & LIABILITIES Equity (A) Equity Share Capital 147 147 147 (B) Other Equity 8,718 10,597 12,556 Total Equity 8,865 10,744 12,703 Non-Current Liabilities (A) Financial Liabilities (i) Borrowings 157 438 1,980 (ii) Lease Liabilities 34 87 125 (iii) Other financial Liabilities 87 146 134 (B) Provisions 212 231 173 Total Non – Current Liabilities 490 902 2,412 Current Liabilities (A) Financial Liabilities (i) Borrowings 271 34 290 (ii) Lease Liabilities 31 33 46 (iii) Trade Payables 5,231 6,508 7,346 (iv) Other Financial Liabilities 362 589 891 (B) Other Current Liabilities 3,989 4,383 5,071 (C) Provisions 57 72 68 (D) Liabilities for current tax (Net) 46 43 87 Total Current Liabilities 9,987 11,662 13,799 GRAND TOTAL - EQUITIES & LIABILITES 19,342 23,308 28,914 PARTICULARS (INR Mn) FY23 FY24 FY25 ASSETS Non-Current Assets (A) Property, Plant and Equipment 1,680 2,149 2,414 (B) Capital Work-in-progress 420 607 3,170 (C) Right-of-Use Assets 341 357 374 (D) Other Intangible Assets 18 125 165 (E) Financial Assets (i) Investments 591 842 855 (ii) Trade Receivables 12 9 7 (iii) Loans 220 220 618 (iv) Other Financial Assets 76 87 91 (F) Other Non-Current Assets 44 242 469 (G) Deferred Tax Assets 104 78 73 Total Non – Current Assets 3,506 4,716 8,236 Current Assets (A) Inventories 1,856 1,887 2,410 (B) Financial Assets (i) Investments 3 5 4 (ii) Trade Receivables 6,974 9,217 11,254 (iii) Cash & Cash Equivalents 1,586 1,104 1,158 (iv) Bank Balances 3,584 4,246 3,086 (v) Loans 443 408 122 (vi) Other Financial Assets 132 142 107 (C) Other current assets 1,258 1,583 2,537 Total Current Assets 15,836 18,592 20,678 GRAND TOTAL – ASSETS 19,342 23,308 28,914
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14 Historical Consolidated Financial Performance @Earnings per equity share includes impact of equity shares held by IEI Shareholding (Staff Welfare) Trusts. & HMIL Shareholding (Staff Welfare) Trusts: (No. of Shares- 2,37,36,140) and shares held by Subsidiary companies: (No. of Shares- 43,78,740) INCOME STATEMENT (INR Mn) FY22 FY23 FY24 FY25 Q1-FY26 Operating Income 15,769 19,896 23,479 27,371 5,832 Expenses 13,637 17,346 20,759 24,432 5,205 Operating EBITDA 2,132 2,550 2,720 2,939 627 Operating EBITDA Margins (%) 13.52% 12.82% 11.58% 10.74% 10.75% Depreciation 280 291 364 445 123 Finance Cost 100 92 121 135 26 Other Income 417 411 439 486 177 PBT 2,169 2,578 2,674 2,845 655 Share of Profit of equity accounted Investee 4 9 15 10 4 Tax 556 637 735 772 175 Profit After Tax 1,617 1,950 1,954 2,083 484 PAT Margins (%) 10.25% 9.80% 8.32% 7.61% 8.30% Other Comprehensive Income (10) (17) (3) 1 21 Total Comprehensive Income 1,607 1,933 1,951 2,084 505 EPS Diluted (INR) @ 13.730 16.595 16.534 17.530 4.108
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15 Historical Consolidated Balance Sheet PARTICULARS (INR Mn) FY23 FY24 FY25 EQUITIES & LIABILITIES Equity (A) Equity Share Capital 142 142 142 (B) Other Equity 8,193 10,037 11,937 Equity attributable to owners 8,335 10,179 12,079 Non Controlling Interest 23 19 16 Total Equity 8,358 10,198 12,095 Non-Current Liabilities (A) Financial Liabilities (i) Borrowings 157 1,091 2,521 (ii) Lease liabilities 34 110 143 (iii) Other Financial Liabilities 87 146 133 (B) Provisions 239 261 208 (C) Deferred Tax Liabilities (Net) 8 93 88 (D) Other Non-Current Liabilities 5 4 Total Non – Current Liabilities 530 1,705 3,093 Current Liabilities (A) Financial Liabilities (i) Borrowings 368 285 510 (ii) Lease liabilities 33 38 53 (iii) Trade Payables 5,513 6,946 7,790 (iv) Other Financial Liabilities 404 633 944 (B) Other Current Liabilities 4,071 4,545 5,199 (C) Provisions 66 84 78 (D) Liabilities for current tax (Net) 59 60 107 Total Current Liabilities 10,514 12,591 14,681 GRAND TOTAL - EQUITIES & LIABILITES 19,402 24,494 29,869 PARTICULARS (INR Mn) FY23 FY24 FY25 ASSETS Non-Current Assets (A) Property, Plant and Equipment 1,707 3,018 3,280 (B) Capital Work-in-progress 420 607 3,178 (C) Right-of-Use Assets 343 383 394 (D) Other Intangible Assets 18 162 203 (E) Goodwill 86 102 102 (F) Investment accounted using Equity Method 48 62 68 (G) Financial Assets (i) Investments 47 55 59 (ii) Trade Receivables 45 42 7 (iii) Other Financial Assets 155 158 154 (H) Deferred Tax Assets (Net) 116 85 77 (I) Other Non-Current Assets 120 308 536 (J) Non-Current Tax Assets 18 6 8 Total Non – Current Assets 3,123 4,988 8,066 Current Assets (A) Inventories 2,223 2,365 2,990 (B) Financial Assets (i) Investments 3 5 4 (ii) Trade Receivables 6,968 9,348 11,339 (iii) Cash & Cash Equivalents 1,754 1,536 1,493 (iv) Bank Balances 3,726 4,343 3,165 (v) Loans 152 79 53 (vi) Other Financial Assets 151 160 133 (C) Current Tax Assets (Net) - 11 5 (D) Other Current Assets 1,302 1,659 2,621 Total Current Assets 16,279 19,506 21,803 GRAND TOTAL – ASSETS 19,402 24,494 29,869
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16 REVENUES (INR Mn) OPERATING EBITDA (INR Mn) PAT (INR Mn) NET DEBT/ EQUITY RETURN RATIOS (INR Mn) WORKING CAPITAL DAYS 15,769 19,896 23,479 27,371 5,832 FY22 FY23 FY24 FY25 Q1-FY26 2,132 2,550 2,720 2,939 627 13.52% 12.82% 11.58% 10.74% 10.75% FY22 FY23 FY24 FY25 Q1-FY26 EBITDA EBITDA Margins 1,617 1,950 1,954 2,083 484 10.25% 9.80% 8.32% 7.61% 8.30% FY22 FY23 FY24 FY25 Q1-FY26 PAT PAT Margins (0.7) (0.6) (0.4) (0.1) FY22 FY23 FY24 FY25 24.7% 23.3% 21.1% 18.7% 32.5% 30.0% 26.9% 22.0% FY22 FY23 FY24 FY25 ROE ROCE ROE = Net Profit/Net worth, ROCE = EBIT/Capital Employed 83 91 99 94 FY22 FY23 FY24 FY25 Consolidated Financial Performance
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17 SHAREHOLDING PATTERN (As on 30th June 2025) Market Data (Bloomberg – ION IN, Reuters – IONX.BO) -35% -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Ion Exchange Sensex PRICE DATA (As on 30th June 2025) Face value (INR) 1.0 Market Price (INR) 543.3 52 Week H/L (INR) 767.0 / 401.1 Market Cap (INR Mn) 79,676.6 Equity Shares Outstanding (Mn) 146.7 1 Year Avg. trading volume (‘000) 399.5 1 YEAR SHARE PRICE MOVEMENT (UP TO 30th June 2025) Promoter 25.7% Mutual Funds 11.6% Alternative Investment Funds, 2.4% Foreign Portfolio Investors, 5.3%Employee Trust, 16.2% Others, 38.8%
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18 Disclaimer Ion Exchange (India) Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Ion Exchange (India) Limited (“Company” or “IONEX” ), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from. This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner. Valorem Advisors Disclaimer: Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review. For further details please contact our Investor Relations Representatives: VALOREM ADVISORS Mr. Anuj Sonpal Tel: +91-22-49039500 Email: ion@valoremadvisors.com Investor kit link: https://valoremadvisors.com/ion
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THANK YOU