Ion Exchange posts Rs 82.76 crore Q2 loss on Treatment Solutions

Ion Exchange (India) Limited reported a consolidated loss after tax of Rs 82.76 crore for the quarter ended September 30, 2026, reversing a Rs 49.92 crore profit a year earlier, as Treatment Solutions recorded a Rs 121.54 crore segment loss and revenue from operations fell to Rs 674.73 crore.

How did Ion Exchange perform in the September 2026 quarter?

Ion Exchange reported a consolidated loss after tax of Rs 82.76 crore in the quarter ended September 30, 2026, compared with a Rs 3.06 crore profit in the June 2026 quarter and a Rs 49.92 crore profit in the September 2025 quarter. The loss attributable to owners was Rs 81.05 crore, while non-controlling interests accounted for a Rs 1.71 crore loss.

Revenue from operations declined to Rs 674.73 crore from Rs 700.46 crore in the preceding quarter and Rs 733.94 crore a year earlier. Other income was Rs 7.80 crore, against Rs 5.95 crore in June 2026 and Rs 14.26 crore in September 2025, taking total income for the September 2026 quarter to Rs 682.53 crore.

Loss before tax was Rs 107.47 crore, against profit before tax of Rs 6.99 crore in June 2026 and Rs 67.86 crore in September 2025. Ion Exchange reported a net tax credit of Rs 24.71 crore in the quarter, comprising a Rs 27.14 crore current-tax credit and a Rs 2.43 crore deferred-tax charge.

Why did Ion Exchange move into a quarterly loss?

Ion Exchange moved into a quarterly loss as total expenses rose to Rs 790.91 crore while revenue from operations declined to Rs 674.73 crore in the September 2026 quarter. In the September 2025 quarter, total expenses were Rs 680.70 crore and revenue from operations was Rs 733.94 crore.

Cost of materials consumed increased to Rs 486.64 crore from Rs 452.94 crore a year earlier, while employee-benefit expense rose to Rs 113.79 crore from Rs 98.59 crore. Depreciation and amortisation increased to Rs 22.00 crore from Rs 12.17 crore, finance costs rose to Rs 9.42 crore from Rs 3.08 crore, and other expenses reached Rs 121.36 crore from Rs 107.49 crore.

For the half year ended September 30, 2026, Ion Exchange reported a loss after tax of Rs 79.70 crore, compared with profit after tax of Rs 98.36 crore in the corresponding prior-year period. Half-year revenue from operations increased to Rs 1,375.19 crore from Rs 1,317.13 crore, but total expenses rose to Rs 1,490.33 crore from Rs 1,216.17 crore.

How did Treatment Solutions affect Ion Exchange's results?

Treatment Solutions was the largest drag on Ion Exchange's quarterly segment result, recording a Rs 121.54 crore loss in the quarter ended September 30, 2026. This compared with a Rs 17.35 crore loss in June 2026 and a Rs 12.24 crore loss in September 2025.

Treatment Solutions revenue fell to Rs 149.77 crore from Rs 209.88 crore in the June 2026 quarter and Rs 295.75 crore a year earlier. The segment includes water and wastewater treatment and recycle, ultra-pure and high-purity water, desalination, zero-liquid-discharge and other advanced solutions.

Industrial Products reported revenue of Rs 136.00 crore, up from Rs 100.86 crore a year earlier, while its segment result increased to Rs 8.56 crore from Rs 7.36 crore. Specialty Chemicals generated the highest segment revenue at Rs 254.61 crore, versus Rs 218.09 crore, although its segment result fell to Rs 22.48 crore from Rs 62.88 crore.

What do Ion Exchange's balance sheet and cash flows show?

Ion Exchange's consolidated total assets were Rs 3,403.25 crore at September 30, 2026, compared with Rs 3,379.93 crore at March 31, 2026. Capital work-in-progress rose to Rs 242.54 crore from Rs 174.70 crore, while property, plant and equipment declined to Rs 664.44 crore from Rs 685.30 crore.

Cash and cash equivalents declined to Rs 115.33 crore at September 30, 2026, from Rs 184.56 crore at the March year-end. Total equity fell to Rs 1,246.52 crore from Rs 1,340.32 crore, while total liabilities increased to Rs 2,156.73 crore from Rs 2,039.61 crore; current borrowings rose to Rs 123.63 crore from Rs 96.83 crore.

Net cash generated from operating activities was Rs 39.76 crore for the half year ended September 30, 2026, against net cash used of Rs 8.26 crore in the prior-year period. Investing activities used Rs 53.46 crore, including Rs 49.07 crore spent on property, plant, equipment, capital work-in-progress and intangible assets, while financing activities used Rs 50.93 crore.

What changed in Ion Exchange's reporting and audit disclosures?

Ion Exchange changed its reportable segments from April 1, 2026, reorganising the former Engineering segment into Treatment Solutions, Industrial Products and Lifecycle Services. The company renamed its former Chemicals segment as Specialty Chemicals and moved Institutional Water Treatment Products from Consumer Products to Industrial Products, regrouping previous periods for comparability.

Deloitte Haskins & Sells LLP said its review conclusion on the consolidated unaudited results was not modified. The auditors highlighted an emphasis-of-matter issue at subsidiary Ion Exchange Enviro Farms Limited, where a Securities and Exchange Board of India direction for a Rs 22.02 crore investor-repayment deposit remains under appeal, with the next Securities Appellate Tribunal hearing scheduled for November 4, 2026.

Conclusion

Ion Exchange's September 2026 loss reflected a Rs 121.54 crore Treatment Solutions segment loss, lower consolidated revenue of Rs 674.73 crore and total expenses of Rs 790.91 crore. Revenue growth in Industrial Products, Specialty Chemicals and Consumer Products did not offset the decline in Treatment Solutions and the lower contribution from Lifecycle Services.

The next disclosure to watch is the performance of the reorganised segments after the April 1, 2026 reporting change, particularly Treatment Solutions revenue and segment result. The filing also identifies the November 4, 2026 Securities Appellate Tribunal hearing involving Ion Exchange Enviro Farms Limited as a scheduled unresolved matter.