ION Exchange (India) Limited (IONEXCHANG)
Micro CapIndustrials stocks · Micro cap · NSE
Ion Exchange (India) Ltd, formed in 1964, is a pioneer in water, wastewater treatment & environment solutions for industries, institutions, homes & communities. Headquartered in Mumbai, it has 8 manufacturing/assembly facilities in India and 4 internationally. Offers comprehensive water cycle solutions, resins, and specialty chemicals.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100PAT -94% YoY · margin compression · Rev +20% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹700.5 Cr | +20.1% | -18.9% |
| EBITDA | ₹31.7 Cr | -49.2% | +60.8% |
| Operating margin | 4.5% | -619 bps | +224 bps |
| PAT | ₹3.1 Cr | -93.7% | -87.4% |
| PAT margin | 0.4% | -787 bps | -237 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Consolidated Q4 FY26 Operating Income grew 3.4% YoY to INR 8,633 Mn, but Operating EBITDA plunged 76.8% YoY to INR 199 Mn, with margins compressing by 797 bps to 2.31%. FY26 saw 6.5% revenue growth but 28.5% EBITDA decline.
While revenue growth is present, significant margin erosion in Q4 and FY26, driven by input costs and logistics disruptions, raises concerns. The large order book and project execution are positive, but profitability needs close monitoring for a sustained recovery.
FY26 Consolidated Revenue Mix (%)
Latest issuer-disclosed distribution across 3 reported categories.
Medium-sized Engineering Opportunities
Quarter-on-quarter and year-on-year growth in order flow, driven primarily by medium-sized opportunities.
Technology Collaboration
Entered technology transfer and manufacturing collaboration with MANN + HUMMEL for UF membranes and MBR solutions in India.
Strategic Chemical Contracts
Won strategic contracts with key customers, auguring well for increased business growth.
Overseas Expansion
Expanding presence in overseas geographies for focused attention on product business.
Roha Manufacturing Lines Commissioned
Successfully completed the commissioning of its manufacturing lines at Roha.
IOCL Panipat Raw Water Treatment Plant Commissioned
Successfully commissioned the Raw Water Treatment Plant for its ongoing contract with IOCL Panipat refinery.
Steady Enquiry Bank
The enquiry bank continues to be steady.
WQA Certification for Resins
Received certification from Water Quality Association (WQA) for Roha-manufactured resins, improving access to international markets.
Oman DBOOT Contract Execution
Execution of OMR 73.46 Mn DBOOT Contract for Petroleum Development Oman is proceeding on schedule.
West Asia Crisis Impact
Planned dispatches of high value Engineering contracts to GCC got impacted; export shipments during March 2026 impacted by logistics disruptions.
Input Cost Pressures
Margins for the Chemicals segment were impacted due to input cost pressures and Roha facility costs.
Geopolitical Disruptions
West Asia crisis impacted dispatches and export shipments, indicating vulnerability to geopolitical events.
Input Cost Volatility
Margins impacted by input cost pressures, requiring steps for cost pass-through to customers.
Project Execution Delays
Sri Lankan contract closure is progressing, but was not completed by Q4 FY26, now expected by Q2 FY27.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The document provides both Q4 (sequential and YoY) and FY (YoY) comparisons. Q4 QoQ is relevant for sequential momentum and project execution, while YoY is important for annual performance and seasonal impacts.
Operating EBITDA Margins (Consolidated Q4 FY26)
2.31% (down 797 bps YoY, down 576 bps QoQ)
Operating EBITDA Margins (Consolidated FY26)
7.21% (down 353 bps YoY)
PAT Margins (Consolidated Q4 FY26)
2.81% (down 476 bps YoY, flat QoQ)
PAT Margins (Consolidated FY26)
4.91% (down 270 bps YoY)
Cost Pass-through Strategy
Company has taken steps for passing on the cost increases to the customer in the Chemicals segment.
Consumer Business Investment
Continue to invest in the Consumer Products business to achieve significantly higher revenue platform.
Sri Lankan Contract Completion Timeline
Expect to complete the Sri Lankan contract by the 2nd quarter of FY 26-27.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Operating EBITDA Margins | Consolidated Q4 FY26: 2.31% | Sustained recovery and stabilization above 7%. |
| Order Book Execution | Total Orderbook: ~INR 26,433 Mn | Timely execution of large contracts, especially GCC and Sri Lanka. |
| Input Cost Management | Margins impacted by input costs. | Successful pass-through of costs and margin improvement in Chemicals. |
| Working Capital Management | Working Capital Days: 91 days | Continued efficiency in working capital and receivables management. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
53NeutralSMA20 -11.4% / mo · MACD +
Technical chart
IONEXCHANGdaily · 1Y · AUTO+16.7%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 63. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~12.8% over last month) — short-term momentum negative.
- RSI(14) at 63 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 16% off 52W high · 31% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 19 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 19 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Balance sheet contributes 6/15 to the score.
- Cash flow contributes 3/10 to the score.
- Growth contributes 6/25 to the score.
Main drags
- Fair-value margin of safety is negative at -658.9%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Quality is weaker at 1/20; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 28th percentile of the scored universe and 24th percentile within Industrials. Main check: financial discipline is weak at 38/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: Operating cash flow is negative at ₹-28 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 24th pctile, median 68 · Micro: 15th pctile, median 73
158 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸7 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Operating cash flow is negative at ₹-28 Cr.
- ▸3 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE trend is -6.8%.
- ▸Revenue CAGR is 14% but EPS CAGR is -8%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 54.50
- P/B
- 4.48
- EV/EBITDA
- 25.83
- Market Cap
- 6002.00Cr
Profitability
- ROE
- 12.00%
- ROCE
- 14.20%
- ROA
- 2.91%
- Dividend Y
- 0.31%
Growth (CAGR)
- Revenue 5Y
- 15.00%
- EPS 5Y
- 1.00%
- Revenue 3Y
- 14.00%
- EPS 3Y
- -8.00%
Balance Sheet
- Debt/Equity
- 0.36
- Interest Coverage
- 5.97×
- Altman Z
- 3.54
- Book Value
- 91.30
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 7/5
- OCF
- -28.00 Cr
- EPS TTM
- 6.69
Shareholding
- Promoter Hold
- 25.43%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 56%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Industrials, ranked by similarity
Peers
Business-comparable names in Industrials, ranked by similarity
Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.