Shares of Ion Exchange (India) Ltd. experienced a sharp decline of 8% in early trading on Thursday, following the release of the company's first-quarter earnings report, which revealed a substantial drop in net profit. The stock price fell to Rs 382.60 from its previous close of Rs 416.20, pushing the firm's market capitalization down to Rs 5,689 crore.
The water and environment management solutions provider reported a staggering 92% decrease in its Q1 net profit, falling to just Rs 4.1 crore. This contrasts sharply with the Rs 48.70 crore profit recorded in the corresponding quarter of the previous fiscal year. Earnings per share (EPS) also significantly decreased, from Rs 4.108 in Q1 of the prior fiscal to Rs 0.347 in the latest quarter.
Revenue Growth Amidst Profit Decline
Despite the substantial fall in net profit, Ion Exchange did report a positive trend in its revenue. The company's revenue for the first quarter of the current fiscal year rose by 20% to Rs 700.46 crore, up from Rs 583.19 crore in the same period last year.
EBITDA Performance
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a decline year-over-year, slipping 49.25% to Rs 31.74 crore. However, on a quarter-over-quarter basis, EBITDA showed a 60% increase. The EBITDA margin stood at 4.53% for Q1, compared to 10.72% in Q1 FY26 and 2.30% in Q4 FY26.
Ion Exchange (India) Ltd. is a prominent player in comprehensive water and environment management solutions, offering services across the entire water cycle, including pre-treatment, process water treatment, wastewater recycling, and zero liquid discharge.