💡 At a glance:
ION Exchange (India) Ltd reported a net profit of ₹132 crore in Q4 FY25, up from ₹100 crore last year — a 31.5% jump. Annual revenue rose 23% to ₹2,456 crore. With major international project orders, dividend payout maintained, and a growing focus on sustainable water solutions, ION is not just filtering water — it’s filtering in profits too.
🧬 About the Company
- Founded: 1964
- Headquarters: Mumbai, India
- Core Biz: Water & Environment Management — covering industrial water treatment, wastewater recycling, and turnkey engineering procurement construction (EPC) projects
- Global Presence: Operations in over 60 countries
- Recent Buzz: Completed major water infra projects in Africa and SE Asia
🧑💼 Key Managerial Personnel (KMP)
| Name | Designation |
|---|---|
| Dr. Rajesh Sharma | Chairman & Managing Director |
| Mr. Avinash Nadkarni | CFO |
| Ms. Neena Sharma | Company Secretary |
📊 Financials – Q4 FY25 & Full Year Performance
🧾 Quarterly Highlights (₹ in Crores)
| Particulars | Q4 FY25 | Q4 FY24 | YoY Change |
|---|---|---|---|
| Revenue | 701 | 618 | +13.4% |
| EBITDA | 169 | 144 | +17.4% |
| EBITDA Margin | 24.1% | 23.3% | +80 bps |
| PAT | 132 | 100 | +31.5% |
| EPS (Diluted) | ₹9.40 | ₹7.20 | +30.5% |
📆 Full-Year Highlights FY25 (₹ in Crores)
| Particulars | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Total Income | 2,456 | 1,996 | +23.0% |
| EBITDA | 546 | 454 | +20.2% |
| PAT | 399 | 310 | +28.7% |
| EPS (Diluted) | ₹28.37 | ₹22.01 | +28.9% |
| Dividend Declared | ₹14/share | ₹14/share | – |
🧮 Forward-Looking Fair Value (FV) Estimate
- Current Market Price (CMP): ₹684
- EPS (TTM): ₹28.37
- Industry PE (Water Infra Services): ~28x
- Fair Value Estimate: ₹28.37 x 28 = ₹794.36
🔮 FV Upside from CMP: ~16%
🚰 Growth Drivers & Industry Outlook
- 🌍 Global Water Stress = Indian Companies’ Global Opportunity: From Namibia to Philippines, India’s water infra companies are getting turnkey orders due to cost and execution advantage.
- 🔋 Sustainable & Circular Economy Push: Government policies now mandate wastewater reuse in several states — big wins for EPC water solution players like ION.
- 🔧 Repeat Orders from Industrial Giants: High-margin business from recurring O&M contracts is quietly compounding.
🧠 EduInvesting Take
“Water is the new oil,” they said. But they forgot to mention that it’s ION Exchange laying the pipelines.
This is a boring stock for boring portfolios — and that’s the compliment. If you’re the type who doesn’t check the screen 10 times a day and still wants multiyear compounding from a defensive sector… this is where the filtration begins.
Earnings growth is steady, dividends flow like water, and order books remain healthy even when capex elsewhere is slowing. It’s not a sprinting unicorn, but definitely a marathon camel carrying clean water.
🚨 Risks & Red Flags
- 🌦️ Monsoon Matters: A bad monsoon year reduces industrial water demand.
- ⚠️ Receivables from Government Projects: Delays in EPC payments could stretch working capital.
- 🧾 No Exciting Triggers: This isn’t a story stock — so don’t expect Twitter hype or sudden PE re-ratings.
📌 Verdict
Steady, profitable, and globally trusted — ION Exchange is building a water empire quietly. With 31% profit growth and decent margin expansion, it’s not just about what they purify — it’s how they quietly compound.
📅 Published: May 29, 2025
✍️ By: Prashant Marathe
Tags: ION Exchange Q4 Results, Water Treatment Stocks, Defensive Portfolio, Environmental Engineering, EduInvesting, Q4 FY25 Earnings
