Synopsis:
Thermax shares touched an intraday low of Rs. 3,840 after releasing Q1FY26 results, down 2.55 percent. Revenue declined 30.3 percent QoQ while net profit dropped 26.7 percent to Rs. 151 crore. On a YoY basis, Net profit grew 38.5 percent and order inflow rose 7 percent, supported by green solutions and industrial infra segments.
A capital goods stock slipped in morning trade after posting a sequential decline in revenue and profitability for the June quarter, despite healthy order book growth and notable operational developments. Investors appeared cautious amid muted topline growth and order book pressures in the products and chemicals segment.
The company in focus is Thermax Ltd with a market capitalization of Rs. 46,144 crore, opened at Rs. 3,940.40 and hit an intraday low of Rs. 3,840, marking a 2.55 percent decline from the previous close of Rs. 3,940.40.
What’s the News?
Quarter-on-quarter, Thermax reported a significant moderation in its financial performance. Revenue from operations declined by 30.3 percent from Rs. 3,085 crore in Q4FY25 to Rs. 2,150 crore in Q1FY26.
Operating profit dropped 25 percent from Rs. 300 crore to Rs. 225 crore, while profit before tax (PBT) fell by 29.9 percent from Rs. 301 crore to Rs. 211 crore. Net profit declined 26.7 percent, coming in at Rs. 151 crore compared to Rs. 206 crore in the previous quarter. PAT margin expanded from 6.7 percent to 7 percent.
Year-on-year, however, Thermax reported a steady operational improvement. Revenue slipped marginally by 1.6 percent from Rs. 2,184 crore in Q1FY25 to Rs. 2,150 crore in Q1FY26. Operating profit jumped 59.6 percent from Rs. 141 crore to Rs. 225 crore, and PBT rose 31.1 percent from Rs. 161 crore to Rs. 211 crore.
It is worth noting that last year’s PBT included Rs. 27 crore as interest received on income tax refunds. Net profit grew 38.5 percent from Rs. 109 crore to Rs. 151 crore, while PAT margin expanded from 5 percent to 7 percent. Operating profit margin for the June 2025 quarter stood at 10 percent.
Also Read: Green Energy stock jumps 7% after receiving 381 MW wind energy project from Zelestra India
Operational Highlights
The company inaugurated its Solid Oxide Electrolyser Cell (SOEC) pilot facility in Pune, marking a major milestone in its green hydrogen journey. This modular, high-efficiency facility is designed to offer the lowest Levelised Cost of Hydrogen (LCOH).
In chemicals, the company’s PFAS removal resin received NSF Standard 61 approval, enabling entry into regulated markets like North America and Europe. Thermax also commissioned a new chemical manufacturing facility in Cilegon, Indonesia with an annual capacity of 3,838 MT, and installed a 289 kW water source electrical heat pump for a leading automobile client in Pune.
Its subsidiary FEPL is working on a 230 MW ISTS-connected hybrid project comprising 100 MW wind capacity in Tamil Nadu and 130 MW solar capacity in Kunta. OEM has been finalised for 17 of 31 wind turbines, with land leasing and transmission work already underway.
Order Book and Other Key Metrics
The company’s order inflow for the quarter stood at Rs. 2,748 crore, up 7 percent year-on-year. Order balance as of June 30, 2025, stood at Rs. 11,376 crore. Cash and investments increased by 7 percent YoY to Rs. 3,161 crore.
While order booking was strong in Industrial Infrastructure and Green Solutions, the company missed OB targets in the Products and Chemicals segment. Enquiry flows from power, sugar/distillery, and metals remain robust, with a huge upsurge in the refinery and petrochemical sector. However, order book contribution from the power sector declined in this quarter.
The company also reported PBT benefits of Rs. 56 crore from incentives receivable under the Package Incentive Scheme of the Government of Maharashtra through one of its subsidiaries.
About the Company
Thermax Limited provides energy, environment, and chemical solutions. Its portfolio spans boilers, heaters, power and solar plants, air pollution control systems, absorption chillers and heat pumps, water treatment and waste recycling systems, ion exchange resins, and performance chemicals.
Written By Manan Gangwar
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