Thermax Limited declared a total dividend of ₹20 per equity share at its 45th Annual General Meeting (AGM) held on July 30, 2026, rewarding shareholders with a payout reflecting a 13.7% rise in net profit for the financial year ended March 31, 2026. The declaration underscores the company’s strong financial performance, marked by consolidated revenue growth and significant expansion in its order backlog, positioning the firm favorably amidst global energy transition trends.

The AGM, conducted via video conference under Section 108 of the Companies Act, 2013 and Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, saw Chairperson Meher Pudumjee present the company’s business performance. The Board approved the adoption of audited standalone and consolidated financial statements, alongside the re-appointment of Dr. Ravi Shankar Gopinath as Non-Executive Independent Director and Mr. Ashish Bhandari as Director by rotation. Shareholders also ratified the remuneration payable to M/s. Dhananjay V. Joshi & Associates, Cost Accountants, for the financial year ending March 31, 2027.

Financial Performance in FY26

Thermax reported robust top-line and bottom-line growth for FY26, driven by improved operational efficiency and strong demand across its core segments. Consolidated revenue from operations increased by 3.1% to ₹10,694 Cr from ₹10,369 Cr in FY25. Profit After Tax (PAT) rose significantly to ₹721 Cr, up from ₹634 Cr in the previous year. International revenue contributed substantially to this growth, surging 32.7% to ₹3,084 Cr, accounting for approximately 29% of total sales.

Strategic Wins and Growth Engines

The company highlighted strategic wins including supercritical boiler projects and first large data centre orders in India and the US, alongside refinery and oil & gas projects in Nigeria and the Middle East. Thermax emphasized its new growth engines, particularly in Bio-CNG, where 14 plants are now commissioned and operational. The company also noted policy tailwinds supporting bioenergy, green hydrogen, and emission norms, which are driving demand for its decarbonization solutions.

However, management acknowledged challenges including geopolitical conflicts affecting supply chains, rising commodity prices, and execution delays in specific projects such as FEPL and legacy NRL EPC contracts. Safety concerns were also addressed, with four fatalities reported during the year, leading to a review of governance protocols.

Q1 FY27 Results and Outlook

In the quarter ended June 30, 2026, Thermax reported revenue from operations of ₹2,303 Cr, a 7% increase over the corresponding period last year. However, Profit Before Tax (PBT) declined sharply by 80% to ₹42 Cr from ₹211 Cr, primarily due to input cost pressures and project-specific challenges. Consequently, PAT fell 86% to ₹22 Cr. Despite the quarterly dip, the order backlog strengthened by 23% to ₹14,045 Cr, providing visibility for future revenues.

What the Numbers Show

The divergence between the strong full-year FY26 performance and the sharp decline in Q1 FY27 profitability highlights the impact of rising input costs and project execution delays on short-term margins. While international revenue growth remains a key driver, the concentration of challenges in specific legacy projects suggests that margin recovery will depend on effective cost management and timely project completions in the coming quarters.

Thermax Limited reported a sharp contraction in profitability for the quarter ended June 30, 2026, with consolidated net profit after tax (PAT) falling 85% year-on-year to ₹21.79 crore from ₹151.45 crore in the corresponding period of the previous year. The decline was driven predominantly by a ₹91 crore increase in estimated costs to complete one specific project within the Industrial Infra segment. Despite the margin pressure, consolidated revenue from operations grew 7% to ₹2,302.73 crore, supported by robust order inflows that saw the total order book rise 23% to ₹14,045 crore.

The Board of Directors approved the unaudited standalone and consolidated financial results at its meeting held on July 30, 2026. The results were reviewed by statutory auditors Price Waterhouse Chartered Accountants LLP. In addition to approving the financials, the Board sanctioned a composite Scheme of Arrangement and Amalgamation involving its wholly-owned subsidiaries Thermax Bioenergy Solutions Private Limited (TBSPL) and Thermax Cooling Solutions Limited (TCSL). The scheme aims to simplify the group structure and reduce administrative overheads, with an appointed date of April 1, 2026.

Financial Performance Highlights

Consolidated profit before tax (PBT) dropped 80% to ₹42.14 crore from ₹211.47 crore in the prior year quarter. The comparative quarter benefited from ₹56 crore in income under the Package Scheme of Incentives (PSI) for a subsidiary in the Industrial Infra segment, whereas the current quarter PSI income was only ₹2.47 crore. Standalone operations also faced headwinds, reporting a net loss of ₹18 crore compared to a profit of ₹47 crore in the prior year, largely due to the same project cost overrun. EBITDA for the quarter declined sharply to ₹69 crore from ₹225 crore in the year-ago period, with the EBITDA margin contracting significantly to 3% from 10.47%.

The following table summarises the key consolidated financial metrics for the quarter:

Segmental analysis reveals divergent trends across business verticals. The Industrial Products segment, the largest revenue contributor at ₹1,058 crore, saw its operating profit decline to ₹64 crore from ₹79 crore, impacted by lower export sales. Conversely, the Chemicals segment improved its profitability to ₹26 crore from ₹16 crore. The Green Solutions segment continued to report a loss of ₹17 crore, slightly widening from a ₹5 crore loss in the previous year.

Operational Updates and Restructuring

Order bookings for the quarter stood at ₹2,809 crore, up 2% from ₹2,748 crore in the prior year quarter. A significant milestone was the securing of an order worth over ₹400 crore for boiler pressure parts for a data centre project in the USA. The Green Solutions segment's reported order book increased by ₹139 crore due to a change in reporting methodology by Thermax Onsite Energy Solutions Limited (TOESL), which now uses a rolling 12-month forecast model rather than recognising only the first year's revenue from long-term contracts.

The approved amalgamation scheme involves the demerger of the Bio-Compressed Natural Gas (Bio CNG) EPC business from TBSPL into Thermax Limited, while TBSPL retains its Operations and Maintenance (O&M) business. Simultaneously, TCSL will merge entirely into Thermax Limited. The management stated that this consolidation is expected to improve key financial ratios and result in annual cost savings. The scheme requires approval from the National Company Law Tribunal (NCLT) and other regulatory authorities. There will be no change in the shareholding pattern of Thermax Limited as no new shares are being issued.