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.

Thermax Ltd will hold an analyst and investor conference call on July 31, 2026, to discuss its financial performance for the quarter ended June 30, 2026. The meeting provides a platform for stakeholders to gain insights into the company's Q1FY27 operational results directly from its leadership.

Management Participation

The session will feature key executives from Thermax Ltd, including Managing Director & CEO Ashish Bhandari and Group CFO & Executive Vice President Rajendran Arunachalam. Kunal Shah, an analyst at DAM Capital Advisors Ltd, will serve as the call leader.

Call Schedule and Access

The conference call is scheduled to commence at 11:00 hrs IST. Participants can join via universal access numbers +91 22 6280 1384 or +91 22 7115 8285, which are accessible from all networks and countries. A diamond passcode link is also available for attendees.

International Timings

For international participants, the call will be accessible at the following local times:

Attendees are advised to dial in at least 5 to 10 minutes prior to the scheduled start time to ensure timely connection. For further information, stakeholders may contact Kunal Shah or Yashkumar Jain at DAM Capital Advisors Limited.