Thermax Limited , a leading provider of energy and environment solutions, has announced its financial results for the second quarter of FY 2025-26, revealing a mixed performance with notable growth in its order book despite challenges in revenue and profitability.

Order Book Growth

The company reported a 6% year-on-year increase in its order balance, which stood at Rs. 12,300.00 crore as of September 30, 2025, compared to Rs. 11,593.00 crore in the corresponding quarter of the previous year. The order booking for the quarter also saw a 6% uptick, reaching Rs. 3,551.00 crore, up from Rs. 3,353.00 crore in Q2 FY'25.

Financial Performance

Despite the growth in order book, Thermax faced headwinds in its financial performance:

• Consolidated operating revenue decreased by 5% to Rs. 2,474.00 crore, down from Rs. 2,616.00 crore in Q2 FY'25.
• Consolidated profit after tax (PAT) declined by 40% to Rs. 119.00 crore, compared to Rs. 198.00 crore in the same quarter last year.
• Profit before tax (PBT) fell by 35% to Rs. 174.00 crore from Rs. 266.00 crore in Q2 FY'25.

Factors Affecting Performance

The company attributed the lower profit to several factors:

1. Project cost overruns in the Industrial Infra segment, including Rs. 42.00 crore of additional cost provisions, primarily for one project.
2. The absence of a one-time income accrual of Rs. 66.00 crore recognized in the previous year's corresponding quarter, related to incentives receivable under the Packaged Incentive Scheme (PSI) from the Government of Maharashtra.

Standalone Performance

On a standalone basis, Thermax Limited reported:

• A marginal 1% decrease in operating revenue to Rs. 1,505.00 crore.
• A significant 109% increase in profit after tax to Rs. 226.00 crore, boosted by dividend income of Rs. 141.00 crore from a wholly-owned subsidiary.
• Order booking growth of 22% to Rs. 1,991.00 crore.
• An order balance of Rs. 6,981.00 crore as of September 30, 2025, marking a 9% increase.

Strategic Developments

The company announced that Ther

Thermax Limited has announced a significant change in its corporate structure, as First Energy 11 Private Limited (FE11PL) is no longer a wholly owned step-down subsidiary of the company. This development comes after FE11PL allotted 3,45,87,000 equity shares to Garden Silk Mills Private Limited, which is identified as a Captive User under the Electricity Act, 2003.

Corporate Structure Change

The change in ownership status of FE11PL was confirmed through an official intimation from Thermax Limited to the stock exchanges on October 28, 2025. This announcement follows previous intimations made by the company in July 2025, indicating that this corporate action was part of a planned process.

Details of the Transaction

Implications and Context

While the specific reasons for this share allotment have not been detailed in the announcement, it's worth noting that such changes in subsidiary ownership can be part of strategic business decisions. The involvement of a Captive User, as defined under the Electricity Act, 2003, suggests that this move may be related to energy supply arrangements or partnerships in the power sector.

Upcoming Financial Results

In a separate but related update, Thermax Limited has also announced that its Board of Directors is scheduled to meet on Tuesday, November 11, 2025. The meeting agenda includes the consideration and approval of the un-audited financial results for the quarter and half-year ended September 30, 2025, along with related segment-wise financial results.

Investors and stakeholders should note that the trading window for Thermax Limited shares, which is currently closed, will reopen 48 hours after the declaration of these financial results.

As these developments unfold, market participants will likely be keen to understand the strategic implications of the change in FE11PL's ownership structure and its potential impact on Thermax Limited's operations and financial performance in the coming quarters.