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 , a leading provider of energy and environment solutions, has reported mixed results for the second quarter. While the company's order booking showed growth, its revenue and profitability faced challenges.

Financial Performance

For Q2, Thermax reported:

• Consolidated operating revenue of Rs 2,474 crore, down 5% year-over-year
• Consolidated profit after tax (PAT) of Rs 119 crore, a 40% decrease
• Profit before tax (PBT) of Rs 174 crore, down 35%

The company's profitability was impacted by lower margins in the Industrial Infra segment due to cost overruns, while the Chemicals segment faced pressure from higher fixed costs and input cost increases.

Order Book Growth

Despite the profit decline, Thermax's order book showed positive momentum:

• Order booking for the quarter: Rs 3,551 crore, a 6% increase year-over-year
• Order balance as of September 30: Rs 12,300 crore, up 6% year-over-year

Segment Performance

The company's performance varied across its business segments:

The exceptional growth in the Green Solutions segment was partly due to a change in reporting methodology by subsidiary TOESL.

Notable Project Wins

Thermax highlighted several project wins, including:

• Data center cooling solutions
• Biomass boilers
• Renewable energy projects

Outlook

While Thermax faces near-term challenges in project execution and profitability, the growth in its order book suggests potential for future revenue expansion. The company's diverse portfolio across clean air, clean energy, clean water, and chemical solutions positions it well to capitalize on the ongoing energy transition.

Investors and stakeholders will be watching closely to see how Thermax addresses its project execution challenges, manages cost pressures, and capitalizes on its growing order book in the coming quarters.