Thermax Beats Street Estimates in Q1: ₹1.52 Billion Profit on Order Execution and Margin Expansion

Quarterly Overview:

Thermax Ltd, a leading energy and environment solutions provider, has reported its consolidated financial results for the first quarter of FY26, delivering a robust performance that surpassed market expectations. The company posted a net profit of ₹1.52 billion, outpacing the IBES consensus estimate of ₹1.34 billion, driven by improved operating efficiencies and strong execution across its core segments.

Key Highlights from Q1 FY26:

- Consolidated revenue from operations stood at ₹21.5 billion
- Net profit rose to ₹1.52 billion, beating analyst estimates by ₹180 million
- EBITDA margin expanded to 10.4 percent, up from 9.1 percent in Q1 FY25
- Order inflow during the quarter reached ₹23.8 billion, a 12 percent year-on-year increase
- Export contribution rose to 32 percent of total revenue

Revenue and Profit Performance:

Thermax’s top-line growth was supported by steady execution in its energy and environment verticals.
- Revenue grew 9.6 percent year-on-year, reflecting strong demand in industrial heating and cooling systems
- Net profit surged 18.4 percent compared to the same quarter last year
- The company benefited from lower input costs and improved project delivery timelines

Segment-Wise Breakdown:

Thermax operates across three major business segments: Energy, Environment, and Chemical.
- Energy segment contributed ₹12.4 billion, led by large boiler and heater projects
- Environment segment posted ₹5.6 billion in revenue, driven by wastewater treatment and air pollution control systems
- Chemical segment saw modest growth, contributing ₹3.5 billion, with stable demand for specialty resins and ion exchange products

Operational Efficiency and Margin Expansion:

The company’s focus on cost optimization and supply chain agility helped boost margins.
- EBITDA for the quarter stood at ₹2.24 billion, up 22 percent year-on-year
- Operating margin improved due to better pricing discipline and reduced overheads
- Digital project monitoring tools enhanced execution speed and reduced delays

Order Book and Outlook:

Thermax’s order book remains healthy, with strong visibility for the next two quarters.
- Total order backlog as of June 30 stood at ₹68.4 billion
- New orders were secured from sectors including steel, cement, pharma, and data centers
- Management expects double-digit revenue growth for FY26, supported by infrastructure and green energy investments

Export and Global Operations:

Thermax’s international business continues to gain traction.
- Export revenue rose 15 percent year-on-year, led by demand from Southeast Asia and the Middle East
- The company commissioned two large projects in Indonesia and UAE during the quarter
- Currency stability and favorable trade terms supported overseas margins

Investor Sentiment and Market Reaction:

Thermax’s Q1 beat has been well received by investors.
- Shares rose 3.8 percent intraday following the earnings announcement
- Analysts have revised FY26 EPS estimates upward by 6–8 percent
- The company’s strong fundamentals and diversified order book are seen as key positives

Conclusion:

Thermax has kicked off FY26 with a strong first quarter, demonstrating resilience and strategic clarity in a volatile macro environment. With a robust order pipeline, expanding margins, and growing export footprint, the company is well-positioned to sustain its growth momentum and deliver value to stakeholders.

Source: Economic Times, Business Standard, Moneycontrol, July 31, 2025.

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