Synopsis: This engineering and energy sector company’s share price fell by 4% after a drop in Net profit of 39% YoY in Q2 results announced.
During Wednesday’s trading session, shares of a company that offers solutions to energy, environment and chemical sectors fell 4 percent on NSE, after reporting Q2 FY26 financial results with fall in revenue, EBITDA and even in its Net Profit.
With market capitalization of Rs. 36,262.84 Crore, shares of Thermax Ltd closed at Rs. 3,060 per share, down by 4 percent, compared to its previous close pricing of Rs. 3169.00. The stock has delivered a negative return of around 38 percent over a period of one year.
QoQ View
In Q2 FY26, the company posted revenue from operations of Rs. 2,473.90 crore in Q2 FY26, an increase of 14.6 percent from Rs. 2,157.53 crore in Q1 FY26. With a net profit of Rs. 119.4 crore in Q2 FY26, a decrease of around 21 percent from Rs.151.45 crore in Q1 FY26.
YoY View
Revenue from operations stands at Rs. 2,473.90 crore in Q2 FY26, reflecting a fall of 5.4 percent from Rs. 2,615.69 crore in Q2 FY25. Accompanied by a decrease in net profit by 39 percent YOY to Rs. 119.4 crore in Q2 FY 26.But gain in revenue & PBT being insignificant as it includes an incentive received last year from a government scheme worth Rs. 66 crore, to one of its subsidiaries.
Business Highlights:
In Q2 FY26, with an order booking of Rs. 3,551 crore, an increase of 6% YoY due to improved order booking in the Industrial Products segment, with an order balance of Rs. 12,300 crore yet to be fulfilled. The Industrial Infra segment has lower order booking in the current year due to large order bookings in the last year.
Segments: PBIT from Industrial product being flat at Rs.117 crore YoY marginally lower due to product mix, while PBIT from industrial infra turned negative at Rs. 15 Crores from Rs. 88 Crores last year due to cost overrun, also profit from Chemical being lower due to higher fixed cost and Green solutions has improved margins due to operational efficiency & received insurance claims.
The company had a low margin orderbook of Rs. 788 crore from FY 21, while the current one stands at Rs. 222 crore being in Bio Cng & Rs. 253 crore from Projects and Energy Solutions & FGD, showing accelerated execution of the lower margin business and focusing more on achieving better or higher margins.
About the Company:
The Thermax Group, an engineering conglomerate, continues to play a pivotal role in the global energy transition. With a strong portfolio of solutions in clean energy, clean air, clean water, and chemicals, the Company delivers innovative and integrated utility solutions to a wide spectrum of industries worldwide.
Thermax has intensified its focus on green and clean technologies, also offers end-to-end support, including operations and maintenance services such as retrofitting, revamping, upgrades, and audits etc.
Written by Gourav Pratap Singh
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