Synopsis: Thermax sees Bio-CNG as a major growth driver, expecting the business to generate Rs. 1,000–2,000 crore in revenue within 2–3 years. Government policy support, India’s large capacity gap, and rising clean energy investments could significantly accelerate the opportunity.
The shares of this company are engaged in manufacturing boilers and heaters, absorption chillers/ heat pumps, power plants, solar equipment, air pollution control equipment/system, and etc are in the spotlight after expecting bio CNG business to generate up to Rs. 2000 cr in revenue.
With a market capitalisation of Rs. 56,406 cr, the shares of Thermax Ltd closed at Rs. 4733.85 per share, up from its previous close of Rs. 4,612.60 per share. The stock has delivered strong returns, gaining 37% over the past year, 55% year-to-date, 54% in the last six months, and 1% over the past month.
What’s the News
Thermax’s management has highlighted Bio-CNG as one of its most promising growth opportunities, driven by India’s increasing focus on energy security and reducing dependence on imported fossil fuels. According to the company, stronger energy realisations and the government’s emphasis on domestic renewable fuels are expected to accelerate investments in alternative energy infrastructure over the coming years.
India has set an ambitious target of establishing more than 3,000 Bio-CNG plants under various clean energy initiatives. However, the country currently has less than 10% of this targeted capacity in operation, leaving a significant gap for new project development. Thermax expects important policy announcements and regulatory support for the Bio-CNG sector over the next few months, which could further improve project viability and encourage faster execution.
Management Expects Bio-CNG to Mirror Ethanol’s Growth Story
Management believes that the Bio-CNG industry has the potential to replicate the success of India’s ethanol blending programme, evolving into a multi-billion-dollar market over time.
To strengthen its position, Thermax has already commissioned 14 Bio-CNG plants and has expanded the digester capacity at several existing facilities. These investments are intended to enhance the company’s execution capabilities and prepare it for rising demand as the sector scales up.
Green Energy Portfolio
Beyond Bio-CNG, Thermax sees additional opportunities to improve profitability through government incentives, technological innovation, and its broader portfolio of green energy solutions. The company also expects carbon capture technologies to emerge as a meaningful business opportunity in India by around 2030, creating another long-term growth avenue alongside its clean energy businesses.
Reflecting its confidence in the sector, Thermax’s management stated that the Bio-CNG business alone has the potential to generate Rs. 1,000–2,000 crore in revenue over the next two to three years. If supported by favourable policy measures and timely project execution, Bio-CNG could become one of the company’s key growth drivers and contribute significantly to its expanding clean energy portfolio.
In conclusion, while achieving a Rs. 2,000 crore Bio-CNG business will depend on policy support, execution, and faster industry adoption, Thermax appears well-positioned to capitalise on India’s clean energy transition. If the sector expands as anticipated, Bio-CNG could emerge as one of the company’s most significant growth engines over the next few years.
Order Book
The company reported total order bookings of Rs. 4,490 crore in Q4 FY26, registering a robust 112% year-on-year growth, while the order balance increased 27% YoY to Rs. 13,604 crore. The strong performance reflects healthy demand across its diversified business segments.
The Industrial Infrastructure segment led growth with Rs. 2,433 crore in order bookings, up 152% YoY, followed by Industrial Products at Rs. 1,512 crore, up 60% YoY. Green Solutions posted the highest growth rate, with order bookings surging 1,398% YoY to Rs. 317 crore, while the Chemicals segment recorded 24% YoY growth in bookings to Rs. 228 crore.
Thermax Limited offers solutions to the energy, environment and chemical sectors. The Company’s portfolio includes boilers and heaters, absorption chillers/ heat pumps, power plants, solar equipment, air pollution control equipment/system, water and waste recycle plant, ion exchange resins, performance chemicals and related services.
As of Q4FY26, the sales of the company increased from Rs. 2,635 cr in Q3FY26 to Rs. 3,428 cr in Q4FY26. Operating profit also rose to Rs. 374 cr from Rs. 255 cr. Net profit increased from Rs. 205 cr to Rs. 244 cr over the same period.
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