The importance of energy transition in addressing climate change and pollution cannot be emphasised. India’s progress through this transition has been admirable, with ambitious goals set far ahead of many other nations. 

This progress comprises the development of strategic routes backed by appropriate policies, plans, and activities. Furthermore, there is an ongoing process of reassessment and adjustment depending on newly gained knowledge, technological improvements, and changing cost dynamics.

India’s announcement that it aspires to achieve net zero emissions by 2070 and meet 50% of its electricity needs through renewable energy sources by 2030 is an important milestone in the global fight against climate change.

telegram channel

Because of its sheer size and enormous potential for growth, India’s energy demand is expected to rise faster than any other country in the next decades. Customers are increasingly seeking environmentally friendly alternatives.

Note: If you want to learn Candlesticks and Chart Trading from Scratch, here’s the best book available on Amazon! Get the book now!

Thermax defines them as waste (including biomass), energy, heat recovery, and solar and wind hybrid renewable energy. It also seeks collaborations to promote green solutions. It intends to invest in a coal gasification facility in Bengal and implement bio-CNG technology in the state.

Over the past year, the stock price of this energy company has surged by 60%, delivering significant returns to investors. Looking at a three-year timeframe, the stock has multiplied in value, providing investors with an impressive return of 157%. So, let’s delve into the article to assess the future of this company. 

Corporate Overview Of Thermax

The Thermax Group, founded in 1966 as Wanson India, has its headquarters in Pune, India. It has grown into a prominent multinational in the energy and environmental sectors, strategically expanding its operations to markets across the world and catering to a diverse range of industries.

The company provides integrated solutions for heating, cooling, electricity production, water treatment and recycling, air pollution control, and chemicals, with a focus on ensuring clean air, energy, and water.

As a one-stop utility solutions supplier, Thermax provides complete operations and maintenance assistance to all of its business verticals, as well as a wide range of specialised services such as retrofitting, renovating, upgrading, and auditing.

Furthermore, the Company has expanded its service portfolio by introducing digital solutions that cater to all asset lifecycle demands in real time for a wide range of its goods.

Business Segments Of Thermax

The company’s business is classified into four key segments – Industrial Products, Industrial Infra, Green Solutions and Chemical.

Industrial Products

The Industrial Products division is the Company’s largest portfolio. Under Clean Energy, this division provides packaged boilers and fired heaters, as well as complete process heating systems, using a variety of heating media such as steam, thermic fluid, hot water, and hot air.

It also offers biomass-fired equipment for the combustion of green fuels, such as agricultural and industrial waste, as well as heat recovery systems for sustainable energy generation. It is enhanced by steam engineering goods and accessories.

In FY 2022-23, the Industrial Products business accounted for 40.2% (40.8% in FY 2021-22) of the Group’s gross operating revenue. 

Industrial Infra

The new segment, Industrial Infra, includes our Projects and Energy Solutions (P&ES) and Thermax Babcock & Wilcox Energy Solutions (TBWES) businesses. P&ES provides captive power plants, cogeneration systems, waste heat recovery power plants, and independent power plants in the utility sector on an EPC basis.

The company delivers captive and independent power plants that run on a variety of renewable fuels. It also provides equipment and solutions for conventional fuels (solid, liquid, and gaseous).

In FY 2022-23, the Industrial Infra business accounted for 47.3% (47.3% in FY 2021-22) of the Group’s gross operating revenue. 

Green Solutions

Thermax Onsite Energy Solutions Limited (TOESL) is part of the Green Solutions sector and delivers green utilities on a long-term basis, including steam, heat, treated water, chilled water, and cogeneration power.

Furthermore, through its company First Energy Private Limited (FEPL), Thermax has expanded its renewable energy capabilities on an EPC basis, developing solar, wind, and hybrid farms (including storage) using the opex/BOO model.

During the fiscal year 2022-23, the Industrial Infrastructure sector contributed 47.3% of the Group’s total gross operating revenue, consistent with its performance in the preceding fiscal year of 2021-22.


The Chemical business produces and offers a diverse range of specialised chemicals to help improve processes and water use efficiency in a variety of industries.

Thermax is Asia’s biggest manufacturer and exporter of ion exchange resins, as well as a pioneer in wastewater treatment chemicals.

It also produces construction and oil-field chemicals. With these speciality chemicals and its extensive dealer network, it serves a wide range of industrial sectors and clients worldwide. The United States is a significant market for this firm.

The segment contributed 8.1% (8.5% in FY 2021-22) of the Group’s gross operating sales in FY 2022-23.

Financials Of Thermax

Revenue (in ₹crore)8,089.816,128.334,791.255,731.31
Net Profit (in ₹crore)450.7312.31206.58212.45

In the fiscal year 2023, Thermax saw a substantial increase in revenue, surging by 32% to reach ₹8,089.81 crore as opposed to ₹6,128.33 crore in FY2022. Analyzing a span of four years, encompassing FY2020 to FY2023, the company displayed a  Compound Annual Growth Rate (CAGR) of 12.7% in revenue.

Simultaneously, there was a noteworthy upturn in net profit, experiencing a 60% increase from ₹212.45 crore in FY2022 to ₹450.7 crore in FY2023. Over the cumulative four-year period from FY2020 to FY2023, the net profit showcased 28.49% CAGR.

In FY23, Thermax maintained favourable financial metrics with a Return on Equity (ROE) of 12.25% and Return on Capital Employed (ROCE) of 14.53%.

Future Plan and Strategies Of Thermax

Thermax defines ‘green’ orders as those that include the use of non-fossil fuels in the energy segment, all orders booked by the environment segment, and non-fossil application-based orders from the chemical segment.

Orders under the green portfolio have increased from 40% in FY10 to 74% in FY23. The orders are mostly driven by waste-to-heat recovery, FGDs (due to a regulation to minimise sulphur dioxide emissions), and chemicals used in water treatment.

In keeping with this plan, TMX inked an MoU with Fortescue Future Industries (FFI), an Australian conglomerate’s green branch, on 23 March to explore green hydrogen projects in India. This is TMX’s introduction into the green hydrogen market.

Thermax Ltd has announced that it is in discussions with numerous steel companies in the eastern region about a commercial-scale high-ash coal gasification project. Thermax is also in discussions with Coal India on coal gasification technology.

CIL intends to put up a coal-to-SNG (Synthetic Natural Gas) operation in the Eastern Coalfields Limited command region. In this field, Thermax claims to have patented technology. In this field, Thermax claims to have patented technology.


In conclusion, Thermax has demonstrated impressive growth and a strong commitment to green energy solutions. With ambitious plans for expansion into emerging areas like green hydrogen and coal gasification, the company appears well-positioned for continued success.

However, what are your thoughts on Thermax’s prospects? Do you think their strategies will enable them to capitalize on the growing demand for sustainable energy? Share your opinion on this innovative Indian energy company.

Written by Nalin Suriya

By utilising the stock screenerstock heatmapportfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks, also get updated with stock market news, and make well-informed investments.

Start Your Stock Market Journey Today!

Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!