Thermax shares gain 5% on ₹115-cr investment in subsidiary; details here

Thermax shares rose 5 per cent after it invested in its wholly owned subsidiary, which will invest in its step-down subsidiary

Shares of Thermax surged over 5 per cent on Tuesday after it invested ₹115 crore in its wholly owned subsidiary, which will invest in its step-down subsidiary. 

 

The heavy electrical equipment maker's stock rose as much as 5.36 per cent during the day to ₹3,490 per share, the biggest intraday rise since July 17 this year. The stock pared gains to trade 3 per cent higher at ₹3,410 apiece, compared to a 0.55 per cent advance in Nifty 50 as of 10:14 AM. 

 

Shares of the company are at the highest level since August 6 and currently trade at 5 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 15 per cent this year, compared to a 5.7 per cent advance in the benchmark Nifty 50. Thermax has a total market capitalisation of ₹40,489.31 crore. 

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Thermax invests ₹115 crore in renewable energy subsidiary

The company, in an exchange filing, said it has invested ₹115 crore in its wholly owned subsidiary, First Energy Private Ltd (FEPL), to enable further investment in another step-down subsidiary, First Energy 10 Private Ltd (FE10).

 

FEPL, which operates in the renewable energy space, provides sustainable solutions including solar, wind, wind-solar hybrid and storage batteries for the commercial and industrial segment.

 

As part of the transaction, Thermax acquired 11.5 crore equity shares of ₹10 each in FEPL, which in turn subscribed to an equal number of shares in FE10.

 

The company clarified that both FEPL and FE10 are related parties, but the promoter group has no interest in the entities. The investment was made on an arm’s length basis, it added. 

Thermax Q1 results 

The company posted nearly a 39 per cent rise in consolidated net profit at ₹151 crore in the June quarter compared to ₹109 crore a year ago, mainly due to lower expenses.

 

The company recorded a consolidated operating revenue of ₹2,150 crore in the first quarter of FY 2025-26, a 2 per cent decrease as compared to ₹2,184 crore in the corresponding quarter of the previous fiscal year. Total expenses dipped to ₹2,004.16 crore in the quarter from ₹2,106.77 crore in the same period a year ago.

 

The current quarter's operating income includes an accrual of ₹56 crore as income towards the incentive receivable under the Packaged Incentive Scheme (PSI), 2007, from the government of Maharashtra. The company's order balance on June 30, 2025, stood at ₹6,477 crore, up by 2 per cent.

 

Thermax is a leading company in the energy and environment and a trusted partner in energy transition. Its extensive portfolio includes clean air, clean energy, clean water and chemical solutions.