Thermax plunges 15%, nears 52-week low on weak Q2 operational performance

Thermax said quarterly profitability in the Industrial Product segment was impacted by product mix and higher input costs.

Thermax share price movement

 

Thermax’s share price plunged 15 per cent to ₹2,830 on the BSE in Friday’s intraday deals after the company reported weak operational performance for the July to September 2026 quarter (Q2FY27). The company's consolidated profit after tax (PAT) declined 5.3 per cent year-on-year (YoY) to ₹113.11 crore from ₹119.40 crore.

 

The stock price of the heavy electric equipment company hit a 52-week low of ₹2,744.20 on December 8, 2025. It corrected 46 per cent from its 52-week high of ₹5,277 touched on June 29, 2026. In comparison, the BSE Sensex was up 0.19 per cent at 79,459 at 09:30 AM.

 

 

Thermax – Q2 results

 

Thermax reported a consolidated revenue growth of 11.4 per cent YoY to ₹2,755.9 crore in Q2FY27. The company said revenue for the current period is higher primarily driven by improved operations in the Industrial Products and Industrial Infra segments due to execution of order backlog.

 

Operating earnings before interest, tax, depreciation and amortization (EBITDA) increased 12.9 per cent YoY to ₹194.1 crore, with margin improving marginally by 9 bps to 7 per cent. However, consolidated PAT declined 5.3 per cent YoY to ₹113.11 crore from ₹119.40 crore, impacted by adverse product mix and higher input costs, particularly in Industrial Products. 

 

Quarterly profitability was impacted in the Industrial Product segment due to product mix and higher input costs. Thermax said it was further affected by ₹15 crore in impairment provisions for one of the hybrid renewable energy projects in the Green Solutions segment, arising from events identified during the quarter.

 

On the order front, order booking declined 8.2 per cent YoY to ₹3,259 crore, while order balance increased 15.9 per cent YoY to ₹14,250 crore.

 

Order booking in the Industrial Products segment declined, primarily due to deferment of major orders to Q3. However, order booking and backlog in the Industrial Infra segment increased, primarily due to two major orders for captive power plants booked in Q2, the company said in its investor presentation.

 

Order booking in the Green Solutions segment decreased due to a change in its order book reporting methodology. Last year, TOESL adopted a rolling 12-month forecast model for reporting its order book, replacing the earlier practice of reporting only the first year’s revenue from long-term contracts that typically run for around 10 years. As a result of this methodological change, the reported order book increased by ₹197 in the last year. This adjustment does not impact underlying contracts, revenue recognition, or financial results, the company said.

 

ICICI Securities view on Thermax

 

Thermax reported a weak operating performance, with revenue growth failing to translate into meaningful earnings growth. Despite 11.4 per cent YoY revenue growth, higher raw material and employee costs, coupled with adverse product mix, restricted operating leverage. Further, the ₹15 crore impairment provisions in Green Solutions and continued losses in the segment weighed on profitability, while declining segment profits in Industrial Products and Chemicals remain concerns, ICICI Securities said.

 

The 15.9 per cent YoY growth in order balance provides revenue visibility; however, the 8.2 per cent decline in order booking raises concerns over fresh order momentum. Although Industrial Infra reported a profitability turnaround, the overall segmental performance remains mixed. The brokerage firm said the recovery in operating margins, Green Solutions profitability and fresh order inflows are key monitorables. Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.