Thermax tanks 16% on disappointing Q1 results; stock hits 3-month low

Going forward, recovery in project execution, margin improvement in the Industrial Infra segment, revival in export demand and sustained order inflows will remain the key monitorables, analysts said.

Thermax share price movement

 

Thermax stock tanked 16 per cent to ₹3,566.90, hitting a three-month low on the BSE in Friday’s intra-day deals after the company reported disappointing earnings for the first quarter of the financial year 2026-27 (Q1FY27). 

 

The stock price of the heavy electrical equipment company quoting at its lowest level since April 13, 2026. It corrected 32 per cent from its 52-week high of ₹5,277 touched on June 29, 2026.

 

At 10:23 AM on Friday, Thermax was down 11 per cent at ₹3,791.90, as compared to 0.04 per cent rise in the BSE Sensex.

 

 

Thermax – Q1 results

 

Thermax's consolidated profit after tax (PAT) declined 85 per cent year-on-year (YoY) to ₹22 crore against ₹151 crore in a year ago quarter. The profit before tax (PBT) was down 80 per cent to ₹42 crore from ₹211 crore in Q1FY26.

 

The company recorded consolidated operating revenue of ₹2,303 crore, a 7 per cent increase as compared to ₹2,158 crore in the corresponding quarter of the previous fiscal year.

 

Thermax said Q1FY27 results were impacted by ₹91 crore increase in the estimated cost to complete one specific project in the Industrial Infra segment, arising from events identified during the quarter. In addition, the corresponding quarter of the previous financial year included ₹56 crore income under the Package Scheme of Incentives for a subsidiary in the Industrial Infra segment. Lower export sales also impacted the profitability of Industrial Products segment during the current quarter, Thermax said.

 

As of June 30, 2026, the order balance for the quarter was ₹14,045 crore (₹11,376 crore), up 23 per cent from the corresponding quarter of the previous year. The order booking for the quarter stood at ₹2,809 crore (₹2,748 crore), up 2 per cent, the company said.

 

Thermax's extensive portfolio includes clean air, clean energy, clean water and chemical solutions.   Check Q1 Results Today

 

Brokerages view on Thermax

 

Thermax reported a weak Q1FY27 across parameters with revenue at ₹2,303 crore missing consensus forecast by 6 per cent on the account of weakness in industrial infrastructure, said analysts at JM Financial Institutional Securities.

 

Commodity cost pressure is evident with gross margin now at 47 per cent (-370bp YoY). Earnings before interest, taxes, depreciation, and amortization (EBITDA) at ₹68.6 crore too missed consensus sharply by 70 per cent, largely owing to weakness in industrial infrastructure and industrial products with EBITDA margin now at 3 per cent (versus 10.4 per cent YoY), much lower than consensus of 9.4 per cent, the brokerage firm said in the Q1 result update.

 

Thermax reported a weak Q1FY27 performance, with profitability impacted by a ₹91 crore cost overrun in a single Industrial Infra project, lower export sales in the Industrial Products segment and the absence of ₹56 crore Package Scheme of Incentives (PSI) income recognised in Q1FY26, said ICICI Securities.

 

Even after adjusting for these one-off factors, operating performance remained subdued, with adjusted EBITDA declining 5.6 per cent YoY to ₹159.6 crore, adjusted EBITDA margin contracting 111 bps YoY to 6.9 per cent, and adjusted PAT falling 5.7 per cent YoY to ₹90.1 crore, reflecting continued pressure from weak exports and losses in the Industrial Infra and Green Solutions businesses, the brokerage firm said in a note.

 

Nevertheless, the 23 per cent YoY growth in the order book to ₹14,045 crore and 2 per cent YoY increase in order inflow provides healthy revenue visibility. Going forward, recovery in project execution, margin improvement in the Industrial Infra segment, revival in export demand and sustained order inflows will remain the key monitorables, ICICI Securities said.  ======================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.