THERMAX - Thermax
📢 Recent Corporate Announcements
Thermax Limited has entered into definitive agreements to increase its stake in Exactspace Technologies from 15.17% to 51% on a fully diluted basis. The acquisition, valued at Rs. 30.48 crores, will transition Exactspace from an associate to a subsidiary. Exactspace provides AI-based Industrial IoT solutions that will enhance Thermax's predictive maintenance and asset optimization capabilities. Furthermore, Thermax has secured the right to acquire the remaining 49% stake after a three-year period.
- Acquisition of additional 35.83% stake to reach 51% majority control for Rs. 30.48 crores
- Exactspace reported a turnover of Rs. 6.21 crore for FY 2024-25, showing steady growth from Rs. 5.51 crore in FY 2023-24
- Strategic move to integrate AI-driven predictive maintenance and process optimization into industrial services
- Option to acquire the balance 49% stake after 3 years subject to specific terms and conditions
- The transaction is a cash deal and is classified as a related party transaction at arm's length
Thermax Limited has officially released the transcript for its Q3 FY 2025-26 analyst and investor conference call, which took place on February 5, 2026. The document is now accessible via the company's investor relations website for public review. This filing is a routine regulatory requirement under SEBI Listing Regulations to ensure transparency in management communications. It allows shareholders to analyze management's detailed responses regarding the company's quarterly performance and strategic direction.
- Transcript for Q3 FY 2025-26 earnings call made available on February 9, 2026.
- The original investor interaction was held on February 5, 2026.
- Compliance filing under Regulation 30 of SEBI (LODR) Regulations, 2015.
- Provides detailed management commentary on quarterly financial results and future outlook.
Thermax Limited has officially released the audio recording of its Investor Conference Call held on February 5, 2026. The call followed the company's scheduled update to discuss its performance and strategic outlook with analysts and institutional investors. The recording is now accessible on the company's website under the 'Analyst Conference Calls' section. This disclosure is a standard regulatory requirement under SEBI Listing Regulations to ensure transparency for all shareholders.
- Investor Conference Call was successfully conducted on February 5, 2026, at 02:30 p.m. IST.
- The audio recording has been made available on the company's official website as per SEBI guidelines.
- The filing follows the initial intimation regarding the call schedule sent on January 31, 2026.
- Complies with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Thermax Limited has announced the amalgamation of two of its step-down subsidiaries, Jalansar Wind Energy and Kanakal Wind Energy, both of which are part of its renewable energy business. The merger aims to consolidate operations, achieve better asset utilization, and reduce administrative and compliance costs. As of March 31, 2025, the combined total income of these two entities was approximately ₹2.30 crore with a combined net worth of ₹4.80 crore. This is an internal restructuring and will not result in any change to the shareholding pattern of the listed parent company, Thermax Limited.
- Merger of Jalansar Wind Energy (Transferor) into Kanakal Wind Energy (Transferee).
- Share exchange ratio set at 1:1 for the equity shares of the two subsidiaries.
- Combined net worth of the merging entities is ₹4.80 crore based on FY25 financials.
- The entities share the same captive user and have adjacent project locations.
- No impact on the shareholding pattern of the parent entity, Thermax Limited.
Thermax reported a robust Q3 FY26 performance with PAT growing 80% YoY to Rs 205 crore, supported by a Rs 59 crore exceptional gain. Order bookings saw a significant 34% jump to Rs 3,080 crore, bolstered by a large Rs 584 crore refinery order from Nigeria. The total order balance stands at Rs 12,641 crore, providing strong revenue visibility for the coming quarters. While the Industrial Infra segment showed improved operational efficiency, the Chemicals segment's profitability was impacted by higher fixed costs from a new plant.
- Order booking increased 34% YoY to Rs 3,080 crore, taking the total order balance to Rs 12,641 crore.
- Consolidated PAT rose 80% to Rs 205 crore, while PBT before exceptional items grew 47% to Rs 230 crore.
- Industrial Infra segment PBIT recovered to Rs 65 crore from Rs 1 crore YoY, driven by operational efficiency.
- Secured a major export order worth Rs 584 crore from Dangote Industries for their refinery complex in Nigeria.
- Data centers emerged as a new growth vertical, representing 2% of the current order book.
Thermax reported a consolidated revenue of ₹2,634.68 crore for Q3 FY26, representing a 4% growth year-on-year. The company's net profit saw a significant surge to ₹205.01 crore compared to ₹113.73 crore in the previous year, supported by improved operational efficiencies and an exceptional gain. The Industrial Products and Industrial Infra segments remain the primary revenue drivers, contributing the bulk of the top line. Furthermore, the board has approved the incorporation of a new step-down subsidiary in Dubai to expand its international footprint.
- Consolidated Net Profit rose 80% YoY to ₹205.01 crore in Q3 FY26.
- Consolidated Revenue from operations reached ₹2,634.68 crore vs ₹2,528.72 crore YoY.
- Industrial Products segment revenue grew to ₹1,289.82 crore from ₹1,092.70 crore YoY.
- Board approved the incorporation of a wholly owned step-down subsidiary in Dubai via Singapore.
- Exceptional gain of ₹58.75 crore contributed to the overall profit before tax for the nine-month period.
Thermax reported a robust 80% YoY growth in consolidated net profit to ₹205.01 crore for the quarter ended December 31, 2025, aided by an exceptional gain of ₹58.75 crore. Revenue from operations grew 4.2% YoY to ₹2,634.68 crore, with the Industrial Products segment showing strong momentum. The company is expanding its international footprint by incorporating a new step-down subsidiary in Dubai. Despite a slight dip in Industrial Infra revenue, the segment's profitability improved significantly compared to the previous year.
- Consolidated Net Profit rose 80% YoY to ₹205.01 crore from ₹113.73 crore in the previous year.
- Revenue from operations increased to ₹2,634.68 crore, driven by an 18% growth in the Industrial Products segment.
- Board approved the incorporation of a new wholly owned step-down subsidiary in Dubai via its Singapore arm.
- Exceptional gain of ₹58.75 crore recorded during the quarter, boosting the bottom line.
- Thermax Bioenergy Solutions Private Limited became a 100% wholly owned subsidiary during the period.
Thermax reported a strong bottom-line performance for Q3 FY26, with consolidated net profit rising 80% year-on-year to ₹205.01 crore, significantly aided by an exceptional gain of ₹58.75 crore. Revenue from operations saw a modest increase of 4.2% to ₹2,634.68 crore compared to ₹2,528.72 crore in the same quarter last year. The Industrial Products segment remained the primary driver with revenue of ₹1,289.82 crore, while the Industrial Infra segment showed a notable turnaround in profitability. The company also announced further international expansion with the approval of a new subsidiary in Dubai.
- Consolidated Net Profit surged 80% YoY to ₹205.01 crore in Q3 FY26 from ₹113.73 crore.
- Revenue from operations grew 4.2% YoY to ₹2,634.68 crore.
- Profit before tax (PBT) reached ₹288.67 crore, inclusive of a ₹58.75 crore exceptional gain.
- Industrial Products segment revenue increased to ₹1,289.82 crore, up from ₹1,092.70 crore in the previous year's quarter.
- Board approved the incorporation of a new wholly owned step-down subsidiary in Dubai, UAE.
Thermax Limited has scheduled its post-results conference call for Thursday, February 5, 2026, at 2:30 PM IST to discuss the financial performance for the quarter and nine months ended December 31, 2025. The call will feature top management, including MD & CEO Ashish Bhandari and Group CFO Rajendran Arunachalam. This meeting is a standard procedure for institutional investors and analysts to gain insights into the company's operational performance and future outlook. Investors can access the call via the provided universal dial-in numbers or the diamond passcode link.
- Earnings conference call scheduled for February 5, 2026, at 14:30 IST.
- Discussion will cover financial results for Q3 and the nine-month period ending December 31, 2025.
- Management representation includes MD & CEO Ashish Bhandari and Group CFO Rajendran Arunachalam.
- The session is organized by DAM Capital Advisors Ltd.
- Universal dial-in numbers provided are +91 22 6280 1384 and +91 22 7115 8285.
Thermax Limited has entered into a strategic Memorandum of Understanding (MoU) with Hindustan Petroleum Corporation Limited (HPCL) to collaborate on sustainable energy technologies. The partnership focuses on the development and deployment of HP AEM electrolysers for green hydrogen, CO2 capture solutions, and bio-pyrolysis oil processing. This collaboration combines Thermax's engineering expertise with HPCL's massive operational scale and R&D capabilities. While specific financial terms were not disclosed, the move significantly strengthens Thermax's position in the high-growth energy transition and decarbonization sectors.
- Strategic MoU signed at India Energy Week 2026 for joint research and deployment of new energy technologies.
- Focus areas include indigenous HP AEM electrolysers, carbon capture, and bio-pyrolysis oil processing.
- Collaboration leverages HPCL's infrastructure, which includes 2 refineries and over 24,572 retail outlets.
- Aims to advance 'Make in India' objectives within the green hydrogen and sustainable fuel segments.
- Partnership bridges the gap between innovation and on-ground implementation for energy transition.
Thermax Limited has announced the incorporation of a new wholly owned step-down subsidiary, Thermax Energy Solutions Company, in Saudi Arabia. The entity was established through its subsidiary, Thermax Babcock and Wilcox Energy Solutions Limited (TBWES), on January 28, 2026. This new company will focus on providing on-site services, maintenance, and marketing support, strengthening Thermax's service capabilities in the Middle East. The company plans to infuse INR 25,00,000 as capital into this new venture in due course.
- 100% ownership of the new entity, Thermax Energy Solutions Company, based in Saudi Arabia
- Planned capital infusion of INR 25,00,000 to support initial operations
- Focus on on-site services, maintenance, and supervision to support parent entity TBWES
- Strategic expansion of the company's service and marketing footprint in the Middle Eastern energy market
CRISIL Ratings has reaffirmed its 'CRISIL AA+/Stable' rating for the long-term bank facilities and 'CRISIL A1+' for the short-term facilities of Thermax Limited. The total rated bank loan facilities have been significantly enhanced from Rs. 4,270 crore to Rs. 5,500 crore. This reaffirmation and limit increase reflect the company's robust financial health and its capacity to manage larger operational scales. The stable outlook suggests that the company is well-positioned to maintain its credit profile despite market fluctuations.
- CRISIL reaffirmed Long Term Rating at 'AA+/Stable' and Short Term Rating at 'A1+'
- Total rated bank loan facilities increased by approximately 29% to Rs. 5,500 crore from Rs. 4,270 crore
- The facilities include Rs. 1,080 crore in fund-based limits and substantial non-fund based limits across multiple banks
- ICICI Bank and Axis Bank hold the largest shares of the rated facilities at Rs. 1,520 crore and Rs. 1,100 crore respectively
Thermax Limited has announced the resignation of Mr. Jasmeet Bhatia, Executive Vice President and Chief Human Resources Officer (CHRO). Mr. Bhatia, who is classified as Senior Management Personnel, stepped down to pursue new professional opportunities. The resignation was effective as of the close of business hours on January 16, 2026, following a three-month notice period initiated in October 2025. This transition appears to be a routine management change and is not expected to disrupt the company's core industrial operations.
- Mr. Jasmeet Bhatia resigned from his role as EVP and Chief Human Resources Officer.
- The resignation became effective on January 16, 2026, after serving a full 3-month notice period.
- The official resignation letter was originally tendered on October 17, 2025.
- The departure is categorized under Regulation 30 of SEBI Listing Regulations as a change in Senior Management Personnel.
CareEdge Ratings has assigned a top-tier 'CARE A1+' rating to Thermax Limited's Commercial Papers, reflecting a robust financial risk profile and strong liquidity. The company achieved a healthy revenue CAGR of approximately 19% between FY22 and FY25, supported by growth across all operating divisions. Operating profit margins saw a notable expansion from 6.42% in FY22 to 9.25% in FY25, driven by improved profitability in industrial products and chemicals. The rating underscores Thermax's low leverage and steady order inflow in both domestic and international markets.
- Assigned CARE A1+ rating for Commercial Papers, the highest short-term credit rating possible.
- Revenue grew at a CAGR of ~19% over the FY22-FY25 period.
- Operating profit margins improved significantly from 6.42% in FY22 to 9.25% in FY25.
- Maintains a strong financial risk profile characterized by low leverage and comfortable debt coverage indicators.
- Healthy execution capabilities have led to a sustained increase in the outstanding order book.
Thermax Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The filing confirms that for the quarter ended December 31, 2025, all securities received for dematerialization were processed within the mandated 15-day period. The company's Registrar and Transfer Agent, KFin Technologies Limited, verified that physical certificates were mutilated and cancelled. This is a standard administrative procedure to ensure the accuracy of electronic shareholding records.
- Compliance certificate issued for the quarter ended December 31, 2025
- Dematerialization requests processed and records updated within 15 days of receipt
- Physical share certificates were mutilated and cancelled as per SEBI guidelines
- KFin Technologies Limited confirmed compliance as the Registrar and Transfer Agent
Financial Performance
Revenue Growth by Segment
Consolidated revenue rose 11% YoY to Rs 10,641 Cr in FY25. Segment performance: Industrial Products grew 11.7% to Rs 4,529 Cr; Industrial Infra grew 5.8% to Rs 4,715 Cr; Green Solutions grew 36% to Rs 690 Cr; Chemicals grew 15% to Rs 763 Cr.
Geographic Revenue Split
Overseas markets contribute 30-35% of total revenue, providing geographical stability. Domestic India operations remain the primary driver, though international focus is increasing to diversify revenue streams.
Profitability Margins
Operating margins improved from 8% in FY23 to 9.4% in FY24, reaching 9.6% in FY25. Industrial Products reported a healthy 11.7% PBIT margin, while Industrial Infra margins declined from 4.7% to 2.3% due to higher technology intervention costs in bio-CNG projects.
EBITDA Margin
Operating margin stood at 9.6% in FY25, a 20 bps improvement YoY. The company aims for a sustained double-digit margin of over 12% through cost optimization and higher-margin product mixes.
Capital Expenditure
Planned investment of Rs 800-850 Cr in green energy subsidiaries FEPL and TOESL over the medium term to expand solar, wind, and biomass capabilities.
Credit Rating & Borrowing
Maintains a 'Stable' credit profile with CRISIL. The company is net debt-free with a cash surplus of Rs 2,800 Cr as of March 2025. Bank limit utilization averaged 48-58%.
Operational Drivers
Raw Materials
Steel, specialized components, and chemical feedstocks. Commodity price fluctuations directly impact the project business due to fixed-price contract structures.
Import Sources
Global sourcing strategy utilized to mitigate local price volatility; specific countries not listed but includes international procurement for Danstoker (Denmark) and PT TII (Indonesia).
Capacity Expansion
Expanding green energy portfolio through FEPL and TOESL; acquired Buildtech Products India (100% stake for Rs 72 Cr) and TSA Process Equipments (51% stake for Rs 71 Cr) to expand chemical and process equipment capacity.
Raw Material Costs
Raw material costs are managed through centralized purchasing and back-to-back order placement. Margins remain vulnerable to commodity price volatility which historically kept margins in the 7-9% range.
Manufacturing Efficiency
Lost time injury frequency rate is at nil for employees. Digital transformation via IIoT and remote assistance is being implemented to enhance operational efficiency.
Logistics & Distribution
Logistics costs are impacted by global crises like the Red Sea disruption, which significantly affects the delivery timelines and costs for the Chemicals and Industrial Products segments.
Strategic Growth
Expected Growth Rate
12-15%
Growth Strategy
Growth is driven by a transition to green energy solutions (Solar, Wind, Biomass), scaling the Chemicals segment with a 3x growth target for Q1 FY26, and aggressive expansion in the construction chemicals market via the Buildtech acquisition which targets 50% sales growth.
Products & Services
Vapour absorption chillers, low and medium-capacity boilers, electrostatic precipitators, air pollution control systems, water treatment plants, ion exchange resins, and construction chemicals like admixtures and waterproofing solutions.
Brand Portfolio
Thermax, Danstoker, TOESL (Thermax Onsite Energy Solutions Limited), FEPL (First Energy Private Limited), Buildtech Products.
New Products/Services
Bio-CNG projects and electric boilers for the European market. Buildtech is launching new admixtures and resin capsules for highway and metro rail segments.
Market Expansion
Targeting the European grid integration with electric boilers and expanding the US market presence despite municipal project delays in election years.
Market Share & Ranking
Leading player in vapour absorption chillers, low-to-medium capacity boilers, and electrostatic precipitators.
Strategic Alliances
Joint ventures and subsidiaries like FEPL and TOESL for build-own-operate (BOO) models in renewable energy.
External Factors
Industry Trends
The industry is shifting toward decarbonization and energy transition. Thermax is positioning itself as a 'trusted partner in energy transition' with a focus on biomass, waste-to-energy, and green hydrogen readiness.
Competitive Landscape
Faces intense competition from established international players and aggressive local manufacturers in cost-sensitive segments like packaged water treatment.
Competitive Moat
Moat is built on technological leadership in cooling and heating, a robust service network, and a net debt-free balance sheet. Sustainability is driven by long-term (10-25 year) opex-based contracts in Green Solutions.
Macro Economic Sensitivity
Highly sensitive to industrial Capex cycles and global fuel prices. Lower fossil fuel prices (coal/gas) reduce the cost advantage of Thermax’s renewable energy solutions.
Consumer Behavior
Industrial customers are increasingly shifting toward 'Green Utilities' as a service (Opex model) rather than Capex-heavy equipment purchases.
Geopolitical Risks
Exposure to US tariffs in the chemicals and chillers segments is being monitored, though currently deemed not material. Ukraine-Russia war and Red Sea crisis remain active risks to international revenue.
Regulatory & Governance
Industry Regulations
Operations are subject to environmental emission norms and municipal project regulations, particularly in the US and European markets.
Environmental Compliance
Scope 1 and 2 emissions reduced by 36% YoY. The company is aligning with global emission standards to drive demand for its air pollution control and biomass products.
Risk Analysis
Key Uncertainties
Execution complexity of large-scale projects and volatility in biomass feedstock prices could impact margins by 2-3%.
Geographic Concentration Risk
Domestic India accounts for 65-70% of revenue; international exposure is concentrated in Europe, SE Asia, and the USA.
Third Party Dependencies
High reliance on biomass suppliers for TOESL projects; mitigated by diversifying feedstock and establishing briquetting facilities.
Technology Obsolescence Risk
Risk of technology shifts in the bio-CNG segment; mitigated by high investment in technology intervention and digital IIoT solutions.
Credit & Counterparty Risk
Customer default risk in long-term contracts is mitigated by selecting high-quality off-takers and having the ability to tap alternate off-takers for renewable power.