Thermax Limited reported a consolidated revenue of Rs 2,755.87 crore for Q2 FY27, up 11.4% YoY. Despite top-line growth, consolidated PAT slipped to Rs 114.54 crore from Rs 119.66 crore in the same period last year. A Rs 15 crore impairment in its 'Green Solutions' segment and shifting product mixes weighed on margins. However, the company maintains a robust order book of Rs 14,250 crore, providing long-term revenue visibility even as quarterly order bookings saw an 8% decline.
Thermax Q2 Results: Revenue Climbs 11.4%, Profit Softens
Consolidated Revenue: Rs 2,755.87 crore | Consolidated PAT: Rs 114.54 crore
Reader Takeaway: Strong revenue and order backlog provide long-term stability, while margin pressures and lower quarterly bookings require caution.
What just happened
Thermax Limited has posted its Q2 FY27 results, showing a healthy double-digit growth in top-line revenue, which reached Rs 2,755.87 crore, up from Rs 2,473.90 crore a year ago. Despite this growth, profitability faced headwinds, with consolidated PAT attributable to shareholders sliding to Rs 114.54 crore, compared to Rs 119.66 crore in Q2 FY26. The standalone entity performed significantly better, reporting a PAT of Rs 262.50 crore on revenue of Rs 1,711.63 crore.
Why this matters
The company’s order book remains a major strength, growing 16% YoY to touch Rs 14,250 crore, which offers significant long-term execution visibility. However, fresh order bookings for the quarter dropped by 8% to Rs 3,259 crore. Investors are weighing the strong backlog against a cooling trend in new demand and immediate margin pressures caused by rising input costs and product mix changes.
Risks to watch
Profitability was directly impacted by a Rs 15 crore impairment provision linked to a hybrid renewable energy project under the 'Green Solutions' segment. Additionally, the industrial products segment saw margin compression. The decline in quarterly order intake is an area that market participants will watch closely in subsequent quarters to determine if this is a temporary slowdown or a broader trend.
Corporate Restructuring
Thermax is actively streamlining its operations through a Composite Scheme of Arrangement. This includes the merger of Thermax Cooling Solutions Limited into the parent company and the demerger of the Bio-CNG EPC business from its subsidiary, Thermax Bioenergy Solutions Private Limited (TBSPL). These moves aim to simplify the corporate structure.
What to track next
The market will look for the performance of the newly launched 'Thermax-i' series of intelligent boilers. The company claims the UltraPac-i biomass-fired boiler can deliver fuel savings of up to 10%, which could be a critical differentiator in an environment where industrial clients are increasingly cost-conscious.