Thermax Q4 FY26: Profit Climbs 18% on Robust Revenue and Order Book Growth

Thermax announced strong financial results for the fourth quarter and full fiscal year 2026. Consolidated operating revenue for Q4 FY26 increased by 13% to ₹3,428 crore, up from ₹3,046 crore in the same period last year. Profit after tax (PAT) on a consolidated basis surged 18% to ₹244 crore, compared to ₹206 crore in Q4 FY25. For the full fiscal year FY26, consolidated PAT grew 15% to ₹720 crore, while revenue reached ₹10,694 crore, an increase from ₹10,369 crore in FY25.

Order Backlog Fuels Future Revenue

A key driver of the positive outlook is the company's order backlog, which grew substantially by 27% year-on-year to ₹13,604 crore as of March 31, 2026. This significant rise from approximately ₹10,712 crore in the previous year signals strong project pipeline execution and provides clear revenue visibility for the upcoming fiscal year.

Shareholder Returns and Leadership Appointments

The Board of Directors has recommended a total dividend of ₹20 per share for FY26, including a final dividend of ₹14 and a special dividend of ₹6. In terms of leadership, Ms. Kavita Singh has been appointed as Chief Human Resources Officer. Dr. Ravi Shankar Gopinath has also been re-appointed as a Non-Executive Independent Director, providing continued oversight.

Company Background and Key Risks

Thermax operates as a leading Indian company in the energy and environment sector. However, the company is facing a significant legal challenge: an appeal before the Supreme Court concerning an excise duty demand of ₹1,385.47 crore. Separately, the company's standalone PAT saw a decline of 27% in Q4 FY26. This dip is attributed to an exceptional gain that was recognized in the prior year's corresponding quarter, rather than a downturn in current operational performance.

Competitive Landscape

In the competitive energy and environment sector, Thermax competes with major players such as Siemens India, BHEL, and ABB India. The recent strong growth in its order backlog suggests a competitive advantage and a robust project pipeline relative to its peers.

Key Areas to Watch

Investors will be monitoring several key developments. These include shareholder approvals for the proposed dividends and the re-appointment of Dr. Ravi Shankar Gopinath. The outcome of the Supreme Court appeal regarding the excise duty demand remains a critical point. Additionally, the successful integration of Ms. Kavita Singh into her new HR role and the continued growth of the consolidated order backlog for FY27 will be closely monitored.