Thermax Q3 PAT Surges 80% on Court Wins, Order Book Climbs 34%

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AuthorAarav Shah|Published at:
Thermax Q3 PAT Surges 80% on Court Wins, Order Book Climbs 34%
Overview

Thermax Limited reported a robust Q3 FY26 with consolidated revenue up 4% YoY to ₹2,635 crore. PAT surged 80% to ₹205 crore, boosted by exceptional items including a favourable court order reversal, partially offset by labour code impacts. Order booking grew 34% to ₹3,080 crore, contributing to a strong ₹12,641 crore order balance.

Thermax Limited: Q3 FY26 Financial Analysis

📉 The Financial Deep Dive

Thermax Limited announced strong financial results for the third quarter and nine months ended December 31, 2025. The company's consolidated operating revenue for Q3 FY26 reached ₹2,635 crore, a 4% year-on-year increase from ₹2,529 crore in Q3 FY25. Profit After Tax (PAT) witnessed a significant surge of 80%, climbing to ₹205 crore compared to ₹114 crore in the prior year's corresponding quarter.

This substantial PAT growth was significantly influenced by exceptional items amounting to ₹58.75 crore on a consolidated basis. These included the reversal of a provision (₹50.63 crore) and interest income (₹29.16 crore) stemming from a favourable Bombay High Court order that set aside an arbitral award concerning Gas Turbo Generators (GTGs). These positive impacts were partially offset by the effect of statutory changes in new Labour Codes, amounting to ₹21.04 crore.

On a standalone basis, Thermax reported operating revenue of ₹1,599 crore for Q3 FY26, reflecting a 9% growth from ₹1,469 crore in Q3 FY25. Standalone PAT stood at ₹175 crore, a 70% increase from ₹103 crore in the previous year. Standalone exceptional items included a net gain of ₹85.38 crore from litigation and interest, an impairment reversal on investment in Thermax Netherlands B.V. (₹50.06 crore), an impairment charge on Thermax Bioenergy Solutions Private Limited (₹30.00 crore), and the ₹14.47 crore impact from new labour codes.

🚀 Order Booking & Strategic Moves

The order booking for Q3 FY26 was robust, showing a 34% year-on-year increase to ₹3,080 crore. This strong performance contributed to a consolidated order balance of ₹12,641 crore as of December 31, 2025, an 11% increase from the previous year.

Significant orders secured during the quarter include a utility boiler order worth over ₹580 crore from Dangote Industries for their refinery in Nigeria, and orders aggregating approximately ₹200 crore in the data centre segment.

Strategically, the company's Board approved the incorporation of a wholly-owned step-down subsidiary in Dubai and the merger of its wholly-owned subsidiary, Buildtech Products India Private Limited, with itself. Several changes in subsidiary shareholdings were also noted, impacting the group structure.

🚩 Risks & Outlook

While the results are positive, key risks include the execution of large international projects like the one in Nigeria, potential integration challenges for newly merged/incorporated subsidiaries, and the ongoing impact of evolving labour regulations. However, the strong order book provides significant revenue visibility for the upcoming quarters. The company's expansion into the data centre segment and its strategic move to establish a subsidiary in Dubai signal a forward-looking approach to growth and diversification.

No specific forward-looking guidance was provided by the company in this announcement.

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