Thermax Q1 profit drops 85%, board approves subsidiary merger scheme
THERMAX · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 0.7 pts more than Nifty Midcap 150 and in line with its Heavy Electrical Equipment peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Thermax Q1 FY27 revenue rose 7% to Rs 2,303 cr but PAT fell 85% to Rs 22 cr due to a Rs 91 cr cost overrun in one Industrial Infra project. Board approved a composite scheme: demerger of Bio-CNG EPC business from wholly-owned TBSPL into Thermax, and merger of wholly-owned TCSL into Thermax. Appointed date April 1, 2026, subject to NCLT approval. No new shares issued; no change in shareholding pattern. Order book grew 23% to Rs 14,045 cr.
Short-term earnings hit by one project cost overrun. Long-term: simpler group structure, expected cost savings. No share dilution for shareholders.