Thermax Q2 FY27 results: net profit down 5.3% to ₹113.11 crore, revenue up 11.4%

How did Thermax perform in Q2 FY27?

Thermax reported consolidated revenue of ₹2,756 crore for Q2 FY27, up 11.4% from ₹2,474 crore in Q2 FY26. Total income rose 10.9% to ₹2,837.66 crore, while EBITDA increased 12.9% to ₹194.14 crore. EBITDA margin was 7.0%, unchanged from Q2 FY26.

Compared with Q1 FY27, revenue rose 19.7% from ₹2,303 crore and EBITDA increased 182.9% from ₹68.62 crore. The EBITDA margin recovered 4.0 percentage points to 7.0%. PBT rose 300.7% to ₹168.86 crore, while net profit increased 419.1% to ₹113.11 crore and basic EPS rose 354.0% to ₹10.17.

On the standalone basis, Q2 FY27 revenue was ₹1,711.63 crore, up 13.8%, while PAT was ₹262.5 crore compared with PAT before exceptional items of ₹225.92 crore. The board approved both standalone and consolidated unaudited results for the quarter and half-year ended 30 September 2026, along with the auditors’ limited-review report.

What changed in Thermax's costs and profit?

Total expenses increased 11.9% year on year to ₹2,669 crore, slightly above the 11.4% rise in revenue. Cost of materials was ₹1,548 crore, up 15.9%, employee cost was ₹404.89 crore, up 18.9%, depreciation rose 36.3% to ₹70.15 crore, and finance costs increased 14.8% to ₹36.92 crore. Other expenses were ₹662.48 crore, up 1.7%.

Other income fell 4.2% to ₹81.79 crore from ₹85.41 crore. There was no exceptional item in either Q2 FY27 or Q2 FY26. Tax expense increased 2.7% to ₹55.75 crore from ₹54.27 crore. PBT declined 2.8% to ₹168.86 crore, and net profit fell 5.3% to ₹113.11 crore.

Management said revenue increased mainly because of improved operations and execution of the order backlog in Industrial Products and Industrial Infra. It said Industrial Products profitability was affected by product mix and higher input costs, while a ₹15 crore impairment provision in a hybrid renewable-energy project further affected the quarter.

How did the first half of FY27 go?

For H1 FY27, Thermax reported consolidated revenue of ₹5,058.6 crore, up 9.2% from ₹4,631.43 crore in H1 FY26. Total income rose 8.9% to ₹5,208.58 crore. PBT declined 45.3% to ₹211.0 crore from ₹385.45 crore, while PAT fell 50.2% to ₹134.9 crore from ₹270.85 crore.

Basic EPS for the first half was ₹12.41, down 48.6% from ₹24.15 in H1 FY26. The year-to-date profit decline was larger than the revenue increase, although the quarter figures showed a recovery from Q1 FY27.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹13,941.12 crore, compared with ₹13,282.11 crore at 31 March 2026. Total equity fell to ₹5,518.29 crore from ₹5,579.19 crore. Borrowings rose to ₹2,841.6 crore from ₹2,288.01 crore, while cash declined to ₹602.84 crore from ₹674.45 crore.

Inventories increased to ₹1,204.55 crore from ₹909.5 crore. Trade receivables fell to ₹1,774.81 crore from ₹2,204.84 crore, while trade payables declined to ₹1,910.67 crore from ₹2,057.38 crore. The investor presentation separately reported cash and investments of ₹3,260 crore, up 20%.

H1 FY27 operating cash flow was ₹364.86 crore, compared with ₹63.34 crore in H1 FY26. Investing cash flow was negative ₹646.4 crore against positive ₹169.14 crore, financing cash flow was positive ₹236.15 crore against negative ₹162.32 crore, and capital expenditure was ₹529.6 crore compared with ₹395.89 crore.

How has Thermax done over the last 8 quarters?

Revenue rose year on year in each of the last four quarters. It peaked at ₹3,428.04 crore in Q4 FY26 and bottomed at ₹2,150.18 crore in Q1 FY26, before rising to ₹2,755.87 crore in Q2 FY27.

Net profit peaked at ₹244.4 crore in Q4 FY26 and fell to ₹21.79 crore in Q1 FY27, then recovered to ₹113.11 crore in Q2 FY27. EBITDA margin also bottomed at 3.0% in Q1 FY27 and recovered to 7.0% in Q2 FY27, matching Q2 FY26.

Which businesses drove the quarter?

Industrial Products reported revenue of ₹1,303.65 crore, up 9.7% from ₹1,188.77 crore, and EBIT of ₹79.42 crore, with an EBIT margin of 6.1%. EBIT was lower than ₹117.26 crore in the year-ago period, and management attributed the margin impact to product mix and higher input costs.

Industrial Infra reported revenue of ₹1,006.23 crore, up 6.1% from ₹948.67 crore, and EBIT of ₹55.99 crore, with an EBIT margin of 5.6%. The year-ago EBIT was a loss of ₹14.83 crore. Green Solutions reported revenue of ₹287.98 crore, up 50.2%, and a loss of ₹25.02 crore at the EBIT level.

Chemicals reported revenue of ₹225.53 crore and EBIT of ₹14.66 crore, with an EBIT margin of 6.5%. The filing excerpt did not provide a year-ago comparison for this segment. Management said Chemicals bookings increased, while margin pressure continued amid raw-material volatility and supply-chain challenges linked to Middle East tensions.

What else did the company announce?

On 5 November 2026, the board approved Thermax’s unaudited standalone and consolidated financial results for the quarter and half-year ended 30 September 2026, together with the limited-review report issued by the statutory auditors. No dividend, fund-raising or appointment announcement was included in the same-day filings provided.

A separate same-day filing said Thermax received a GST assessment order imposing a penalty of ₹53.47 lakh for delayed reporting of tax invoices for supplies made during FY 2022-23. The company said it would file an appeal challenging the demand. The filing did not quantify a financial or operational impact.

What did Thermax's management say?

Management said operating revenue rose 11% to ₹2,756 crore, the order balance increased 16% to ₹14,250 crore, and new bookings fell 8% to ₹3,259 crore. It attributed higher revenue mainly to improved operations and execution of order backlog in Industrial Products and Industrial Infra, while citing captive-power orders and margin recovery as positives in Industrial Infra.

Management said the Bhutan ferro-alloys balance-of-plant package for a 1 × 18 MVA submerged arc furnace was “targeted within 18 months.” It also said a 17.1 MW hybrid renewable project at FEPL Gujarat was partially commissioned, comprising 9.9 MW of wind and 7.2 MW of solar capacity. Thermax secured a green-hydrogen purification order for a 96 MW project described as the largest in India.

Management identified product mix and higher input costs as pressures on Industrial Products and Chemicals margins. It also cited a ₹15 crore impairment and a ₹25 crore PBT loss in Green Solutions. Other risks included Middle East tensions affecting fuel, freight and shipping, elevated steel prices, and possible effects of West Asia conflict on capital-expenditure decisions, project timelines and demand visibility.

The presentation highlighted order concentration in metals and mining and cement, and reported that Thermax was pursuing approximately ₹60 crore in petrochemical and refinery tenders. It also disclosed that the Q2 CSG price realisation was approximately 13%.

How did other Heavy Electrical Equipment companies do?

Sixteen Heavy Electrical Equipment companies that had filed for the quarter were compared with Thermax, and their median revenue growth was 21.8%. Ten peers grew revenue faster than Thermax, while six grew more slowly than Thermax’s 11.4% year-on-year growth.

Among the 16 peers for which profit was compared, nine reported higher profit. Thermax’s consolidated net profit of ₹113.11 crore was down 5.3% from Q2 FY26.