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Informist, Monday, Nov. 10, 2025

By Arundathi A R

MUMBAI – Thermax Ltd. is likely to post a high single-digit on-year decline in its bottom line for the September quarter, after reporting a double-digit on-year rise in the June quarter. The company is expected to post a high single-digit on-year rise in its top line, driven by strong execution in the industrial product segment, according to brokerages tracking the company.

Thermax is expected to post a consolidated net profit of INR 1.82 billion for the September quarter, down nearly 8% on year, according to the average of estimates from seven brokerages. Sequentially, this would mean a rise of over 19%. The company is likely to post consolidated net sales of INR 28.10 billion for the reporting quarter, up nearly 8% on year and up nearly 31% on quarter, according to the estimates.

This will be the second time in nine quarters, when the company will post an on-year decline in net profit. The company had last reported an on-year decline in net profit in the December quarter. In the June quarter, Thermax's bottom line had risen nearly 32% on year to INR 1.52 billion and its top line had fallen nearly 2% on year to INR 21.50 billion.

The highest estimate for Thermax's September quarter net profit is INR 2.24 billion from Nuvama Wealth Management Ltd. and the lowest estimate is INR 1.40 billion from HDFC Securities Ltd. The highest estimate for the company's net sales is INR 31.07 billion from Nuvama Wealth while the lowest estimate is INR 25.80 billion from HDFC Securities.

"We expect Thermax to report a revenue growth of ~6% YoY (year-on-year) driven by strong execution in industrial products," Prabhudas Lilladher said. This segment contributed INR 9.54 billion to the company's revenue in the previous quarter, down nearly 1% on year. Industrial products segment's order booking stood at INR 12.95 billion, up 2% on year in the June quarter.

The company's total order book at the end of the June quarter had risen 7% on year to INR 113.76 billion, primarily due to a 20% jump in the order book for its industrial products segment to INR 46.21 billion, the company said. In the June quarter, Thermax's order book had risen 7% on year to INR 27.48 billion due to improved bookings in its green solutions segment. The company plans to expand its green solutions business through continued investment in the green hydrogen space, Nuvama said.

Improvement in the industrial infrastructure segment of the company in the September quarter is expected to be partially offset due to weakness in its chemicals segments, Kotak said. Upfront cost in expanding capacity and increased competition from China led to the weakness in chemicals segment, Kotak said.

The company is expected to post consolidated earnings before interest, tax, depreciation, and amortisation of INR 2.59 billion for the September quarter, according to the average of estimates from six brokerages. The highest estimate for the company's EBITDA is INR 3.17 billion from Nuvama Wealth and the lowest estimate is INR 2.20 billion from HDFC Securities. Motilal Oswal expects the company's EBITDA margin to contract by 100 basis points on year for the September quarter.

Thermax will announce its earnings for the September quarter on Tuesday. Market participants will watch out for the management's comments about finalisation of inquiry pipelines, performance of its industrial infrastructure and chemicals segment, pace of execution, and outlook for margin and demand.

Performances of the company's subsidiaries, First Energy Private Ltd. and Thermax Onsite Energy Solutions Ltd., are among the key factors to watch.

At 1245 IST, shares of the company traded almost 2% lower at INR 3,128 on the National Stock Exchange. The stock is down over 17% since the company reported its results for the June quarter on Jul. 31.

Of the 13 research reports on the company available with Informist, five have a 'buy' or equivalent rating on the stock with an average target price of INR 3,949. Of the remaining eight, five brokerages have a ‘sell' or equivalent rating on the stock with an average target price of INR 3,323 and three have a ‘hold' rating.

Following are the Jul-Sept earnings estimates for Thermax, in INR million, from seven brokerages in descending order of the estimate of net profit:

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Edited by Akul Nishant Akhoury

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