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Informist, Friday, Jan. 30, 2026 

By Shumaila Firoz

MUMBAI – Thermax Ltd. is expected to report a sharp on-year jump in its net profit for the December quarter on the back of higher order execution, though pressure in some segments will likely limit overall growth, according to brokerages. 

The energy and environment solutions company is expected to report a net profit of INR 1.63 billion for the reporting quarter, up over 40% on year and 36% sequentially, according to the average estimate from seven brokerages. The company is expected to report net sales of INR 27.43 billion for the December quarter, up over 9% on year, and nearly 11% sequentially, according to the average of estimates. 

The highest estimate for the company's net profit is INR 1.99 billion by Nuvama Wealth Management Ltd. and the lowest is INR 1.48 billion by Kotak Securities Ltd. The highest estimate for net sales is INR 30.37 billion by Nuvama and the lowest is INR 26.05 billion by Kotak. 

The company's revenue growth is expected to be driven by steady execution in industrial products, green solutions, and chemical segments, Motilal Oswal Financial Services Ltd. said. Kotak Securities also expects revenue growth in the quarter mainly because of the industrial products segment. "We built in a 4% yoy improvement in consolidated revenues, driven by the industrial products segment," Kotak said in its earnings estimate report and added it expected the company's order book to improve in the reporting quarter, with order inflows likely to see a strong increase backed by one large order and a select mid-sized job wins. 

The company's order execution is expected to see a sharp pick-up in the December quarter, supported by higher project progress and billings based on milestones, according to Nuvama. Margins are likely to remain muted as legacy and low margin projects taper off and the benefits of improved order booking is yet to fully flow through, the brokerage said. The company's profitability is expected to be supported by an improving international business mix and a higher services contribution, according to Nuvama. 

The company's earnings before interest, tax, depreciation, and amortisation are expected to be INR 2.43 billion, according to the average of six estimates. The highest estimate for EBITDA is INR 2.82 billion by Motilal Oswal, while the lowest estimate is INR 2.12 billion by Elara Securities (India) Pvt. Ltd. 

Kotak expects the EBITDA margin to improve by around 90 basis points on year and 140 basis point sequentially to 8.4%, supported by absence of the INR-420-million cost provision taken in the previous quarter. These gains are likely to be partly offset by weak performance of the chemical segment. Motilal Oswal, meanwhile, expects EBITDA margin to expand by around 290 basis points on year and 340 basis points sequentially, driven by mix improvement and operating leverage, partly offset by weakness in chemicals.

On Friday, shares of Thermax ended at INR 2,878 on the National Stock Exchange, up nearly 3%. The stock has fallen over 9% since the company announced its September quarter earnings. 

Of the eight brokerage reports on the company available with Informist, three have 'buy' or equivalent recommendation on the stock, with an average target price of INR 3,746 per share. This is over 30% higher than the current market price. Three brokerages have a 'hold' or equivalent recommendation on the stock with an average target price of INR 3,367 per share, and two brokerages have a 'sell' or equivalent recommendation with an average target price of INR 2,850 per share. 

Thermax Ltd. will announce its October–December quarter results Monday. 

Following are the December quarter earnings estimates for Thermax Ltd. from seven brokerage firms in the descending order of the estimate of net profit in INR billion:

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Edited by Akul Nishant Akhoury

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