Thermax (THERMAX) investor relations material

Executive summary

• Q1 FY26 consolidated operating revenue was Rs. 2,150 crore, a 2% year-over-year decline due to project delays and execution challenges, but no structural demand concerns were noted.

• Order booking increased 7% year-over-year to Rs. 2,748 crore, with order balance also up 7%, driven by large Industrial Infra and Green Solutions orders.

• Profit before tax rose 31% year-over-year to Rs. 211 crore, and net profit increased 38–39% to Rs. 151 crore, aided by a one-time INR 56 crore government incentive.

• Cash and investments stood at Rs. 3,161 crore, up 7% year-over-year.

Financial highlights

• Q1 FY26 operating revenue: Rs. 2,150 crore (down 2% YoY); PAT: Rs. 151 crore (up 38–39% YoY); PBT margin improved to 9.8% from 7.4% YoY.

• Margins improved by 1.2% year-over-year, excluding government incentives; PAT margin rose to 7% from 5%.

• Chemicals segment EBIT margin dropped to 9.3% from 17.8% YoY due to higher costs and one-time impacts.

• Export revenue in chemicals was about $20 million last year, with $15 million planned for the U.S. this year.

• Order balance at quarter-end: Rs. 11,376 crore, up 7% YoY.

Outlook and guidance

• Management expects a strong Q2 and Q3, with double-digit order inflow growth anticipated and robust demand indicated by a high manufacturing PMI.

• Industrial products and green solutions are expected to see steady, profitable growth; chemicals segment targets 12–13% margins in Q2, aiming for 16–17% longer term.

• International business, especially in Middle East, Africa, and Southeast Asia, is expected to contribute more significantly.

• Input costs for copper and aluminium rose 5–7% sequentially, but overall input cost impact was stable.

• Strong enquiry inflows from Power, Sugar/Distillery, Metals, and refinery/petrochemical sectors.