Thermax (THERMAX) Q2 26/27 earnings summary

Executive summary

• Q2 consolidated revenue rose 11% YoY to Rs. 2,756 crore; PBT fell 3% to Rs. 169 crore and PAT fell 5% to Rs. 113 crore.

• Order booking declined 8% YoY to Rs. 3,259 crore, while closing order balance rose 16% to Rs. 14,250 crore.

Financial highlights

• Consolidated H1 FY27 revenue was Rs. 5,059 crore versus Rs. 4,631 crore; PBT was Rs. 211 crore versus Rs. 385 crore.

• Standalone Q2 revenue rose 13% YoY to Rs. 1,712 crore and PAT rose 16% to Rs. 263 crore; H1 revenue was Rs. 3,015 crore and net profit Rs. 244 crore.

• Cash and investments were Rs. 3,260 crore, up 20% YoY; Q2 revenue of Rs. 2,756 crore was below an internal estimate of Rs. 3,100 crore, with Rs. 200-300 crore deferred to Q3.

Outlook and guidance

• H2 revenue is expected to exceed Rs. 7,000 crore, with significantly better profitability than H1; delivery depends on supply chains and geopolitical conditions.

• Industrial Products FY profitability is expected to exceed 7%, against an aspiration of 9%-10%; deferred higher-margin shipments and utilization should support recovery.

• Order inflows are expected to grow YoY; double-digit growth depends on large project awards. FEPL losses may continue at or above H1 levels in Q3-Q4; Bio-CNG orders are expected from Q4.