Thermax (THERMAX) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 consolidated revenue reached ₹3,085 crore, up 12% year-over-year, with strong operational consistency despite significant bio-CNG segment losses and a miss on order inflows compared to commitments.

• Q4 PAT was ₹206 crore, up 10%-20% year-over-year; annual PAT was ₹627 crore, down 2%-3% due to higher technology intervention costs in bio-CNG projects.

• Order book at March 31, 2025, stood at ₹10,693 crore, up 6% year-over-year, despite an 8% decline in quarterly order booking.

• Profitability was maintained across all businesses, even after absorbing over ₹85 crore in bio-CNG related losses.

• Board recommended a ₹14 per share dividend for FY25.

Financial highlights

• Q4 FY25 PBT before exceptional items was ₹301 crore, up 20% year-over-year; YTD PBT was ₹884 crore, up 11% year-over-year.

• PAT margin for Q4 FY25 was 6.7%; YTD PAT margin was 6.0%, down from 6.9% in the prior year.

• Cash and investments at the end of Q4 FY25 were ₹2,843 crore, up 4% year-over-year.

• Chemicals segment reported full-year EBIT margin of 16%, down from historical 18%-19%, due to product mix changes and integration costs.

• Industrial products segment delivered a strong quarter with 14.4% EBIT margin.

Outlook and guidance

• Order pipeline for FY26 is robust, with expectations of improved performance in industrial infra, power, steel, and international projects.

• Bio-CNG orders to resume selectively in Q1 FY26, with reduced yield guarantees and learnings from past execution.

• Chemicals and green solutions are expected to see continued growth, with chemicals maintaining high-teen profitability.

• Industrial products backlog is up nearly 20% year-over-year, supporting a positive outlook.

• Market sentiment remains positive with robust manufacturing PMI and business optimism.