Thermax Ltd. share price target

Thermax’s 1QFY27 results came in significantly below our estimates, impacted by cost overruns of nearly INR910m for an existing project in the industrial infra segment and lower revenue booking in the industrial products segment.

opportunities arising out of rebuilding in the Middle Eastern region. Due to the improved long-term sector prospects and the recent run-up in price, the valuation appeared stretched; we therefore revise our rating to Accumulate and...

of energy and environment heating, cooling, power, water & waste management, air pollution control and chemicals. It operates in four key segments Industrial Infra (~%48 of revenue),...

Thermax (TMX) reported weak revenue and margins across segments in 3QFY26, while inflows improved thanks to large orders. TMX is making inroads into the fastgrowing data center market with two large order wins.

Thermax’s performance has been under pressure over the last few quarters, mainly due to a drag from one of its two key segments – industrial infra.

Thermax’s (TMX) 2QFY26 results came in sharply below our expectations on lowerthan-expected order inflows, execution and margins.

It operates in four key segments Industrial Infra (~%48 of revenue), Industrial Products (~38%), Green Solutions (~7%) and Chemicals segment (~7%) Q2FY26 performance: Thermax reported a muted set on impact from legacy orders in Industrial Infra. Revenue EBITDA and PBT declined 3%, 19% and 13% YoY to 2473 crore, 172 crore and 174 crore respectively. EBITDA and PBT Margins at 7% and 4.7% down of 137 bps and 293 bps YoY. The company received 66 crore as Package incentive scheme in Industrial Infra business last year. Thus, Revenue, EBITDA and PBT have been adjusted for the same. Segmentally, Industrial Products (48% of revenue mix), green...

We downgrade our rating from Accumulate' to HOLD' given the persistent execution challenges, valuing the core business (excl. Green Solutions) at PE of 40x Mar'27E (same as earlier) with SoTP-derived TP of Rs3,633 (Rs3,629...

We revise our FY26/FY27 EPS estimates by -2.2%/-3.0% factoring in probable execution delays in Industrial Infra. Thermax (TMX) delivered a decent performance in Q4, reporting 11.6% YoY revenue growth, while EBITDA margin saw a marginal decline of 17 bps YoY to 9.7%. Management remains optimistic about FY26 revenue growth with better margins, supported by robust momentum in the Industrial Products segment. The Chemicals business is poised to contribute meaningfully in the medium term through continued product innovation and market expansion. Execution challenges in the...

Thermax (TMX)’s 4QFY25 performance reflected improved execution while order inflows remained weak. Its 4QFY25 revenue/EBITDA/PAT grew 11.6%/10%/5% YoY.

Operating profit grew 36% y-o-y to Rs. 278 crore. OPM improved by 176 bps. In line with revenue
and operating profit growth adjusted PAT grew 24% y-o-y to Rs. 197 crore against expectation of
Rs. 180 crore.

Thermax reported unexciting Q1FY25 numbers as revenue grew 13% YoY to INR 21.8bn while EBITDA ascended 6% YoY to INR 1.4bn impacted by a one-off provision of INR 500m in the industrial infra segment.

Thermax (TMX) in its annual report outlined its strategy to innovate for energy transition, strengthen its solutions business, scale up sustainability and urbanizationoriented businesses, and drive digital transformation.

Company reported Revenue/operating profit/Adj. PAT of Rs. 2,764/273/190 crore, a growth of 19.6%/36.6%/22% y-o-y respectively