Don’t Trade in the Dark—Get Your Pre-Market Report Every Day.Join Now
Search stocks
Thermax Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤2nd Feb 26

Summary : Thermax Limited reported strong Q3 FY26 consolidated financial performance with significant PAT and order book growth, driven by strategic expansion and favorable legal outcomes.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Q3 FY26: Cost of raw materials and components consumed (Rs. 1,311.45 cr).
  2. Consolidated Q3 FY26: Employee benefits expense (Rs. 360.22 cr).
  3. Consolidated Q3 FY26: Finance costs (Rs. 34.24 cr).
  4. Consolidated Q3 FY26: Depreciation, amortisation and impairment expenses (Rs. 53.28 cr).
  5. Consolidated Q3 FY26: Other expenses (Rs. 649.11 cr).
  6. Consolidated Q3 FY26 Revenue from Operations: Rs. 2,634.68 crore.
  7. Segment Revenue (Consolidated Q3 FY26): Industrial Products (Rs. 1,289.82 cr), Industrial Infra (Rs. 1,032.62 cr), Green Solutions (Rs. 163.59 cr), Chemicals (Rs. 200.23 cr).
  8. Consolidated Total Assets (Dec 31, 2025): Rs. 12,648.64 crore.
  9. Consolidated Total Liabilities (Dec 31, 2025): Rs. 7,330.74 crore.
  10. Other equity (Mar 31, 2025): Rs. 4,914.36 crore.
  11. Both standalone and consolidated financial results are presented.
  12. Consolidated results generally show higher revenue and profit figures.

Corporate Overview

  1. India
  2. Europe
  3. Southeast Asia
  4. North America
  5. West Africa (Nigeria)
  6. Brazil
  7. Germany
  8. Singapore
  9. Mauritius
  10. Senegal
  11. Tanzania
  12. Denmark
  13. Poland
  14. Malaysia
  15. Indonesia
  16. Philippines
  17. Sri Lanka
  18. Thailand
  19. UAE (Dubai)
  20. One-time financial impact from new labour codes.
  21. Past litigation issues, now favorably resolved.
  22. Trusted partner in energy transition, providing energy and environment solutions.
  23. Portfolio includes clean air, clean energy, clean water, and chemical solutions.
  24. Offers expertise in audit, consulting, execution, maintenance, and digital solutions.
  25. Positive and confident, highlighting strong financial performance and strategic growth.
  26. Emphasizes commitment to energy transition and resource conservation.
  27. Major West African conglomerate (Dangote Industries) for utility boilers.
  28. Data centre segment customers in North America and India.
  29. Various industries across multiple sectors.
  30. Industrial Products
  31. Industrial Infra
  32. Green Solutions
  33. Chemicals
  34. Operates 16 manufacturing facilities across India, Europe, and Southeast Asia.
  35. Manages 45+ Indian and international subsidiaries.
  36. Approved incorporation of a wholly owned step-down subsidiary in Dubai.
  37. Enhancing operational efficiency and improving power generation by adding new capacity.

Risk Factors

  1. One-time impact from new labour codes.
  2. Operational disruptions from natural calamities.
  3. Acquisition deal non-fulfillment risks.
  4. Past litigation, though now resolved.

Key Drivers

  1. Strong 80% PAT growth in Q3.
  2. Order booking up 34% year-on-year.
  3. Major litigation resolved favorably.
  4. New subsidiary in Dubai for expansion.

Auditor’s Report

  1. Unmodified conclusion for the review of current period's unaudited financial results.
  2. Unmodified conclusion/opinion for previous periods' standalone and consolidated financial statements by other firms.

Board Commentary

  1. Dividend income is reported in standalone financial results.
  2. Statutory impact of new Labour Codes.
  3. Past litigation (now resolved in company's favor).
  4. Bombay High Court set aside an arbitral award against the company.
  5. New Labour Codes introduced, impacting employee benefits and costs.
  6. Approved incorporation of a wholly owned step-down subsidiary in Dubai.
  7. Approved Scheme of Merger by Absorption of Buildtech Products India Private Limited.

Corporate Governance

  1. Audit Committee reviewed the financial results.

Management Discussion & Analysis

Future Strategy

  1. Expanding international presence with a new Dubai subsidiary.
  2. Subsidiary TOESL adopted a rolling 12-month forecast model for order book reporting.

Industry Overview

  1. Positive outlook for energy transition and clean solutions market.

Operational Focus Areas

  1. Enhance operational efficiency and improve power generation.
  2. Restore plant generation capacity by adding new modules.

Performance Drivers

  1. Consolidated operating revenue up 4% in Q3 FY26.
  2. Consolidated PBT (before exceptional items) increased by 47%.
  3. Consolidated PAT grew by 80% in Q3 FY26.
  4. Order booking increased by 34% and order balance by 11%.
  5. Favorable resolution of a significant arbitration case.

Risk Control Measures

  1. Obtained independent legal advice for litigation, confident of favorable outcome.
  2. Evaluated and accounted for the impact of new Labour Codes.

Critical Risks

  1. One-time financial impact due to new Labour Codes.
  2. Potential for litigation (though current case resolved).