Thermax Limited is an energy engineering company supplying boilers, heaters, chillers and energy solutions across Industrial Products, Industrial Infra, Green Solutions and Chemicals, reporting into a quarter shaped by strong industrial capex demand but escalating Gulf shipping disruption. The print will speak to whether profitability recovers as guided after Q1 FY27's 0.9% PAT margin, and how much of the ~₹300 Cr of Gulf-trapped finished goods converted to revenue.
| Results date | November 05, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 2,303.73 Cr (+6.77% YoY) |
| Previous quarter PAT | Rs. 25.24 Cr (-83.44% YoY) |
| Market cap | Rs. 37,083.82 Cr |
| CMP | Rs. 3,112.2 |
The Board of Thermax Limited is scheduled to meet on November 5, 2026, to consider the Q2/H1 FY27 results with segment-wise data. The trading window reopens 48 hours after declaration of the results.
The quarter is a test of management's guided profitability recovery in Q2, Q3 and Q4 FY27 after Q1 FY27 delivered PAT of Rs. 25.24 Cr (-83.44% YoY) on a 0.9% PAT margin, dragged by a Rs. 91 Cr one-project cost overrun in Industrial Infra and the absence of Rs. 56 Cr of PSI incentive income from the base.
The demand backdrop is supportive: IIP capital-goods growth ran at +16.1% YoY in July 2026, +16.9% in August and +10.4% in September, and OBICUS capacity utilisation rose to 77.4% in Q4 FY2025-26, while Thermax enters with a record order balance of Rs. 14,045 Cr (+23.47% YoY) against a FY27 target of exceeding last year's Rs. 13,871 Cr order booking.
Execution is the swing factor: ~Rs. 300 Cr of finished goods were trapped by Gulf-war freight rates in Q1, and the Middle East escalation continued through the window, with Hormuz transits at lows since May and the Shanghai Containerized Freight Index at its highest since July 2024. On costs, FOB Korea styrene climbed roughly 24% from early-August to late-September, stiffening the feedstock tape for the Chemicals segment's guided 13%-14% FY27 EBITDA after its 11.2% PBIT in Q1, while the nil-customs-duty waiver on styrene ran only until July 15.
Management has also guided data-centre cooling handshakes in Q2 and Q3 FY27 with order booking in Q3 and Q4, against a US data centre backlog described as several hundred crores.
Performance vs Guidance Tracking: Management's FY27 guidance scorecard and the status to probe on the call:
Trapped-inventory conversion and Gulf freight
Order inflows and data-centre pipeline
Chemicals feedstock and duty headwinds
Strategic announcements
PAT attributable to equity shareholders fell 83.44% YoY to Rs. 25.24 Cr, driven primarily by a one-time Rs. 91 Cr project cost overrun in Industrial Infra on a Rs. 1,200 Cr government project. The base effect of Rs. 56 Cr PSI incentive income recorded in Q1 FY26 and lower Industrial Products export sales also weighed.
As of the October 9, 2026 clarification, the company said it is evaluating various strategic opportunities to attract a growth partner for FEPL, with Basant Jain appointed CEO, and no Regulation 30 material event had been disclosed. Management has guided for inducting a majority or growth partner by FY27 and said on the Q1 call that FEPL 'was not the right business for Thermax'.
Management has guided for group order booking to exceed last year's Rs. 13,871 Cr in FY27. Q1 FY27 order booking was Rs. 2,809 Cr (+2.22% YoY) against an order balance of Rs. 14,045 Cr (+23.47% YoY), with some large orders held back pending advance payments.
Chemicals posted an 11.2% PBIT margin in Q1 FY27 (Rs. 26 Cr on Rs. 230 Cr of sales), with management guiding 13%-14% EBITDA for FY27, down from a prior 17% level. The segment has faced Chinese price cuts, styrene price volatility and utilization as low as 40% in some areas, with volume returning from September-November.
Order balance stood at Rs. 14,045 Cr as of Q1 FY27, up 23.47% YoY, with Industrial Products at Rs. 5,370 Cr, Industrial Infra at Rs. 6,887 Cr, Green Solutions at Rs. 1,568 Cr and Chemicals at Rs. 220 Cr. Management has described the backlog as substantially better in both quantity and quality, including a US data centre backlog of several hundred crores.
Disclaimer: This earnings preview is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.