Thermax Q2 FY27 Results Analysis: PAT Slips 4%, Revenue Grows 11.4%

Cofacto Research Published November 05, 2026 4 min read

Neutral

Thermax Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 2,755.87 Cr (+11.40% YoY) and PAT growth of -4.28% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	November 05, 2026
Revenue (Q2)	Rs. 2,755.87 Cr (+11.40% YoY)
PAT (Q2)	Rs. 114.54 Cr (-4.28% YoY)
EBITDA margin	7.04% (+9 bps YoY)
EPS (Q2)	Rs. 10.17 (-4.24% YoY)

Quarter Snapshot

Revenue grew 11.40% YoY with all segments positive and EBITDA margin held at 7.04%, but PAT to equity holders fell 4.28% YoY as input costs and employee expenses outpaced revenue. Industrial Infra's return to profit and a 16% YoY order balance build are offsets, while Green Solutions losses (Rs.25.02 cr including a Rs.15 cr impairment) and Chemicals margin compression remain drags. Management's profitability-improvement guidance was delivered QoQ but not YoY, and the FY27 order-booking target stays on track with an H2-weighted Rs.7,803 cr requirement.

Q2 FY27 Expectations vs Results

Driver	Expected before results	What happened	Verdict
Revenue ahead on demand; trapped-inventory conversion the gate	"the ~Rs.300 Cr of finished goods trapped by Gulf-war freight… the key downside risk"	Revenue +11.40% YoY, +19.68% QoQ	Played out
Margin recovery harder than guided	"consistent with that path being harder in Q2 than the guidance implied"	EBITDA margin 7.04% (vs 2.98% Q1) but PAT-to-owners −4.28% YoY; Chemicals margin fell QoQ	Partially
Order inflow steady, not step-change	"more likely steady than step-change"	Booking −8.0% YoY; balance +16.0% YoY	Played out
IP margin bridge vs Q1's 6.1%	watch item	6.09% — flat QoQ, −373 bps YoY	Played out
Bio-CNG PGs / FGD handover / FEPL partner	"company-specific milestones the external data cannot confirm"	Not addressed in the filing — remains open for the call	Not observable

Read our full results preview.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
FY27 group order booking > Rs.13,871 cr	Q1 FY27 earnings call (Jul 31, 2026)	H1 Rs.6,068 cr; Q2 Rs.3,259 cr (−8% YoY) — needs Rs.7,803 cr in H2 vs Rs.7,570 cr in H2 FY26	On Track
Profitability improvement in Q2, Q3, Q4 FY27	Q1 FY27 earnings call	PBT Rs.168.86 cr vs Rs.42.14 cr QoQ; EBITDA margin 7.04% vs 2.98%; PAT-to-owners −4.28% YoY — QoQ yes, YoY no	Partially
Industrial Products margin pressure clears in Q3–Q4	Q1 FY27 earnings call	Q2 margin 6.09% — pressure materialized as guided — Q3–Q4 test	Too Early
Industrial Products solid double-digit FY27 revenue growth	Q1 FY27 earnings call	+10.34% Q2, +10.80% H1	On Track
Industrial Infra EBITDA margin 10%+	Q1 FY27 / Q4 FY26 calls	5.56% segment-result margin (EBIT-like — below an EBITDA margin)	Not yet met
Chemicals EBITDA 13–14%	Q3 FY26 call (Feb 5, 2026)	6.50% segment-result margin, down QoQ	Not yet met
FY27 capex ~Rs.250 cr	Q4 FY26 call (May 8, 2026)	H1 Rs.529.60 cr	Tracking above plan

Key Numbers, Quarter by Quarter

Metric	Q2 FY26	Q4 FY26	Q1 FY27	Q2 FY27
Order booking	3,551	4,490	2,809	3,259 (−8% YoY)
Order balance	12,300	13,604	14,045	14,250 (+16% YoY)

Key Investment Insights

Key Positives

Revenue grew 11.40% YoY to Rs.2,755.87 cr and 19.68% QoQ, with all four segments growing YoY (Chemicals +18.06%, Industrial Infra +13.58%)
EBITDA of Rs.194.14 cr grew 12.9% YoY with margin at 7.04% vs 6.95% year-ago, recovering from Q1's 2.98%
Industrial Infra returned to a Rs.55.99 cr profit (5.56% margin) after Q1's Rs.(67.55) cr loss
Order balance rose 16% YoY to Rs.14,250 cr; FY27 booking target of >Rs.13,871 cr is on track with H1 at Rs.6,068 cr
H1 consolidated CFO of Rs.364.86 cr vs Rs.72.65 cr year-ago (CFO/PAT 2.70x) on Rs.465.47 cr receivable collections
Group remains net cash at Rs.212.02 cr despite borrowings of Rs.2,841.60 cr
Rs.1,385.47 cr excise contingent liability removed after Supreme Court dismissed the department's appeal on May 25, 2026
Normalized PAT to equity holders of Rs.124.59 cr (+4.12% YoY) after adding back the Rs.15 cr hybrid-renewables impairment

Risk Factors

PAT to equity holders declined 4.28% YoY to Rs.114.54 cr despite 11.40% revenue growth
Industrial Products margin fell to 6.09% from 9.82% YoY on product mix and higher input costs (raw materials +15.9% YoY vs revenue +11.4%)
Green Solutions loss widened to Rs.(25.02) cr from Rs.(1.18) cr a year ago, including a Rs.15 cr impairment provision on a hybrid renewable energy project
Chemicals margin compressed to 6.50% from 11.17% QoQ and 9.80% YoY despite 18.06% revenue growth
Q2 order booking fell 8% YoY to Rs.3,259 cr; FY27 target requires Rs.7,803 cr in H2
Inventory build of Rs.118.49 cr (deepest of the three periods) lifted inventories to Rs.1,204.55 cr from Rs.909.50 cr at March