Thermax announced its Q2 FY26 results, reporting a consolidated operating revenue of Rs. 2,474 crore. While revenue decreased by 5% compared to the previous year, the order book grew by 6% to Rs. 12,300 crore. Profit after tax decreased to Rs. 119 crore, influenced by project cost overruns. The quarter’s profit includes a dividend income of Rs. 141 crore from subsidiaries.
Financial Performance Overview
Thermax reported a consolidated operating revenue of Rs. 2,474 crore for Q2 FY26, representing a 5% decrease from the Rs. 2,616 crore reported in the same quarter of the previous fiscal year. The consolidated profit after tax (PAT) amounted to Rs. 119 crore, down 40% from Rs. 198 crore in Q2 FY25. Profit before tax (PBT) decreased by 35% to Rs. 174 crore from Rs. 266 crore.
Key Factors Influencing Profit
The previous year’s revenue and profit were positively impacted by an accrual of Rs. 66 crore from incentives under the Packaged Incentive Scheme (PSI), 2007. Lower profit in the current quarter is attributed to project cost overruns, particularly in the Industrial Infra segment, with Rs. 42 crore allocated for additional cost provisions mainly for a project.
Order Book and Revenue Visibility
As of September 30, 2025, Thermax’s order balance stood at Rs. 12,300 crore, a 6% increase from the Rs. 11,593 crore reported in the corresponding quarter of the previous year. Order booking for the quarter amounted to Rs. 3,551 crore, up 6% from Rs. 3,353 crore. A change in order book forecasting methodology by a subsidiary, TOESL, resulted in a Rs. 197 crore increase, without affecting contract or financial results.
Standalone Performance Highlights
Thermax Limited’s standalone operating revenue reached Rs. 1,505 crore, a 1% decrease compared to the Rs. 1,523 crore reported in the prior year. The standalone profit after tax was reported as Rs. 226 crore, a 109% increase. This figure includes Rs. 141 crore in dividend income from subsidiaries and a Rs. 42 crore cost provision for a specific project.
Subsidiary Update
Thermax Bioenergy Solutions Private Limited (TBSPL) became a wholly-owned subsidiary after Thermax acquired the remaining 23.03% stake from Everenviro Resource Management Private Limited.
Source: BSE
