Thermax (THERMAX) Q4 25/26 earnings summary

Executive summary

• Q4 FY 2025-26 delivered strong revenue and profit growth, with operating revenue up 13% YoY to Rs. 3,428 crore and PAT up 18% YoY to Rs. 244 crore.

• Order book strengthened by a major Rs. 1,600 crore supercritical boiler order, with order balance up 27% YoY to Rs. 13,604 crore.

• Industrial Products and Infra segments led order booking and profitability, while Green Solutions and Chemicals showed growth despite margin pressures.

• Expanded global presence with installations in 90+ countries and 18 manufacturing locations.

• Data centers and green solutions are emerging as high-potential sectors, with robust pipelines in both traditional and new markets.

Financial highlights

• Q4 order booking rose 112% YoY to Rs. 4,490 crore; annual operating revenue reached Rs. 10,694 crore, up 3% YoY.

• PAT margin for Q4 was 7.1%, with annual PAT at Rs. 720 crore, up 15% YoY.

• Industrial product segment maintained double-digit EBIT margins, though slightly lower due to mix and missed export opportunities.

• Working capital increased due to project and collection delays, with focus on normalization in coming quarters.

• Cash and investments stood at Rs. 2,965 crore as of Q4 FY 2025-26, up 5% YoY.

Outlook and guidance

• Confident in revenue growth for FY27, supported by a strong order book and robust pipeline, but cautious due to potential site and geopolitical challenges.

• Data Centres identified as a new sector with significant future potential.

• Cautious optimism for 15-20% growth in industrial products, tempered by war impacts and commodity price volatility.

• Execution of large orders (e.g., supercritical boiler) expected over 42-45 months.

• Market sentiment remains positive with India's manufacturing PMI in expansion, though momentum moderated toward quarter end.