Thermax Ltd., a leading provider of energy and environment solutions, reported an 85% year-on-year decline in consolidated profit after tax (PAT) to Rs. 22 crore for the first quarter of FY 2026-27, as a major project cost overrun and lower export sales weighed on earnings.

 

The company posted consolidated operating revenue of Rs. 2,303 crore for the quarter, up 7% from Rs. 2,158 crore in the corresponding period last year.

 

Profit before tax (PBT) fell 80% to Rs. 42 crore from Rs. 211 crore a year earlier, while PAT declined sharply from Rs. 151 crore.

 

Thermax said the quarter's performance was significantly impacted by a Rs. 91 crore increase in the estimated cost to complete a specific project in its Industrial Infra segment, following events identified during the quarter. Earnings were also affected by the absence of Rs. 56 crore incentive income received under the Package Scheme of Incentives by a subsidiary in the corresponding quarter last year, along with lower export sales in the Industrial Products segment.

 

Despite the sharp fall in profitability, the company reported healthy growth in its order book.

 

As of June 30, 2026, consolidated order balance stood at Rs. 14,045 crore, up 23% from Rs. 11,376 crore a year ago. Order booking during the quarter rose 2% to Rs. 2,809 crore from Rs. 2,748 crore.

 

During the quarter, Thermax secured an order worth more than Rs. 400 crore to supply boiler pressure parts for a data centre project in the United States.

 

The company also reported higher order booking in its Green Solutions Segment, driven by improved order inflows at TOESL and a revision in the company's order book reporting methodology. TOESL has shifted to a rolling 12-month forecast model for reporting its order book instead of recognising only the first year's revenue from long-term contracts. The change increased the reported order book by Rs. 139 crore, or 5%, without affecting underlying contracts, revenue recognition or financial performance.

 

On a standalone basis, Thermax reported operating revenue of Rs. 1,303 crore for the quarter, compared with Rs. 1,195 crore in the year-ago period.

 

The company posted a standalone loss after tax of Rs. 18 crore, against a profit of Rs. 47 crore in the corresponding quarter last year. Thermax attributed the decline primarily to the Rs. 91 crore project cost overrun recognised in the Industrial Infra segment.

 

Standalone order booking declined 8% year-on-year to Rs. 1,606 crore from Rs. 1,752 crore, while the standalone order balance edged up 2% to Rs. 6,576 crore as of June 30, 2026, compared with Rs. 6,477 crore a year earlier.