Thermax Ltd
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Thermax Ltd is currently navigating a challenging transition, primarily due to significant cost overruns on legacy government projects that adversely affected Q1FY27 profitability. Management is focused on winding down these liabilities while pivoting towards higher-margin private and export opportunities, particularly in the US data center market, which is expected to drive long-term growth. Despite near-term headwinds from commodity inflation and regulatory delays, the company boasts a robust order backlog of INR 140 billion, indicating strong execution visibility. Vista's financial outlook reflects stable revenue growth aligned with historical performance, although margins are anticipated to remain under pressure. The industrial machinery sector's positive trajectory, driven by technological advancements and increasing demand, supports Thermax's long-term prospects. Over the next 12-24 months, key opportunities include the expansion in the Chemicals sector and data center partnerships, while watchpoints include execution risks in the Industrial Infra and Green Solutions segments. Overall, while short-term challenges persist, Thermax is strategically positioned to capitalize on structural tailwinds in energy transition and decarbonization
Why We Like This Stock
- Strong order backlog of INR 140 billion provides execution visibility and supports revenue growth
- Strategic focus on higher-margin private and export opportunities, particularly in the US data center market
- Expected growth in the Chemicals segment, driven by improving demand across various applications
Things To Watch Out For
- Significant cost overruns on legacy projects are impacting near-term profitability and margins
- Execution risks remain in the Industrial Infra and Green Solutions segments, potentially affecting performance
- Commodity inflation and regulatory delays pose challenges to margin recovery
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 9,323 | 10,389 | 10,694 | 10,790 | 12,526 |
| Profit Before Tax (Cr.) | 794 | 887 | 947 | 436 | 836 |
| PBT Margin | 8.5% | 8.5% | 885.5% | 4.0% | 6.7% |
| Net Profit (Cr.) | 599 | 587 | 697 | 318 | 610 |
| Earnings Per Share | 53.4 | 52.8 | 61.8 | 28.2 | 54.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Geojit Financials | ► Add | 4,965 | 13-May-2026 |
| HDFC Securities | ▲ Buy | 4,175 | 10-Apr-2026 |
| JPMorgan | ► Neutral | 4,335 | 31-Jul-2026 |
| Jeffries | ▲ Buy | 5,200 | 03-Aug-2026 |
| Kotak Securities | ▼ Sell | 4,250 | 07-Jul-2026 |
| Macguire | ► Neutral | 4,100 | 03-Aug-2026 |
| Moneycontrol | ▼ Underweight | nan | 03-Aug-2026 |
| Motilal Oswal | ▼ Sell | 4,000 | 01-Aug-2026 |
| Prabhudas Liladhar | ▼ Reduce | 3,952 | 03-Aug-2026 |
Company Overview
Show Company Profile
Thermax Limited provides energy, environmental, and chemical solutions in India and internationally. It operates in Industrial Products, Industrial Infra, Green Solutions, and Chemical segments. The Industrial Products segment offers manufacturing, installation, sales and services related to boilers and heating equipment, absorption chillers/heat pumps, air pollution control equipment/ systems, water & waste recycling, including associated services and engineering, procurement and construction. The Industrial Infra segment provides engineering, procurement, and construction (EPC) of power plants, infra projects, and flue gas desulphurisation projects, along with associated services and manufacturing, installation, sales and services related to boiler and heater plants. The Green solutions segment builds, owns and operates BOO models, energy management solutions, oil and gas-fired, green hydrogen projects and renewable energy (Solar/Wind). The Chemical segment offers manufacturing, installation, sales and services related to ion exchange resins, performance chemicals, construction chemicals, water treatment chemicals, oil field chemicals, paper and construction chemicals, and related services. It also operates cogeneration, waste heat recovery power, captive power, and independent power plants, as well as offers operation and maintenance services. In addition, the company offers steam boilers; waste heat recovery units; fired heaters and process furnaces; thermic fluid, hot air, and hot water heaters; and waste heat recovery. It serves automobiles, cement, chemicals and fertilizers, commercial/construction, dairy, distillery, paper and pulp, pharmaceuticals, plywood, power generation, food, refineries and petrochemicals, soft beverages, metals, sugar, textiles, and tyre industries. Thermax Limited was incorporated in 1966 and is headquartered in Pune, India. Thermax Limited is a subsidiary of RDA Holdings Private Limited.