Thermax Q3 Results: Margin expands, profit beats estimates as order book strengthen

Thermax Ltd delivered a strong operational performance in the December quarter, with margins expanding and profit comfortably beating street estimates, even as revenue came in slightly below expectations.

Net profit for the quarter stood at ₹205 crore, significantly higher than the CNBC-TV18 poll estimate of ₹153.4 crore and up 80% year-on-year. Revenue rose 4.2% year-on-year to ₹2,634 crore, marginally lower than estimates of ₹2,726 crore.

EBITDA increased 34.5% year-on-year to ₹254.3 crore, beating expectations, while EBITDA margin improved sharply to 9.7% from 7.5% a year ago.

During the quarter, exceptional items boosted profit before tax by ₹59 crore. This included the reversal of a previously recognised provision of ₹51 crore and interest income of ₹29 crore following a Bombay High Court order directing a customer to refund deposits along with interest. This was partly offset by a one-time impact of ₹21 crore arising from changes in labour codes.

Thermax also reported healthy order momentum. Order booking during the quarter rose 34% year-on-year to ₹3,080 crore. As of December 31, 2025, the order balance stood at ₹12,641 crore, up 11% from the corresponding period last year. The company noted that one subsidiary has shifted to a rolling 12-month forecast model for its order book, resulting in a ₹128 crore increase in the reported order book, without any impact on contracts or revenue recognition.

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Ahead of the earnings announcement, shares of Thermax Ltd closed at ₹2,825.60 on the NSE, down 2.1%.