Thermax shares fall 4% after weak Q2; profit, margins miss estimates

Shares of Thermax Ltd. are trading 4% lower on Wednesday, November 12, after the energy and environment solutions company reported a weak September-quarter performance, missing estimates across all key metrics.

The company's net profit dropped 39.7% year-on-year to ₹119.4 crore, sharply below the CNBC-TV18 poll estimate of ₹201.6 crore.

Revenue declined 5.4% to ₹2,473.9 crore, also missing the expected ₹2,841.3 crore.

EBITDA fell 38.1% to ₹171.9 crore as against an estimate of ₹274.4 crore, while operating margins contracted to 6.9% from 10.6% a year ago (poll: 9.7%).

Thermax attributed the weak performance to execution challenges, project cost overruns, and an adverse product mix that impacted profitability across key segments such as industrial infrastructure and chemicals.

While overall order booking improved on the back of better traction in the Industrial Products segment, the Industrial Infra business saw lower order inflows this year due to large project wins in the previous period.

	Q2FY26	Q2FY25	% YoY
Order Inflow	3551	3353	6%
Order Book	12300	11593	6%

Profitability in the Industrial Infra segment also remained under pressure due to cost overruns and weaker project margins.

On Tuesday, shares of Thermax closed 1.19% higher at ₹3,176 on the NSE. The stock, however, remains down nearly 19% so far in 2025.