Thermax Reports Q1 FY27 Results; Approves Strategic Scheme Involving Mergers and Demergers

Thermax Reports Q1 FY27 Results; Approves Strategic Scheme Involving Mergers and Demergers​

Thermax Ltd reported its unaudited consolidated financial results for the quarter ended June 30, 2026, announcing a 7% rise in operating revenue. The company also approved a significant corporate structure change involving the merger of Thermax Cooling Solutions Limited (TCSL) and the demerger of Bioenergy Solutions Private Limited (TBSPL).

The results highlighted by the Board Meeting held on July 30, 2026, showed consolidated profit after tax (PAT) at Rs 22 crore, a decline compared to the previous year's Q1. Consolidated Profit Before Tax (PBT) stood at Rs 42 crore, reflecting an 80% decrease from the corresponding period in FY25.

As of June 30, 2026, the order balance for the quarter was Rs 14,045 crore, marking a 23% increase from the previous year. Order booking for the quarter reached Rs 2,809 crore, up by 2%.

Strategic Restructuring and Acquisitions​

The Board of Directors approved a Composite Scheme of Arrangement designed to streamline the Group structure. The scheme includes two key components: the merger of Thermax Cooling Solutions Limited (TCSL), a wholly-owned subsidiary, into the company, and the demerger of the Bio-CNG EPC business of Thermax Bioenergy Solutions Private Limited (TBSPL).

The appointments date for the proposed schemes is April 1, 2026. The transaction is expected to be accounted for as common control business combinations.

In other corporate developments, the company acquired an additional 35.83% stake in ExactSpace Technologies Private Limited (ExactSpace) from its promoters on April 9, 2026. This acquisition involved a cash purchase consideration of Rs 30.48 crore, increasing Thermax’s aggregate holding in ExactSpace to 51% on a fully diluted basis, making it a subsidiary. The company plans to acquire the remaining 49% stake over three years, which will be accounted for as a redemption liability of Rs 34.15 crore.

Quarterly Financial Highlights​

The consolidated operating revenue for the quarter stood at Rs 2,302.73 crore (unaudited), compared to Rs 2,157.53 crore in the corresponding quarter of FY25.

A look at the Q1 financial results across segments reveals mixed performance. The total segment revenue reached Rs 2,346.56 crore. Performance was aggregated across four core areas: Industrial Products (Rs 1,058.16 crore), Industrial Infra (Rs 814.15 crore), Green Solutions (Rs 244.72 crore), and Chemicals (Rs 229.53 crore).

The profitability of the segments varied significantly. The overall consolidated profit before tax was Rs 211.47 crore, while the total segment results stood at 301.70 crore.

Key financial data from the quarter ended June 30, 2026:

Financial Review and Operational Details​

The Q1 results also included the results of ExactSpace from the date of acquisition, meaning they are not strictly comparable with previous periods.

Standalone operating revenue for Thermax Limited was Rs 1,302.95 crore, compared to Rs 1,195 crore in the corresponding quarter of FY25. The standalone loss after tax for the quarter stood at Rs 18 crore (compared to a profit of Rs 47 crore previously). This lower profitability on a standalone basis is attributed largely to the project cost overrun of Rs 91 crore recognized in the Industrial Infra segment.

The company also noted that the turnover of the demerged undertaking, Thermax Cooling Solutions Limited, amounted to Rs 239.35 crore, which constitutes 3.67% of the Resulting Company’s total turnover based on financials for the year ended March 31, 2026.

THERMAX Stock Price Movement​

Shares of Thermax Limited shed 2.92% in trading today, closing at ₹4251.50 after falling by ₹128.00. The equity saw heavy selling pressure over the session, with a reported volume of 119,584 shares and hitting a low of ₹4238.50 during the day.