Thermax shares slid 2% on Monday, deepening a post-earnings retreat even as institutional brokerages recalibrated their calls on the industrial equipment maker. Consolidated net profit fell 4.2% year-on-year to ₹115 crore for the quarter ended September 30, down from ₹120 crore a year earlier. The bottom line missed consensus estimates.
The reaction on trading desks was swift. Sellers dominated early turnover, extending Friday's losses as investors weighed margin pressures against a heavy order backlog. The stock has now surrendered roughly 50% of its market value since its June peak.
Yet top-line momentum held firm. Revenue from operations climbed 11.4% to ₹2,756 crore from ₹2,474 crore in the corresponding quarter last year. Operating earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 12.8% to ₹194 crore, nudging EBITDA margins to 7% from 6.9% a year ago. Sequentially, the margin recovery was stark—rebounding 400 basis points from an anemic 3% booked in the June quarter.
| Financial Metric | Q2 FY27 | Q2 FY26 | Change (YoY) |
|---|---|---|---|
| Revenue | ₹2,756 crore | ₹2,474 crore | +11.4% |
| Net Profit | ₹115 crore | ₹120 crore | -4.2% |
| EBITDA | ₹194 crore | ₹172 crore | +12.8% |
| EBITDA Margin | 7.0% | 6.9% | +10 bps |
Unhappy product mixes and elevated input bills took a bite out of operational returns. Thermax pinpointed cost inflation within its Industrial Products division as a core drag on profitability. Then came balance sheet write-downs. The company booked an additional impairment provision of ₹15 crore inside its Green Solutions segment, eroding operating gains.
Brokerages parted ways on the valuation horizon. JPMorgan upgraded Thermax to 'Overweight' from its earlier stance, hanging a ₹3,491 price target on the counter. The brokerage argued that margin pressures have reached a floor, leaving an attractive risk-reward profile as the company contests several large industrial bids.
Caution lingered elsewhere on Dalal Street. Jefferies retained its 'Buy' call but chopped its price target to ₹4,020 per share after order inflows shrank 4% year-on-year during the first half of the fiscal year. The brokerage cut earnings-per-share estimates by 22% for FY27 and up to 17% through FY30. And yet the commercial buffer remains substantial: Thermax's total order book expanded 16% year-on-year, locking in baseline revenue visibility through FY29 as management tracks an inflow rebound across the second half.