Thermax Ltd delivered impressive financial results for the December quarter, with net profit reaching ₹205 crore, significantly exceeding the CNBC-TV18 poll estimate of ₹153.4 crore and marking an 80% year-on-year increase. According to reports from CNBC TV18, the strong profit performance was supported by improved operating metrics and healthy order inflows across business segments. The growth in the bottom line was driven by a combination of higher execution in industrial products and green solutions, with the company focusing on high-margin segments to sustain its financial health.
Revenue for the quarter rose 4.2% year-on-year to ₹2,634 crore, though this was marginally below estimates of ₹2,726 crore. As reported by CNBC TV18, 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. The margin expansion of 220 basis points reflects the company's ability to manage raw material costs and benefit from operating leverage. The profitability was also supported by an improving international business mix and a higher contribution from the services segment, with the company tapering off legacy, low-margin projects.
During the quarter, exceptional items boosted profit before tax by ₹59 crore, according to CNBC TV18 reports. 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. The one-time impact was partly offset by a ₹21 crore impact arising from changes in labour codes.
Thermax reported robust order momentum during the quarter, with order booking rising 34% year-on-year to ₹3,080 crore, as reported by CNBC TV18. 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. The diversified order book provides strong revenue visibility for the upcoming quarters.
Following the earnings announcement, shares of Thermax Ltd closed at ₹2,825.60 on the NSE, down 2.1%, according to CNBC TV18. The company completed the acquisition of Buildtech Products India, a manufacturer of construction chemicals, to enhance its presence in the infrastructure and railway sectors. In late January 2026, Thermax signed a Memorandum of Understanding with HPCL to collaborate on green hydrogen, CO2 capture, and bio-pyrolysis. The company also incorporated a new wholly-owned step-down subsidiary, Thermax Energy Solutions, in Saudi Arabia to expand its international footprint. Analysts have noted that the company's focus on green hydrogen and coal gasification positions it well for long-term growth in the capital goods sector.
