Thermax shares surged 7.82% to ₹4,509 during Friday's trading session, reaching a fresh 52-week high of ₹4,539 after the company delivered better-than-expected March quarter results. According to latest reports, the engineering major's stock has maintained a steady winning streak since February, gaining 62% during this period. The rally comes after the stock suffered significant pressure between June 2024 and January 2026, during which it lost a cumulative 46%. The stock is currently trading at a price-to-earnings ratio of 73.08 and a price-to-book ratio of 9.53, indicating premium market valuations backed by strong growth expectations. As per CNBC-TV18, the stock closed up 3.02% at ₹4,200 on May 7, 2026, before the results were announced.
The company reported an 18.7% year-on-year increase in consolidated net profit to ₹244.3 crore for Q4FY26, significantly beating the CNBC-TV18 poll estimate of ₹219 crore. Revenue from operations rose 12.5% YoY to ₹3,428 crore, surpassing forecasts of ₹3,277 crore. The performance was driven by a 24.9% rise in EBITDA to ₹374.3 crore, pushing the EBITDA margin to 10.9% from 9.8% a year earlier. For FY26, Thermax posted consolidated operating revenue of ₹10,694 crore, up 3% from ₹10,369 crore in the previous year, with profit after tax standing at ₹720 crore compared to ₹627 crore a year earlier. On a standalone basis, the company posted revenue of ₹2,226 crore in the quarter, up 15% from ₹1,942 crore last year, though standalone PAT fell 27% to ₹201 crore due to exceptional items in the previous year.
The company's order booking performance during Q4FY26 was particularly impressive, surging 112% to ₹4,490 crore versus ₹2,119 crore in the same quarter last fiscal, indicating strong demand visibility and business momentum going forward. This takes the total order book to ₹13,604 crore as of March 31, 2026, reflecting a 27% increase from ₹10,693 crore in the corresponding quarter of the previous year. The Industrial Products segment improved primarily due to stronger performance in the Heating, Cooling, and Water & Waste Solutions businesses, with the company securing a boiler package supply contract worth around ₹1,600 crore for a 1x800 MW ultra-supercritical thermal power plant in Central India. Notably, one of Thermax's subsidiaries, TOESL, shifted to a rolling 12-month forecast model for reporting order book, resulting in an increase of ₹138 crore in the reported order balance without any impact on revenue recognition or financial performance.
Data centres are emerging as a significant new growth opportunity for Thermax, with the company securing breakthrough orders for multiple sets of hot water-driven chillers with a combined capacity of 45,000 TR to provide higher cooling capacity with fixed heat input at large data centres in both the US and India. As reported by Live Mint, management described a large addressable opportunity, especially in North America where it believes its technology is particularly well suited. The company highlighted strong margins in this data centre cooling segment and indicated it would consider increasing capacity if traction continues, positioning data centre cooling as a potential growth avenue alongside the company's established energy and environment solutions portfolio. This demonstrates Thermax's diversified growth strategy across multiple sectors, though it highlights the company's ongoing reliance on conventional thermal power projects even as the world shifts towards renewables.
The board recommended a final dividend of ₹14 per share and a special dividend of ₹6 per share, totaling ₹20 per equity share for FY26, marking the company's 60th anniversary celebration. The aggregate dividend of ₹20 per equity share of face value ₹2 each (1000%) for FY26 will be paid subject to shareholders' approval at the ensuing 45th Annual General Meeting. The record date for dividend eligibility has been fixed as Friday, July 3, 2026.
