Thermax Limited Earnings Summary — Q4 FY2026
Thermax Limited Hits Record Quarterly Revenue and Double-Digit Operating Margins in Q4
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 32.8% sequentially in Q1 FY2027.
- Revenue of ₹2,303 Cr is 6.7% higher year-on-year.
- Revenue has compounded at -7.8% annualised over the last 10 quarters.
- Net profit of ₹25 Cr is 83.4% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -59.3% annualised across the period.
- Operating margin stands at 3.0% in Q1 FY2027.
- Operating margin compressed by 744 bps year-on-year.
- Over the last two years operating margin has contracted by 346 bps.
- PBT margin is 1.8%.
- Expenses grew 15.6% against revenue growth of 6.7%.
- Operating profit of ₹69 Cr is 69.5% lower year-on-year.
- Operating leverage has been under pressure recently.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 27/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 2,303 | 3,428 | 2,635 | 2,474 | 2,158 | 3,046 | 2,529 | 2,616 | 2,184 | 2,764 |
| Expenses | Stable | 2,234 | 3,054 | 2,380 | 2,302 | 1,933 | 2,747 | 2,340 | 2,338 | 2,044 | 2,491 |
| Operating Profit | Volatile | 69 | 374 | 255 | 172 | 225 | 300 | 188 | 278 | 141 | 273 |
| Operating Margin | Stable | 3.0% | 10.9% | 9.7% | 7.0% | 10.4% | 9.8% | 7.5% | 10.6% | 6.4% | 9.9% |
| Other Income | Volatile | 68 | 56 | 121 | 85 | 66 | 78 | 32 | 60 | 84 | 55 |
| Interest | Improving | 35 | 42 | 34 | 32 | 30 | 31 | 29 | 29 | 27 | 28 |
| Depreciation | Improving | 60 | 54 | 53 | 51 | 49 | 45 | 35 | 42 | 36 | 50 |
| Profit Before Tax | Volatile | 42 | 334 | 289 | 174 | 211 | 301 | 156 | 266 | 161 | 251 |
| Tax | Volatile | 20 | 90 | 84 | 54 | 60 | 95 | 43 | 68 | 52 | 63 |
| Net Profit | Volatile | 25 | 244 | 204 | 120 | 152 | 206 | 116 | 197 | 116 | 190 |
| Net Margin | Softening | 1.1% | 7.1% | 7.8% | 4.8% | 7.1% | 6.8% | 4.6% | 7.5% | 5.3% | 6.9% |
Key Takeaways
- Q4 FY2026 revenue surged to an all-time quarterly high of ₹3,428 crore, representing 30% sequential growth.
- Operating Profit Margin strengthened to 11%, up from 10% in the previous quarter and the same period last year.
- Net profit grew by 18.4% YoY to ₹244 crore, supported by robust execution in the industrial products and energy segments.
- The order execution pipeline appears strong as evidenced by the sharp jump in quarterly sales compared to the nine-month trend.
- Borrowings have risen significantly to ₹2,353 crore by the end of March 2026, primarily to fund green energy initiatives.
- Interest expenses increased to ₹42 crore for the quarter, reflecting the impact of higher debt levels on the balance sheet.
- The company maintains a healthy dividend payout strategy, with the annual payout ratio rising to 31%.
- Dependency on 'Other Income' remains notable, contributing ₹56 crore to the pre-tax profit in the current quarter.
Management Guidance
Management is focused on transitioning from fossil-fuel-based heating to green energy solutions, specifically targeting green hydrogen and biomass-to-energy.
Sentiment Shift
Improving
The transition from a high-growth phase to a sustained high-margin execution phase is evident in the record Q4 numbers and margin expansion.
Outlook
The outlook remains strong driven by industrial demand for green energy and environmental solutions. While high valuations persist, the company's accelerating profit growth and strategic alignment with global decarbonization trends suggest continued momentum.
From the Annual Report (Key Quotes)
“Management exhibits high transparency and strategic clarity, particularly in navigating the transition from fossil-fuel-based heating to green energy.”
“Visionary moves into green hydrogen and biomass-to-energy indicate a proactive approach to industry shifts.”
“Internal execution on large EPC project margins remains a secondary challenge for the team.”
Official Quarterly Documents
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This summary is AI-generated from Thermax Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.