Thermax Q1 FY27 Results Analysis: PAT Plunges 83%, Order Book Hits Record

Thermax Ltd's Q1 FY27 numbers came in soft, with revenue of Rs. 2,302.73 Cr (+6.73% YoY) and PAT growth of -83.44% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Q1FY27 was a significant execution setback with EBITDA margin collapsing 753 bps and PAT dropping 83% YoY, driven by a Rs.91 cr cost overrun in Industrial Infra and broad cost pressures. However, the order book reached a record Rs.14,045 cr (+23.5% YoY) and Chemicals showed strong recovery, providing a foundation for eventual recovery if execution stabilizes.

Key Investment Insights

Key Positives

• Order book at record Rs.14,045 cr, up 23.5% YoY, providing revenue visibility
• Chemicals segment revenue grew 32.5% YoY with PBIT margin improving to 11.17%
• Data center boiler order of Rs.400+ Cr secured, confirming new growth driver
• Declared final dividend of Rs.14 plus special dividend of Rs.6 per share
• Excise duty matter resolved in favour of the group by Supreme Court dismissal of department's appeal

Risk Factors

• EBITDA margin collapsed from 13.47% to 5.94% YoY, a compression of 753 bps
• PAT attributable to owners dropped 83.44% YoY to Rs.25.24 cr
• Industrial Infra segment swung from profit of Rs.83.26 cr to loss of Rs.70.66 cr due to Rs.91 cr cost overrun
• Raw material costs grew 19.3% YoY, significantly outpacing revenue growth of 6.73%
• Standalone entity reported a loss of Rs.18.10 cr vs profit of Rs.46.52 cr last year
• Effective tax rate jumped to 48.29% from 28.38%, compressing net profit