Thermax Q2 FY27 Results Analysis: PAT Slips 4%, Revenue Grows 11.4%
Thermax Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 2,755.87 Cr (+11.40% YoY) and PAT growth of -4.28% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 2,755.87 Cr (+11.40% YoY) |
| PAT (Q2) | Rs. 114.54 Cr (-4.28% YoY) |
| EBITDA margin | 7.04% (+9 bps YoY) |
| EPS (Q2) | Rs. 10.17 (-4.24% YoY) |
Quarter Snapshot
Revenue grew 11.40% YoY with all segments positive and EBITDA margin held at 7.04%, but PAT to equity holders fell 4.28% YoY as input costs and employee expenses outpaced revenue. Industrial Infra's return to profit and a 16% YoY order balance build are offsets, while Green Solutions losses (Rs.25.02 cr including a Rs.15 cr impairment) and Chemicals margin compression remain drags. Management's profitability-improvement guidance was delivered QoQ but not YoY, and the FY27 order-booking target stays on track with an H2-weighted Rs.7,803 cr requirement.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue ahead on demand; trapped-inventory conversion the gate | "the ~Rs.300 Cr of finished goods trapped by Gulf-war freight… the key downside risk" | Revenue +11.40% YoY, +19.68% QoQ | Played out |
| Margin recovery harder than guided | "consistent with that path being harder in Q2 than the guidance implied" | EBITDA margin 7.04% (vs 2.98% Q1) but PAT-to-owners −4.28% YoY; Chemicals margin fell QoQ | Partially |
| Order inflow steady, not step-change | "more likely steady than step-change" | Booking −8.0% YoY; balance +16.0% YoY | Played out |
| IP margin bridge vs Q1's 6.1% | watch item | 6.09% — flat QoQ, −373 bps YoY | Played out |
| Bio-CNG PGs / FGD handover / FEPL partner | "company-specific milestones the external data cannot confirm" | Not addressed in the filing — remains open for the call | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 group order booking > Rs.13,871 cr | Q1 FY27 earnings call (Jul 31, 2026) | H1 Rs.6,068 cr; Q2 Rs.3,259 cr (−8% YoY) — needs Rs.7,803 cr in H2 vs Rs.7,570 cr in H2 FY26 | On Track |
| Profitability improvement in Q2, Q3, Q4 FY27 | Q1 FY27 earnings call | PBT Rs.168.86 cr vs Rs.42.14 cr QoQ; EBITDA margin 7.04% vs 2.98%; PAT-to-owners −4.28% YoY — QoQ yes, YoY no | Partially |
| Industrial Products margin pressure clears in Q3–Q4 | Q1 FY27 earnings call | Q2 margin 6.09% — pressure materialized as guided — Q3–Q4 test | Too Early |
| Industrial Products solid double-digit FY27 revenue growth | Q1 FY27 earnings call | +10.34% Q2, +10.80% H1 | On Track |
| Industrial Infra EBITDA margin 10%+ | Q1 FY27 / Q4 FY26 calls | 5.56% segment-result margin (EBIT-like — below an EBITDA margin) | Not yet met |
| Chemicals EBITDA 13–14% | Q3 FY26 call (Feb 5, 2026) | 6.50% segment-result margin, down QoQ | Not yet met |
| FY27 capex ~Rs.250 cr | Q4 FY26 call (May 8, 2026) | H1 Rs.529.60 cr | Tracking above plan |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|
| Order booking | 3,551 | 4,490 | 2,809 | 3,259 (−8% YoY) |
| Order balance | 12,300 | 13,604 | 14,045 | 14,250 (+16% YoY) |
Key Investment Insights
Key Positives
- Revenue grew 11.40% YoY to Rs.2,755.87 cr and 19.68% QoQ, with all four segments growing YoY (Chemicals +18.06%, Industrial Infra +13.58%)
- EBITDA of Rs.194.14 cr grew 12.9% YoY with margin at 7.04% vs 6.95% year-ago, recovering from Q1's 2.98%
- Industrial Infra returned to a Rs.55.99 cr profit (5.56% margin) after Q1's Rs.(67.55) cr loss
- Order balance rose 16% YoY to Rs.14,250 cr; FY27 booking target of >Rs.13,871 cr is on track with H1 at Rs.6,068 cr
- H1 consolidated CFO of Rs.364.86 cr vs Rs.72.65 cr year-ago (CFO/PAT 2.70x) on Rs.465.47 cr receivable collections
- Group remains net cash at Rs.212.02 cr despite borrowings of Rs.2,841.60 cr
- Rs.1,385.47 cr excise contingent liability removed after Supreme Court dismissed the department's appeal on May 25, 2026
- Normalized PAT to equity holders of Rs.124.59 cr (+4.12% YoY) after adding back the Rs.15 cr hybrid-renewables impairment
Risk Factors
- PAT to equity holders declined 4.28% YoY to Rs.114.54 cr despite 11.40% revenue growth
- Industrial Products margin fell to 6.09% from 9.82% YoY on product mix and higher input costs (raw materials +15.9% YoY vs revenue +11.4%)
- Green Solutions loss widened to Rs.(25.02) cr from Rs.(1.18) cr a year ago, including a Rs.15 cr impairment provision on a hybrid renewable energy project
- Chemicals margin compressed to 6.50% from 11.17% QoQ and 9.80% YoY despite 18.06% revenue growth
- Q2 order booking fell 8% YoY to Rs.3,259 cr; FY27 target requires Rs.7,803 cr in H2
- Inventory build of Rs.118.49 cr (deepest of the three periods) lifted inventories to Rs.1,204.55 cr from Rs.909.50 cr at March
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.