Thermax Q3 Results: Margin expands, profit beats estimates as order book strengthen

Thermax Ltd delivered a strong operational performance in the December quarter, with margins expanding and profit comfortably beating street estimates, even as revenue came in slightly below expectations.Net profit for the quarter stood at ₹205 crore, significantly higher than the CNBC-TV18 poll estimate of ₹153.4 crore and up 80% year-on-year. Revenue rose 4.2% year-on-year to ₹2,634 crore, marginally lower than estimates of ₹2,726 crore.

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.
During the quarter, exceptional items boosted profit before tax by ₹59 crore. 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. This was partly offset by a one-time impact of ₹21 crore arising from changes in labour codes.Thermax also reported healthy order momentum. Order booking during the quarter rose 34% year-on-year to ₹3,080 crore. 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.

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Ahead of the earnings announcement, shares of Thermax Ltd closed at ₹2,825.60 on the NSE, down 2.1%.