This article first appeared on GuruFocus .
Release Date: May 08, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Thermax Ltd ( BOM:500411 ) reported a robust order book, including a significant supercritical job worth approximately 1,600 crores.
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The company has a strong pipeline of orders in traditional sectors like steel, cement, power, and oil and gas, both domestically and internationally.
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Thermax Ltd ( BOM:500411 ) is exploring new opportunities in the data center market, particularly in supplying boilers and cooling solutions.
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The company's green solutions business, particularly the biomass-based heating solutions, has shown stable performance.
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Thermax Ltd ( BOM:500411 ) has a positive outlook on revenue growth, supported by a 27% increase in order balance compared to the previous period.
Negative Points
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The company faces challenges due to the impact of ongoing geopolitical tensions, which could affect future quarters.
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There have been cost overruns in the FirstEnergy business due to contractor performance issues, impacting profitability.
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Thermax Ltd ( BOM:500411 ) is experiencing raw material supply and price challenges, particularly in its chemical business.
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The company has seen a working capital increase due to project delays and related collection issues.
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There are concerns about the impact of rising raw material costs on margins, especially for fixed-price orders.
Q & A Highlights
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Warning! GuruFocus has detected 2 Warning Signs with NSE:NORTHARC.
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Q: How is the inquiry pipeline for traditional sectors like steel, cement, power, and oil and gas? A: The order book outlook is robust both domestically and internationally. We see a good pipeline in these sectors, as well as in industrial products like pharma, chemicals, and FMCG. However, the impact of prolonged geopolitical tensions could affect future quarters. - Unidentified_3 (CFO)
Q: Are there any large orders expected from the power and steel sectors in the next 20 to 24 months? A: We are working on several opportunities, particularly in the refinery sector. We are confident about a potential win in the data center sector, involving steam turbine-based solutions for a global market opportunity. - Unidentified_3 (CFO)
Q: What is the outlook for revenue growth next year, given the current order book status? A: The order book is 27% better than the previous period, providing a good opportunity for revenue growth. However, execution challenges and geopolitical issues could impact performance. We are optimistic about our execution plans. - Unidentified_3 (CFO)
Q: What are the challenges faced in the green solutions segment, and what is the capacity outlook? A: Challenges arose from a contractor's failure to perform, leading to cost overruns. We have about 250 MW on the ground, with more projects expected to be commissioned soon. We anticipate better performance in FY27. - Unidentified_3 (CFO)
Q: Can you elaborate on the supercritical boiler order from MD Power and its execution timeline? A: The supercritical boiler order will be executed over 40 to 45 months. The first year will focus on design and engineering. We prefer private sector opportunities for such projects. - Unidentified_3 (CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
