This article first appeared on GuruFocus .
Release Date: February 05, 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 strong international order book, with 50% of business coming from international markets in the last quarter.
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The company is optimistic about future orders, particularly in the Industrial Infra segment, with a healthy pipeline of projects both domestically and internationally.
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Thermax Ltd ( BOM:500411 ) has successfully entered the data center cooling market, securing significant orders from marquee clients in the US and India.
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The company is making strategic investments in growth areas such as construction chemicals and international expansions, which are expected to yield positive results in the future.
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Thermax Ltd ( BOM:500411 ) is well-positioned to capitalize on emerging opportunities in carbon capture, supported by strong R&D and partnerships with global EPC players.
Negative Points
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The Chemicals segment experienced a significant contraction in profitability, with a notable under-recovery of fixed costs due to new capacity additions.
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The Industrial Products segment saw a decline in EBIT margin despite strong top-line growth, attributed to a slower growth in the most profitable product line, heating.
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Execution delays in certain projects, partly due to extended rains, impacted revenue performance in Q3.
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The company continues to face challenges in the ethanol market, with financial closures for many projects proving difficult.
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Thermax Ltd ( BOM:500411 ) is still dealing with legacy issues in projects such as bio-CNG and FGDs, which are affecting overall profitability.
Q & A Highlights
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Q: Can you provide an update on the prospect list of new orders and any impact of geopolitical uncertainty on domestic order inflows? A: Ashish Bhandari, CEO, explained that the slowdown in the ethanol market has affected domestic orders. However, the company remains selective in pursuing opportunities, focusing on relevant projects. Despite these challenges, he remains optimistic about order inflows for the year, with Q4 expected to be strong.
Q: What is causing the significant contraction in profitability in the Chemicals segment, and how do you foresee this evolving over the next 12 to 18 months? A: Ashish Bhandari noted that the Chemicals segment is INR50 crore off compared to last year, primarily due to costs associated with new assets and competitive pressures from China. He expects improvements in Q4 and aims for profitability to reach 13-14% EBITDA next year, though still below the previous 17%.
Q: How should we view the growth and EBIT margin for Industrial Products over the next 12 to 18 months? A: Ashish Bhandari expressed optimism, noting strong revenue performance and backlog. He anticipates a good Q4, with profitability improving, although not reaching last year's levels due to slower growth in the heating product line.
Q: Can you discuss the prospects for refinery orders and the expected timeline for tender finalizations? A: Ashish Bhandari indicated a positive outlook for refinery orders over the next 12 to 18 months. However, he emphasized caution with large projects involving significant construction and civil work, preferring to focus on equipment-heavy opportunities.
Q: What is the status of the Dangote Industries order, and how will it impact revenue recognition? A: Ashish Bhandari stated that the Dangote order will be executed over 18 months, with significant revenue recognition expected in the next year. The project is progressing as planned.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
