Thermax Ltd

Business Overview

• Core business: energy and environment solutions across Industrial Products, Industrial Infra, Green Solutions, and Chemicals.
• TBWES drives project execution across Industrial Infra and Green Solutions.
• TOESL adopted rolling 12-month forecast for order-book reporting.
• Global footprint includes 9,291 employees and 18 manufacturing locations (14 in India, 4 international).

Key Operational Highlights

• Industrial Products: supplied a standalone 30 KLD VapoNovae+ with ATFD for a leading auto components customer.
• Dipped Products Limited (Sri Lanka) commissioned a 60 TR steam-driven Vapour Absorption Chiller.
• Thailand-based rubber glove manufacturer: multi-utility plant generating steam and thermic fluid heat from a single energy source.
• Advanced ESPs: commissioned high-capacity WHR ESPs for 650 TPD kilns treating 498,000 m3/hr.
• TBWES secures CFBC boiler order for captive power project in East India.
• TBWES delivers 60 TPH Flexisource boiler for paper industry.
• Commissioned a 4.9 MW biomass-based multi-utility plant in Thailand.
• TOESL commissioned a 12 TPH biomass boiler in Coimbatore, reducing ~11,000 tonnes CO2 annually.
• CBG plant achieved 22+ TPD production versus 20 TPD guaranteed.
• 60 MW Trichy wind project: 12 of 17 WTGs completed and transmission in place.
• Karur 100 MW project: foundations completed for 10 of 17 WTGs.
• 1 MWp Tuticorin solar expansion nearing commissioning.
• Hybrid project milestones: 69.5 MWp solar module installation completed; 12 of 21 WTGs erected.
• Chemicals: new Power-segment orders worth Rs 5 crore; margins supported by volume growth.
• Dibang Hydro acceleration; Nepal hydropower/R&R project development.
• Jhagadia capacity expansion strengthened manufacturing and supported growing resin orders.

Financial Performance

• Q1 FY27 revenue Rs 2,303 crore; PBT before exceptional items Rs 42 crore; PAT Rs 22 crore.
• Order booking Rs 2,809 crore; up 2% YoY.
• Order balance Rs 14,045 crore; up 23% YoY.
• Industrial Products: Sales Rs 1,058 crore; PBIT Rs 64 crore; margin 6.1%.
• Industrial Infra: Sales Rs 814 crore; PBIT loss Rs 71 crore; margin -8.7%.
• Chemicals: Sales Rs 230 crore; PBIT Rs 26 crore; margin 11.2%.
• Green Solutions: Sales Rs 245 crore; PBIT Rs -17 crore; margin -6.9%.
• Total PBIT Rs 18 crore; margin 0.9%.
• Rs 91 crore project cost overrun recognised in Industrial Infra this quarter.
• TOESL order-book adjustment: Rs 139 crore increase due to reporting methodology.

Capital Structure & Liquidity

• No debt or equity actions disclosed in this update.
• Liquidity position not discussed in this chunk.

Strategic Priorities & Outlook

• Order booking and backlog higher this year, led by TBWES, Industrial Products, Green Solutions.
• Demand drivers include accelerating data center investments and manufacturing expansion; West Asia softness impacting near-term momentum.
• TOESL rolling forecast change increased reported order book by Rs 139 crore without affecting underlying contracts.
• Strategy focuses on decarbonization and green solutions across Industrial Infra and Chemicals.

Risks & Governance

• Risks include macro volatility, regulatory changes, currency movements, and raw material cost volatility.
• Mitigation includes portfolio diversification, efficiency improvements, and execution discipline.

Meeting Details

• Board meeting scheduled for Thursday, July 30, 2026.

Key Agenda Items

• Consider and approve unaudited financial results for quarter ended June 30, 2026, with segment-wise figures.

Other Notes

• Trading window to open 48 hours after results declaration.

Dematerialisation status

• Dematerialisation requests processed; certificates mutilated and cancelled; depository named as registered owner within 15 days.
• Securities dematerialised are listed on the stock exchanges where the original issues are listed.

Overview

• Standalone Thermax Limited reports BRSR FY2025-26 with PwC reasonable assurance.
• Industrial Products accounts for 67% of turnover; Industrial Infra 23%; Chemical 10%.
• Exports represent 20% of turnover; 29 states domestically and 90 international markets.
• Markets served: 29 states; 90 countries; 25 sites (8 plants, 17 offices) domestically.
• Assurance on BRSR Core indicators provided by PwC.

Key ESG Risks & Opportunities

• Energy management: target 50% carbon reduction by 2030 from 2019 baseline.
• Water management: freshwater use to be reduced by 5% by 2030.
• Waste management: waste generation to be reduced 5% and landfill below 5% by 2030.
• Climate change: focus on environment-friendly products and expanded green energy offerings.
• Emission management: ongoing emphasis on reducing emissions.
• Local employment: local hiring to strengthen community relations.
• Occupational health & safety: OHSE policy with Behaviour-Based Safety program.
• Talent acquisition & retention: upskilling, reskilling, training, and career development.
• Responsible supply chain: vendor code of conduct; supplier collaboration.
• Cybersecurity: multi-layer risk management to prevent data breaches.
• Geopolitical risks: monitor high-risk markets and develop alternate sourcing.
• Ethics & integrity: robust governance and ethics training.

Governance & Policy Highlights

• Board oversight: MD/CEO leads ESG; Board reviews NGRBC-related policies annually.
• Policies approved by Board: Code of Conduct, CSR, Anti-Bribery, Whistleblower, Board Diversity.
• Policies extended to value chain partners; includes ISO 9001, 14001, 45001.
• Targets set: 50% carbon reduction by 2030; 5% freshwater cut; 5% waste cut; landfill below 5%.
• PwC independent assurance on BRSR Core indicators; report page 201.
• No external assessment of policies conducted in the period.
• Anti-corruption policy with zero tolerance; policy link provided.
• Highest authority: MD and CEO; sustainability oversight via dedicated committee.

Social Responsibility & Workforce

• Total employees 6,086; workers 4,279; female staff 469 (8%); female workers 69 (2%).
• Turnover FY2025-26: permanent employees 16%; permanent workers 15%.
• LTIFR for workers 0.22; one worker fatality; 37 total injuries.
• Well-being spending 0.25% of revenue; on-site medical; health and maternity/paternity benefits.
• CSR turnover Rs 6,518 crore; Thermax Foundation supports two Akanksha PPP schools in Pune.
• CSR beneficiaries: 1,812 students; 3,987 alumni; 810 youths trained.
• Female directors: 2 of 9; female KMPs: 1 of 3.
• Parental leave: no permanent workers availed parental leave.
• Grievance mechanisms: whistleblower policy, town halls, complaint boxes; email channels.
• Thermax Foundation education/empowerment programs and community initiatives.

Environmental Performance

• Total energy consumption 314,680 units; renewables share 50%.
• Scope 1: 7,422 tCO2e; Scope 2: 14,372 tCO2e; combined intensity 0.00000033 tCO2e per turnover.
• Water withdrawal 901,669 kl; consumption 419,774 kl; ZLD at four plants.
• Total waste 24,718 t; recycled 21,953 t; disposed 2,765 t; hazardous 16,339 t; non-hazardous 5,546 t.
• ISO 9001/14001/45001; ZLD and water-neutral certifications; multiple energy efficiency projects completed.

Stakeholder Engagement & Complaints

• Key stakeholders: owners, employees, customers, vendors, government, communities; engaged via meetings, emails, portals.
• Customers filed 7,304 complaints in FY2025-26; 159 pending.
• Employees/workers complaints: 13 filed; 3 pending; prior year 10 filed; 2 pending.
• Whistleblower policy, town halls, complaint boxes enable grievance redressal.
• Thermax Foundation supports education and community programs in Pune.

Other Notable Metrics

• Purchases from trading houses 10% of total; 1,298 trading houses; top 10 trading houses 40%.
• Sales to dealers 7% of total; 147 dealers; top 10 dealers 31%.
• Related party transactions: purchases 4%; sales 7%; loans 67%; investments 59%.
• Accounts payable days 89; prior year 81.
• 58% inputs sustainably sourced; 58% value chain partners assessed for health and safety.
• Wage distribution: metropolitan 83%, urban 9%, semi-urban 4%, rural 3%.
• CSR in aspirational Rajasthan district (Sirohi): Rs 1,539,300 spent.
• Data privacy/cybersecurity: 0 data breaches; policies and training in place.
• No product recalls; no adverse regulatory actions noted.

Merged overview

• Revenue from operations (consolidated): ₹10,694 crore, up 3% YoY.
• Consolidated PAT: ₹720 crore, up 14.9% YoY.
• Diluted EPS: ₹63.94 per share.
• Basic EPS: ₹63.95 per share.
• Order book: ₹13,871 crore, up 34.2% YoY.
• International revenue: ₹3,084 crore, up 33.4% YoY.
• Net debt: ₹1,162 crore.
• Gearing ratio: 1:5.85.
• Undrawn facilities: ₹1,195 crore available within next 12 months.
• Dividend per share: ₹20.

Management change

• Resignation of Mr. Kirtiraj Jilkar, EVP & BU Head – P&ES, effective 30 Jun 2026.
• Reason: resignation; no further reasons disclosed.
• Term: not specified.