Thermax reported lower year-over-year profit and quarterly bookings for the three months ended Sept. 30, while its order balance expanded, leaving results mixed for the Indian engineering company.
Revenue from operations rose to Rs 2,755.87 crore from Rs 2,473.90 crore in the same quarter last year, but consolidated net profit slipped to Rs 113.11 crore from Rs 119.40 crore, according to Thermax’s results filing.
Bookings for the quarter totaled Rs 3,259 crore, down 8% year over year, while the order balance at Sept. 30 rose 16% to Rs 14,250 crore, the company’s investor presentation showed. A delay in the timing of several major Industrial Products orders weighed on that segment’s bookings, Thermax said.
The Industrial Products segment’s PBIT margin dropped to 6% from 9.8% a year earlier. Thermax linked margin pressure to product mix and higher input costs. The company cited higher fuel, freight and steel expenses and said shipping disruptions extended transit times.
At the Nov. 6 earnings call, Managing Director and CEO Ashish Bhandari said Thermax expected second-half fiscal 2027 revenue to exceed Rs 7,000 crore. The investor presentation also flagged mixed demand and elevated input costs as risks to recovery.
JPMorgan raised its rating from Neutral to Overweight but lowered its target price from Rs 4,139 to Rs 3,491, NDTV Profit reported Nov. 9. The outlet said Kotak Institutional Equities kept a Buy rating and cut its target to Rs 3,600 from Rs 4,000, while UBS retained Buy and lowered its target to Rs 4,400 from Rs 5,100.
The same NDTV Profit report said JPMorgan reduced earnings-per-share estimates for fiscal 2027 and 2028 by 16% to 27%. Kotak lowered its fiscal 2027 estimate by 11%, while UBS cut forecasts for fiscal 2027, 2028 and 2029 by 19%, 10% and 6%, respectively.
A Nov. 7 report by Motilal Oswal Financial Services moved its rating to Neutral from Sell and lowered its target to Rs 2,700 from Rs 3,700, citing quarterly performance, order inflows, execution and margin concerns.
