Thermax Q1 Net Profit Plunges 85% To ₹22 Crore, Project Cost Overrun And Higher Expenses Weigh

New Delhi: Energy and environment solutions provider Thermax reported an 85 percent year-on-year decline in consolidated net profit to Rs 22 crore for the quarter ended June 2026, mainly due to a project cost overrun and rising expenses.

The company had recorded a consolidated profit after tax of Rs 151 crore in the corresponding quarter of FY26, according to its statement issued on Thursday.

Project Impact

Thermax said the June quarter results were affected by a Rs 91 crore increase in the estimated cost required to complete a specific project in its Industrial Infra segment.

The revision followed certain events identified during the quarter, which raised the expected cost of completing the project.

The year-on-year comparison was also affected by a one-time benefit in the previous financial year. Q1 FY26 included income of Rs 56 crore received by a subsidiary in the Industrial Infra segment under the Package Scheme of Incentives.

Profitability in the Industrial Products segment was additionally affected by lower export sales during the quarter.

Revenue Growth

Despite the steep fall in profit, Thermax’s consolidated operating revenue rose 7 percent to Rs 2,303 crore in Q1 FY27, compared with Rs 2,158 crore in the corresponding period of the previous financial year.

The company’s order booking increased 2 percent year-on-year to Rs 2,809 crore during the quarter.

Its order balance stood at Rs 14,045 crore as of 30 June 2026, marking a 23 percent increase from Rs 11,376 crore in the year-ago period.

Major Order

During the quarter, Thermax secured an order worth more than Rs 400 crore to supply boiler pressure parts for a data centre project in the United States.

Order booking in the Green Solutions segment increased, supported by improved inflows at Thermax Onsite Energy Solutions Ltd and a revision in the company’s order-book reporting method.

TOESL shifted to a rolling 12-month forecast model, replacing the earlier method of recognising only the first year’s revenue from long-term contracts.

This reporting change increased the stated order book by Rs 139 crore, or 5 percent, without affecting underlying contracts, revenue recognition or financial performance.