Thermax Green Solutions loss reaches Rs 25 crore in Q2 FY27

Thermax Ltd.'s Green Solutions segment reported a Rs 25 crore profit-before-tax loss in Q2 FY27, compared with a Rs 1 crore loss in Q2 FY26, after a Rs 15 crore impairment provision on a hybrid renewable-energy project. Sales rose to Rs 288 crore from Rs 262 crore, but the segment's PBT margin declined to negative 8.7%.

How large was Thermax Green Solutions' Q2 FY27 loss?

Thermax Green Solutions reported a Rs 25 crore PBT loss in Q2 FY27, widening from a Rs 1 crore loss in Q2 FY26. The segment's PBT margin moved to negative 8.7% from negative 0.5%, although quarterly sales increased by Rs 26 crore to Rs 288 crore. PBT refers to profit before tax, the measure shown for Green Solutions in Thermax's business-performance summary.

The deterioration also extended across the first six months. For YTD Sep 2026-27, Green Solutions reported sales of Rs 535 crore, compared with Rs 518 crore in YTD Sep 2025-26, while its PBT loss widened to Rs 45 crore from Rs 13 crore. The YTD PBT margin declined to negative 8.4% from negative 2.6%, indicating that higher revenue had not translated into profitability during the period.

The quarterly trend shows that Green Solutions had already recorded a Rs 17 crore segment PBIT loss in Q1 FY27 before the Rs 25 crore loss in Q2 FY27. PBIT is segment profit before interest and tax, before exceptional and unallocated overheads. Revenue recognition increased to Rs 288 crore in Q2 FY27 from Rs 247 crore in Q1 FY27, while the loss increased by Rs 8 crore.

What caused Thermax Green Solutions' loss to widen?

Thermax said Green Solutions' margin was affected by an impairment provision in one hybrid renewable-energy project. At the consolidated level, management quantified the provision at Rs 15 crore and said it resulted from events identified during Q2 FY27. The presentation does not identify the project, its carrying value, the events involved or a timetable for any recovery.

The impairment occurred alongside lower consolidated profitability despite higher group revenue. Consolidated revenue rose to Rs 2,756 crore in Q2 FY27 from Rs 2,474 crore in Q2 FY26, while profit before tax declined to Rs 169 crore from Rs 174 crore and profit after tax fell to Rs 113 crore from Rs 119 crore. Management also attributed pressure in Industrial Products to product mix and higher input costs.

Green Solutions was the only segment shown with a quarterly PBT loss in the business-performance summary. Industrial Products generated Rs 78 crore of PBIT on sales of Rs 1,303 crore, Industrial Infra generated Rs 56 crore on Rs 1,006 crore, and Chemicals generated Rs 15 crore on Rs 226 crore. Green Solutions generated Rs 288 crore of sales but reported a Rs 25 crore PBT loss.

What activity did Thermax Green Solutions report during Q2 FY27?

Thermax Green Solutions reported progress in compressed biogas, green steam and hybrid renewable power during the quarter. Its bio-CNG plant completed performance-guarantee testing at more than 21 tonnes per day of compressed biogas, or CBG, against a guaranteed capacity of 20 tonnes per day. The plant can operate on six feedstocks, including rice straw, napier grass, wheat straw, soya, pressmud and ethanol-industry waste.

In build-own-operate solutions, a Thermax Onsite Energy Solutions Limited site received third prize in the textile category at the Best Boiler User Award 2026, from 55 nominations. In its green-steam portfolio, Thermax secured an order for a 14-tonnes-per-hour biomass boiler from a pharmaceutical company in Nanjangud, Karnataka. Management estimated that the project has the potential to reduce carbon dioxide emissions by about 26,000 metric tonnes a year.

The renewable-energy business partially commissioned 17.1 megawatts at the FEPL Gujarat project, consisting of 9.9 megawatts of wind capacity and 7.2 megawatts of solar capacity. This project update was reported in the same quarter as the hybrid renewable-project impairment, but the presentation does not state whether FEPL Gujarat was the impaired asset.

How did Thermax Green Solutions' orders and backlog change?

Thermax Green Solutions reported Q2 FY27 order booking of Rs 279 crore, down 9% from Q2 FY26, while order balance increased 18% to Rs 1,557 crore. The order balance was more than five times quarterly sales of Rs 288 crore, although Thermax did not provide a schedule for conversion of the balance into revenue.

Management said the decrease in reported Green Solutions order booking reflected a change in the order-book reporting methodology. In the prior year, Thermax Onsite Energy Solutions Limited adopted a rolling 12-month forecast model for long-term contracts, which typically run for about 10 years, replacing the earlier reporting of only first-year revenue. Thermax said this methodology change increased the reported order book by Rs 197 crore last year without affecting underlying contracts, revenue recognition or financial results.

Green Solutions' Q2 FY27 order booking was predominantly domestic, comprising Rs 276 crore of domestic orders and Rs 3 crore of exports, or 1% of the total. Revenue included Rs 282 crore from domestic business and Rs 6 crore from exports, with exports accounting for 2%. At YTD Sep FY 2026-27, the segment reported Rs 1,557 crore of domestic order balance and no export order balance.

Conclusion

Thermax Green Solutions increased Q2 FY27 sales to Rs 288 crore and reported execution milestones in CBG, biomass steam and hybrid renewable power. However, a Rs 15 crore impairment provision on a hybrid renewable-energy project contributed to a Rs 25 crore quarterly PBT loss, compared with a Rs 1 crore loss a year earlier, while the YTD Sep FY27 loss reached Rs 45 crore.

The next disclosures to watch are progress in resolving the unidentified events behind the impairment, execution of the Rs 1,557 crore order balance and delivery of the 14-tonnes-per-hour biomass boiler order. Readers should also distinguish changes in underlying Green Solutions contracts from the Rs 197 crore effect of the prior-year order-book reporting methodology change.