Thermax order backlog rises 16% on Industrial Infra gains

Thermax Ltd’s consolidated order balance rose 16% year on year to Rs 14,250 crore in Q2 FY 2026-27, led by a 26% increase in Industrial Infra backlog to Rs 7,421 crore after two major captive-power plant orders were booked during the quarter. Total quarterly order booking, however, declined 8% to Rs 3,259 crore.

What drove Thermax’s Q2 order-backlog increase?

Thermax’s order-balance increase was led by Industrial Infra, where backlog reached Rs 7,421 crore in Q2 FY 2026-27, compared with the group total of Rs 14,250 crore. Industrial Infra backlog grew 26% year on year, faster than the consolidated 16% increase, and management attributed the movement primarily to two major captive-power plant orders booked in Q2.

The higher balance did not reflect growth across every business. Industrial Infra order booking increased 5% year on year to Rs 1,523 crore, while total company booking fell 8% to Rs 3,259 crore. Industrial Products booking declined 23% to Rs 1,237 crore because major orders were deferred to Q3, according to management.

Green Solutions had an Rs 1,557 crore order balance, up 18%, although its Q2 booking fell 9% to Rs 279 crore. Thermax said comparisons for this segment reflect a reporting-method change in the previous year, when Thermax Onsite Energy Solutions Ltd adopted a rolling 12-month forecast model that increased reported order book by Rs 197 crore without changing contracts, revenue recognition or financial results.

Which captive-power and EPC projects did Thermax disclose?

Thermax disclosed an order for an over-300 tonnes-per-hour (TPH) internal recirculating circulating fluidised-bed (IR-CFB) boiler for a steel manufacturer’s captive-power plant in South India. The standby boiler can operate on 100% dolachar or Indian coal, while the scope extends from design through commissioning.

Thermax Boiler and Welding Equipment Solutions Ltd also commissioned two 65 TPH IR-CFB boilers for a chemical manufacturer’s captive-power facility in Eastern India. The boilers support cogeneration and can use either 100% imported coal or Indian coal; this commissioning was an execution milestone, separate from the two major Q2 captive-power orders cited for backlog growth.

Outside India, Thermax secured an engineering, procurement and construction (EPC) package for two 155 TPH circulating fluidised-bed combustion boilers for a cement manufacturer in Nigeria. The work includes balance of plant, buildings, coal, ash and limestone handling systems, an electrostatic precipitator, chimney, and associated mechanical, electrical and civil works.

Thermax also disclosed a balance-of-plant package for one 18 megavolt-ampere submerged arc furnace in Bhutan’s ferro-alloys industry. Mechanical, electrical, control and instrumentation, structural and civil work are included through erection and commissioning, with completion targeted within 18 months.

How did Industrial Infra compare with other Thermax segments?

Industrial Infra was Thermax’s largest booking segment in Q2 FY 2026-27, at Rs 1,523 crore, ahead of Industrial Products at Rs 1,237 crore, Green Solutions at Rs 279 crore and Chemicals at Rs 220 crore. Its Rs 7,421 crore balance was also above Industrial Products’ Rs 5,079 crore, demonstrating that the group backlog increase was concentrated in Industrial Infra.

The Q2 order book was nevertheless spread across several end markets. Metals and mining represented 32% and cement 17%, together accounting for 49%, while chemicals and food and beverages each represented 6%. The Nigeria cement project and the Bhutan ferro-alloys package align with the two largest disclosed end-market categories.

Industrial Infra’s September FY 2026-27 backlog included Rs 2,798 crore of exports, equal to 38% of its Rs 7,421 crore order balance, and Rs 4,623 crore of domestic business. In Q2, the segment booked Rs 473 crore of exports and Rs 1,050 crore domestically, making exports 31% of its Rs 1,523 crore quarterly booking.

Did the larger Industrial Infra backlog improve quarterly performance?

Yes, Industrial Infra reported Q2 FY 2026-27 sales of Rs 1,006 crore, compared with Rs 886 crore in Q2 FY 2025-26, while segment profit before interest and tax (PBIT) moved to Rs 56 crore from a Rs 1 crore loss. Its PBIT margin was 5.6%, compared with negative 0.1% a year earlier.

Management attributed the Q2 profitability improvement to higher revenue and additional PSI income, and said the prior-year quarter had been affected by overruns on one project. For YTD September FY 2026-27, however, Industrial Infra recorded a Rs 12 crore PBIT loss on sales of Rs 1,818 crore, compared with Rs 89 crore PBIT on Rs 1,705 crore sales a year earlier.

At the consolidated level, operating revenue rose 11% to Rs 2,756 crore in Q2 FY 2026-27, primarily on backlog execution in Industrial Products and Industrial Infra. Profit before tax declined 3% to Rs 169 crore and profit after tax declined 5% to Rs 113 crore; Thermax cited product mix and input costs in Industrial Products and a Rs 15 crore impairment provision on a Green Solutions hybrid renewable-energy project.

What should readers watch in the next quarter?

Readers should watch whether Industrial Infra converts its Rs 7,421 crore order balance into revenue while sustaining the Rs 56 crore Q2 PBIT outcome. Its Rs 12 crore YTD September PBIT loss shows that the second-quarter improvement had not offset the first-quarter result.

They should also watch the Q3 outcome for Industrial Products orders that management said had been deferred from Q2. Those orders could affect total booking after the company reported Rs 3,259 crore in Q2 FY 2026-27, below Rs 3,551 crore in Q2 FY 2025-26.

Conclusion

Thermax’s Rs 14,250 crore Q2 FY 2026-27 order balance was 16% higher year on year, but the expansion was led by Industrial Infra rather than broad-based order growth. Industrial Infra backlog rose 26% to Rs 7,421 crore after two major captive-power orders, while Industrial Products and Green Solutions reported lower quarterly booking.

The next disclosed items to watch are management’s indicated Q3 timing for deferred Industrial Products orders and the 18-month completion target for the Bhutan furnace balance-of-plant package. Industrial Infra’s YTD September PBIT loss of Rs 12 crore and the Rs 15 crore Green Solutions impairment provision also leave project execution and cost performance unresolved.