Thermax Q4 FY25: Profit up 8%, order book ₹10,693 cr

What changed for Thermax in recent quarters

Thermax has reported a mixed operating picture across the last few quarters, with profit growth supported by costs and order momentum, even as execution-related issues weighed on revenue in some periods. In the quarter ended June 30, the company delivered a better-than-expected profit, helped by robust order growth and lower raw material and component costs. At the same time, management commentary flagged that Q3 revenue and profitability were weaker than expected due to customer delays and prolonged rains that affected execution. Looking ahead, management said it expects a strong Q4 with double-digit sequential revenue growth, supported by an improved backlog in both size and quality. The company also pointed to a rising international contribution, with overseas orders forming 50% of the business in one reported quarter.

June quarter: revenue declined, profit beat estimates

For the quarter ended June 30, Thermax reported consolidated net profit of ₹152 crore, up 32% year-on-year. This exceeded analysts’ expectation of ₹134 crore (as per LSEG-compiled data). Total revenue for the quarter declined 1.6% year-on-year to ₹2,150 crore, with the company attributing the softer top line partly to delayed customer approvals and execution challenges. The result illustrates how profitability can improve even in a weak revenue quarter when the cost structure and input prices move in the company’s favour.

Lower expenses and raw material costs lifted profitability

Thermax’s total expenses fell 4.9% to ₹2,004 crore in the June quarter. A key contributor was an 11.4% decline in the cost of raw materials consumed, alongside lower raw material and component costs cited as a profitability tailwind. The cost-led improvement mattered because the company’s near-term revenue was affected by project timing and approvals, which can shift recognition from one quarter to the next. In this context, the margin benefit from costs helped Thermax deliver a profit outcome that was stronger than the market had pencilled in.

Orders and backlog: management stays bullish

Thermax’s order book and order intake remain central to the investment narrative in a capital goods business. In the June quarter, bookings rose 7% to ₹2,748 crore, signalling steady demand despite execution headwinds. Separately, management said it remains bullish on order inflows, especially for Q4. International orders were highlighted as a key driver, making up 50% of the business in one quarter cited in the notes. Management also said the overall backlog has improved in size and quality, framing it as a setup for a better next year.

FY25 Q4: profit up 8% YoY, revenue up 11.6% YoY

For the fourth quarter of FY25, Thermax reported net profit of ₹205.7 crore, up 8.1% from ₹190.3 crore in the corresponding period last year. Operating revenues grew 11.6% year-on-year to ₹3,085 crore, attributed to robust execution across business segments. EBITDA increased 9.7% year-on-year to ₹300 crore from ₹273.2 crore, while EBITDA margin eased to 9.7% from 9.9%. The company attributed the margin pressure primarily to higher technology intervention expenses of about ₹66 crore for bio-CNG projects under the industrial infrastructure segment.

Order book at March 31, 2025 and new order intake trend

As of March 31, 2025, Thermax’s order book stood at ₹10,693 crore, up 6% year-on-year. However, new orders booked in Q4 FY25 were ₹2,119 crore, down 8% from ₹2,309 crore in Q4 FY24. Within the industrial infrastructure business, order intake fell 6% to ₹1,526 crore, and its order backlog declined 3% to ₹6,026 crore from ₹6,213 crore a year ago. Despite the softer new order number in the quarter, management communicated a long-term optimistic outlook on demand, particularly in green infrastructure and clean energy solutions.

Segment signals: industrial products grew, infrastructure revenue increased

In a separate update covering the March quarter, Thermax reported that sales of industrial products such as electric boilers, heat pumps and wastewater treatment plants increased 23% to ₹1,207 crore. Revenue from its industrial infrastructure business, which includes large boilers, power plants and refinery process units, increased 17%. The same report also noted a 22% rise in raw material costs, which pushed expenses up 19% to ₹2,568 crore for that quarter. These numbers underline a key operating reality for the company: segment demand can be healthy, but input-cost cycles and execution timing can materially influence quarterly margins.

Chemicals business: profitability pressure, modest improvement expected

Management commentary indicated that profitability in the chemicals segment contracted due to under-recovery of fixed costs and continued impact from Chinese competition. The company expects some improvement in Q4 and into next year, based on the same management notes. The chemicals discussion is important because it frames near-term margin variability as partly structural (competition) and partly operational (fixed-cost absorption), rather than purely demand-driven.

Data centre cooling: Thermax flags early wins and capacity plans

Thermax said it has made significant inroads into the data centre cooling market, winning one major order each in the US and India. Management described a large addressable opportunity, especially in North America where it believes its technology is particularly well suited. While it stayed guarded on product specifics, it highlighted strong margins in this area and said it would consider increasing capacity if traction continues. The commentary positions data centre cooling as a potential growth avenue alongside the company’s established energy and environment solutions portfolio.

Stock move, peers and sector context

Thermax shares closed 2.7% higher on a Thursday ahead of results in one of the updates provided, though the stock was down 2.5% year-to-date at that point. The broader capital goods space has also seen profit growth at peers, with Larsen & Toubro reporting a 30% rise in consolidated profit after tax in a comparable news flow. Another report on Thermax’s March quarter noted the stock closed 2.2% higher ahead of results, indicating investor focus on earnings and order momentum.

Key numbers at a glance

Market impact and what to watch next

The updates point to three near-term drivers investors will likely track: execution stability, order inflows, and segment margins. Management has explicitly linked the weaker Q3 outcome to customer delays and prolonged rains, and it expects a strong Q4 with double-digit sequential revenue growth. Order commentary remains constructive, including the note that international orders formed 50% of business in one quarter and that backlog quality has improved.

At the segment level, chemicals remains a pressure point due to fixed-cost under-recovery and Chinese competition, with management signalling a potential improvement trend into the next year. The data centre cooling wins in the US and India add a new storyline, particularly because management referenced strong margins and a possible capacity increase if demand builds.

Conclusion

Thermax’s recent results show profit resilience supported by lower costs and a steady order book, even when revenue is affected by approvals and execution challenges. With an order book of ₹10,693 crore as of March 31, 2025, management’s stated focus is on stronger Q4 execution, improved order inflows, and a recovery in chemicals profitability. The next key markers will be whether the expected double-digit sequential revenue growth in Q4 materialises and whether momentum in international orders and data centre cooling converts into sustained, repeatable inflows.