Thermax profit falls as quarterly income rises to Rs 2,837.66 crore

Thermax Limited reported consolidated total income of Rs 2,837.66 crore for the quarter ended September 30, 2026, up 11% from Rs 2,559.31 crore a year earlier, while net profit fell 5% to Rs 113.11 crore from Rs 119.40 crore as total expenses increased faster than income.

Why did Thermax’s quarterly profit fall despite higher income?

Thermax’s consolidated net profit declined because total expenses rose by Rs 283.29 crore year on year, exceeding the Rs 278.35 crore increase in total income in the quarter ended September 30, 2026. Total expenses reached Rs 2,668.80 crore, compared with Rs 2,385.51 crore in the quarter ended September 30, 2025, while total income increased to Rs 2,837.66 crore from Rs 2,559.31 crore.

The movement reduced consolidated profit before tax to Rs 168.86 crore from Rs 173.67 crore a year earlier. Tax expense was Rs 55.75 crore in the latest quarter, compared with Rs 54.27 crore in the September 2025 quarter, resulting in net profit of Rs 113.11 crore. The supplied financial-results tables do not separately quantify product-mix effects, input-cost movements or a renewable-project impairment for the September 2026 quarter.

How did Thermax perform against the preceding quarter?

Thermax’s September-quarter earnings improved from the quarter ended June 30, 2026, when consolidated net profit was Rs 21.79 crore. Total income rose to Rs 2,837.66 crore from Rs 2,370.92 crore in the June quarter, while profit before tax increased to Rs 168.86 crore from Rs 42.14 crore. The September quarter therefore supplied Rs 113.11 crore of the Rs 134.90 crore net profit reported for the first half.

Expenses increased by Rs 340.02 crore sequentially, to Rs 2,668.80 crore from Rs 2,328.78 crore. However, income increased by Rs 466.74 crore over the same comparison, which was larger than the expense increase. Tax expense also increased to Rs 55.75 crore from Rs 20.35 crore. Total comprehensive income was Rs 98.43 crore in the September quarter, against Rs 50.83 crore in June, as other comprehensive income was negative Rs 14.68 crore in the latest quarter.

What do Thermax’s first-half results show?

Thermax’s consolidated total income for the half year ended September 30, 2026 rose to Rs 5,208.58 crore from Rs 4,782.47 crore in the corresponding 2025 period, while net profit declined to Rs 134.90 crore from Rs 270.85 crore. The income increase for the half year was Rs 426.11 crore, whereas total expenses increased by Rs 600.56 crore to Rs 4,997.58 crore.

Profit before tax was Rs 211.00 crore for April to September 2026, compared with Rs 385.14 crore a year earlier. Tax expense fell to Rs 76.10 crore from Rs 114.29 crore, but this did not offset the Rs 174.14 crore decline in profit before tax. Total comprehensive income was Rs 149.26 crore, down from Rs 274.86 crore in the prior-year half.

The half-year comparison also reflects the low June-quarter profit before tax of Rs 42.14 crore and net profit of Rs 21.79 crore. In the corresponding six months of 2025, Thermax reported Rs 270.85 crore of net profit, against Rs 134.90 crore in 2026. The September-quarter recovery therefore improved the period’s result sequentially without returning first-half earnings to the previous year’s level.

How did Thermax’s standalone results differ from consolidated results?

Thermax reported standalone net profit of Rs 262.50 crore for the quarter ended September 30, 2026, up from Rs 225.92 crore a year earlier, unlike the decline in consolidated net profit to Rs 113.11 crore. Standalone total income increased to Rs 1,937.96 crore from Rs 1,688.61 crore, and standalone profit before tax rose to Rs 293.73 crore from Rs 253.41 crore.

Standalone expenses rose to Rs 1,644.23 crore from Rs 1,435.20 crore, an increase of Rs 209.03 crore. That increase was lower than the Rs 249.35 crore rise in standalone income. The standalone results also included dividend income of Rs 173.26 crore in the September 2026 quarter, compared with Rs 141.35 crore in the September 2025 quarter.

The reporting bases cover different pools of assets and operations. Consolidated total assets were Rs 13,941.12 crore at September 30, 2026, compared with standalone total assets of Rs 7,487.23 crore. The consolidated result includes subsidiaries, trusts and the Group’s share of its associate’s result, while the standalone statement reports the parent company’s financial position.

What changed in Thermax’s balance sheet and Group structure?

Thermax’s consolidated total assets increased to Rs 13,941.12 crore at September 30, 2026 from Rs 13,282.11 crore at March 31, 2026. Capital work-in-progress rose to Rs 1,797.90 crore from Rs 1,391.83 crore, inventories increased to Rs 1,204.55 crore from Rs 909.50 crore, and contract assets rose to Rs 849.32 crore from Rs 773.08 crore.

Consolidated non-current borrowings increased to Rs 2,081.74 crore at September 30, 2026 from Rs 1,615.83 crore at March 31, 2026. Current borrowings rose to Rs 759.86 crore from Rs 672.18 crore, while cash and cash equivalents declined to Rs 602.84 crore from Rs 674.45 crore. Trade receivables fell to Rs 1,774.81 crore from Rs 2,204.84 crore and consolidated total equity declined to Rs 5,518.29 crore from Rs 5,579.19 crore.

During the half year, Thermax increased its holding in Exactspace Technologies Private Limited to 51% on a fully diluted basis after acquiring an additional 35.83% stake for Rs 30.48 crore. The acquisition completed on April 9, 2026, making Exactspace a subsidiary. The purchase consideration, including cash paid, the fair value of shares already held and a redemption liability, was Rs 70.26 crore, with Rs 27.59 crore recognised as goodwill.

Conclusion

Thermax recorded higher consolidated income in the September 2026 quarter, but expenses increased by Rs 283.29 crore year on year against a Rs 278.35 crore income increase, reducing net profit by Rs 6.29 crore. The September-quarter improvement over June did not prevent first-half net profit from falling to Rs 134.90 crore from Rs 270.85 crore in the corresponding 2025 period.

The next disclosed development to watch is the composite scheme of arrangement approved by Thermax’s board on July 30, 2026, which requires National Company Law Tribunal and other regulatory approvals. The scheme proposes moving the Bio-CNG engineering, procurement and construction business from Thermax Bioenergy Solutions Private Limited into Thermax and merging Thermax Cooling Solutions Limited into Thermax, with an appointed date of April 1, 2026.