Thermax (TMX IN) – Q2FY27 Result Update – Weak Q2, watchful on margins and order bookings – Upgrade to ‘BUY’
Published on 07 Nov 2026
We revised our EPS estimates by -11.7%/-14.2% for FY28E/FY29E factoring in margins drag amid slower execution ramp up in Industrial Products and Infra, lingering input pressure as well as continued losses in Green Solutions business. Thermax (TMX IN) reported another weak performance following Q1, with Q2 revenue growing 10.6% YoY and EBITDA margin declining 4bps YoY to 6.4%, impacted by commodity cost inflation across Industrial Products and Chemicals, delayed international dispatches and project impairment in Green Solutions. Industrial Products margins remained under pressure from higher steel, copper and crude derivative costs, as well as delayed shipments. Given the sharp stock correction, we upgrade our rating from “Reduce” to “Buy”, and roll forward to Sep’28E; valuing the core business (ex-Green Solutions) at 36x Sep'28E PE (earlier 40x Mar'28E), arriving at a revised SoTP-derived TP of INR 3,402 (INR3,952 earlier).
