Thermax Q2 FY27 Results (NSE: THERMAX)
Signal: Growth reaccelerated
The read
The quarter marks a sequential earnings recovery but not a clean trajectory inflection: consolidated revenue grew 11.4% YoY to ₹2,755.87 Cr, yet EBITDA margin was about 7.0%, down 34bps YoY, and PAT fell 16.0% to ₹113.31 Cr; the parent’s ₹262.50 Cr PAT was largely supported by ₹226.33 Cr of other income while group borrowings rose to ₹2,841.60 Cr.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,755.87 Cr | +11.4% | +19.7% |
| Net profit | ₹113.31 Cr | -16.0% | |
| EPS | ₹10.17 | -18.0% | |
| EBIT margin | 7.0% |
P&L walk
Revenue increased to ₹2,755.87 Cr, +11.4% YoY and +19.7% QoQ, while gross margin fell to 45.8% from 47.1% and EBITDA margin was about 7.0%; PAT declined to ₹113.31 Cr, -16.0% YoY, despite a sharp sequential recovery from ₹21.79 Cr.
Segments
No segment results table is included in the supplied filing text; the material divergence is basis-level, with standalone PAT of ₹262.50 Cr versus consolidated PAT of ₹113.31 Cr, indicating subsidiaries dragged group earnings by ₹149.19 Cr.
Key positives
- Consolidated revenue reached ₹2,755.87 Cr, +11.4% YoY and +19.7% QoQ, showing a strong sequential recovery from ₹2,302.73 Cr.
- Standalone revenue grew 13.3% YoY to ₹1,711.63 Cr and standalone PAT grew 16.2% to ₹262.50 Cr.
- CWIP increased to ₹1,797.90 Cr from ₹1,391.83 Cr, indicating continued investment in the asset base.
- Consolidated EBITDA recovered to approximately ₹194.14 Cr from ₹68.62 Cr QoQ, lifting the derived margin to about 7.0% from 3.0%.
Key concerns
- Consolidated PAT declined 16.0% YoY to ₹113.31 Cr despite 11.4% revenue growth, while EBITDA margin declined 34bps to about 7.0%.
- Gross margin compressed 128bps YoY to 45.8% as raw-material, purchase and inventory consumption rose to 54.2% of revenue from 52.9%.
- Standalone PAT of ₹262.50 Cr included ₹226.33 Cr of other income, making the parent result less representative of recurring operating earnings.
- Consolidated net debt increased by ₹625.20 Cr to ₹2,238.76 Cr versus March 31, 2026, while H1 operating cash flow fell to ₹182.88 Cr from ₹270.62 Cr.
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