Rs 14,250 Crore Order Book: Data Centre Cooling and Green Energy Stock Crashes 18% After Q2 Results; What Went Wrong?

Thermax is expanding across industrial energy, water, pollution-control and renewable solutions, supported by a growing project pipeline and lifecycle-service opportunity. The company reported an 11 per cent YoY increase in consolidated revenue for the quarter ended September 30, 2026, but profitability declined as input costs, product mix and a renewable project impairment weighed on earnings.

Consolidated revenue from operations rose to Rs 2,755.87 crore from Rs 2,473.90 crore a year earlier and Rs 2,302.73 crore in the preceding June quarter. Profit before Tax declined 3 per cent YoY to Rs 168.86 crore, while profit after tax (PAT) fell 5 per cent to Rs 113 crore. The PAT margin narrowed to about 4.1 per cent from 4.8 per cent in the corresponding quarter last year.

The company said profitability in Industrial Products was affected by product mix and higher input costs. Green Solutions also recorded a Rs 15 crore impairment provision for a hybrid renewable energy project after events identified during the quarter. For the first half of FY 2026-27, consolidated revenue rose to Rs 5,058.60 crore, but PAT nearly halved to Rs 134.90 crore from Rs 270 crore a year earlier.

Industrial Products remained the largest revenue contributor, with quarterly revenue rising to Rs 1,303.65 crore from Rs 1,181.44 crore. Industrial Infra revenue increased to Rs 1,006.23 crore, while Chemicals revenue rose to Rs 225.53 crore. The consolidated order balance stood at Rs 14,250 crore as of September 30, 2026, up 16 per cent YoY, although quarterly Order Booking declined 8 per cent to Rs 3,259 crore.

Thermax also strengthened its digital and high-purity water capabilities during the period. It completed the acquisition of the remaining 49 per cent stake in TSA Process Equipments for Rs 42 crore. The company also acquired control of ExactSpace Technologies, an artificial intelligence-led industrial asset-performance platform, through an additional 35.83 per cent stake purchase. ExactSpace became a subsidiary from April 9, 2026, making quarterly and half-year comparisons less directly comparable.

As of 11:15 am on November 6, 2026, Thermax shares were trading at Rs 2,730.00. That was 17.83 per cent below the previous close of Rs 3,322.50. The stock was about 47 per cent below its 52-week high of Rs 5,164.05. Its one-year gain of 1.44 per cent was ahead of the BSE 500's 2.16 per cent decline over the same period. Thermax had a market capitalisation of Rs 39,589.70 crore.

What This Means for Investors

The quarter reinforces Thermax’s ability to grow across Industrial Products, Industrial Infra and Chemicals, while the Rs 14,250 crore order balance provides a sizeable execution base. Yet revenue growth has not translated into higher earnings. The consolidated PAT margin narrowed to about 4.1 per cent from 4.8 per cent a year earlier as Industrial Products absorbed input-cost and mix pressure, while Green Solutions recorded an impairment. The latter underlines the project and asset risk embedded in the renewable portfolio.

For investors, the signal is mixed rather than decisively negative. The sequential recovery in profit before tax from the June quarter and the expanding backlog support the case for improved conversion through the second half. But quarterly order booking declined 8 per cent YoY, and first-half PAT halved, leaving the investment case dependent on margin repair and disciplined delivery. The key test will be whether cost pressure eases and Green Solutions avoids further project-related charges.

Disclaimer: The article is for informational purposes only and not investment advice.