- Thermax shares fell 17.2% intraday after Q2FY27 results missed estimates
- Net profit declined 4.6% YoY to Rs 115 crore, revenue rose 11.4% to Rs 2,756 crore
- Order inflows were below expectations at Rs 3,259 crore, driven by weak Industrial Products
Thermax share price was under pressure on Friday, November 6, with the scrip tanking as much as 17.20% to an intraday low of Rs 2,751, nearing its 52-week low of Rs 2,744.20.
The sharp fall in Thermax shares came after the company's September quarter (Q2FY27) results. The company's net profit fell year-on-year (YoY) and miss analyst estimates, while order inflows also came in below expectations.
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At 10:30 am, Thermax share was trading 16.2% lower at Rs 2,783.50 apiece. By comparison, the BSE Sensex was up 0.87% at 79,930.
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The sell-off adds to the stock's continuous underperformance. Thermax shares have fallen 10.34% over the past week and 9.87% over two weeks. The stock is down 13.73% in a month, 30.08% over three months and 31.58% over six months. It has declined 8.86% year-to-date and 14.12% over the past year.
Thermax has also underperformed the benchmark index Sensex across these periods. While the Sensex gained 7.35% over the past week, 9.31% over two weeks and 9.39% in a month, Thermax shares declined over each of these periods.
Numbers for three and six months are even more scarier. The Sensex gained 1.24% and 2.53%, respectively, while Thermax fell 30.08% and 31.58%. On a year-to-date (YTD) basis, the Sensex was down 6.17%, compared with an 8.86% decline in Thermax. Over one year, the benchmark fell 4.06%, against a 14.12% drop in the stock.
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The longer-term performance, however, presents a different scenario. Thermax shares have declined 45.18% over two years and 3.64% over three years, compared with a Sensex decline of 0.56% and a gain of 23.05%, respectively. Over five years, Thermax has gained 101.82%, outperforming the Sensex's 33.07% rise. Its 10-year return stands at 227.43%, against a 193.07% gain in the benchmark.
Thermax Q2 Results: Profit Falls 4.6%, Revenue Rises 11.4%
Thermax reported a 4.6% year-on-year (YoY) decline in net profit to Rs 115 crore in Q2FY27 against Rs 120 crore in the corresponding quarter last year.
Revenue from operations, or top line, surged 11.4% to Rs 2,756 crore from Rs 2,474 crore in Q2FY26. At the operating front, earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 13.5% to Rs 194 crore from Rs 171 crore.
Susequently, EBITDA margin improved 10 basis points to 7% from 6.9% a year ago.
Despite growth in revenue and operating earnings, the decline in net profit and the weaker-than-expected order inflows weighed on the company's quarterly performance.
JM Financial On Thermax
Domestic brokerage JM Financial said Thermax's Q2FY27 performance remained subdued, with profit after tax (PAT) missing its estimates and consensus expectations by 21% and 26%, respectively. The brokerage noted that order inflows stood at Rs 3,259 crore, below its estimate of Rs 3,720 crore. The shortfall was driven by the Industrial Products segment, which came as a negative surprise.
Revenue was in line with JM Financial's estimates and consensus. EBITDA beat the brokerage's estimate by 11%, largely due to an impairment reversal of Rs 17.75 crore during the quarter.
EBITDA margin came in at 7%, slightly above JM Financial's estimate of 6.5%. However, after adjusting for the one-off impairment reversal, the margin worked out to around 6.4%, broadly in line with the brokerage's estimate but below the consensus expectation of 8%.
PAT stood at Rs 114 crore, missing JM Financial's estimates and consensus by 21% and 26%, respectively. The brokerage attributed the shortfall largely to weak performance in the Industrial Products, Chemicals and Green Solutions segments.
The brokerage said it was awaiting management commentary on the weak performance of the Industrial Products segment. The company's investor call was scheduled for 11 am today, November 6. Till then, JM Financial has maintained its 'Sell' rating on Thermax with a sum-of-the-parts (SotP)-based target price of Rs 3,435.
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