The energy and environment solutions company posted a consolidated net profit of ₹25 crore, down from ₹152 crore a year earlier.
Revenue from operations, however, rose 6.7% to ₹2,303 crore from ₹2,158 crore.
The sharp divergence between revenue and profit indicates that higher costs significantly eroded profitability during the quarter.
Margins come under pressure
Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 69.5% to ₹68.6 crore from ₹225 crore a year ago.
The EBITDA margin narrowed sharply to 3% from 10.4% in the corresponding quarter last year.
An EBITDA margin of 3% means Thermax retained just ₹3 in operating profit for every ₹100 of revenue, compared with more than ₹10 a year ago, highlighting the severity of the margin compression.
US data centre order boosts pipeline
During the quarter, Thermax secured an order worth more than ₹400 crore to supply boiler pressure parts for a data centre project in the United States.
The order reflects the growing demand for energy infrastructure supporting large-scale data centres, a sector witnessing rapid investment globally due to the expansion of AI and cloud computing.
Green Solutions order book gets a boost
The company said order bookings in its Green Solutions segment increased due to stronger order inflows at Thermax Onsite Energy Solutions Ltd (TOESL) as well as a change in the subsidiary’s order book reporting methodology.
TOESL has shifted to a rolling 12-month forecast model, replacing its earlier practice of recognising only the first year’s revenue from long-term contracts.
As a result, the reported order book increased by ₹139 crore, or 5%.
Thermax clarified that this is an accounting and reporting change rather than a jump in new business, with no impact on contracts, revenue recognition or financial performance.
Group restructuring underway
Separately, Thermax’s board approved a scheme of arrangement to merge its wholly owned subsidiary, Thermax Cooling Solutions, with the parent company.
The company said the merger is expected to reduce administrative overheads, improve financial ratios and generate annual cost savings.
Since the subsidiary is wholly owned, the merger will not change the shareholding pattern or result in the issuance of new shares.
The board also approved the demerger of the EPC business of Thermax Bioenergy Solutions into Thermax.
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The EPC business, focused on Bio-CNG technology, engineering, procurement and construction, generated ₹239.35 crore in FY26, accounting for 3.67% of Thermax’s revenue.
According to the company, the restructuring will allow the remaining operations and maintenance business to focus on its core operations while improving efficiency across both businesses.
AI acquisition completed
Thermax also completed the acquisition of an additional 35.83% stake in ExactSpace Technologies for ₹30.48 crore in April, taking its ownership to 51% and making the AI-driven industrial solutions company a subsidiary.
Under the agreement, Thermax will acquire the remaining 49% stake after three years, subject to certain conditions.
The acquisition strengthens Thermax’s presence in industrial AI and digital solutions, areas that are becoming increasingly important for improving plant efficiency and predictive maintenance.
The company added that the June-quarter results include ExactSpace’s financials from the acquisition date and are therefore not directly comparable with the corresponding quarter last year.
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