Thermax share price sinks 16%, most since April 2025; here's why | Target prices
Thermax's investor call is scheduled at 11 am IST today. The management had earlier highlighted some pressure on execution in international markets, specifically the Middle East in the wake of the ongoing conflict.
- Jul 31, 2026,
- Updated Jul 31, 2026 10:12 AM IST
Thermax Ltd shares sank 16 per cent in Friday's trade, the most since April 2025, after the company reported what analysts said was "an extremely weak set of results in Q1", with a miss seen across revenue, Ebitda, and profit due to cost overruns. Analysts said Ebitda margin stood at 3 per cent against 10.4 per cent YoY, thanks to an increase in the estimated cost to complete its legacy project in the industrial infra segment, impacting profitability.
Even after adjusting these costs, industrial infra margins stood at 2.5 per cent against MOFSL's estimate of 4 per cent and last year's 7.9 per cent. The domestic brokerage noted that Q1 results also included Rs 56 crore income under the Package Scheme of Incentives for a subsidiary in the Industrial Infra segment.
"These factors, along with lower exports in industrial products segment during 1QFY27, led to PAT declining 86 per cent YoY to Rs 21.80 crore vs our estimate of Rs 110 crore," the brokerage said while suggesting 'Sell' on the stock.
Following the development, Thermax stock fell 16.08 per cent to hit a low of Rs 3,566.90 on BSE. This was the biggest drop for the stock in 15 months, as per Bloomberg. JM Financial suggested a 'Sell' on the stock with a target of Rs 3,075. UBS maintained its Buy with a target of Rs 5,600.
"As a result, PAT missed JMFe/consensus by 86 per cent/81 per cent. Order inflow at Rs 2,809 crore (up 2 per cent YoY) fails to excite as this was despite securing an Rs 400 crore-plus data centre order from the US, not to mention it hugely undershot JMFe of Rs 4,100 crore," JM Financial said.
Thermax's investor call is scheduled at 11 am IST today. The management had earlier highlighted some pressure on execution in international markets, specifically the Middle East in the wake of the ongoing West Asia conflict.
"Commentary on order executions – mainly in the Industrial Infrastructure segment – will be a key variable to watch out for. Commentary on commodity price pressure and outlook on order inflow shall also be important," JM Financial said.
Thermax Ltd shares sank 16 per cent in Friday's trade, the most since April 2025, after the company reported what analysts said was "an extremely weak set of results in Q1", with a miss seen across revenue, Ebitda, and profit due to cost overruns. Analysts said Ebitda margin stood at 3 per cent against 10.4 per cent YoY, thanks to an increase in the estimated cost to complete its legacy project in the industrial infra segment, impacting profitability.
Even after adjusting these costs, industrial infra margins stood at 2.5 per cent against MOFSL's estimate of 4 per cent and last year's 7.9 per cent. The domestic brokerage noted that Q1 results also included Rs 56 crore income under the Package Scheme of Incentives for a subsidiary in the Industrial Infra segment.
"These factors, along with lower exports in industrial products segment during 1QFY27, led to PAT declining 86 per cent YoY to Rs 21.80 crore vs our estimate of Rs 110 crore," the brokerage said while suggesting 'Sell' on the stock.
Following the development, Thermax stock fell 16.08 per cent to hit a low of Rs 3,566.90 on BSE. This was the biggest drop for the stock in 15 months, as per Bloomberg. JM Financial suggested a 'Sell' on the stock with a target of Rs 3,075. UBS maintained its Buy with a target of Rs 5,600.
"As a result, PAT missed JMFe/consensus by 86 per cent/81 per cent. Order inflow at Rs 2,809 crore (up 2 per cent YoY) fails to excite as this was despite securing an Rs 400 crore-plus data centre order from the US, not to mention it hugely undershot JMFe of Rs 4,100 crore," JM Financial said.
Thermax's investor call is scheduled at 11 am IST today. The management had earlier highlighted some pressure on execution in international markets, specifically the Middle East in the wake of the ongoing West Asia conflict.
"Commentary on order executions – mainly in the Industrial Infrastructure segment – will be a key variable to watch out for. Commentary on commodity price pressure and outlook on order inflow shall also be important," JM Financial said.