Q1 2026 Thermax Limited Earnings Call Transcript
Key Points
- Thermax Ltd (BOM:500411) reported a jump in profitability, with a 1.2% improvement in margins, driven by reduced negative impacts compared to the previous year.
- The company has a robust inquiry pipeline, particularly in sectors like power, which was not previously a focus area.
- Thermax Ltd (BOM:500411) is seeing growth in its Industrial Products segment, with a focus on new products such as heat pumps and electric boilers.
- The international business is performing well, with exports from India yielding higher margins compared to domestic sales.
- The company is investing heavily in R&D for new technologies, including hydrogen and carbon capture, which are expected to drive future growth.
- Revenue for Q1 FY26 was flat, with a slight decline of 2%, marking a departure from the company's performance over the last three years.
- Order growth of 7% was below expectations, with delays in financial closures affecting the heating segment, particularly in the ethanol and sugar sectors.
- The Chemicals business faced challenges, with a decline in EBIT margins due to increased depreciation and costs from new capacity and international expansion.
- The US market poses a risk to the Chemicals segment due to aggressive pricing from Chinese competitors and potential tariff impacts.
- Certain large projects, such as those in the FGD sector, have been a drag on the Industrial Infra segment, although these are expected to clear by next year.
Ladies and gentlemen, good day, and welcome to the Thermax Q1 FY26 earnings conference call hosted by DAM Capital Advisors Limited. (Operator Instructions) Please note that this conference has been recorded. I now hand the conference over to Ms. Bhoomika Nair. Thank you and over to you, ma'am.
Thanks. Good morning, everyone, and a warm welcome to the Q1 FY26 earnings call of Thermax Limited. We have the management being represented by Mr. Ashish Bhandari, Managing Director and CEO; and Mr. Rajendran Arunachalam, Group CFO and Executive Vice President.
At this point, I hand over the floor to Mr. Bhandari for his initial remarks, post which we'll open up the floor for Q&A. Thank you, and over to you, sir.
Good morning, and a very warm welcome to everyone that's attending the call. It's a pleasure to be hosting you to share the results of our quarter one
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