Thermax Limited. (THERMAX) AI Stock Analysis

• Market Cap: ₹343.40B
• Dividend Yield: 0.48%
• Average Volume (3M): 4.51K
• Price to Earnings (P/E): 54.7
• Beta (1Y): 0.77
• Revenue Growth: 3.37%
• EPS Growth: -19.95%
• Country: IN
• Employees: 5,225
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 10.60
• Shares Outstanding: 119,156,300
• 10 Day Avg. Volume: 3,560
• 30 Day Avg. Volume: 4,507
• PEG Ratio: -37.24
• Price to Book (P/B): 8.10
• Price to Sales (P/S): 3.85
• P/FCF Ratio: 285.46
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹3,001.00 ▼(-2.24% Downside)

Thermax Limited's overall stock score is driven by its strong financial performance, characterized by robust revenue growth and stable profitability. However, the stock faces challenges in technical analysis, with bearish momentum and a high P/E ratio indicating potential overvaluation. The lack of earnings call data and corporate events further limits the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Thermax's expanding market reach and successful product adoption, strengthening its market position.

Cash Generation

Improved free cash flow reflects better cash management and operational efficiency, enhancing financial flexibility and investment capacity.

Profitability

Sustained profitability through effective cost management supports long-term financial health and competitive advantage.

Negative Factors

Debt Management

Rising liabilities could strain financial resources, necessitating improved debt management to maintain financial stability.

Operational Efficiency

Fluctuating EBITDA margins indicate potential inefficiencies, which may impact profitability and require operational improvements.

Free Cash Flow Volatility

Volatile free cash flow growth can complicate financial planning and investment, highlighting a need for stable cash management practices.

Thermax Limited. Business Overview & Revenue Model

Company Description

Thermax Limited provides energy, environment, and chemical solutions in India and internationally. It operates through three segments: Energy, Environment, and Chemical. The company offers vapor absorption and hybrid chillers, heat pumps, chiller-heaters, and heat transformers; evaporative condensers, closed loop cooling towers, adiabatic and dry coolers, radiators, and air cooled heat exchangers and condensers; EPC solutions, such as cogen or trigen power plants, air cooled condensers, bio-CNG plants, waste heat recovery power plants, and refinery process units; and renewable energy solutions. It also provides oil and gas fired boilers, heat recovery boilers and systems, high pressure boilers, lean gas and solid fuel fired boilers, hot water generators, waste to energy boilers, fired heaters and process furnaces, waste heat recovery units, thermal oil heaters and vaporizers, hot water and air generators, energy plants, and packaged and modular units, as well as specialized services. In addition, the company offers air pollution control and water and waste solutions; and chemicals, such as ion exchange resins, water and fuel treatment chemicals, oil field chemicals, and construction chemicals. It serves agriculture, automobiles and auto components, aviation, biotechnology, cement, commercial/construction, engineering and capital goods, as well as food and beverages, fast moving consumer goods, healthcare, hospitality, infrastructure, IT and datacenter, manufacturing, medical devices, metals, oil and gas, paper and pulp, pharmaceuticals, power, renewable energy, rubber, telecommunications, textiles, and wood industries. The company was founded in 1966 and is headquartered in Pune, India. Thermax Limited is a subsidiary of RDA Holdings Private Limited.

How the Company Makes Money

Thermax generates revenue through multiple streams, primarily by selling equipment and providing services related to energy and environmental management. Key revenue streams include the sale of thermal and cooling solutions, industrial boilers, and air pollution control equipment. Additionally, the company earns revenue through service contracts for operation and maintenance of its products and systems. Significant partnerships with various industrial sectors, along with a growing focus on renewable energy and sustainability initiatives, contribute to its earnings. Thermax also explores international markets, which provides further growth opportunities and diversification of revenue sources.

Thermax Limited. Financial Statement Overview

Summary

Thermax Limited exhibits strong financial health with robust revenue growth and stable profitability. The company has a solid asset base and effective cost management. However, there are areas for improvement, such as operational efficiency and debt management.

Income Statement

Thermax Limited has demonstrated a strong growth trajectory with an impressive revenue growth rate over the last few years. The company has maintained healthy gross profit margins, showcasing effective cost management. Additionally, the net profit margin has been stable, indicating consistent profitability. However, the EBITDA margin has shown slight fluctuations, which could be an area of focus for improving operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a reasonable debt-to-equity ratio, indicating moderate leverage. The company has a good equity ratio, showing a strong asset base funded by equity. Return on Equity (ROE) is healthy, indicating efficient use of shareholder funds. However, the increase in total liabilities over the years suggests a need for careful debt management.

Cash Flow

Thermax Limited has shown a remarkable turnaround in free cash flow, moving from negative to positive in recent periods, which is a positive indicator of cash generation. The operating cash flow to net income ratio suggests efficient cash conversion from profits. However, the free cash flow growth rate has been volatile, suggesting potential fluctuations in capital expenditures and cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	102.99B	103.89B	92.37B	80.34B	60.96B	47.37B
Gross Profit	46.54B	45.75B	37.89B	30.87B	8.24B	19.86B
EBITDA	12.25B	11.47B	10.80B	7.46B	5.37B	4.02B
Net Income	6.71B	6.34B	6.45B	4.50B	3.12B	2.07B
Balance Sheet
Total Assets	0.00	120.38B	101.53B	88.39B	74.61B	65.07B
Cash, Cash Equivalents and Short-Term Investments	27.20B	27.22B	23.38B	25.24B	17.19B	20.43B
Total Debt	0.00	17.18B	12.96B	8.31B	3.79B	3.39B
Total Liabilities	-49.43B	70.95B	57.13B	49.68B	39.69B	32.55B
Stockholders Equity	49.43B	49.37B	44.40B	38.68B	34.92B	32.51B
Cash Flow
Free Cash Flow	0.00	1.40B	-5.97B	-1.90B	2.41B	6.86B
Operating Cash Flow	0.00	10.43B	2.47B	4.60B	3.25B	7.69B
Investing Cash Flow	0.00	-12.41B	-5.09B	-6.80B	-4.22B	-6.36B
Financing Cash Flow	0.00	1.24B	2.85B	3.49B	-205.80M	772.40M

Thermax Limited. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3069.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:THERMAX, the sentiment is Negative. The current price of 3069.65 is above the 20-day moving average (MA) of 2952.61, above the 50-day MA of 2926.31, and below the 200-day MA of 3255.12, indicating a bearish trend. The MACD of -32.07 indicates Positive momentum. The RSI at 44.36 is Neutral, neither overbought nor oversold. The STOCH value of 30.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:THERMAX.

Thermax Limited. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HONAUT	74 Outperform	₹296.13B	57.38	―	0.32%	13.28%	-2.20%
CUMMINSIND	72 Outperform	₹1.14T	49.23	―	1.14%	20.23%	18.69%
ABB	69 Neutral	₹1.18T	67.00	―	0.83%	12.35%	4.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
THERMAX	58 Neutral	₹343.40B	54.68	―	0.48%	3.37%	-19.95%
BHEL	58 Neutral	₹915.26B	112.41	―	0.18%	13.30%	137.07%
INOXWIND	52 Neutral	₹186.65B	33.86	―	―	71.99%	119.37%

Thermax Limited. Corporate Events

Thermax Subsidiary Reverses OTEPL Acquisition After Closing Conditions Lapse

Thermax Limited has announced that its wholly owned subsidiary, First Energy Private Limited, will unwind its proposed acquisition of Onix-Two Enersol Private Limited after the transaction’s closing conditions were not fulfilled within the agreed and extended timelines. Under a new Share Sale and Purchase Agreement signed on 3 January 2026, First Energy will sell the shares of OTEPL back to the original seller and its nominee for Rs 100,000 within 30 days, with the buyers not belonging to Thermax’s promoter group and the deal not categorized as a related-party transaction. OTEPL contributed negligible revenue of Rs 122,000 in FY 2024-25, indicating that the reversal is unlikely to have a material financial impact on Thermax, but it marks a strategic pullback from a previously announced acquisition and underscores execution challenges in closing smaller clean energy-related deals within the group.

Thermax Limited Secures Legal Victory as High Court Overturns Arbitral Award

Thermax Limited announced that the Bombay High Court has set aside an Arbitral Award against the company, which was initially passed by an Arbitral Tribunal in a dispute with a customer. This judgement potentially alleviates financial and operational uncertainties for Thermax, reinforcing its legal standing and possibly impacting its market position positively.

Thermax Limited Expands Investment in Chemical Solutions Subsidiary

Thermax Limited has announced an additional equity investment in its wholly-owned subsidiary, Thermax Chemical Solutions Private Limited (TCSPL), which will further invest in Fortmax Chemicals India Private Limited, a subsidiary of TCSPL. This strategic move involves the allocation of 2,35,00,000 equity shares on a rights basis, potentially strengthening Thermax’s position in the chemical solutions market and enhancing its operational capabilities.