Thermax Limited. (THERMAX) AI Stock Analysis

• Market Cap: ₹385.84B
• Dividend Yield: 0.48%
• Average Volume (3M): 4.51K
• Price to Earnings (P/E): 41.7
• Beta (1Y): 0.63
• Revenue Growth: 3.37%
• EPS Growth: -19.95%
• Country: IN
• Employees: 5,225
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 14.25
• 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): 55.73
• Revenue Forecast (FY): ₹106.01B

• Rating: 58 Neutral
• Price Target: ₹3,368.00 ▲(9.72% Upside)
• Action: Reiterated Date: 11/22/25
• Date: Action: Reiterated 11/22/25

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

Recurring aftermarket & consumables

Thermax's business includes recurring aftermarket services, spares, O&M contracts and consumable chemicals tied to installed equipment. This installed-base driven revenue provides durable, higher-margin cash flows and reduces cyclicality versus one-time capital sales, supporting long-term revenue stability.

Sustained revenue growth and margins

The company has demonstrated a multi-year revenue growth trajectory with stable gross and net margins, indicating effective pricing and cost management across engineered equipment and EPC work. Consistent margins underpin operating cash generation and long-term profitability resilience amid project cycles.

Improved cash generation

A turnaround to positive free cash flow and strong operating-cash-to-net-income conversion enhances financial flexibility. Durable cash generation supports reinvestment in service networks, working capital for projects, and potential deleveraging, improving resilience across economic cycles.

Negative Factors

Rising total liabilities

The balance sheet shows moderate leverage but an increasing trend in total liabilities. Persistently rising liabilities can constrain financial flexibility, increase interest and refinancing exposure, and limit the company's ability to fund capex or absorb project overruns without higher financing costs.

Volatile free cash flow growth

Although free cash flow is now positive, its historical volatility complicates planning for capex, debt paydown and shareholder returns. Irregular FCF can reflect lumpy project collections and capex timing, increasing execution and forecasting risk for funding long-term strategic investments.

EBITDA margin fluctuations

Reported EBITDA margin variability suggests sensitivity to project mix, execution efficiency and input costs. For an EPC and engineered-equipment business, margin swings can persist if project controls and pricing discipline are inconsistent, pressuring long-term margin sustainability and cash conversion.

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 primarily makes money by selling engineered equipment, executing turnkey projects, and providing recurring products and services that support customers’ energy, utility, and environmental needs. Key revenue streams generally include: (1) Sale of capital equipment and systems—such as boilers, heaters, and other energy and utility plant equipment—where revenue is earned from manufacturing and supplying standard or engineered-to-order products. (2) EPC/turnkey project execution—where Thermax earns project revenues for designing, engineering, procuring, constructing, commissioning, and handing over complete plants or systems (e.g., energy plants, air pollution control installations, and water/wastewater treatment facilities); profitability depends on project mix, execution efficiency, and contract terms. (3) Aftermarket and services—where the company earns ongoing revenue from operations and maintenance, annual maintenance contracts, spares, retrofits/efficiency upgrades, and service interventions for installed equipment, providing a more recurring component versus one-time capital sales. (4) Consumables/chemicals—where it sells chemicals and treatment products used in industrial processes and utilities (e.g., water treatment and other process/utility chemicals), typically generating repeat purchases tied to customer operating volumes. Additional factors that can contribute to earnings include the size and utilization of the installed base (driving spares and service demand), regulatory requirements around emissions and effluent (supporting demand for environmental solutions), and energy-cost/efficiency initiatives (supporting upgrades and new installations). Specific breakdowns by segment, customer concentration, or named partnerships are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	101.61B	103.89B	92.37B	80.34B	60.96B	47.37B
Gross Profit	46.47B	45.75B	37.89B	30.87B	8.24B	19.86B
EBITDA	11.45B	11.47B	10.80B	7.46B	5.37B	4.02B
Net Income	5.94B	6.34B	6.45B	4.50B	3.12B	2.07B
Balance Sheet
Total Assets	121.88B	120.38B	101.53B	88.39B	74.61B	65.07B
Cash, Cash Equivalents and Short-Term Investments	25.93B	27.22B	23.38B	25.24B	17.19B	20.43B
Total Debt	18.11B	17.18B	12.96B	8.31B	3.79B	3.39B
Total Liabilities	71.28B	70.95B	57.13B	49.68B	39.69B	32.55B
Stockholders Equity	50.52B	49.37B	44.40B	38.68B	34.92B	32.51B
Cash Flow
Free Cash Flow	-3.33B	1.40B	-5.97B	-1.90B	2.41B	6.86B
Operating Cash Flow	633.40M	10.43B	2.47B	4.60B	3.25B	7.69B
Investing Cash Flow	1.69B	-12.41B	-5.09B	-6.80B	-4.22B	-6.36B
Financing Cash Flow	-1.62B	1.24B	2.85B	3.49B	-205.80M	772.40M

Thermax Limited. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:THERMAX, the sentiment is Positive. The current price of 3069.65 is below the 20-day moving average (MA) of 3136.48, above the 50-day MA of 3016.71, and below the 200-day MA of 3208.12, indicating a bullish trend. The MACD of 63.72 indicates Negative momentum. The RSI at 60.25 is Neutral, neither overbought nor oversold. The STOCH value of 83.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹258.83B	59.83	―	0.32%	13.28%	-2.20%
ABB	72 Outperform	₹1.34T	63.26	―	0.83%	12.35%	4.87%
CUMMINSIND	72 Outperform	₹1.27T	63.22	―	1.14%	20.23%	18.69%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
THERMAX	58 Neutral	₹385.84B	41.70	―	0.48%	3.37%	-19.95%
BHEL	58 Neutral	₹892.28B	64.16	―	0.18%	13.30%	137.07%
INOXWIND	57 Neutral	₹169.62B	45.47	―	―	71.99%	119.37%

Thermax Limited. Corporate Events

Thermax to Take Control of AI-IoT Partner Exactspace in Strategic Digital Push

Thermax Limited will raise its stake in Exactspace Technologies Private Limited, an IT firm developing artificial intelligence-based Industrial Internet of Things solutions for Thermax’s manufacturing customers, from 15.17% to 51% on a fully diluted basis, converting Exactspace from an associate into a subsidiary. The transaction, structured as a cash acquisition executed through definitive share subscription, purchase and shareholder agreements, positions Thermax to offer end-to-end asset support, including predictive maintenance, process optimization, asset efficiency improvements and analytics-driven failure analysis, with an option to acquire the remaining 49% stake after three years, signaling a strategic push into AI-enabled service offerings and digitalization for its installed base.

Thermax has classified the deal as a related-party transaction, though its promoter group has no interest in the target, and no regulatory approvals are required to close the initial 51% acquisition, which remains subject to customary conditions precedent. By integrating Exactspace’s AI and analytics capabilities into its solutions, Thermax aims to deepen its service-led revenue streams, enhance operational outcomes for customers and strengthen its competitive position as industrial clients accelerate adoption of connected, data-driven asset management platforms.

Thermax Publishes Q3 FY 2025-26 Analyst Call Transcript for Investors

Thermax Limited has notified the stock exchanges that the transcript of its Q3 FY 2025-26 analysts and investors conference call, held on February 5, 2026, has been made available on the company’s website. The disclosure, made under Regulation 30 of the SEBI Listing Regulations, enhances transparency for shareholders and market participants by providing detailed access to management’s quarterly discussions.

By publishing the call transcript online, Thermax facilitates better informed decision-making for investors who could not attend the live event. The move aligns with prevailing corporate governance practices in India’s capital markets, underscoring the company’s commitment to timely and comprehensive communication of its financial and operational performance.

Thermax posts audio recording of February 5 investor call on website

Thermax Limited has announced that the audio recording of its investor conference call held on February 5, 2026, is now available on the company’s website. The disclosure, made under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements, underscores Thermax’s ongoing efforts to maintain transparent communication with shareholders and the broader market by providing timely access to investor interactions and management commentary.

Thermax Consolidates Wind Energy Subsidiaries Through Intragroup Merger

Thermax Limited has announced that the boards of its step-down subsidiaries, Jalansar Wind Energy Private Limited and Kanakal Wind Energy Private Limited, have approved a Scheme of Amalgamation under the Companies Act, 2013, subject to shareholder, creditor and regulatory approvals. The merger of these renewable energy entities, both subsidiaries of First Energy Private Limited, aims to consolidate operations, enhance synergies and asset utilisation, and reduce overlapping legal, regulatory, and administrative costs; post-merger, shareholders of the transferor company will receive one equity share in the transferee company for every share held, with no change in Thermax’s overall shareholding pattern as the transaction remains within its unlisted subsidiary structure.

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.