20-Jan-2026Today's Market Indicators


Crisil Ratings reaffirms ratings of Thermax at 'AA+/A1+' with 'stable' outlook
(12:08, 20 Jan 2026)

Crisil Ratings said that the ratings continue to reflect the healthy position of Thermax in the energy, chemicals and environment space, diversified product portfolio and geographical presence (which lends stability to its revenue streams), and robust financial risk profile.

These strengths are partially offset by exposure to cyclicality in end-user industries and modest operating profitability owing to intense competition.

The rating agency further said that healthy double-digit growth in revenue and an improvement in operating profitability to over 12% on a sustained basis; increased diversity of revenue in terms of products, customers, and segments; and the sustenance of a strong financial risk profile, with a total outside liabilities to tangible networth (TOLTNW) ratio of less than 1 time and superior liquidity, could lead to a positive rating action.

However, a decline in market share that also impacts business performance; operating profitability falling below 6% on a sustained basis; major debt-funded capex or acquisitions leading to a significant moderation in credit metrics; and a material reduction of liquid surplus due to high dividend payouts, share buy-backs, or capital reductions could lead to a downward rating action.

Thermax provides packaged and custom-made large boilers, cogeneration equipment, air pollution-control equipment, water- and waste-treatment plants and chemicals, and absorption chillers. Thermax has traditionally focused on turnkey projects for large boiler systems, water- and effluent-treatment plants, air-pollution-control systems and co-generation plants. It also pioneered the vapour-absorption cooling plants segment in India.

During the first half of fiscal 2026, revenues came in at Rs.4,631 crore and profit after tax stood at Rs.271 crore. Against this, the company had recorded revenues of Rs.4,796 crore and net profits of Rs.307 crore during the corresponding year-ago period.

The scrip shed 0.79% to currently trade at Rs 2921.05 on the BSE.

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