Management Discussion and Analysis Report
1. Economic Overview
1.1 Global Economy
The global economy remained resilient but subdued in calendar year 2025, with the global growth at 3.4% in 2025 and projecting to 3.1% in 2026, and 3.2% in 2027, reflecting slower momentum across major economies and continued policy uncertainty.111 Inflation continued to moderate from earlier peaks, although it remained above comfort levels in several economies due to tariff actions, supply chain shifts and renewed energy price volatility.111
Global trade showed mixed trends during the year. The World Trade Organisation (WTO) noted that merchandise trade improved in 2025, supported by frontloading of imports ahead of tariff changes and strong demand for Al-related goods; however, slower growth is expected in 2026.1[21 Investment flows remained under pressure. The United Nations Conference on Trade and Development (UNCTAD) reported that global FDI (Foreign Direct Investment) declined by 11% to USD 1.5 trillion in 2024T31
Commodity markets remained an important variable. The World Bank expects global commodity prices to ease further, though risks remain from geopolitical disruptions.[4]
Labour markets remained stable, with global unemployment around 5.0% in 2024 and expected to slightly improve to 4.9% in 2026.PI
The United States remained supported by consumption and Al-led investments, while tax changes are expected to influence capital expenditure decisions.[6]
Chinas growth moderated due to weak demand and real estate stress, despite policy support.
Geopolitical risks intensified, particularly in the Middle East, contributing to volatility in energy prices and industrial input costs.171
The energy transition continued to gain momentum. The International Energy Agencys (lEAs) Renewables 2025 report projects nearly 4,600 GW of new renewable capacity between 2025 and 2030.P]
Ongoing geopolitical conflicts, sanctions, tariff measures and shifting trade policies continued to influence global markets, contributing to volatility in energy prices, commodity costs and supply chains. At the same time, rapid advances in Artificial Intelligence (Al) are reshaping business operations, driving greater automation, data-driven decision making and operational efficiency. Together, these developments are redefining how organisations allocate capital, manage risk and compete in a rapidly evolving world.
1.2 Indian Economy
India remained one of the fastest-growing major economies in FY2025-26, with real GDP growth estimated at around 7.7%, supported by strong domestic demand, sustained public capital expenditure and resilient services activity.11 Inflation moderated during the year, with CPI inflation averaging around 4.5%, enabling a stable monetary policy environment.2 Fiscal consolidation progressed, with the fiscal deficit declining to approximately 4.4% of GDP.3
Sectorally, agriculture grew at around 3.1%, while industrial growth strengthened to approximately 6.2%, supported by manufacturing and infrastructure activity. Production Linked Incentive (PLI) schemes continued to attract investments exceeding Rs. 2 lakh crore.4
The services sector remained the key growth driver, contributing over 56% to Gross Value Added and growing at around 9%, supported by strong performance in technology and financial services.
Macroeconomic fundamentals remained strong, with foreign exchange reserves at around USD 680-700 billion, and improved financial sector stability.[5]
Indias growth is projected at around 6.6% in FY2026-27, supported by infrastructure investment, manufacturing expansion and digitalisation.61
However, external risks remain elevated, with ongoing conflicts in Eastern Europe and the Middle East, alongside evolving tariff regimes and trade restrictions, contributing to volatility in energy prices, commodity costs and global trade flows. As a net importer of crude oil, India remains exposed to these developments, while currency market volatility could continue to exert pressure on the Indian rupee and influence inflation and input cost dynamics.
1.3 Indias Climate Commitments
Indias latest Nationally Determined Contribution (2031 — 2035), approved by the Union Cabinet in March 2026, strengthens the countrys climate ambition. Under this updated commitment, India aims to reduce the emissions intensity of GDP by 47% by 2035 from 2005 levels, achieve 60% cumulative electric power installed capacity from nonfossil fuel based resources by 2035, and create a carbon sink of 3.5-4.0 billion tonnes of C02 equivalent through forest and tree cover.11!
Indias clean energy transition has already gained significant momentum. As of March 31, 2026, the countrys non-fossil fuel capacity stood at 283.46 GW, accounting for more than half of the total installed power capacity, while renewable energy capacity reached 274.68 GW, making India the worlds third-largest renewable energy market. These developments reflect the countrys continued focus on balancing economic growth with energy security and climate action.!21
This transition is being supported by a more formal policy architecture for decarbonisation. Under the Energy Conservation (Amendment) Act, 2022, the Carbon Credit Trading Scheme (CCTS) has established the framework for Indias carbon market, with compliance and offset mechanisms now in place. By January 2026, 490 units across seven sectors had become obligated entities under CCTS, while greenhouse gas emission intensity targets had been notified for the first set of sectors.[3] Together with ongoing renewable energy expansion, this strengthens Indias climate policy framework and deepens the opportunity set across clean energy, carbon markets and industrial decarbonisation.
2. Industry Overview
Clean Energy and Environment Sectoral Review
Indias environmental technology market continues to expand, with the International Trade Administration estimating the market at approximately $23 billion and projecting a 7.5% CAGR over 2023-2028, while the air pollution control systems market was estimated at $10.5 billion in 2024 and is projected to reach $18.16 billion by 2030, reflecting strong demand across emissions control, water and wastewater treatment, and waste management.[4] The Ministry of Environment, Forest and Climate Change, increased the allocation for its Control of Pollution scheme to Rs. 1,300 crore in FY2025-26, up from Rs. 853.9 crore, reflecting continued public investment in pollution abatement and environmental management.15!
On the clean power front, India overtook Germany in 2024 to become the worlds third-largest generator of electricity from wind and solar. In 2025, wind and solar together met 14% of Indias electricity demand, while solar alone met 9.4%, showing the pace of the countrys transition and the scale of the market opportunity ahead.I?!
Indias progress is also reflected in global transition indices.
In the World Economic Forums Energy Transition Index 2025, India ranked 71st out of 118 countries with a score of 53.3, while in Climatescope 2025 it retained the 1st position among emerging markets with a power score of 2.80.[7] [8] Together, these developments reinforce Indias momentum in clean energy investment, policy support and environmental solutions.
3. Company Overview
We are a Rs. 10,694 crore engineering company, driving the global shift to sustainable energy and environment solutions. Our clean air, clean energy, clean water, and chemical offerings serve industries worldwide. With a focus on decarbonisation and resource conservation, we deliver end- to-end support across operations, maintenance, retrofitting, upgrades, and audits. Our expanded digital portfolio delivers AI/ML-driven asset management, supporting our vision for sustainable growth and technological advancement.
3.1 Thermax Order Booking by Industry
During the year, sectors such as power, metals & mining, and refinery & petrochem were among the key contributors to our order book across our energy, environment and chemicals portfolio.
Industries |
FY 2025-26 | FY 2024-25 |
Power |
20% | 10% |
Metals & Mining |
13% | 22% |
Refinery & Petrochem |
12% | 4% |
Food & Beverages |
9% | 9% |
Engineering |
8% | 6% |
Chemicals |
7% | 9% |
Cement |
6% | 4% |
Sugar/Distillery |
6% | 8% |
Fertiliser & Agro |
4% | 6% |
Bio-CNG Paper & Pulp |
3% 3% |
1% 5% |
Drugs & Pharmaceuticals |
2% | 4% |
Textiles |
1% | 2% |
Data Centres |
1% | - |
Others |
5% | 10% |
4. Business Segments
The Management Discussion and Analysis (MDA) includes key subsidiaries that have a material impact on segmental performance. For detailed information on each subsidiary, please refer to AOC-1 on page 342.
4.1 Industrial Products
Industries today face three critical challenges: addressing climate change, securing access to clean energy and managing water scarcity. At Thermax, we respond through our solutions in clean air, clean energy and clean water, supported by our digital platform, Thermax EDGE Live?. Together, these enable industries to adopt more sustainable practices and accelerate their transition towards a cleaner, more responsible future.
Clean Air Solutions: Reducing Emissions for a Cleaner Environment
Overview
Thermax provides air pollution control (APC) systems for both particulate and gaseous exhaust.
We offer broad-based, single-source expertise and flange-to-flange solutions in all areas of environmental protection from products and systems for air pollution control to retrofit and rebuild services. We undertake turnkey environmental projects from concept to commissioning for diverse industry sectors.
Business Highlights
• This year marked a strategic milestone with the successful launch of our amine scrubbing technology for the sugar sector, enabling high- efficiency biogas purification. Using an advanced aqueous amine solvent process, the systems consistently achieve over 97% methane purity with near-zero methane slip, maximising resource recovery from press mud and distillery spent wash while delivering reliable performance in demanding industrial environments.
Growth Drivers
• Policy Support: Stricter emission norms and the Make in India initiative are driving manufacturing growth and expanding opportunities.
• Infrastructure Boom: Infrastructure-led demand for cement and steel continues to boost domestic volumes.
• International Demand: Expanding opportunities across cement, steel, and energy sectors, with a focus on regions like Europe, Turkey, and the Middle East.
• Sectoral Uptick: Rising demand for ESP solutions from biomass and sugar industries across Latin America and Southeast Asia.
Focus Areas
• Service Business: Strengthening lifecycle support and driving growth through aftermarket services and customer-centric solutions.
• International Business: Expanding global footprint with targeted growth in Southeast Asia, Latin America, and other emerging markets.
• Gaseous Scrubbing Solutions: Scaling offerings for solar, semiconductor, and waste-to-energy applications to address evolving environmental compliance needs.
• Thermax NeO - Gas Purification: Advancing clean air solutions through innovative gas purification technologies under the Thermax NeO portfolio.
Risks
• Cost Volatility: Business performance remains exposed to geopolitical uncertainty, impacting supply chains, commodity prices, freight costs, and currency movements, with potential pressure on margins.
• Market Competitiveness: Emerging customer segments are evolving rapidly, while growing unorganised competition is intensifying pricing pressure and increasing the risk of market share erosion.
• Shift Towards Electrification: Growing adoption of electric heating solutions may reduce demand for air pollution control equipment linked to conventional fuel- fired systems.
Risk Mitigation Plan
• To mitigate cost volatility, the business monitors commodity and freight trends, leverages strategic procurement, and adopts dynamic pricing to protect margins.
• To counter rising competition, the business focuses on enhancing value through quality, reliability, and brand strength, while improving efficiencies and expanding value-added offerings to sustain market share.
• The business is expanding into adjacent areas such as gas purification and upgradation to diversify revenue streams and reduce dependence on conventional air pollution control markets.
Enhancing Emission Control in the Cement Industry
In cement manufacturing, the electrostatic precipitator (ESP) performance is critical to ensure uninterrupted operations while meeting stringent emission norms. A leading cement plant in India faced operational challenges with its clinker cooler ESP, including frequent spark occurrences, sub-optimal voltage and current levels, and emissions significantly exceeded permissible limits.
To address these issues, Thermax deployed its advanced Opticor? controller solution, replacing the existing TR controllers with a modular, plug-and-play system. The solution enabled improved power delivery to the ESP fields, enhanced process stability, and provided capabilities for remote monitoring and control. The installation was completed efficiently with minimal downtime.
Following commissioning, the plant achieved immediate and measurable improvements. Particulate emissions were reduced by 25%, bringing them within regulatory limits, while spark occurrences were significantly minimised. The enhanced power distribution improved dust collection efficiency, resulting in overall optimisation of ESP performance without the need for costly mechanical upgrades.
This project highlights Thermaxs ability to deliver innovative, cost-effective solutions that enhance operational efficiency while ensuring compliance with environmental standards.
Overview
Clean Energy Solutions: Accelerating the Transition to Sustainable Energy
This business vertical delivers a comprehensive range of process heating solutions, including packaged boilers, fired heaters, and turnkey systems using steam, thermic fluid, hot water, and hotair. Designed for energy efficiency and fuel flexibility, the portfolio supports multiple energy sources such as biomass, electricity, and conventional solid, liquid, and gaseous fuels.
The clean energy portfolio also includes energy-efficient, low-carbon technologies such as absorption chillers, high- temperature heat pumps, and hybrid cooling systems that leverage waste heat and electrification.
These products and solutions are coupled with a range of services, along with smart, Al-enabled control solutions, enabling intelligent, data-driven optimisation across utilities.
Together, these solutions enable customers to improve efficiency, reduce energy intensity, lower operating costs, and transition towards more sustainable operations.
Business Highlights
• Process Heat Solutions: During the year, the Heating business was rebranded to Process Heat Solutions, reflecting a broader, more integrated portfolio that extends beyond equipment to include application-led solutions, digital offerings, and value-added services. This repositioning aligns with evolving customer needs and the growing demand for end-to-end process heating solutions.
• Cooling and Heating Solutions: The Cooling and Heating Solutions business got a breakthrough in the data centre segment through hybrid cooling towers and vapour absorption chillers globally.
Growth Drivers
• Energy Transition & Fuel Shift: Rising adoption of biomass and agro-based fuels, driven by global energy security concerns and decarbonisation goals.
• Data Centre Cooling Transformation: Shift to hybrid cooling architectures for grid-powered data centres and absorption chillers for facilities with cogeneration to reduce energy intensity and improve power usage effectiveness.
• Digital & Al Integration: Growing adoption of Al and digital tools is creating opportunities for smarter, more efficient utility solutions.
• Sectoral Manufacturing Growth: Expansion in pharmaceuticals, F&B, chemicals, and textiles is fuelling demand for tailored process solutions.
• Innovation & Service-Led Differentiation: Continuous product innovation and strong aftersales support position the business as a long-term value partner.
Focus Areas
• Digitalisation and Smart Solutions: Expand smart boilers and digital solutions to improve efficiency, reliability, and asset performance through real-time monitoring and predictive insights.
• Geographic Expansion: Enter new markets to diversify the portfolio and drive growth beyond existing geographies.
• Segment-Specific Offerings: Customise solutions for high-growth sectors like food, pharma, and chemicals to enhance relevance and impact.
• Sustainability Leadership: Strengthen leadership in biomass and electric heating and focus on energy and water-efficient solutions via SustainX.
• Ecosystem Collaboration: Build brand credibility and business pipeline through strategic partnerships with industry influences, OEMs, consultants, and industry bodies.
• New Product Development: Drive growth through innovative products tailored to emerging customer needs and market opportunities.
• Total System Quality: Enhance product, process, and service quality to improve reliability, customer satisfaction, and operational excellence.
• Service Business: Strengthening lifecycle support and driving growth through aftermarket services and customer-centric solutions.
Risks
• Transition to Alternative Energies: Growing adoption of renewable and low-carbon energy solutions may impact demand for conventional energy systems and alter market dynamics.
• Competitive Intensity: Increasing competition from global and regional players may exert pressure on market share, pricing, and margins.
• Fuel Price Fluctuations: Impacting customer investment decisions in heating and energy solutions.
• Cost Volatility: Business performance remains exposed to geopolitical uncertainty, impacting supply chains, commodity prices, freight costs, and currency movements, with potential pressure on margins.
• Local Price Competition: Emerging low-cost players in price-sensitive markets in the Process Eleat Solutions business.
Risk Mitigation Plan
• To manage input cost volatility, the business focuses on improved sourcing, supplier diversification, and tighter contracting, while strengthening supply chain planning to minimise delays.
• The business drives innovation-led diversification through advanced cooling and energy solutions, with a focus on value over price, building customer trust through proven performance, and managing global exposure through a balanced market approach.
• To address evolving customer needs and emerging market trends, the business is focusing on expanding its product portfolio through innovation.
Advancing Sustainable Energy in the Palm Oil Industry
A leading palm oil manufacturer in southern Thailand faced challenges in fully utilising biomass residues from crude palm oil production. While palm fibre and palm kernel shells (PKS) were used as fuel, empty fruit bunches (EFB) remained underutilised due to high fouling and corrosion potential, resulting in lost energy value and dependence on limited fuel sources.
Thermax addressed this challenge with a first-of-its-kind turnkey solution centred on a 30 TPH boiler operating on a fuel mix of 70% EFB and 30% palm fibre. Equipped with advanced grate technology, the system delivers superheated steam for process needs and captive power generation. The solution also includes an electrostatic precipitator to maintain emissions within regulatory limits and an integrated water treatment system to improve operational efficiency and equipment life. The project was executed as a complete EPC solution covering design, engineering, and commissioning.
The facility now benefits from greater fuel flexibility, converting underutilised waste biomass into a reliable energy source. This has improved cost efficiency, reduced dependence on conventional fuels, and created a more sustainable operating model, reinforcing Thermaxs capability to deliver integrated clean energy solutions.
Clean Water Solutions: Enabling Responsible Water Use and Reuse
Overview
Thermaxs Water and Waste Solutions (WWS) business supports industrial, commercial, and residential establishments with products and services for water purification, reuse, recycling, and treatment of sewage and effluents. It also offers seawater desalination solutions that reduce dependence on freshwater resources and support water conservation efforts. In addition, the business provides operations and maintenance services to ensure sustained efficiency across the lifecycle of our solutions.
The acquisition of TSA Process Equipments strengthens the WWS portfolio in high-purity water systems, enabling the Company to deliver comprehensive solutions for purified water, water for injection, sterile equipment, and pure steam, catering to industries such as pharmaceuticals, biopharma, personal care, and food and beverages.
Business Highlights
• Launched QuickCLR, an advanced treatment platform engineered for a wide range of industrial effluents, from easily biodegradable streams to complex, hard to treat wastewater. Its flexible, modular architecture allows customisation across industries while optimising process performance. Each configuration is designed to adapt to varying influent characteristics and meet evolving operational needs.
• WWS introduced Track BX, an online multi parameter water quality analyser designed for effluent treatment plants, sewage treatment plants, process water systems, and compliance monitoring. Featuring advanced sensors and real time measurement capabilities, it delivers accurate insights into critical water parameters. Integrated lloT connectivity enables continuous monitoring and remote data access.
• Urthh is an initiative by Thermax, driven by the need to address evolving challenges of the urban sector, such as stringent regulatory requirements, rising water costs, increasing demand for clear and odour- free water, and ageing infrastructure. With over 35 operational sites, Urthh has successfully evolved from concept and design to full-scale implementation.
This journey has enabled the team to collaborate with leading brands across India. Today, Urthh has established a strong presence in key cities of India, including Mumbai, Pune, Bengaluru, Gurugram, and Hyderabad, reflecting its expanding footprint and growing impact.
Growth Drivers
• Modular Solutions: Rising demand for plug-and- play water and wastewater treatment systems.
• Water Reuse Mandates: Government push for industrial water recycling and reuse.
• Regulatory Pressure: Stricter norms driving adoption of efficient wastewater treatment technologies.
• Niche Growth Segments: Increased demand in ethanol and high-purity water applications.
Focus Areas
• Modular & Plug-and-Play Solutions: Promoting compact, ready-to-deploy systems for pre- and post-water treatment needs.
• Complex Effluent Treatment: Delivering specialised solutions for challenging effluents, particularly from pharma and chemical sectors.
• Plant Upgrades: Focusing on modernisation and retrofit projects to enhance plant efficiency and performance.
• Digital Enablement: Expanding digitalisation and remote monitoring capabilities for improved system control and service.
• End-to-End Water Solutions: Broadening the portfolio with new technologies to position Thermax as a comprehensive water management provider.
• Service Business: Strengthening lifecycle support and driving growth through aftermarket services and customer-centric solutions.
Risks
• Geopolitical Uncertainty: May lead to reduced capital investments, project delays in certain markets, and increases in material and supply chain costs.
• Rapid Technological Shifts: Fast-paced innovation could outpace current offerings, requiring constant product upgrades.
• Rising Local Competition: Price-sensitive local players may impact market share and margins, especially in emerging markets.
Risk Mitigation Plan
• The business focuses on geographical diversification, flexible contracting, and local partnerships to navigate external uncertainties and sustain growth.
• To collaborate with technology leaders and research institutions, while developing modular, upgrade-ready solutions to address rapid technological shifts.
Innovative Demineralised Water Solution for a Leading Chemical Manufacturer
A leading manufacturer in the alkalies and allied chemicals sector in Kurnool, Andhra Pradesh, India, required a reliable solution to treat clarified water and produce high-quality demineralised water for its operations.
Conventional RO (reverse osmosis)-based DM (demineralisation) systems posed challenges in balancing equipment costs with the desired water quality, while regeneration issues in the second mixed bed made it difficult to consistently achieve the required throughput.
To address these challenges, Thermax designed and implemented an innovative treatment scheme comprising a multi-media filter (MMF), ultrafiltration (UF), RO, and two mixed-bed (MB) polishing units, offering an efficient alternative to a conventional DM plant.
The solution successfully achieved the desired water quality and quantity as per design parameters while minimising carbon footprint and chemical consumption through efficient process management. Marking a significant milestone, the project became the first successful installation of a thoroughfare mixed- bed system for DM water production. The plant successfully completed performance guarantee tests and was handed over for operations and maintenance, delivering a cost-effective and sustainable water treatment solution for the customer.
Industrial Products Overseas Subsidiaries Danstoker Group, Herning, Denmark
Business Performance
In FY2025-26, the subsidiary registered a degrowth in the revenue of (12.9)%, as compared to the 5.1% growth in FY2024-25. Order booking grew by 9.2%, compared to a decline of (7.1)% in the previous year. While Danstoker A/Ss revenue was affected by the disruption and uncertainty associated with Europes transition away from Russian gas, order booking grew on the back of increasing investments in environment friendly energy production and the shift away from fossil fuels.
Key Solutions Provided
• Solid fuel-fired (biofuel) boilers
• Electric boilers
• Waste heat recovery boilers
• Oil/gas-fired boilers
Sustainable Growth Plan
• Continued growth is likely in the electric boiler segment as wind energy becomes more integrated into the European grid.
• Ongoing emphasis on C02 emission reduction is driving demand.
• The biomass and waste biomass markets are also expected to see a resurgence despite stabilised gas prices.
• To capitalise on Europes increasing demand for biomass and electric boilers.
Geographical Footprint
• Denmark
• Poland
• Nordic countries (Norway, Sweden and Finland)
• Baltic countries
• Western Europe (France, Germany, the Netherlands, and Belgium)
Key Industries
• Automotive
• Breweries
• Crematoriums
• Dairy
• District Heating
• Food and Beverages
• Pharmaceuticals
• Wood
Order Highlights
• Strong demand for our low-voltage electric boilers continued in FY2025-26, with 17 units sold.
PT Thermax International, Indonesia (PT Til), Jakarta, Indonesia
Business Performance
In FY 2025-26, the subsidiary recorded a revenue decline of (19%), compared to a growth of 22.7% in FY 2024-25.
The lower revenue was primarily attributable to a reduced opening order backlog, reflecting subdued market conditions in Indonesia during the first half of the year, particularly across key industrial sectors. As a result, project execution and revenue recognition were impacted during the reporting period.
Market conditions improved significantly in the second half of the year, supported by a recovery in manufacturing activity and renewed investment sentiment. This led to a positive movement in order inflows, with order booking growing by 17.7%, compared to 14.8% in the previous year.
Key Solutions Provided
• Process heating solutions including steam boilers, hot water and hot air generators, thermic fluid heaters, and steam accessories.
• Value-added services such as steam audits, retrofitting, and revamping of customer-owned equipment to enhance performance and extend asset life.
• Chemical solutions, including water treatment chemicals, boiler and cooling water chemicals, fuel additives, and speciality chemicals to improve operational efficiency and equipment reliability.
Sustainable Growth Plan
• Optimising local manufacturing operations to enhance capacity utilisation.
• Expanding market reach through competitively priced offerings and aggressive sales & marketing strategies.
• Strengthening the services portfolio by expanding offerings in retrofitting and revamping of boilers, heaters, and air pollution control systems.
• Maintaining a strong focus on customer service and retention.
• Building a robust network of channel partners and dealers to improve market visibility and accessibility.
• Establishing a chemical blending unit as part of expansion efforts.
Geographical Footprint
• Indonesia
• Southeast Asia
Key Industries
• Agriculture and Allied
• Chemicals
• Food and Beverages
• Palm Oil
• Paper and Packaging
• Petrochemicals
• Pharmaceuticals
• Rubber
• Textiles
• Tobacco
Order Highlights
• Executed two orders for reciprocating grate solid fuel Thermosyphons for a leading palm oil manufacturer in Medan, enabling them to shift from natural gas to palm kernel shells.
• Commissioned two boilers for a prestigious F&B major, utilising process waste from their in-house manufacturing process. Previously, this waste was incinerated using a gas-fired incinerator, but now we are generating free steam to the extent of 20% of their total steam demand and reducing their carbon footprint.
• 2x30 TPFI reciprocating grate boilers were commissioned for a large wood processing company at Maluku, one of the very remote islands of Indonesia, for firing their process waste (bark, veneer, wood chips, sander dust), enabling them to reduce their operating cost.
CASE STUDY
Driving Sustainable Manufacturing Through Biomass-Based Energy Transformation
A leading Indonesian food and beverage company that produces snacks, biscuits, beverages, and instant foods, operates a large manufacturing facility in West Java where steam is essential to key processes. The plants reliance on fossil-fuel-fired boilers led to high energy costs, increased emissions, and challenges with waste disposal. To address this, Thermax implemented a high-efficiency biomass-fired boiler system that enables the use of organic production waste as fuel, supported by energy recovery and flue gas treatment systems.
This transition delivered a 40% reduction in fuel costs, 45% lower carbon emissions, and a 50% reduction in waste to landfill, while improving operational efficiency and supporting the customers sustainability and circular economy goals.
Thermax Europe, Bletchley, United Kingdom
Business Performance
In FY2025-26, the subsidiary recorded a revenue growth of 53.7%, compared to the decline of (31.7)% in FY2024-25, while order booking declined by (55.1%) against 14.1% increase in the previous year. Projects in Europe are either stalled or cancelled due to the unavailability of gas, which generally drives on-site power generation and, in turn, our chiller business. This is owing to the geopolitical instability in the region. Flowever, the business delivered higher profits due to good spare orders.
Key Solutions Provided
• Absorption chillers and heat pumps
Sustainable Growth Plan
• In response to market volatility and rising energy costs in Europe, the focus has shifted towards heat pumps and absorption refrigeration systems.
Geographical Footprint
• Eastern and Western Europe
Key Industries
• District Fleating
• Commercial
• Data Centres
• Other Industrial Establishments
Order Highlights
• Secured a breakthrough heat pump order, our first in Lithuania. As the country transitions its energy mix from coal to biomass, it is creating strong potential for our heat pump solutions.
• Supplied and executed three heat pumps in Flamburg, Germany, powered by MSW (municipal solid waste) incineration and a biomass boiler for district heating.
Business Performance
In FY2025-26, the subsidiary reported revenue growth of 118.4% versus decline by (16.5%) in FY2024-25, while order booking increased by 258.2% compared to 30.6% in the previous year. The substantial increase in order booking is due to orders received in the data centre segment.
Key Solutions Provided
• Sale and service of cooling and heating equipment based on absorption technology.
Sustainable Growth Plan
• Focused on advancing decarbonisation initiatives across the Americas (North, South, Central, and the Caribbeans).
• Leveraging cutting-edge absorption technology integrated with on-site power generation, solar energy solutions, district heating and cooling networks.
• Emphasis on delivering energy-efficient solutions for both process-integrated and discrete industrial heating and cooling applications.
Geographical Footprint
• Americas (North, South, Central and the Caribbeans)
Key Industries
• Chemicals
• Commercial Establishments
• Data Centres and Information Technology
• Food and Beverages
• FHotels, Resorts and Flospitals
• Oil & Gas
• Pharmaceuticals
• Universities, Schools and Colleges
Order Highlights
• Secured the first breakthrough order for a large data centre.
CASE STUDY
Powering the Future of Al with Sustainable Cooling
As global demand for Al infrastructure accelerates, a next-generation data centre in Vineland, New Jersey, is setting new benchmarks in efficiency and sustainability. Designed to support high-density computing workloads, the facility integrates advanced energy and cooling solutions to optimise performance while minimising environmental impact.
At the heart of this infrastructure is an innovative combined heat and power (CHP) system, where natural gas-based engines generate electricity while simultaneously producing high-temperature waste heat. Instead of being lost, this heat is effectively harnessed to drive high-efficiency absorption chillers.
Thermaxs lithium bromide absorption chillers play a critical role in this ecosystem, converting recovered thermal energy into cooling for server operations.
With a total installed capacity of -46,000 TR across 23 units, the system significantly reduces dependence on conventional electricity-intensive cooling methods, enabling a highly efficient power usage effectiveness.
The solution also supports advanced cooling technologies such as direct liquid cooling and rear- door heat exchangers, tailored for next-generation Al hardware. By combining energy recovery, high- performance cooling, and environmentally responsible design, the facility demonstrates how data centres can scale sustainably in the era of Al.
This project underscores Thermaxs capability to deliver innovative, energy-efficient cooling solutions for complex, high-demand applications, reinforcing its role as a trusted partner in global energy transition.
Domestic (Indian) Subsidiary
TSA Process Equipments, Mumbai, Maharashtra, India
Overview
TSA Process Equipments Pvt. Ltd. (TSA) strengthens Thermaxs capabilities in high-purity water systems and complements its existing water and wastewater solutions portfolio. In April 2024, Thermax entered into a Share Purchase and Share Subscription Agreement to acquire 100% of TSAs equity share capital in a phased manner, acquiring an initial 51% stake on April 19, 2024.
Business Performance
TSA delivered a strong performance in FY2025-26, supported by continued demand for high-purity water systems and successful integration with Thermaxs global network. Revenue grew by 29.3%, while order booking increased by 21.3%, reflecting healthy market traction and synergy-led opportunities through Thermax channel associates.
Key Solutions Provided
• Pure water generation systems
• Pure steam generation systems
• Water for injection plants
• Multi-column distillation units
• Custom process vessels
• Steam sterilisers
• Utility water storage and distribution systems
• Vapour compressors
Sustainable Growth Plan
• Explore opportunities in autoclave-based sterilisation systems.
• Expand the channel network via Thermax Channel Associates (TCAs).
• Enhance global reach leveraging the Thermax International Business Group (IBG).
• Deepen collaboration with Industrial Products business of Thermax for integrated offerings.
Geographical Footprint
• Global
Key Industries
• Biotechnology
• FMCG
• Food & Beverages
• Semiconductors
• Pharmaceuticals
Order Highlights
• Achieved a key technological milestone with the successful implementation of a first-of-its-kind cold water for injection (WFI) generation and distribution system. The solution enables the production and distribution of pharmaceutical-grade water at ambient temperatures while meeting stringent regulatory and quality requirements, setting a new benchmark for innovation, compliance, and operational efficiency in pharmaceutical utility systems.
Performance of Industrial Products Segment in FY 2025-26
In FY2025-26, the Industrial Products segment accounted for 45% of the Groups gross operating revenue, compared to 41% in FY2024-25. Net operating revenue increased to Rs. 4,890 crore from Rs. 4,250 crore in the previous year, driven by an improved product mix, new product introductions and higher contribution from services across key businesses.
Segment profit stood at Rs. 540 crore, compared to Rs. 529 crore in FY2024-25. Order booking increased to Rs. 5,984 crore from Rs. 4,951 crore in the previous year. The Cooling business benefited from growing demand from data centre projects, while the Air Pollution Control business was supported by a healthy international order book. The growth in Water and Waste Solutions and Process Pleat Solutions businesses was driven by new product introductions, a favourable product mix and continued focus on services.
4.2 Industrial Infra
Our Industrial Infra business supports industries in meeting their energy needs and encompasses our Projects and Energy Solutions (P&ES), Thermax Bioenergy Solutions Private Limited (TBSPL) and Thermax Babcock & Wilcox Energy Solutions (TBWES) businesses.
Energy Solutions
Projects and Energy Solutions (P&ES)
Overview
Projects & Energy Solutions (P&ES), the flagship EPC arm of Thermax, delivers end-to-end turnkey solutions across diverse industries. Established in 1995, the business brings deep expertise in executing power projects, including captive, cogeneration, and waste heat recovery plants, as well as waste-to-energy facilities, petrochemical and refinery units, flue gas desulphurisation (FGD) systems, and biofuel plants.
Thermaxs commitment extends well beyond project delivery, with digitally enabled O&M services for power, utility, FGD, and ethanol plants ensuring high reliability, and sustained performance.
Business Highlights
• The Medium Power Plant (MPP) business expanded its offerings in the refinery and petrochemical segment through front-end engineering design (FEED) and engineering, procurement and construction (EPC) offerings, including ethylene purification systems. It also strengthened its portfolio by advancing into emerging areas such as alternative fuels and carbon management solutions, in line with evolving energy transition opportunities.
• P&ES O&M business also entered the large power plant segment (>100 MW), further extending its capabilities to manage complex, large-scale energy systems for industrial customers.
Growth Drivers
• Expansion in Core Industries: Capacity additions in refineries and steel are unlocking new project opportunities and infrastructure demand.
• Policy Push for Sustainability: Strong government focus on biofuels and net-zero goals is accelerating the shift towards clean energy and green technologies.
• Outsourcing Momentum: Increasing reliance on outsourced expertise is creating demand for integrated, end-to-end solutions and service partnerships.
• Digital Acceleration: The rise of digitalisation is fuelling the need for smart, connected, and data- driven operations across industries.
Focus Areas
• Global Expansion & Green Energy: Expanding EPC offerings to international markets while exploring opportunities in unconventional fuels and renewable energy.
• Modularisation: Positioning modularisation as a key business focus to drive faster project execution, enhanced quality, and improved cost efficiency through increased off-site fabrication.
• Investment in Digital Services: Strengthening value-added service offerings through investments in lloT solutions, remote assistance technologies, and automation to enhance customer experience and operational efficiency.
• Project Management and Execution Excellence:
Driving execution excellence through robust project management, digital enablement, and seamless cross-functional coordination to ensure on-time delivery, superior customer experience, and successful execution of large-scale, complex projects.
Risks
• Shift to Alternative Energy Sources:
Accelerating adoption of renewable and alternative energy technologies may reduce demand for certain conventional energy solutions and alter customer investment priorities.
• Large Project Risk: Execution complexity and risks increase with the scale and scope of large projects, impacting timelines and outcomes.
• Safety Risk: Workplace incidents at manufacturing facilities and project sites may impact people, operations and reputation.
Risk Mitigation Plan
• The business implements robust project management frameworks across verticals to effectively monitor and mitigate risks throughout the project lifecycle.
• The focus is on enhancing export project bookings to diversify the order pipeline across geographies.
• The focus is on strengthening controls from the proposal stage through execution to ensure timely interventions, supported by digitally enabled systems for integrated planning, knowledge management, quality monitoring, issue resolution, and seamless vendor collaboration and procurement.
• The Company implements continuous safety training, behaviour-based safety practices, and embeds safety considerations into engineering and operational processes.
CASE STUDY
Harnessing Waste Heat for Sustainable Power Generation
A leading manufacturer of sponge iron and steel products in Odisha, India, sought to enhance energy efficiency by utilising process waste heat to generate green power for captive consumption. The challenge was to design a solution that could effectively recover available heat while ensuring reliable and cost-efficient power generation.
Thermax delivered a comprehensive turnkey solution following a detailed assessment of the sites waste heat potential. The project comprised two 11.5 TPH waste heat recovery boilers, a 5.3 MW exhaust turbine, along with a water treatment plant, bag filters, and the complete balance of plant, including electrical and instrumentation systems.
Successfully commissioned in FY2025-26, the plant is now operating efficiently, generating approximately 33 million units of green electricity annually. This translates into an estimated reduction of -28,000 tonnes of C02 emissions each year.
The project not only strengthens the customers sustainability goals but also reinforces Thermaxs capability to deliver integrated, energy-efficient solutions with high operational reliability.
Industrial Infra Domestic (Indian) Subsidiaries
Thermax Babcock & Wilcox Energy Solutions Limited (TBWES), Pune, Maharashtra, India
Overview
TBWES offers a comprehensive portfolio of steam generation solutions for process and power applications across industries. Its systems operate on a wide range of fuels, including solid, liquid, gaseous, agro-based and municipal solid waste, while also enhancing energy efficiency through waste heat recovery from industrial processes and turbine and engine exhaust. The portfolio also includes specialised heaters for the chemical, petrochemical and refinery sectors.
Its Services business supports equipment of any make and capacity, delivering solutions for capacity enhancement, fuel conversion, reliability improvement, and utilisation of idle assets. The offerings include spare parts, plant services, testing and reliability assessments, asset integrity solutions, and digital platforms such as Thermax EDGE Live? for real-time monitoring and optimisation of industrial assets.
Business Highlights
• Secured orders for conventional and clean energy solutions across industries, including refineries, oil & gas, steel, cement, paper, and sugar, while expanding our international presence in Southeast Asia, Africa, the Middle East and Latin America.
• Maintained strong execution, focusing on timely delivery and quality, advanced digital solutions to enhance performance and reliability and operational excellence in handling complex, first-of-a-kind projects.
Growth Drivers
• Leveraging Energy Transition: The shift towards cleaner energy presents opportunities for TBWES to deploy its technology and expertise to deliver impactful customer solutions.
• Internationalisation: Expanding global presence through engineering excellence, strategic partnerships, and opportunities in high-growth energy markets.
• Sector-Led Domestic Growth: Growth in Indias steel, cement, utilities, and waste-to-energy sectors is driving demand for advanced energy solutions.
• Focus on Sustainability: Rising emphasis on energy efficiency, conservation, and decarbonisation is creating opportunities for high-impact sustainable solutions.
• Supercritical Boiler Opportunity: Revival of utility-scale thermal power projects is driving demand for supercritical boilers.
Focus Areas
• Technology and Product Development:
Strengthen existing technologies and develop new solutions aligned to evolving fuel mixes and customer needs.
• Lifecycle and Value-Added Solutions: Expand capabilities across retrofits, revamps, spares, and digital solutions to enhance customer performance and reliability.
• Operational and Business Excellence: Improve execution capabilities and process efficiency to drive consistent delivery and business performance.
Risks
• Project Execution Complexity: Increasing scale and scope of projects can lead to higher execution complexity, with potential impact on timelines and delivery.
• Supply Chain and Geopolitical Uncertainties:
Projects remain exposed to supply disruptions, logistics delays and vendor-side force majeure events arising from geopolitical developments, which may impact execution schedules.
• Safety Risk: Workplace incidents at manufacturing facilities and project sites may impact people, operations and reputation.
Risk Mitigation Plan
• Strengthened supply chain resilience through diversification, alternate sourcing, and proactive management of geopolitical and market risks, while improving project execution through tighter monitoring, contingency planning, and milestone- based controls.
• Enhanced competitiveness and risk management through a strong emphasis on technology, quality, and rigorous project evaluation processes.
• The Company implements continuous safety training, behaviour-based safety practices, and embeds safety considerations into engineering and operational processes.
Business Performance
TBWES reported a strong performance in FY2025-26, with revenues growing by 9.7% compared to 0.6% in the previous year. Order booking increased by 37.9%, following an exceptional 55.0% growth in FY2024-25. The growth was underpinned by large export orders, including an approximately Rs. 1,600 crore project, and sustained momentum across major product groups, especially in the oil & gas and waste-to-energy segments.
Sustainable Growth Plan
• Leveraging product portfolio and in-house design, engineering and manufacturing to meet domestic demand.
• Expanding international presence across new markets and geographies.
• Advancing sustainable technologies in waste-to- energy and waste heat recovery.
• Enhancing service offerings to support customers energy transition.
• Strengthening execution efficiency and delivery performance.
• Scaling Thermax EDGE Live? to improve asset performance through analytics and Al.
Geographical Footprint
• Asia
• Southeast Asia
• Middle East
• Africa
• Latin America
• Europe
Order Highlights
• Won an order for a 60 TPH waste-to-energy boiler for firing palm waste in Thailand.
• Awarded an order for cement waste heat recovery boilers (air quench cooler and pre-heater) for a 12,000 TPD kiln in West India.
• Received an order for waste heat recovery boilers for a sinter cooler from a leading steel player in India.
Key Industries
• Cement
• Chemicals
• Distillery
• Fertilisers
• Non-Ferrous Metals
• Paper
• Petrochemicals
• Power
• Refinery
• Steel
• Sponge Iron
•
Sugar• Textiles
First-of-its-kind Blast Furnace Gas Co-firing Upgrade for a 300 MWe Boiler
TBWES partnered with a leading integrated steel manufacturer in India to maximise the utilisation of blast furnace gas (BFG), a low-calorific byproduct generated during steel making. The objective was to increase the use of BFG in a 300 MWe power boiler, reducing dependence on coal while maintaining reliable and efficient operations.
To achieve this, TBWES upgraded the boiler and its combustion systems to enable seamless co-firing of BFG and coal. The project also included enhancements to emission control systems, heat recovery equipment and plant controls to ensure operational flexibility and stable performance across varying load conditions.
Executed during a planned shutdown, the project enabled the utilisation of approximately 3,00,000 Nm3/h of BFG per boiler, reducing coal consumption by up to 45%. By converting an industrial byproduct into a valuable energy source, the solution improved resource efficiency, lowered emissions and supported the customers sustainability objectives.
Thermax Bioenergy Solutions Private Limited (TBSPL), Pune, Maharashtra, India
) Overview
TBSPL specialises in setting up and operating bio-CNG plants under the EPC model in partnership with global technology providers. It offers end-to-end solutions for producing bio-CNG from diverse waste sources, including biomass, agricultural waste, organic municipal solid waste and food processing waste. With a vision to become a preferred partner in the industry, it is committed to making clean and sustainable energy more accessible while promoting a circular economy.
) Business Highlights
• Commissioned seven bio-CNG plants during FY26, taking the total operational portfolio to 14 plants.
• Built operational experience across 10+ feedstock types, strengthening technical and execution capabilities.
• Crossed 100 TPD CBG production from all operational plants in January 2026.
• Produced 19,400 tonnes of CBG during FY26.
Growth Drivers
• Mandatory CBG Blending Obligation: The phased mandate for blending compressed biogas into CNG (compressed natural gas) and PNG (piped natural gas) networks, increasing from 1% in FY2025-26 to 5% by FY2028-29, is expected to drive demand for bio-CNG projects and infrastructure.
• State-Level Policy Support: Several states are promoting bio-CNG initiatives; for example, Andhra Pradesh, India, has introduced an Integrated Clean Energy Policy offering incentives and subsidies for setting up bio-CNG plants.
• Energy Security Imperative: Geopolitical uncertainties and volatility in global fuel markets are accelerating investments in energy security and domestic energy infrastructure.
Focus Areas
• Strengthen O&M Capabilities: Build expertise to ensure reliable and efficient plant operations.
• Enable Remote Monitoring: Use of digital tools for real-time performance tracking and optimisation.
• Maximise Efficiency: Enhance plant output by focusing on plant availability and operating at peak capacity.
Risks
• Operational and Technology Challenges:
Experiencing technology reliability and performance challenges during scale-up and continuous plant operations. Facing delays in adoption and project execution due to evolving technology standards, system integration complexities, and ecosystem readiness constraints.
Risk Mitigation Plan
• Enhance plant reliability through preventive and predictive maintenance, real-time monitoring, and standardised operating practices to maximise uptime and optimise production performance.
Business Performance
During FY 2025-26, TBSPLs revenue declined by 53.7% as several existing orders neared completion. However, order booking increased by 221.4%, driven by technology interventions and improved asset management across ongoing projects. The Company adopted a cautious approach towards new EPC orders, particularly from public sector enterprises, until the performance of projects under execution following these interventions was validated in the fourth quarter of FY26. Despite a lower revenue and limited book-and-bill opportunities during the year, the Company reduced its losses by 65.2% year-on-year. Growing focus on energy security, supported by government policy initiatives and increasing interest from major oil marketing companies in CBG projects, is expected to create significant growth opportunities in the coming years.
Sustainable Growth Plan
• Strengthen presence across key Indian markets by expanding manufacturing and operational footprint.
• Forge alliances to offer integrated bio-CNG solutions and promote sustainability and circularity.
• Create employment opportunities for local communities through on-ground projects.
• Invest in technology development and research to improve plant efficiency and scalability.
• Build O&M capabilities, including asset and lifecycle management services, to ensure long-term reliability and performance of bio-CNG facilities.
Geographical Footprint
• India (Punjab, Uttar Pradesh, Gujarat, Delhi-NCR, Madhya Pradesh, and Maharashtra)
Key Industries
• Oil & Gas
• Transportation (bio-CNG as a mobility fuel)
Order Highlights
• O&M contracts awarded for plants of a leading oil refinery major.
• No new EPC orders booked during the year, but orders secured for variation scope in existing projects.
CASE STUDY
Enhancing Process Efficiency through Advanced Solid-Liquid Separation
In bio-CNG plants, the solid-liquid separation (SLS) island plays a critical role in maintaining process stability by separating undigested material into solid cake and liquid permeate for recirculation. Efficient separation is essential to ensure steady-state digestion and optimal plant performance. Flowever, existing systems were delivering separation efficiencies of only -20%, limiting overall process effectiveness.
To address this, Thermax Bioenergy Solutions developed an industry-first two-stage solid separation system. This innovative approach integrates two distinct separation technologies in series: initial filtration through a separation screen, followed by assisted gravity-based separation, significantly improving the removal of solids from the digestate.
The enhanced system increased separation efficiency to -50%, leading to improved operational stability and better synchronisation between the digester, SLS, and feeding systems. This advancement not only optimises process performance but also strengthens the reliability and efficiency of bio-CNG plant operations.
Performance of the Industrial Infra Segment in FY 2025-26
In FY 2025-26, the Industrial Infra segment contributed 41% to the Groups gross operating revenue, compared to 46% in FY 2024-25. The segment reported net operating revenue of Rs. 4,343 crore, compared to Rs. 4,690 crore in the previous year, primarily due to lower revenue contribution from the Power and Energy Solutions business, which witnessed subdued order inflow during the year.
Despite the decline in revenue, segment profit improved to Rs. 218 crore from Rs. 110 crore in the previous year, driven by better project execution, an improved project mix and enhanced cost discipline. The previous years profitability was also impacted by technology intervention costs in the Bioenergy business.
Order booking increased to Rs. 6,217 crore from Rs. 4,337 crore in FY2024-25, supported by key order wins, including a supercritical boiler project and orders secured in export markets.
4.3 Green Solutions
The Green Solutions segment comprises Thermax Onsite Energy Solutions Limited (TOESL), First Energy Private Limited (FEPL) and the Green Hydrogen business. This segment delivers sustainable, low-carbon energy solutions that enable customers to transition to cleaner, more efficient energy systems.
TOESL provides assured, outsourced green utility solutions under the Build-Own-Operate (BOO) model, allowing customers to adopt sustainable infrastructure without upfront capital investment. FEPL offers opex-based renewable energy solutions that deliver flexibility and cost efficiency to industrial energy users. The Green Hydrogen business focuses on electrolyser technology and complete plant set-up, leveraging global partnerships and Thermaxs expertise in system design, development and integration.
Green Hydrogen
Overview
Thermaxs Green Hydrogen business is focused on enabling industrial decarbonisation through scalable electrolyser technologies, integrated engineering, localisation, and lifecycle services. The business addresses hard-to-abate sectors such as steel, chemicals, refining, fertilisers, ammonia, and future fuels by combining Thermaxs process heat, waste heat recovery, manufacturing, and service capabilities with global electrolyser technology partnerships. Thermaxs portfolio includes alkaline water electrolysis (AWE) solutions for large-scale hydrogen projects and high- efficiency solid oxide electrolyser cell (SOEC) systems.
Business Highlights
• The Company has partnered with HydrogenPro to indigenise alkaline water electrolysis solutions for large-scale green hydrogen projects in India, including supply, installation, commissioning, and after-sales services.
• Thermax has entered a strategic partnership with Ceres Power to manufacture, sell, and service SOEC-based stack array modules and develop multi-megawatt SOEC electrolyser modules in India.
• Green hydrogen has been identified as one of Thermaxs strategic emerging verticals, alongside carbon capture and biofuels, as part of its broader energy transition portfolio.
Key Solutions Provided
Thermax provides green hydrogen solutions across alkaline and SOEC electrolyser technologies, supported by engineering, localisation, manufacturing, installation, commissioning, and lifecycle support. The business is positioned to support customers from pilot-scale adoption to large industrial deployments, with a focus on improving levelised cost of hydrogen, reducing emissions, and enabling long-term energy transition.
Growth Drivers
• National Green Hydrogen Mission: India targets at least 5 MMT of green hydrogen production annually by 2030, creating strong policy-led demand.
• Industrial Decarbonisation: Hard-to-abate sectors require low-carbon hydrogen for process heat, feedstock, fuel switching, and green ammonia.
• Local Manufacturing Push: Indias focus on domestic electrolyser manufacturing supports Thermaxs localisation-led strategy.
• Cost-Effective Renewable Energy: High renewable energy potential and strong grid infrastructure supports the economics and growth of green hydrogen production.
• Integrated Capability: Thermaxs strengths in heat integration, waste heat recovery, manufacturing, and services provide a strong platform for hydrogen solutions.
Focus Areas
• Alkaline Electrolysis: Offering proven alkaline electrolyser technology with HydrogenPro for large- scale and cost-effective hydrogen production.
• SOEC Technology: Developing high-efficiency solid oxide electrolyser solutions with Ceres Power, especially for customers with available waste heat or high-temperature industrial processes.
• Localisation: Building Indian capability across engineering, assembly, manufacturing, testing, commissioning, and lifecycle services.
• Integrated Hydrogen Solutions: Providing end-to- end support from technology selection and project engineering to installation, commissioning, and after-sales service.
• Hard-to-Abate Sectors: Targeting steel, refineries, chemicals, fertilisers, ammonia, mobility, and future- fuel applications.
Risks
• High Production Cost: Green hydrogen remains cost-sensitive due to power consumption, electrolyser cost, and system efficiency.
• Demand Uncertainty: Large-scale offtake depends on policy incentives, customer readiness, mandates, and export market development.
• Technology Scale-up: SOEC and large alkaline systems require careful validation, reliability assurance, and project-specific integration.
• Infrastructure Gaps: Storage, compression, transport, safety systems, and renewable power connectivity remain key constraints.
• Competitive Intensity: Global and domestic players are entering electrolyser manufacturing and hydrogen project development.
Risk Mitigation Plan
• Focus on high-efficiency technologies, including SOEC systems that can utilise waste heat to improve hydrogen economics.
• Partner with established global technology providers to accelerate market entry while building local manufacturing and service capability.
• Prioritise industrial customers with clear decarbonisation needs, existing energy infrastructure, and potential long-term offtake.
• Offer integrated solutions covering engineering, project execution, commissioning, and lifecycle support to reduce customer execution risk.
• Align offerings with Indias policy framework, certification standards, and emerging green hydrogen demand clusters.
Sustainable Growth Plan
• Scale electrolyser deployment through strategic technology partnerships and localised manufacturing.
• Develop multi-megawatt hydrogen systems tailored for industrial decarbonisation and cluster- based applications.
• Leverage Thermaxs integrated capabilities in manufacturing, renewable energy, engineering, gas purification, waste heat recovery, process heating, water treatment, and digital energy management to deliver end-to-end hydrogen solutions.
• Strengthen Indias green hydrogen ecosystem by enabling domestic manufacturing, accelerating industrial decarbonisation, and supporting future export competitiveness.
Green Solutions Domestic (Indian) Subsidiaries
Thermax Onsite Energy Solutions Limited (TOESL), Pune, Maharashtra, India
Overview
Thermax Onsite Energy Solutions Limited (TOESL), a wholly owned subsidiary of Thermax Limited, provides assured, outsourced green utility solutions through the Build-Own- Operate (BOO) model across steam, heat, treated water and related utility streams. Its operating model enables industrial customers to transition non-core utility requirements into long-term, performance-linked service arrangements, allowing them to focus on core operations while improving efficiency and sustainability outcomes.
Business Highlights
• Commissioned five projects across steam and heat, strengthening execution capabilities while scaling the biomass sourcing networkto -5,00,000 metric tonnes annually and deepening customer relationships through repeat and multisite engagements.
• Expanded offerings with the first community steam project, with the potential to deliver over 81,000 tCC>2 in emissions savings, reinforcing the Companys role in industrial decarbonisation.
Growth Drivers
• Sustainability Push: EUs proposed carbon tax on exports and pressure from global buyers are driving demand for green energy.
• Global Foray: Strategic international expansion.
• Fuel Security: Backward integration by developing alternative fuels, farm-level linkages, and dedicated fuel infrastructure.
Focus Areas
• Sustaining Domestic Growth: Continue building momentum in biomass-based steam and heat segments to strengthen domestic market presence.
• Expanding the Green Solutions Portfolio:
Diversify into emerging sustainable avenues such as treated water, biomass gasification, bio-CNG and RDF (refuse derived fuel) based solutions.
• Internationalisation: Build scale in international markets by leveraging local partnerships, strengthening regional presence, and delivering differentiated sustainability solutions.
Risks
• Macroeconomic Uncertainty: Economic slowdown may impact industrial capital expenditure and delay investments in sustainability initiatives.
• Commodity and Conventional Energy Price Risks: Volatility in commodity prices and sustained low prices of fossil fuels such as coal and natural gas may affect capital equipment costs, project economics, and the adoption of renewable energy solutions.
• Biomass Dependency: High reliance on biomass poses risks related to feedstock availability, quality, and price fluctuations.
• Capex vs. Opex Adoption
The pace of adoption of opex-based utility and service models may be slower than anticipated, as some customers continue to favour asset ownership through capex investments.
Risk Mitigation Plan
• TOESL is proactively addressing these factors through diversified fuel sourcing, enhanced fuel flexibility, and strong supply linkages to ensure reliability and cost stability.
• The Company maintains a disciplined approach to capital deployment and project structuring to remain resilient across interest rate cycles.
• Adopts a Group-wide customer engagement approach, enabling opportunities preferring capex-based investments to be addressed by other Thermax businesses while TOESL focuses on opex-led offerings.
Business Performance
In FY2025-26, TOESL registered revenue decline of (0.5%), as compared to the 37.8% growth achieved in FY2024-25. Order booking increased by 519.8%, compared with 54.6% growth in the previous year.
During the year, TOESL has moved to a rolling 12-month forecast model for reporting its order book, replacing the earlier approach of recognising only the first years revenue from long-term contracts. Growth in order book was driven by a strong mix of new customer wins and repeat orders, along with continued momentum across key sectors. The year also saw expansion into international markets, progress in community utility solutions, and several marquee contract wins.
Key Solutions Provided
• Assured outsourced green utilities delivered under the BOO (Build-Own-Operate) model across multiple utility streams.
• Core expertise in biomass-based steam, heat, and cogeneration solutions.
• Expanding presence in water and wastewater treatment utility solutions.
• End-to-end service delivery: investment, engineering, commissioning, fuel & consumables management, operations & maintenance, and performance assurance.
CASE STUDY
Powering Indias First Gigafactory
In FY2023-24, TOESL secured a biomass-based boiler contract for a wholly owned subsidiary of a leading battery manufacturer that is setting up Indias first 12 GWh lithium-ion cell manufacturing facility in Karnataka, in collaboration with SVOLT Energy Technology. This greenfield gigafactory, serving Indias fast-growing EV market, has already commissioned Phase 1 with 6 GWh now in commercial production.
TOESLs biomass-fired boiler, delivered under a BOO model, offered a zero-capex solution and supplied green steam aligned with the customers clean manufacturing goals, while helping reduce CO2 emissions by around 20,000 tonnes per year.
As the project progressed and production scaled up towards full capacity, the customer awarded TOESL a second contract in FY 2025-26 for Phase 2 at the same site. The repeat order reflects strong operational performance and customer confidence, while also demonstrating TOESLs land-and-expand growth strategy, where successful execution at one site creates opportunities for deeper engagement and long-term partnership.
First Energy Private Limited (FEPL), Pune, Maharashtra, India
Overview
First Energy Private Limited (FEPL), a Thermax Group company, is at the forefront of enabling customers transition to renewable energy. FEPL provides sustainable power solutions across solar, wind, wind-solar hybrid and battery storage technologies for the commercial and industrial (C&l) sectors. Backed by extensive EPC expertise, FEPL offers flexible engagement models, including captive and group captive projects across states, enabling customers to access renewable energy under open-access frameworks.
Business Highlights
• FEPL commissioned a 39 MWwind project in Tamil Nadu during the year, supplying power to major industrial customers in Southern India. In response to growing demand, it has initiated expansion of the project to
51 MW to further support existing consumers in achieving their net-zero targets.
• FEPL also commenced construction of a 139 MW wind-solar hybrid project in Gujarat, India, and a
101.5 MWCTU (Central Transmission Utility)-connected wind project in Tamil Nadu, India. These projects are expected to be commissioned in Q2 FY 2027 and Q1 FY2028, respectively, generating around 800 MUs of energy and offsetting approximately 5,60,000 metric tonnes of C02.
Growth Drivers
• Integrated Offerings: End-to-end energy solutions with long-term customer engagements.
• Specialised C&l Focus: Expertise in group captive power structures for industrial consumers, with strong capability in managing complex regulatory requirements over long-term horizons.
• Renewable Mix: A balanced portfolio of solar, wind, hybrid, and storage solutions catering to diverse energy needs.
• Rising Demand for Sustainable Energy
Increasing focus on decarbonisation and clean energy adoption is accelerating demand for solar- wind hybrid solutions
• Robust Backing: Strong financial and technical capabilities are enabling efficient execution of large- scale, capital-intensive projects.
Focus Areas
• Renewable Energy Projects: Continued development of renewable captive power plants, including solar, wind, hybrid, high-capacity utilisation factor (CUF) wind-hybrid and round-the- clock storage solutions, to meet the growing energy demands of industries.
• New State Policy: FEPL is capitalising on the Rajasthan 2024 RE policy by starting development of approximately 97 MWp solar project targeting to meet the RE requirements of local industries in the state.
• CTU Connectivity: Exploring opportunities to connect large power projects with the CTU to enhance grid integration and energy distribution.
• Project Execution: Driving timely and cost-efficient project execution with a focus on quality, safety, and customer satisfaction.
• Sustainable Practices: Commitment to reducing Indias carbon footprint through the implementation of sustainable energy solutions.
• Strategic Footprint: Presence across key states including Maharashtra, Gujarat, Tamil Nadu, Andhra Pradesh and Rajasthan, ensuring proximity to major industrial clusters.
Risks
• Project Execution Delays: Delays in project commissioning due to site constraints, approvals, or supply chain disruptions can impact revenue timelines and customer confidence.
• Force Majeure: Natural disasters, extreme weather conditions, or unforeseen events can disrupt operations and impact asset performance and real-time monitoring.
• High Competition: Intense market competition and limited differentiation can pressure pricing and margins.
• Shortfall in Generation and Revenue: Lower generation and revenue compared to the business plan on account of lower resource (climate changes) and grid non-availability/curtailment.
J Risk Mitigation Plan
• Continuous customer engagement remains critical to managing expectations, given the inherent complexities of renewable energy infrastructure projects.
• Project selection is driven by rigorous due diligence on land, connectivity, and permits, with conservative assumptions on cost, timelines, and generation based on site conditions.
• FEPLs strategy focuses on building high-quality, competitive projects without engaging in tariff wars, with realistic pricing as a foundation to ensure timely and cost-effective execution, especially given the fixed-tariff nature of customer agreements.
Business Performance
In FY2025-26, FEPL recorded a revenue growth of 54.5%, following a 64.4% surge in FY2024-25. Order booking grew by 88.7% this year, in contrast to (20.7)% decline in the previous year.
Despite an increase in revenue, the Company continued to report losses at the operating profit level (after interest and depreciation), driven by the challenges and risks highlighted under risk section.
Key Solutions Provided
FEPL delivers tailored renewable energy solutions that align with diverse industry requirements, applications, and energy goals. The company manages the entire lifecycle of captive renewable energy, from grid connectivity to firm-priced energy delivery over 25 years. This reduces risks associated with captive thermal power plants, addresses availability concerns related to Renewable Energy Certificates (RECs) towards renewable purchase/renewable consumption obligations, and lowers the long-term cost of energy.
Sustainable Growth Plan
• Over the years, FEPL has steadily enhanced its technical and execution capabilities, progressing from the development of 22 kV and 33 kV power evacuation infrastructure to the successful implementation of complex 110 kV and 220/30 kV evacuation systems, demonstrating its ability to deliver increasingly sophisticated grid infrastructure.
• Initial project development involved generating assets connected to the state transmission system. More recently, FEPL has expanded to the inter-state transmission network, delivering higher capacity utilisation factors (CUFs) to industrial consumers.
• In phases, FEPL has also expanded its offerings from pure solar in 2022, to wind-solar hybrids in 2023, pure wind in 2024, and solar with battery energy storage systems (BESS) from 2026 onwards.
Performance of Green Solutions Segment in FY 2025-26
In FY2025-26, the Green Solutions segment contributed 7% to the Groups gross operating revenue, up from 7% in FY2024-25. The segments net operating revenue rose to Rs. 717 crore, compared to Rs. 679 crore in the previous year. Order booking increased to Rs. 913 crore from Rs. 225 crore, primarily driven by TOESLs transition to a rolling 12-month forecast model for reporting its order book, replacing the earlier approach of recognising only the first years revenue from long-term contracts.
The segment reported a PBIT of Rs. 103 crore during the year, compared to Rs. 77 crore in the previous year.
4.4 Chemicals
Thermaxs Chemicals business delivers performance- engineered solutions that enhance industrial processes and optimise product performance across a wide range of sectors. Recognised as a leading manufacturer and exporter of Tulsion? ion exchange resins, the business also provides advanced solutions in fuel and water treatment, oil field chemicals, and a comprehensive range of construction chemicals, including concrete admixtures, waterproofing, industrial flooring, sealants and adhesives for industrial applications. With over five decades of expertise, a strong dealer network, and state-of-the-art manufacturing facilities, the Chemicals business serves customers across India, the USA, Europe and Southeast Asia. Backed by robust R&D and a deep commitment to innovation, Thermaxs chemical solutions empower customers to achieve greater efficiency, reliability and performance.
Last year, Thermax Chemical Solutions Private Limited (TCSPL) entered into a shareholders agreement with UK- based Vebro Polymers to address Indias industrial and commercial flooring needs. It also partnered with Latin Americas Oswaldo Cruz Quimica (OCQ) to manufacture and supply high performance resins and polymers. Additionally, Thermax expanded its construction chemicals portfolio by acquiring Buildtech Products, an Indian manufacturer of admixtures, accelerators and capsules.
Business Highlights
• Overseas Expansion: The manufacturing facility in Cilegon, Indonesia, is now operational, producing water treatment chemicals and catering to the Southeast Asian markets; tolling operations have also commenced in Thailand to strengthen regional presence.
• Global Partnership: Building on the strategic partnership with OCQ, a new brand Fortmax has been launched for advanced resins and polymers, with production already underway at the Jhagadia plant in Gujarat, India.
• New Applications: During the year, the Chemicals business developed, launched, and commercialised speciality products, including PFAS removal resins for advanced water treatment, organic binders and dispersants for the ceramics industry, and high-grade micro-concrete solutions for construction chemical applications, while continuing to strengthen its market presence and accelerate penetration across these segments.
Growth Drivers
• Make in India Push: Government initiatives promoting domestic manufacturing of speciality chemicals.
• Infrastructure Boom: Urbanisation and mega infrastructure projects are increasing the demand for construction chemicals such as admixtures, grouts, and flooring solutions.
• Rising Investments: Public and private sector investment in roads, railways, ports, and industrial projects is fuelling demand for performance chemicals across sectors.
Focus Areas
• Strengthening the Core Portfolio: Boost capabilities and reach in water treatment, speciality chemicals and construction solutions.
• Expansion into New Segments: Grow via adjacent markets, partnerships and green chemistry innovation.
• Go Global: Enter new geographies to diversify and scale growth beyond existing geographies.
• Grow Strategic Portfolio Offerings
Expand market presence in industrial flooring, high- performance resins and polymers, and construction chemicals through the Vebro Polymers and OCQ partnerships and the Buildtech Products acquisition.
Risks
• Geopolitical Uncertainty and Raw Material Volatility: These factors may disrupt supply chains, increase input costs, and affect production schedules and margins.
• Local Price Competition: Emerging low-cost players in price-sensitive markets may pressure pricing and erode market share.
Risk Mitigation Plan
• Price actions are being implemented across customers and dealers, while margins are being closely managed through disciplined monitoring of the order book.
• In parallel, the product mix is being actively optimised to sustain profitability and ensure a balanced, value- driven portfolio.
Chemicals Overseas Subsidiaries Thermax Inc., Houston, Texas, USA
I Business Performance
In FY2025-26, Thermax Inc.s revenue grew by 29.3%, compared to a 0.3% growth in FY2024-25. Order booking increased by 48.3%, following a 1.8% increase in the previous year. Revenue growth was driven by the successful acquisition of a strategic customer, where Thermax matched highly competitive Chinese pricing while differentiating itself through superior quality, technical collaboration, and product customisation.
I Key Solutions Provided
• Sales and distribution of ion exchange resins,
supporting water and process treatment applications.
Sustainable Growth Plan
• Expand market presence in LATAM (Latin America)/ Mexico and Canada through distributor networks.
• Target speciality and industrial deionisation opportunities in North America, especially in catalysts, mobile unit business, UPS (ultra pure water systems), and mixed-bed resin applications.
Key Industries
• Chemicals
• Commercial
• Electronics
• Food & Beverages
• Oil & Gas
• Petrochemicals
• Residential
• Municipal
Order Highlights
• Supplied industrial resins to two large accounts for the mobile unit business in North America.
• Supplied a large volume of mixed-bed resins for cartridge and window cleaning applications.
• Orders for resins have proved highly effective for the F&B segment in the LATAM market.
Thermax Chemical Europe, Herning, Denmark, Germany
Business Performance
Thermax Chemical Europe is a new entity with FY 2025-26 being its first financial year. The business is driven majorly by securing annual contracts from OEMs for mixed bed resins.
It has executed orders for industrial demineralisation and speciality applications through technical collaboration and consistent performance.
Key Solutions Provided
• Sales and distribution of ion exchange resins for water treatment and speciality applications.
Sustainable Growth Plan
• Expand market presence in Europe through distributor networks and OEMs through UPS (ultra-pure water systems) and mixed bed resins for industrial water treatment.
• Focus on heavy metal removal and groundwater remediation applications in Western Europe.
• Target speciality applications in refinery and F&B segments.
) Key Industries
• Refinery
• Food & Beverages
• Municipal
• Commercial Complexes
• Chemical
• Electronics
Order Highlights
• Secured orders for the supply of mixed-bed ion exchange resins in heating systems and cartridge filtration applications.
• Successfully executed orders for groundwater remediation and heavy metal removal applications, supporting customers in meeting stringent water quality requirements.
• Won multiple orders for industrial demineralisation systems.
• Received orders for new application segments like collagen purification, arsenic removal.
Chemicals Domestic (India) Subsidiaries Buildtech Products India Private Limited, Delhi, India
Business Performance
In October 2024, Thermax acquired a 100% stake in Buildtech Products India Private Limited, a manufacturer of admixtures, accelerators and capsules used in tunnel, infrastructure and railway projects, strengthening its presence in the construction chemicals sector. Following the acquisition, the business underwent operational streamlining and showed encouraging signs of improvement towards the end of the year, with new orders secured, particularly in the western region. The approval process for a new sleeper manufacturing facility has also been initiated. The Company expects these initiatives to support accelerated growth from the second quarter of FY2026-27 onwards.
Key Solutions Provided
• Admixtures
• Waterproofing Solutions
• Resin Capsules
• Grouts and Sealants
• Synthetic Fibres
• Powder Accelerators
• Curing Compounds
Key Industries
• Underground Infrastructure
• Railway Sleeper Manufacturing
Sustainable Growth Plan
• Expanding footprint across West, South, and East markets through new approvals, while strengthening presence in sleeper manufacturing and exploring opportunities in neighbouring countries such as Nepal and Bhutan.
Geographical Footprint
• India
• Nepal
Order Highlights
• Secured regulatory approvals and project qualifications, including source approval from the Sinkula Tunnel Project, Dibang Hydro Project, and Pune Ring Road, along with the initiation of trials at Delhi Metro.
• Successfully completed customer trials at Patil Rail and Malu Sleepers.
Thermax Vebro Polymers India Private Limited, Chennai, Tamil Nadu, India
Business Performance
FY 2025-26 was the first year of full operations for the business, with revenue reaching Rs. 10 crore, compared to Rs. 2 crore recorded during the four-month period in FY 2024-25. This reflects the strong progress made since the partnership with UK-based Vebro Polymers that was established following the signing of the shareholders agreement in July 2024.
Key Solutions Provided
Customised resinous polymer flooring solutions engineered to meet industrial and commercial performance requirements while optimising lifecycle costs.
Sustainable Growth Plan
Thermax Vebro Polymers India Pvt. Ltd.s sustainable growth strategy focuses on innovation, operational excellence and environmental responsibility. The company aims to deliver high-performance flooring solutions while reducing its environmental footprint through resource-efficient processes, use of sustainable materials and strong safety and quality standards. This is supported by continued investment in people and technology.
Geographical Footprint
• India
Key Industries
• Food & Beverages
• Pharmaceuticals
• Textiles
• Automotive General Manufacturing
• Stadia & Airports
• Commercial Complexes
• Healthcare and Education
Order Highlights
• Secured orders from leading players across the electronics, automotive, FMCG, and construction sectors.
Performance of Chemicals
Segment in FY 2025-26
The Chemicals segment contributed 7% of the Groups gross operating revenue in FY2025-26, compared to 7% in the previous year. Operating revenue stood at Rs. 744 crore against Rs. 750 crore in FY2024-25, while segment profit declined to Rs. 54 crore from Rs. 122 crore. Performance during the year was impacted by higher input costs, expenses associated with new manufacturing capacity, investments in two new partnerships, and the integration of the Buildtech acquisition. Despite these challenges, order booking increased to Rs. 805 crore from Rs. 787 crore in the previous year, reflecting sustained demand across key markets.
5. Performance on Strategy
Innovate for Energy Transition
Definition
Introduce products and technologies to help industries bridge the gap between energy availability and energy sustainability.
Focus areas |
^Highlights |
Develop Cutting- Edge Energy Transition Products |
• During the year, Thermaxs Process Heat Solutions business expanded its portfolio to enable industries to transition towards cleaner and more sustainable energy systems while ensuring operational reliability. Key among these was a pellet-fired steam generator for low-capacity applications, enabling a shift from fossil fuels to biomass- based heating. The business also developed an advanced boiler configuration capable of operating on 100% syngas, 100% biomass, or a combination of both, addressing fuel variability and supporting phased decarbonisation. Initial orders have already been secured. In addition, the business scaled its electric heating solutions, supporting the growing shift towards electrification in applications with increasing access to clean power. |
• Within the Cooling and Heating business, the portfolio was strengthened across both heating and cooling applications by scaling high-temperature heat pumps up to 140?C to support the electrification of industrial heating, while also enhancing sub-zero chiller range for critical low-temperature requirements. Further advancement in energy efficiency is being achieved by developing high-COP absorption chillers and with introduction of absorption concentrator to significantly improve zero liquid discharge (ZLD) efficiency. |
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Foster Technology Partnerships |
• Thermax entered into a strategic partnership with Norway-based HydrogenPro, a leader in green hydrogen technology and systems, to build capabilities in alkaline electrolysers. |
• Thermax has partnered with Vogelbusch through a technical Moll to deliver end-to- end EPC solutions for ethanol plants, combining Vogelbuschs process expertise with Thermaxs execution capabilities. |
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Invest in R&D |
• Investing in R&D to indigenise hydrogen production, purification, and compression. |
• Advancing microbial bioprocessing technologies to create a carbon neutral bio-refinery platform. |
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• Expanding CCU solutions, including indigenous biogenic CCE-to-methanol and syngas-to-methanol technologies. |
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• Building waste-to-X technologies for thermochemical conversion of agricultural, industrial, and municipal wastes into high-value fuels and chemicals. |
Strengthen Solutions Businesses Definition
Enhance our capabilities to provide long-term utility services.
(Vocus areas |
Highlights |
Provide Renewable |
• Green Steam Projects |
Energy Solutions |
• Bio-CNG Production |
• Wind-Solar Hybrid Projects |
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Offer End-to- End Energy Management for Utilities |
• Thermax commissioned two energy-efficient projects, one leveraging fuel cell waste heat recovery for comfort cooling in an IT infrastructure facility (utility-as-a- service model), and another deploying an electric heat pump for humidity control in a pharmaceutical plant, delivering up to 70% reduction in operating costs under an ESCO model. |
Scale Up Businesses Relating to Sustainability and Urbanisation
Definition
Grow our air pollution control, water, cooling and chemicals businesses to offer comprehensive solutions beyond energy transition.
^Focus areas |
(^Highlights |
Form Strategic Partnerships and Diversify Product Portfolio |
• Strategic alliances were established to diversify Thermaxs Cooling & Heating portfolio and ensure that the Company remains at the forefront of innovation. The business has also signed an MoU with Trigen Decarbonisation in India to enhance its heat pump capabilities up to 180?C. |
• Thermax collaborated with Vertiv in the USA to promote absorption chillers. |
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• Thermax has also partnered with Symbiona S.A. for circular water solutions. |
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Establish New Growth Units |
• Under the Cooling and Heating business, the growth unit, SustainX, established last year, continued to build momentum, with 110+ cooling tower units delivered across key industries such as data centres, including international installations, and supplied 10 heat pump units. |
• The ZLD growth unit recorded strong growth in order booking YoY (including captive and direct). Backed by advanced products and in-house technologies, it has evolved into the Evaporation business, expanding from utility ZLD solutions to process evaporation and zero solid discharge. With a focus on high pollution index industries, the business secured orders across pharmaceuticals, solar, tannery, automobiles, electronics and FMCG. |
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• With end-to-end water and wastewater solutions, the Thermax Urthh growth unit enables sustainable water usage, optimises costs, and ensures regulatory compliance across urban landscapes. Targeting residential, healthcare, commercial and institutional segments, Urthh is steadily building market presence. Integration with Thermax EDGE Live? enables real-time monitoring and remote management, improving uptime, reducing costs and supporting sustainability goals. |
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Expand Manufacturing Capabilities and Capacities |
• Optimised fixture orientation and manufacturing flow at the Sri City manufacturing facility through in-house layout modifications, unlocking ~980 square metres of space and enabling five heat pump workstations along with additional capacity for six to eight chillers to support future demand. |
• The manufacturing facility in Cilegon, Indonesia is now operational, producing water treatment chemicals and catering to Southeast Asian markets. |
Drive Digital Transformation
Definition
Leverage digitalisation to improve efficiency, both internally and externally.
Focus areas Increase Digital Interventions Across Processes |
• In 2025-26, Thermax continued to accelerate its digital transformation journey, with a focused agenda around enhancing operational efficiency, improving data visibility, and enabling smarter decision making. Across the year, several critical processes were reimagined end-to-end, spanning sourcing-to-payment, digital-native business setup, customer audits, installation & commissioning, aftersales services, customer collaboration through a WhatsApp bot, Al-powered knowledge management, and Al-driven document processing. |
• Value realisation is being tracked across four strategic dimensions: order growth, productivity & scalability, margin & lead time, and risk, ensuring that digital investments translate into measurable business outcomes. Anchored by a robust Project Management Office (PMO) framework, 52 projects were successfully taken live during the year. |
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Proliferate Customer-Centric Digital Platforms |
• Thermax acquired a 51% stake in ExactSpace, adding Al-powered predictive maintenance and process optimisation capabilities to enhance value for industrial and commercial customers. |
• Thermax EDGE Live? is Thermaxs Al-powered lloT platform built to support industrial customers in their journey towards energy transition, plant reliability, and performance optimisation. |
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• By the end of FY 2025-26, 300+ units were digitally connected including boilers, chillers, power plants, water treatment plants, partnering with customers towards energy transition to improve efficiency and enhance uptime. |
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Strengthen |
• Established data protection capabilities for critical IP and data. |
Cybersecurity Measures |
• Strengthened cybersecurity with 24x7 security operations centre (SOC), dark web monitoring, threat intelligence and rogue app takedown. |
• Enhanced email security through stronger phishing and malware controls, supported by regular training and simulations. |
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• Implemented Vulnerability Assessment and Penetration Testing (VAPT) capabilities for Operational Technology (OT) systems and plant network infrastructure. |
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• Achieved SOC 2 Type 1 certification for EDGE Live; renewed ISO 27001:2022 certification. |
Build an Agile, Market Responsive Organisation Structure
Definition
Assess evolving market demands and align the organisation with them to optimise business performance and resource management.
Focus areas |
Highlights |
Solution-Selling Approach |
• Prioritised key account management and implemented account-based marketing strategies to deepen customer relationships. |
• Strengthened our portfolio through strategic partnerships with HydrogenPro for alkaline electrolysers and Symbiona S.A. for advanced anaerobic wastewater treatment solutions. |
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Accelerate Market Penetration With Unified, Cross- Business Energy Transition Offerings |
• Organised multiple customer engagement initiatives and participated in global events to showcase a comprehensive portfolio of energy transition solutions and strengthen customer connect. |
Drive Internal Changes to Mobilise, Manage and Retain Talent |
• Initiated resource mobilisation based on employee skill sets to boost performance. |
• Rolled out structured talent management programmes across employee levels to nurture future-ready leaders. |
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• Through the Thermax Service Academy, the Company empowers both new recruits and experienced service professionals with structured technical, operational, and customer-centric training, fostering continuous learning and service excellence. |
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Foster a |
• Sharpened appraisal discussions with a focus on meaningful, actionable feedback. |
Performance- Driven Culture |
• Continued capability-building through year-round training programmes for managerial and technical excellence. |
• Recognised high-performing individuals and teams through structured rewards and recognition aligned with Thermaxs core behaviours. |
Energise the Core
Definition
Continue to build on our existing strategic priorities.
Focus areas |
Highlights |
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Increase the Share of Green Offerings |
Key green orders leading to clean air, clean energy, and clean water received during FY 2025-26 across multiple segments include: ammonia, and plant-based protein. |
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INDUSTRIAL PRODUCTS |
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Process Heat Solutions • Order for 30 TPH biomass-fired RG Boiler and 9 Mn kcal/hr biomass-fired RG Heater for carbon black plant in the east of India (Odisha). |
The project, delivering UPW (ultra-pure water) and ZLD solutions, highlights our strength in winning within the highly competitive solar sector. |
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INDUSTRIAL INFRA |
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• 2 Nos. X 30 TPH biomass-fired RG boiler from an energy company in the west of India (Gujarat). |
Projects and Energy Solutions (P&ES) |
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• Strengthened EPC capabilities in the bioethanol segment, securing orders for grain-based projects aggregating 290 KLPD. |
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Cooling & Heating Solutions |
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• Achieved a breakthrough order for 28 hybrid closed-loop cooling towers for data centres. |
• Further expanded the green energy portfolio with a Letter of Award from |
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• Won a 2,000 TR steam-driven absorption chiller order along with four closed-loop cooling towers for a battery line project. |
Deendayal Port Authority for developing Indias first 5 TPD green methanol facility at Kandla Port, Gujarat. |
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• Delivered 2 x 930 TR steam-driven absorption chillers for a nuclear application. |
Thermax Babcock & Wilcox Energy Solutions Limited (TBWES) |
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• Executed an order for 2x2,500 TR steam-driven absorption chillers for the steel sector. |
0 Read more on page 86 Thermax Bioenergy Solutions Private Limited (TBSPL) |
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Air Pollution Control |
0 Read more on page 88 |
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• Secured a significant order from a major solar manufacturing company for a scrubber-based process exhaust package. |
GREEN SOLUTIONS |
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Thermax Onsite Energy Solutions Limited (TOESL) |
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Water and Waste Solutions |
0 Read more on page 93 |
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• Won a breakthrough order from a leading clean energy provider spanning solar, wind, green hydrogen and |
First Energy Private Limited (FEPL) |
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0 Read more on page 95 |
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Focus areas |
Highlights |
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Grow Services Portfolio |
Thermax provides a comprehensive array of services across its products and projects businesses, including operation and maintenance, plant upgrades, modernisation, and in-depth evaluations, to name a few. Major highlights across segments include: |
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INDUSTRIAL PRODUCTS |
INDUSTRIAL INFRA |
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Process Heat Solutions • The Steam Engineering business has launched SteamAssist, a user-friendly mobile application and centralised knowledge management system designed to enhance productivity, collaboration, and operational performance by enabling seamless access to training, engagement, marketing, and sales resources for teams and channel associates anytime, anywhere. |
Projects and Energy Solutions (P&ES) |
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• Strengthened capabilities in managing complex utility assets, with a focused approach on large-scale power plant O&M (>100 MW) and a key order secured in FY2025-26. |
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• Expanded digital offerings with an order from a leading global FMCG organisation for integrated utility digitalisation, enabling improved performance monitoring and optimisation. |
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Cooling and Heating Solutions |
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• EDGE Live scaled to 250+ installations in FY2025-26, with AI/ML-driven predictive models improving uptime, enabling online issue resolution, and achieving -90% prediction accuracy, supported by automated incident management and a 100% contract renewal rate. |
• Supported customers sustainability journeys through initiatives such as fuel transition from coal to biomass and asset revamps, enhancing efficiency, reducing emissions, and extending asset life. |
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Thermax Babcock & Wilcox Energy Solutions Limited (TBWES) |
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• Introduced value-added service tiers and solutions to upgrade legacy systems into high-efficiency, multienergy hybrid units, addressing key customer pain points. |
• Secured a contract for revamp of three travelling grate boilers for a chemical manufacturer in Colombia. |
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• End-to-end service lifecycle digitised, improving operational efficiency, service visibility and customer responsiveness. |
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Air Pollution Control |
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• Recorded highest-ever offshore services bookings across SEA power and industrial sectors. |
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Water & Waste Solutions |
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• Introduced the TSA Care initiative to strengthen after-sales service capabilities, enabling comprehensive lifecycle support and reinforcing the delivery of reliable, sustainable, and GMP (Good Manufacturing Practices)- compliant solutions for the efficient production of life-saving medicines. |
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Internationalisation |
Major export orders and those bagged by international subsidiaries for FY2025-26 across segments include: |
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INDUSTRIAL PRODUCTS |
INDUSTRIAL INFRA |
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Process Heat Solutions |
Projects and Energy Solutions (P&ES) |
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• 21 TPH reciprocating grate (RG) boiler capable of operating on 100% syngas, 100% biomass, or a combination (Philippines - food). |
(3 Read more on page 84 |
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Thermax Babcock & Wilcox Energy |
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Solutions Limited (TBWES) |
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• 28 TPH biomass-fired reciprocating grate (RG) boiler (Sri Lanka - rice). |
• 4x400 TPH utility boilers and associated systems (Nigeria - refinery). |
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• 5 x 16 TPH gas-fired boiler along with condensing economisers (Egypt - chemical). |
• 1 x 120 TPH supplementary fired heat recovery steam generator (UAE - onshore oil & gas). |
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Cooling and Heating Solutions |
• Three HRSGs and two fuel gas-fired boilers (UAE - onshore oil & gas). |
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• 10 x 2,782 TR medium-temperature hot water-driven absorption chillers and 13 x 1,330 TR low-temperature units (New Jersey - data centre). |
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GREEN SOLUTIONS |
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• 3 x 830 TR steam-driven absorption chillers (Russia - chemical). |
Thermax Onsite Energy Solutions Limited (TOESL) |
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• 738 TR steam-driven absorption heat pump (Lithuania - district heating). |
(3 Read more on page 93 |
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• 1,200 kW electric heat pump (UAE- beverage). |
CHEMICALS |
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Thermax Inc. |
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Air Pollution Control |
(3 Read more on page 99 |
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• Achieved near-zero emissions (1.4 mg/Nm3) (Malaysia - cement). |
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• 34 bag filters order (Turkey - lime kiln & coal grinding). |
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• Multiple bag filters & scrubber packages (Europe - cement). |
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• ESP orders (Dominican Republic & Colombia - palm oil). |
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Water and Waste Solutions |
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• Secured a water treatment plant and effluent treatment plant order (Paraguay - fertiliser). |
6. Financial Performance
A Revenue from Operations
During the year FY 2025-26, the group recorded an operating revenue of Rs. 10,694 crore as compared to Rs. 10,369 crore in the previous year. The basic earnings per share for the year was at Rs. 63.95 per share (previous year - Rs. 56.33) per share and diluted earnings per share was Rs. 63.94 (previous year - Rs. 56.31). The analysis of major items of the financial statements is given below:
| (in Rs. crore) | |||
| FY26 | FY25 | Change(%) | |
Revenue from projects and products |
9,464 | 9,094 | 4% |
Revenue from services |
1,002 | 1,052 | (5%) |
Revenue from power supply |
139 | 90 | 54% |
Finance income on leased assets |
37 | 32 | 16% |
Other operating revenue |
52 | 101 | (49%) |
Total revenue from operations |
10,694 | 10,369 | 3% |
The increase was primarily driven by growth in the Industrial Products and Green Solutions segments, which grew by 15% and 6% respectively, while the Industrial Infra and Chemicals segments declined by 7% and 0.8% respectively. Other operating revenue decreased mainly due to higher losses arising from exchange difference.
B Cost of Material Consumed
| (in Rs. crore) | |||
| FY26 | FY25 | Change(%) | |
Cost of material consumed |
5,560 | 5,794 | (4%) |
% of total revenue |
52% | 56% | (7%) |
Cost of material consumed has reduced material cost by 4% mainly due to change in the business mix. Also the previous years amount included project cost overruns on certain projects, which were not incurred in the current year.
C Employee Benefit Expenses
| (in Rs. crore) | |||
| FY26 | FY25 | Change(%) | |
Employee benefit expenses |
1,421 | 1,269 | 12% |
uurmg me year, employee oenem expenses increasea primarily on account or tne increment cycle, higher headcount in the services business and project execution teams, and employee incentive payouts.
D Other Expenses
| (in Rs. crore) | |||
| FY26 | FY25 | Change (%) | |
Consumption of stores and spare parts |
135 | 116 | 16% |
Power and fuel |
68 | 57 | 19% |
Freight and forwarding charges (net) |
236 | 215 | 10% |
Drawing, design and technical service charges |
60 | 58 | 3% |
Sales commission |
39 | 36 | 8% |
Advertisement and sales promotion |
39 | 31 | 26% |
Rent |
30 | 30 | - |
Rates and taxes |
24 | 16 | 50% |
Insurance |
26 | 21 | 24% |
Repairs and maintenance |
126 | 121 | 4% |
Travelling and conveyance |
131 | 114 | 15% |
Legal and professional fees (includes payment to auditors) |
180 | 163 | 10% |
Provision for doubtful advances (net) |
24 | 7 | 243% |
Warranty expenses (net) (Includes free of cost supply) |
46 | 45 | 2% |
Loss on sale/discard of assets (net) |
12 | 3 | 300% |
Expenditure on Corporate Social Responsibility |
14 | 11 | 27% |
| (in Rs. crone) | |||
| FY26 | FY25 | Change (%) | |
Miscellaneous expenses (includes printing, communication, security expense, etc.) |
65 | 70 | (7%) |
Total other expenses |
1,255 | 1,114 | 13% |
Less: Capitalised during the year |
(7) | (7) | 0% |
Net total other expenses |
1,248 | 1,107 | 13% |
Other expenses were higher compared to the previous financial year, primarily due to an increase in direct costs such as consumption of stores and spare parts and freight and forwarding charges, driven by higher operational activity and revenue.
There was also an uptick in legal and professional fees, as well as travel expenses, attributable to business growth and various new initiatives undertaken during the year. Furthermore, a provision has been created for doubtful advances.
E Site expenses and contract labour charges
| (in Rs. crone) | |||
| FY26 | FY25 | Change (%) | |
Site expenses and contract labour charges |
1,396 | 1,211 | 15% |
Site expenses increased during the period primarily due to higher project execution activities and increased operational requirements at project sites.
F Net impairment losses on financial and contract assets
| (in Rs. crone) | |||
| FY26 | FY25 | Change (%) | |
Net impairment losses on financial and contract assets |
43 | 81 | (47%) |
The ECL (expected credit loss) provision has decreased mainly because of improved customer collections during the year.
G Exceptional Items Gain/(Loss)
| (in Rs. crore) | |||
| FY26 | FY25 | Change (%) | |
Exceptional items gain/(loss) |
61 | - | 100% |
The currents year exceptional items include income from the reversal of provision for litigation and interest received on the Rashtriya Chemical Fertilizers (RCF) deposit. They also include the one-time statutory impact of the new labour codes.
H Property, Plant and Equipment
| (in Rs. crore) | |||
| FY26 | FY25 | Change (%) | |
Property, plant and equipment |
2,640 | 2,442 | 8% |
Capital work-in-progress |
1,392 | 561 | 148% |
Right-of-use assets |
228 | 174 | 31% |
Goodwill |
80 | 80 | - |
Other intangible assets |
99 | 111 | (11%) |
Intangible assets under development |
50 | 2 | 2400% |
Total property, plant and equipment |
4,489 | 3,370 | 39% |
The movement in the property, plant & equipment and capital work-in-progress is mainly due to solar assets under construction in First Energy Private Limited. Intangible assets under development include capitalised technical know-how.
Investments
| (in Rs. crore) | |||
| FY26 | FY25 | Change (%) | |
Non-current investments |
497 | 121 | 311% |
Current investments |
1,277 | 1,568 | (19%) |
Total investments |
1,774 | 1,689 | 5% |
Investments predominantly comprise debt mutual funds and investment in corporate bonds. The increase in non-current investments is primarily due to allocations with a tenure exceeding 12 months to achieve better returns.
J Trade Receivable
| (in Rs. crone) | |||
| FY26 | FY25 | Change (%) | |
Trade Receivable |
2,205 | 2,003 | 10% |
Increase is inline with increase in volume. K Contract Assets
| (in Rs. crone) | |||
I |
FY26 | FY25 | Change (%) |
Non-current contract assets |
- | 159 | -100% |
Current contract assets |
773 | 482 | 60% |
Total contract assets |
773 | 641 | 21% |
The increase is mainly due to an increase in retention amount and unbilled amount mainly in TBWES. L Cash Flow
| (in Rs. crone) | |||
| FY26 | FY25 | Change (%) | |
Net cash flows from operating activities |
542 | 1,080 | (50%) |
Net cash flows (used in) investing activities |
(587) | (1,272) | (54%) |
Net cash flows from financing activities |
248 | 122 | 103% |
Net increase in cash and cash equivalents |
203 | (70) | - |
The decrease in operating cash flow is due to increased execution activities, resulting in higher retention in the project business and lower customer advances during the current year. This has had a cascading effect on investing activities. Increase in financing activity due to additional borrowing taken during the year.
M Cash and cash equivalents and other bank balance
| (in Rs. crore) | |||
| FY26~ | FY25 | Change (%) | |
Cash and cash equivalents |
674 | 417 | 62% |
Other Bank Balance |
516 | 730 | (29%) |
Cash and cash equivalents and other bank balance |
1,190 | 1,147 | 4% |
The increase is mainly due to higher business collections as at the year end.
N Other Liabilities
| (in Rs. crone) | |||
I |
FY26 | FY25 | Change (%) |
Non-current other liabilities |
42 | 37 | 14% |
Current other liabilities |
2,111 | 2,088 | 1% |
Total other liabilities |
2,153 | 2,125 | 1% |
The increase is mainly attributable to an increase in customer advances as offset by decrease in unearned revenue.
O Borrowings
| (in Rs. crore) | |||
| FY26 | FY25 | Change (%) | |
Non-current borrowings |
1,616 | 1,162 | 39% |
Current borrowings |
672 | 532 | 26% |
Total borrowings |
2,288 | 1,694 | 35% |
The increase is primarily due to additional borrowings during the year, partially offset by repayments made.
P Other Assets
| (in Rs. crore) | |||
| FY26 | FY25 | Change (%) | |
Non-current other assets |
191 | 222 | (14%) |
Current other assets |
585 | 636 | (8%) |
Total other assets |
776 | 858 | (10%) |
The decrease is primarily attributable to reduction in deposit against litigation as offset by increase in higher balance with government authorities.
Financial Data at a Glance (10-Year Data)
All amounts are in rupees crore, except per share data and unless stated otherwise.
Particulars |
2025-26 | 2024-25 | 2023-24 | 2022-23 | 2021-22 | 2020-21 | 2019-20 | 2018-19 | 2017-18 | 2016-17 |
Domestic sales |
7,559 | 7,944 | 7,189 | 5,992 | 4,443 | 3,037 | 3,685 | 3,249 | 2,668 | 2,813 |
International sales / business |
3,084 | 2,324 | 2,048 | 2,042 | 1,621 | 1,673 | 1,970 | 2,637 | 1,703 | 1,573 |
% to Total sales |
29% | 23% | 22% | 25% | 27% | 36% | 35% | 45% | 39% | 36% |
Total sales |
10,643 | 10,268 | 9,237 | 8,034 | 6,064 | 4,710 | 5,655 | 5,886 | 4,371 | 4,386 |
Growth over previous period(s) |
4% | 11% | 15% | 32% | 29% | (17%) | (4%) | 35% | 0% | (13%) |
Other operating revenue |
52 | 102 | 86 | 56 | 64 | 81 | 76 | 87 | 94 | 97 |
Revenue from operations |
10,695 | 10,370 | 9,323 | 8,090 | 6,128 | 4,791 | 5,731 | 5,973 | 4,465 | 4,483 |
Other income |
267 | 252 | 233 | 160 | 127 | 108 | 100 | 150 | 116 | 114 |
Total income |
10,962 | 10,622 | 9,556 | 8,250 | 6,255 | 4,899 | 5,831 | 6,123 | 4,581 | 4,597 |
Total expenses excl. depre and finance cost |
9,668 | 9,461 | 8,526 | 7,492 | 5,707 | 4,435 | 5,324 | 5,516 | 4,064 | 4,049 |
Profit before depreciation, finance cost, exceptional items and tax |
1,294 | 1,161 | 1,030 | 758 | 548 | 464 | 507 | 607 | 517 | 548 |
(% to Total income) |
12% | 11% | 11% | 9% | 9% | 9% | 9% | 10% | 11% | 12% |
Depreciation |
208 | 159 | 148 | 117 | 113 | 115 | 117 | 92 | 82 | 82 |
Interest |
139 | 117 | 88 | 38 | 25 | 21 | 15 | 14 | 13 | 10 |
Exceptional items of (income) / expense |
(61) | - | (75) | - | - | 53 | - | 90 | - | 18 |
Profit before tax |
1,008 | 885 | 869 | 603 | 410 | 275 | 375 | 411 | 422 | 438 |
(% to Total income) |
9% | 8% | 9% | 7% | 7% | 6% | 6% | 7% | 9% | 10% |
Tax |
288 | 258 | 226 | 152 | 98 | 69 | 162 | 85 | 166 | 156 |
Profit after tax before non-controlling interest and share in loss of associate and joint venture |
720 | 627 | 643 | 451 | 312 | 206 | 213 | 326 | 256 | 282 |
Share in joint venture /associate loss |
- | - | (D | - | - | - | - | (D | (25) | (66) |
Non-controlling interest |
- | (8) | (2) | - | - | NA | NA | NA | NA | NA |
Profit after tax after non-controlling interest and share of loss in associate |
720 | 635 | 646 | 451 | 312 | 206 | 213 | 325 | 231 | 216 |
Other comprehensive income |
(19) | (2) | (9) | 0 | 8 | 17 | (9) | (22) | 27 | (19) |
Total comprehensive income attributable to |
701 | 625 | 634 | 451 | 320 | 223 | 204 | 302 | 258 | 197 |
Equity holders of the parent |
701 | 633 | 636 | 451 | 320 | 223 | 204 | 302 | 259 | 204 |
Non controlling interest |
- | (8) | (2) | - | - | - | - | - | (D | (7) |
Gross block |
6,145 | 4,831 | 3,753 | 2,903 | 2,396 | 2,352 | 2,255 | 2,236 | 1,741 | 1,515 |
Net block |
4,489 | 3,368 | 2,431 | 1,682 | 1,239 | 1,266 | 1,339 | 1,352 | 1,076 | 952 |
Investments |
1,774 | 1,689 | 1,746 | 1,610 | 1,470 | 234 | 875 | 829 | 1,472 | 1,083 |
Current assets |
7,109 | 6,687 | 6,448 | 6,072 | 4,738 | 4,466 | 3,977 | 4,737 | 4,102 | 3,297 |
Current liabilities |
5,820 | 5,009 | 4,725 | 4,409 | 3,758 | 3,071 | 2,787 | 3,654 | 3,079 | 2,365 |
Net current assets |
1,289 | 1,678 | 1,723 | 1,663 | 980 | 1,395 | 1,190 | 1,083 | 1,023 | 932 |
Capital employed |
7,166 | 6,099 | 5,229 | 4,292 | 3,553 | 3,273 | 3,061 | 3,050 | 2,768 | 2,585 |
Equity share capital |
23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 |
Reserves and surplus |
5,527 | 4,914 | 4,417 | 3,846 | 3,469 | 3,228 | 3,005 | 2,992 | 2,692 | 2,515 |
Networth |
5,550 | 4,937 | 4,440 | 3,869 | 3,492 | 3,251 | 3,028 | 3,015 | 2,715 | 2,538 |
Non-controlling interest |
29 | 6 | - | 2 | - | - | - | - | - | 1 |
Borrowings (long-term) |
1,616 | 1,162 | 789 | 423 | 61 | 22 | 33 | 35 | 53 | 46 |
Fixed asset turnover ratio (times) |
2.37 | 3.05 | 3.80 | 4.78 | 4.89 | 3.72 | 4.22 | 4.35 | 4.06 | 4.61 |
Working capital turnover ratio (times) |
8.26 | 6. 12 | 5.36 | 4.83 | 6.19 | 3.38 | 4.75 | 5.43 | 4.27 | 4. 71 |
Current ratio (times) |
1.22 | 1.33 | 1.36 | 1.38 | 1.26 | 1.45 | 1.43 | 1.30 | 1.33 | 1.39 |
Return on capital employed (%) |
15% | 16% | 17% | 15% | 12% | 11% | 13% | 14% | 15% | 15% |
Return on net worth (%) |
13% | 13% | 15% | 12% | 9% | 6% | 7% | 11% | 9% | 9% |
Cash earnings per share (Rs.) |
82.37 | 71.20 | 70.45 | 50.36 | 37.74 | 28.50 | 29.30 | 37.06 | 27.93 | 27.08 |
Earnings per share (Rs.) |
63.95 | 56.33 | 57.30 | 39.98 | 27.73 | 18.34 | 18.87 | 28.90 | 20.61 | 19.80 |
Dividend (%) |
1000% | 700% | 600% | 500% | 450% | 350% | 350% | 350% | 300% | 300% |
Book value per share (Rs.) |
492.64 | 438.29 | 394.23 | 342.52 | 310.08 | 288.68 | 268.88 | 267. 73 | 241.06 | 225.34 |
* It is interim dividend paid to shareholders
A
Dividend declared per share (Including a special dividend of Rs. 6 per share to commemorate Thermaxs 60th Anniversary)7. Key Opportunities and Threats
As market conditions change, we capitalise on opportunities and manage risks to drive innovation and operational excellence. This balanced strategy supports sustainable growth and enhances our Companys competitive advantage for all stakeholders.
^ Key Opportunities
Accelerating the Energy Transition: |
Driving Digital Transformation and Smart Manufacturing: |
Building Robust Infrastructure: |
With increased government emphasis on renewable energy and sustainable practices, we can capitalise on new incentives and expand demand for our clean, energy-efficient solutions. |
Our investment in digital technologies enhances operational efficiency, reduces costs, and improves product quality. This strengthens our competitive edge. |
As India continues to focus on infrastructure expansion, we see opportunities to supply integrated solutions in energy, water treatment, environmental management and construction chemicals. |
Expanding Globally: |
Focusing on R&D and Technological Innovation: |
Climate Change and Electrification: |
Emerging international markets focused on sustainability present us with opportunities to expand our Companys footprint and drive revenue growth beyond domestic boundaries. |
Our continued emphasis on research and development can yield breakthrough products and sustainable technologies, positioning our Company as a leader in the energy and X X environmental sectors. |
Climate-driven decarbonisation is accelerating the adoption of electrified and low-carbon industrial processes. |
This creates opportunities for Thermax to expand its portfolio of clean energy, electrification, and sustainability solutions. f \ S |
Key Threats |
||
Competing in a Crowded Market: |
Managing Regulatory and Policy risks: |
Navigating Economic and Market Uncertainty: |
We face intensifying competition from both domestic and international players in the energy and environmental sectors, which may lead to pricing pressures and margin compression. |
Shifts in environmental and energy policies, along with stricter regulatory requirements, could increase compliance obligations, raise costs, and affect business operations. <F |
Global economic volatility and domestic market fluctuations may affect capital expenditure and reduce demand for large industrial projects. |
Geopolitical Uncertainty |
Staying Ahead of Technological Change: |
Climate Change and Disruptive Energy Transition: |
Disruptions caused by geopolitical tensions, raw material price volatility, or logistical challenges can affect our production schedules and cost structures. (m) |
Rapid advancements may render our current processes or solutions less competitive unless we continuously innovate and adapt to emerging trends. |
The shift towards electrified and low-carbon technologies driven by climate change may reduce demand for certain conventional fuel-based and thermal solutions, impacting parts of Thermaxs existing portfolio. |
8. Others
8.1 Risk Management
Our Companys Enterprise Risk Management (ERM) framework regularly assesses key risks and business processes to ensure system resilience across all our locations. We identify potential exposures and recommend appropriate mitigation measures to safeguard our operations. For further details on our risk management practices, please refer to page 32.
8.2 Internal Controls
We maintain a robust system of internal controls, supported by our Internal Audit function, to assess the effectiveness and compliance of our financial and operational processes. Both our management and internal audit team routinely evaluate these controls to ensure alignment with regulatory standards and our business objectives.
We ensure our operating managers are regularly informed about relevant legal and regulatory changes that impact their areas of responsibility. We conduct monthly compliance checks to uphold adherence to these requirements.
To mitigate the risk of unethical conduct, we have fostered a strong ethical culture supported by a clear Code of Conduct and a well-defined Whistleblower Policy. In addition, by using enterprise resource planning (ERP) software across our operations, we ensure built-in controls and enable detailed analysis of variances between actual performance and planned targets.
This integrated approach to internal controls and organisational ethics significantly reduces the likelihood of misconduct and strengthens our governance.
8.3 Health, Safety and Environment (HSE)
At Thermax, safety continues to be a core organisational value and a leadership priority. During the year, the Company deeply regretted four fatalities across its operations and project sites. These incidents reinforced the need to further strengthen safety ownership, risk controls, and behavioural interventions across all levels.
The Company remains focused on building a proactive, behaviour-driven safety culture, ensuring that every employee, contractor, and stakeholder operates in a safe and responsible environment. HSE governance is driven by strong leadership oversight, structured policies, and continuous engagement across all business units. HSE performance is regularly reviewed at senior management and at the Board reinforcing accountability and enabling continuous improvement across operations.
During the year, Thermax further strengthened its safety framework through leadership engagement, digital enablement, capability building, and system-driven governance, while continuing to align with global standards and industry best practices.
Behaviour-Based Safety (BBS) & Safety Culture
Thermax continues to deepen its Behaviour-Based Safety (BBS) journey, embedding an ownership-led safety culture beyond compliance.
Key initiatives include:
• Visible Felt Leadership (VFL): Leaders actively demonstrate commitment through on-ground engagement, building trust and accountability
• Peer Observation and Real-time Feedback: Enabling early identification and correction of at-risk behaviours
• One Day Safety Officer initiative: 6,129 line managers participated, strengthening frontline safety ownership
• Life Saving Rules & Stop Work Authority: Empowering employees and contractors to proactively prevent unsafe acts
Additionally, structured analysis of critical risks is conducted across businesses, with designated leaders driving targeted interventions through engineering controls, process improvements, and focused training.
Thermax also successfully hosted the 10th National BBS Conference, bringing together over 150 HSE professionals, further strengthening its leadership in advancing behavioural safety and cross-industry knowledge sharing.
Capability Building & Training Excellence
A key focus area during the year has been strengthening training effectiveness and competency development.
• Implementation of a digital contractor training and competency management system, enabling:
O Role-based training identification
O Tracking of individual training hours
O Competency assessment and validation
• Virtual Reality (VR)-based safety training programme covering critical risk areas such as:
O Work at height
O Electrical safety
O Material handling
O Machine safety
Over 2,000 participants have been trained through immersive learning modules, improving hazard awareness and decision making.
• Structured HSE training programmes:
O IOSH Managing Safely certification: 131 participants
O ISO 45001 Lead Auditor training: 08 participants
• Mandatory HSE onboarding training for employees and contractors prior to site deployment
This shift from training quantity to training quality is significantly enhancing workforce capability and contributing to improved safety outcomes.
Strengthened Audit & Governance Framework
Thermax has enhanced its safety governance through a robust, multi-layered audit mechanism:
• Corporate safety audit team supported by crossfunctional experts
• Standardisation of 22 HSE procedures across all locations
• Development of comprehensive audit and inspection checklists
Alignment with:
O Internal Thermax standards
O International frameworks such as ISO 45001 and ISO 14001
Multiple surveillance and recertification audits were conducted across manufacturing plants, project sites, and business divisions by reputed certification bodies.
Audit findings are systematically reviewed at senior management levels, ensuring:
• Timely corrective and preventive actions
• Cross-learning across businesses
• Continuous improvement in safety performance
Technology-Led Safety Interventions
Thermax continues to leverage technology to enhance safety monitoring and prevention:
• Deployment of Al-enabled CCTV surveillance systems across locations for:
O Real-time identification of unsafe behaviours O Improved compliance monitoring O Data-driven safety interventions
• Implementation of the ‘Thermax LIFE HSE digital platform, enabling:
O Reporting of unsafe acts and conditions O Incident, inspection, and audit management O Action tracking to closure
O Real-time analytics for leadership decision-making
These initiatives are driving a transition towards predictive and preventive safety management.
Safety Culture & Awareness Initiatives
Thermax conducts structured safety campaigns and engagement programmes to strengthen awareness and participation:
• Quarterly safety campaigns covering key risk areas such as:
O Machine guarding, work at height, material handling O Heat stress, electrical safety, fire prevention O Road safety and near-miss reporting
National Safety Week 2026:
O Theme: Engage, Educate & Empower People to Enhance Safety
O Participation: over 15,000 employees, contractors, and workmen
• Road Safety Month, National Electrical Safety Week, and World First Aid Day observed across locations with training, competitions, and awareness programmes
• Surkshitata Bandhan initiative reinforcing collective responsibility for workplace safety
These initiatives foster engagement, awareness, and sustained behavioural change across the organisation.
Emergency Preparedness
All manufacturing units, project sites, and offices have established structured emergency response plans.
• Regular mock drills and evacuation exercises
• Fire safety and first aid training
• Emergency equipment inspections and readiness assessments
These measures ensure preparedness for emergencies and strengthen response capabilities across operations.
Visitor & Stakeholder Safety
Recognising the importance of safety beyond employees:
• Mandatory visitor safety induction programme implemented across all locations
• Active engagement with contractors and supply chain partners through:
O Training and capacity building
O On-site feedback and collaboration
This approach promotes a unified and resilient safety culture across the value chain.
Responsible Care - Chemicals Division
Thermaxs Chemicals business has achieved certification under the Responsible Care framework.
This globally recognised initiative promotes:
• Safe handling of chemicals
• Environmental protection
• Health and safety of employees and communities
• Transparent and ethical business practices
Recognitions & Achievements
Thermaxs sustained focus on safety excellence has been recognised through multiple awards and appreciations:
• BBS Awards from industry forums
• NSCI Safety Award for the Sri City facility
• Zero Accident Frequency Rate recognition for the Shirwal facility
• Excellence awards in HSE and risk management
• 217 customer appreciations received for outstanding safety performance
Update on Certifications and Audits of Manufacturing Plants and Projects in India and Overseas
9. Human Resources
Our Company, recognised for strong governance and ethical foundations, demonstrates a sustained commitment to skill development, employee engagement and overall wellbeing. We prioritise creating a safe, healthy and inclusive work environment that empowers our employees and drives enhanced performance.
0 Read more on page 44
10. Cautionary Statement
The Management Discussion and Analysis includes forwardlooking statements regarding future events and the financial and operational performance of the Thermax Group. These statements are based on certain assumptions and are subject to risks and uncertainties. Actual results may differ materially from those projected. Readers are advised not to place undue reliance on these forward-looking statements.
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