Thermax achieved a strong 13% year-on-year increase in revenue for Q2 FY2025, driven by solid performance across all segments. The company's revenue and profit were positively impacted by a Rs. 66 crore accrual from the Maharashtra government's Packaged Incentive Scheme.

Operating profit rose by 36% year-on-year to Rs. 278 crore, with an improvement of 176 basis points in the operating profit margin. Adjusted PAT increased by 24% year-on-year to Rs. 197 crore, surpassing expectations of Rs. 180 crore.

Order bookings experienced a significant 70% year-on-year growth, supported by two substantial contracts totaling Rs. 1,029 crore for an energy project from an industrial conglomerate in Botswana, South Africa. Despite these positive developments, the outlook remains cautious due to weak order book visibility and high valuation multiples. Thermax's current trading multiples are approximately 63x and 55x its estimated EPS for FY2026 and FY2027, respectively. Sharekhan maintains a "Hold" rating on the stock, indicating that the company's future growth prospects related to investments in green energy are already reflected in the current stock price.