Thermax has received a 'Reduce' rating from Prabhudas Lilladher, with a revised target price of Rs 4,275, down from Rs 4,186. The company's FY25/26E EPS estimates have been adjusted downward due to a weaker margin profile.

Despite a year-on-year revenue growth of 10.6%, EBITDA margins have declined. The board has decided to avoid large super critical power projects in Industrial Infrastructure due to cash flow and execution risks. However, there is a positive outlook for large orders in sectors such as steel, petrochemicals, and refineries. The execution of significant orders in Botswana and the closure of less profitable FGD orders are expected to improve segment performance.

The Industrial Products segment is experiencing growth in water treatment and environmental solutions, although the small boiler business remains sluggish. Both Industrial Products and Chemicals are gaining traction in international markets, while the Green Solutions segment continues to expand its capacity.