1. Opening Hook
Thermax finally did what markets hate and managements secretly love—dumped every possible problem into one quarter and called it “cleaning up.”
Low-margin refinery projects, FGD hangovers, bio-CNG experiments, and an engineering surprise at 92% completion all landed in Q2 like uninvited guests. Margins sulked, analysts panicked, and Ashish Bhandari calmly said, “Yes, this is the kitchen sink.”
The irony? Orders are improving, bad projects are nearly dead, and the company is actively saying “no” to ₹10,000 crore of low-quality work.
So while Q2 looked ugly, the real question is simple:
Is Thermax finally done paying for past sins, or is this just another chapter in the confession diary?
Read on. The damage, the denial, and the cautious optimism all make an appearance.
2. At a Glance
- Industrial Infra margins cratered – Old projects refused to leave quietly.
- Low-margin backlog shrinking fast – Management promises no reruns.
- Order growth guidance: 20%+ – Brave words after a painful quarter.
- Kitchen-sink provisioning taken – Hope markets appreciate honesty.
- Chemicals business weak – Capacity added first, volumes followed late.
- Second half expected strong – As always, H2 is the hero.
3. Management’s Key Commentary
“This should be the kitchen sink quarter.”
(Translation: We dumped everything bad here, please don’t ask again 😐)
“We had an engineering surprise at
92% completion.”
(Translation: Painfully rare, embarrassingly late, now fully provisioned.)
“We said no to nearly ₹10,000 crores of low-quality projects.”
(Translation: Growth sacrificed to save sanity 😏)
“What remains of low-margin backlog is getting very small.”
(Translation: The ghosts are packing their bags.)
“We expect a very strong second half in TBWES.”
(Translation: Boilers are back, finally.)
“Bio-CNG is stabilising, but still not commercially exciting.”
(Translation: Good idea, bad economics—for now.)
4. Numbers Decoded
| Segment / Item | What Happened | What It Really Means |
|---|---|---|
| Industrial Infra | Margin shock | Legacy projects hit hard |
| Low-margin backlog | ~₹570 cr | 62% exits in H2 |
| NRL refinery project | ~₹180 cr left | Lingering tail, manageable |
| Chemicals | Weak Q1–Q2 | Volume lag after capex |
| Order book outlook | +20% YoY | H2 doing heavy lifting |
| Services mix | Still low | Long-term margin lever |
One-liner: The past hurt, the present is messy, the future looks cleaner.
5. Analyst Questions
- Is this really the last negative surprise?
Management says yes—third-party engineering sign-off done. - Why orders were slow
