UBS has maintained its ‘Buy’ rating on Thermax, with a target price of ₹4,100, citing robust execution and improving profitability, even as the company saw an 8% YoY decline in order inflows during Q4FY25.
Revenue and EBITDA grew by 12% and 10% YoY, respectively, broadly in line with expectations. EBITDA missed consensus by just 2%, and margins held firm. UBS noted that Thermax’s industrial products segment showed impressive growth, with revenue rising 18% and PBIT surging 47% YoY. The PBIT margin stood at a solid 14.4%, reflecting a healthy mix and execution efficiency.
Despite the shortfall in orders, UBS remains confident in Thermax’s positioning to benefit from the clean energy transition, industrial capex recovery, and global decarbonisation trends. The brokerage sees demand tailwinds in process heating, water treatment, and emission control solutions continuing over the medium term.
UBS believes Thermax’s diversified portfolio, improving return ratios, and prudent capital allocation offer a compelling long-term investment opportunity, particularly for investors looking for exposure to India’s industrial upcycle.
