Thermax Limited (NSE:THERMAX) Just Released Its Full-Year Results And Analysts Are Updating Their Estimates

It's been a good week for Thermax Limited (NSE:THERMAX) shareholders, because the company has just released its latest annual results, and the shares gained 3.1% to ₹3,321. Thermax reported in line with analyst predictions, delivering revenues of ₹104b and statutory earnings per share of ₹56.31, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Our free stock report includes 1 warning sign investors should be aware of before investing in Thermax. Read for free now.

Following the latest results, Thermax's 21 analysts are now forecasting revenues of ₹117.6b in 2026. This would be a notable 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 23% to ₹69.51. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹119.5b and earnings per share (EPS) of ₹71.73 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

See our latest analysis for Thermax

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹3,501, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Thermax at ₹5,001 per share, while the most bearish prices it at ₹2,400. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Thermax's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% annually. Factoring in the forecast slowdown in growth, it looks like Thermax is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Thermax. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹3,501, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Thermax going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Thermax you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.