Rs 14 Final Dividend, Rs 6 Special Dividend: Engineering stock jumps 12% after strong Q4 results

Rs 14 Final Dividend, Rs 6 Special Dividend: Shares of Thermax surged as much as 12 per cent on Friday, May 8, after the heavy electrical equipment maker reported strong March quarter earnings and announced a dividend payout of Rs 20 per share for FY26.

At around 12:48 pm, Thermax shares were trading at Rs 14,654.30, up Rs 472 or 11.29 per cent on the NSE, sharply outperforming the benchmark NIFTY50, which was down 0.64 per cent.

Q4 profit rises 19 per cent

The Pune-based engineering company reported a consolidated net profit of Rs 244.28 crore for the January-March quarter, up 18.7 per cent from Rs 205.73 crore in the year-ago period.

Revenue from operations rose 12.5 per cent year-on-year to Rs 3,428.04 crore in Q4FY26, compared with Rs 3,046.40 crore a year earlier, driven by strong execution across segments.

Operational performance also remained healthy. EBITDA increased 22 per cent to Rs 374 crore, while operating margin improved 110 basis points to 10.92 per cent.

Order book strengthens

Investor sentiment was further supported by a sharp rise in order inflows and a robust order pipeline.

Thermax said its order balance stood at Rs 13,604 crore as of March 31, 2026, marking a 27 per cent increase from Rs 10,693 crore in the corresponding period last year.

Order booking during the quarter more than doubled to Rs 4,490 crore, compared with Rs 2,119 crore in the same quarter of the previous fiscal, indicating strong demand visibility.

During FY26, the company secured a breakthrough order for multiple hot water driven chillers with a combined capacity of 45,000 TR for a large data centre project in the US.

The company also commissioned an Electrostatic Precipitator (ESP) for a 35 TPH AFBC boiler aimed at improving particulate control and meeting emission compliance standards.

Rs 20 dividend announced

The board recommended a final dividend of Rs 14 per share. In addition, the company declared a special dividend of Rs 6 per share to mark Thermax’s 60th anniversary.

A dividend is a part of a company’s profit that is given to its shareholders as a reward for owning the company’s shares.

In simple words, if you buy shares of a company and the company earns good profit, it may share some money with investors. That money is called a dividend.

This takes the total dividend payout for FY26 to Rs 20 per equity share of face value Rs 2 each, subject to shareholder approval at the company’s upcoming AGM.

The record date for dividend eligibility has been fixed as July 3, 2026.

Stock rallies 46 per cent in 3 months

Thermax shares have gained nearly 46 per cent over the last three months, taking the company’s market capitalisation to around Rs 49,834 crore.

The stock is currently trading at a price-to-earnings ratio of 73.08 and a price-to-book ratio of 9.53, reflecting premium valuations amid strong growth expectations.

Shareholding data showed foreign institutional investors marginally reduced their stake in the March 2026 quarter to 11.25 per cent from 12.36 per cent in the previous quarter.