About this Integrated Report

We are pleased to present the Integrated Report for FY 2025-26, outlining how Thermax Limited (Thermax) and its group of companies create value for stakeholders in the short, medium, and long term. The report provides a comprehensive overview of our financial and non-financial performance, strategic priorities, governance framework, operating context and the key risks and opportunities shaping our future.

In line with SEBI regulations, we also publish our Business Responsibility and Sustainability Report (BRSR) for Thermax Limited, which details our stakeholder-relevant performance. To enhance clarity and avoid duplication, we have combined the Integrated Report and the BRSR into a single, cohesive document that delivers a balanced and concise perspective for all our stakeholders.

Throughout this report, the terms ‘Thermax,’ ‘Thermax Group,’ ‘the Group,’ ‘the Company,’ ‘your Company,’ ‘we,’ ‘our,’ and ‘us’ refer to Thermax Limited and/or our Group companies.

Framework, Guidelines and Standards

This Report has been prepared in alignment with the Integrated Reporting (<IR>) framework issued by the International Financial Reporting Standards (IFRS) Foundation, a global non-profit organisation, which promotes high-quality, globally accepted standards for financial and sustainability reporting. The non-financial disclosures contained herein are prepared with reference to the Global Reporting Initiative (GRI) Standards 2021.

The Report complies with the following regulatory and accounting requirements:

The Companies Act, 2013
The Indian Accounting Standards
Regulations issued by the Securities and Exchange Board of India (SEBI)
The Secretarial Standards issued by the Institute of Company Secretaries of India

The Report also outlines Thermax's contribution towards the United Nations Sustainable Development Goals (UN SDGs), reflecting our alignment with global sustainability priorities.

Boundary and Scope of Reporting

This Report encompasses information relating to the manufacturing facilities, products and solutions, operations and maintenance activities, and office locations of the Thermax Limited and its Group companies. The disclosures pertain to the period from April 1, 2025 to March 31, 2026, unless stated otherwise.

Responsibility Statement

The management, in its capacity as Those Charged With Governance (TCWG), has reviewed the contents of this Report and confirms, to the best of its knowledge, that it presents a fair and accurate account of the Company's performance and disclosures. The Board approved the publication of this Report on May 07, 2026.

Forward-Looking Statements

This Report contains certain forward-looking statements concerning Thermax's business operations. While these statements reflect our expectations, actual outcomes may differ materially due to various risks, uncertainties, and other key factors.

External Assurance

M/s. Price Waterhouse Chartered Accountants LLP has conducted reasonable assurance on the core KPIs of BRSR for the reporting year. This assurance has been conducted in accordance with:

Standards issued by the Sustainability Reporting Standards Board of Institute of Chartered Accountants of India (ICAI)
- Standard on Sustainability Assurance Engagements (SSAE) 3000 – Assurance Engagements on Sustainability Information
- Standard on Assurance Engagements (SAE) 3410 – Assurance Engagements on Greenhouse Gas Statements
International Standards issued by the International Auditing and Assurance Standards Board (IAASB)
- International Standard on Assurance Engagements (ISAE) 3000 (Revised) – Assurance Engagements Other than Audits or Reviews of Historical Financial Information
- ISAE 3410 – Assurance Engagements on Greenhouse Gas Statements

The Assurance Report, available on page 201, outlines the subject matter assessed, applicable criteria, procedures performed and the reasonable assurance opinion.

Value Creation Model