A Legacy of Purpose,
A Future of Possibilities

My Dear Shareholders,

Sixty Years of Building with Purpose

The year under review holds special significance for all of us at Thermax. In 2026, we complete 60 years as an institution shaped by purpose, resilience, passion and the collective efforts of generations of Thermaxians and all our stakeholders. More than a milestone of longevity, it is an opportunity to reflect on the values that have guided us since the beginning — integrity, respect, responsible growth and creating value for every stakeholder.

This year also marked 30 years of Thermax's listing on the National Stock Exchange. The bell-ringing ceremony at the NSE was both nostalgic and humbling. It reminded me of my grandfather, Adi Bhathena, who laid the foundation of this institution; my father, Rohinton Aga, the visionary, who expanded and grew the portfolio and took the Company public in 1995; and my mother, Anu Aga, who steered Thermax through one of its most difficult phases with courage and conviction. It was also a reminder of the many people (both past and present) who have made this journey possible, with their passion and trust — our customers who believe in us, giving us an opportunity to improve their business; our vendors who have partnered with us in building solutions; our channel partners who have grown with us, carrying the Thermax brand; our communities that ground us in purpose; our shareholders who have placed their confidence and trust in us and our Board members, whose wisdom has guided us over the years.

Thank you all from the bottom of my heart.

Operating in a Changing Global Landscape

The year under review unfolded against a backdrop of considerable geopolitical uncertainty. Ongoing conflicts across regions, particularly in the Middle East, disrupted trade flows, impacted commodity prices and created volatility across logistics and global supply chains. These developments affected industries worldwide and had implications for some of Thermax's businesses, especially those dependent on international sourcing and exports to the Middle East.

At the same time, these uncertainties have reinforced an important reality. For India, ‘energy security’ has moved beyond economic necessity, to become a strategic imperative. The real challenge is to achieve energy security while accelerating energy transition and meeting decarbonisation goals. This is where Thermax believes it can create the most meaningful impact.

Amidst global uncertainty, India's economic trajectory remained a source of confidence. Real GDP growth held at approximately 7.6%, supported by the government's continued commitment to infrastructure investment, clean energy acceleration and industrial decarbonisation. Policy frameworks around bioenergy adoption, green hydrogen mobilisation, emission reduction norms and energy-efficient manufacturing continue to create direct and specific demand for energy and environmental solutions.

Business Performance and Strategic Progress

Despite the challenging global environment, the year was marked by steady progress across several areas of our business. We maintained healthy order inflows and built a robust order backlog of Rs. 13,604 crore with a marked improvement in the quality of orders. Although revenue growth was subdued at Rs. 10,694 crore, our profit after tax grew substantially to Rs. 720 crore. The Board has recommended a total dividend of Rs. 20 per equity share, which includes a one-time special dividend of Rs. 6 per share, to mark the Company's 60^th anniversary.

Our Industrial Products business continued to build strong momentum through innovative solutions in process heating, water and wastewater and air pollution control. Our engineering legacy of six decades gives us a deep understanding of industrial process realities. Products that enhance efficiency using AI-based controllers for boilers and heaters, are the natural evolution of that institutional knowledge, combining decades of application expertise with the possibilities of modern data science. Across our businesses, our EDGE Live platform monitors a number of customer assets across geographies, creating value for our customers through digital innovation.

The Water and Waste Solutions (WWS) business strengthened its position through new-age solutions in desalination, water recycling, zero liquid discharge and brine recovery, reflecting our focus on sustainable water management and the circular economy.

The entry of Cooling & Heating business into the US and India data centre markets, driven by the explosion in AI infrastructure demand, opens a new growth frontier. Our Air Pollution Control business also continued to strengthen its presence with multiple installations across international markets.

Industrial Infra received a landmark boiler package supply order of approximately Rs. 1,600 crore for a 1 × 800 MW ultra-supercritical thermal power plant in Central India, reinforcing the engineering credentials of the Company at the highest levels of complexity. We are also looking to establish India's first green methanol facility at Deendayal Port, Kandla, Gujarat, turning agricultural waste and local biomass into cleaner shipping fuels.

Part of our Green Solutions portfolio continued to strengthen during the year with TOESL (utilities on hire) leading the way. This vertical also forged through strategic partnerships and new initiatives that directly address India's energy challenges. Our recent collaboration with Norway-based HydrogenPro ASA enables us to offer market-ready alkaline electrolyser solutions in India.

Chemicals faced significant headwinds during the year — geopolitical disruptions, volatility in raw material prices, a constrained demand that has only recently begun to recover, and higher costs due to low capacity utilisation at a new plant. The Fortmax brand, born from our alliance with Oswaldo Cruz Química (OCQ), represents a move to highperformance speciality chemicals, where production has just commenced.

Navigating Challenges with Discipline

Amongst our Green Solutions vertical, First Energy Private Limited (FEPL) — a 100% subsidiary providing green power on solar and wind projects to the commercial and industrial segment, has not been performing as planned. Alongside the external environment, we continued to navigate operational complexities and execution challenges. The Company is implementing corrective measures to strengthen execution and improve delivery timelines. Thermax Bioenergy Solutions Private Limited (TBSPL), our bio-CNG business is in the process of commissioning and handing over plants across India. Although challenging, we have had significant learnings that can be applied to new orders going forward.

60 years of building an institution also means 60 years of accountability and responsibility, to every life entrusted to Thermax's care. Despite having strong safety systems and processes in place, we experienced four fatalities during the year — a matter of deep concern for all of us. The Board has discussed a fundamental reassessment of our safety governance structure at the leadership level, apart from continuous safety training and ensuring safety is embedded in our engineering.

Empowering People, Building the Future

At the heart of any enduring institution are its people and the culture they help shape every day. This year, we continued to invest in building our leadership pipeline through various leadership development programmes for our executives, senior and young leaders, building an internal pipeline. In order to listen more deeply, understand what matters to our employees, and act in a more structured manner, we have pivoted to an annual employee survey. Our focus on employee well-being through mental health support, learning opportunities and a culture of open dialogue, reflects our belief that people who feel valued and heard, are the foundation of everything we build. We remain encouraged by the commitment and positive energy we see across the organisation and are deeply grateful for it.

On behalf of our Board, I am pleased to welcome Kavita Singh to our Executive Council as Chief Human Resources Officer and look forward to her leadership in further strengthening our people practices and organisational culture.

Creating Impact Beyond Business

Anu has long believed that “business cannot succeed in a society that fails”. At Thermax Foundation, we have carved our work into three verticals: education and skilling (being the largest), agriculture and farming and animal welfare. We strengthened our educational outreach through project SETU with the Akanksha Foundation, scaling effective teaching-learning practices across Pimpri Chinchwad, Pune and Nagpur. We supported 1,484 young people through industry-aligned ITI programmes, each gaining the dignity of skilled work and a pathway to self-reliance.

Through the NGO Manavlok, we enabled 409 small farmers to adopt scientific practices and access export markets. We also embarked on something more ambitious — restoring agricultural land with energy crops across 500 acres, conceived by our late Board member Dr. Ravi Pandit with a clear and meaningful purpose. Through watershed development and sustainable biomass cultivation, we are creating community-led bioenergy value chains, while laying the foundation for biomass-to-green hydrogen opportunities, embodying our conviction that ecological restoration and rural prosperity are at the heart of energy transition.

Through our work in ‘Social Compact’, we continue to facilitate access to government schemes and social security for the unorganised sector.

Looking ahead, we also intend to extend our community work to animal welfare with a focus on reducing human-animal conflicts and fostering peaceful coexistence in Pune, to begin with.

This year, over 650 Thermaxians volunteered across these programmes, bringing genuine human connection and mentorship.

Remembering Dr. Ravi Pandit

In early May this year, we lost our highly valued Board member, Dr. Ravi Pandit, whose association with Thermax and contribution to Indian industry left a lasting impact on everyone who had the privilege of knowing him. Ravi embodied humility, wisdom and grace in leadership. He was deeply respected not only for his professional accomplishments, but also for the warmth, simplicity and integrity he brought to every interaction. For many of us, he was a trusted guide, a thoughtful voice and a cherished friend. He will be remembered with great affection and gratitude, and missed not just by Thermax, but by India.

Looking Ahead with Purpose and Confidence

At this year's Board retreat, we spent considerable time discussing how Thermax can move closer to its vision of becoming ‘globally respected’, through simpler processes, stronger and safer execution, higher quality standards, greater investment in R&D, internationalisation, deeper customer partnerships and development of our people.

As we enter our 60^th year, I find myself often thinking about what has made this organisation endure. What is truly distinct about this institution called Thermax? It is not our products, technologies or factories — it is our people.

I would like to express my sincere gratitude to our MD and CEO Ashish Bhandari, our leadership team, Board members, and every Thermaxian, for your unwavering motivation and dedication. My thanks to our customers, vendors, business and channel partners, shareholders, and communities for the trust and support that make ‘Thermax’ possible. It is this collective commitment that gives me confidence as we look to the future.

I look forward to continuing this journey together with renewed purpose, responsibility and confidence.