Thermax Limited has received a Credit Rating of CARE A1+ for its Commercial Papers from CareEdge Ratings Limited. The rating communication was received on January 12, 2026. The rating reflects the company's established market position in energy and environment solutions, strong execution capabilities, diversified product portfolio, and a robust financial risk profile characterized by low leverage, comfortable debt coverage indicators, and strong liquidity.

The company has experienced healthy growth in its operating performance over recent years, with its scale of operations growing at a compound annual growth rate (CAGR) of approximately 19% from FY22 to FY25. Operating profit margins have also shown a sustained increase, rising from 6.42% in FY22 to 9.25% in FY25. This improvement is attributed to better profitability in the industrial product and chemicals segments, which has helped offset lower margins in the industrial infra division and the nascent green solutions segment. Thermax has seen a steady increase in order inflow, supported by its execution capabilities in both domestic and international markets, leading to a sustained rise in its outstanding order book.

The financial risk profile of Thermax remains strong, supported by a comfortable capital structure and solid liquidity.