Thermax Limited (NSE: THERMAX) Q3 2026 Earnings Call dated Feb. 05, 2026
Corporate Participants:
Unidentified Speaker
Ashish Bhandari — MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER
Analysts:
Unidentified Participant
Jonas Bhutta — Analyst
Mohit Kumar — Analyst
Renu Baid Pugalia — Analyst
Parikshit Kandpal — Analyst
Amit Mahawar — Analyst
Aditya Bansa — Analyst
Amit Anwani — Analyst
Hardik Sharda — Analyst
Aditya Sahu — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Thermax Q3FY26 earnings call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kunal Shah from Dam Capital. Thank you. And over to you sir.
operator
Yeah. Hi, good afternoon. Welcome to the 3QF26 earnings call of Tomax Limited. We have the management today, Mr. Ashish. Bandari, MDN, CEO and Mr. Arunachalam Group. CFO and Executive Vice President. At this point I’ll hand over the. Floor to the management for their opening remarks. Thank you. And over to you sir.
Unidentified Speaker
Hello. A very good afternoon to everyone on the call and in these particular results that we have shared there’s a lot to unpack, there are some one time items, there are some exceptional items and just a lot to discuss. So without any further ado, let’s just jump in and we’ll go through the questions and answer them to the best of our ability. Rajendran and I, we are both on the call. Yeah. Let’s get going.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone phone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Jonas Bhuta from Birdla Mutual Fund. Please go ahead.
Jonas Bhutta
Good afternoon gentlemen. Thank you for the opportunity. Two quick questions. Firstly, Ashish, if you can give us an update on how the prospect list of new orders sort of looks like. Has it improved or deteriorated in the last three, six months and if at all there has been loss of market share? That sort of answers some bit of the slowness in order inflows that we’ve seen on the domestic side or it’s just deferral due to the geopolitical uncertainty that was prevailing at least up until December. That’s the first question.
Unidentified Speaker
Okay, thanks Jonas. And it was good and right of you to get the attention on domestic orders. There are two parts in play overall in industrial products where you see the ethanol market slowing down has had some reflection on our order book. Domestically which is part of what you see. The second thing is in industrial infra we have been very choosy in terms of what we wanted to do knowing that our overall pipeline was very good and with that in mind we were okay to pass on some opportunities to continue to focus on things that are important and relevant.
That said, I’ve shared frequently this year that I’m bullish on orders this year and Q2, Q3 were reflection of that bullishness. I think Q4 will not give you a reason to be disappointed either.
Jonas Bhutta
Understood. The second question was on the chemical segment which sort of saw significant contraction in its profitability. If you can quantify what is the recurring amount of fixed cost that has got added and sort of needs to be covered for going forward and how much of it is operating del leverage and it also sort of highlights the 4.5percent segmental margin sort of highlight even serious weakness on the base business. The existing business which you earlier alluded to saying is getting impacted by Chinese competition. So if you can unpack what’s happening in the chemical segment and how should we think through over the next 12 to 18 months as to how does this under recovery of fixed cost due to the new capacity sort of go away or continues to remain that.
Those are the two questions. Thank you so much.
Unidentified Speaker
Good question again Jonas. I mean your understanding of the Max’s business is spot on overall if I take a look at our chemicals business and we won’t compare to plan if I just compare it to to last year year to date we are about 50 crores off compared to last year which is a big number. This is at the PBT line which is a massive number of this 50 crores. The gross margin is a net wash or a slight increase over last year which means we are carrying about 50 crores in costs which are relating to things that we have added on for one reason or another.
And in our buckets, those there are three buckets in which you can put these costs of the 50 crores that we are off compared to Last year about 3/5 which is 60% of these relate to the new asset that we have added and the cost net off relative to the old asset that we had. So what I’m trying to say is is that the new asset that we have added has got depreciation that has been added. It is a more efficient plant compared to the old plant. But that efficiency improvement shows up in the gross margin number.
So the numbers that I’m talking about is not taking into gross margins here effectively with adding this new plant, we have net of the old plant added about 30 crores of costs which given our lack of increase in volumes is something that we need to continue to account for first. Second, for the growth that we want to do which is construction, chemicals, Fortmax, some of the international expenses, expansions, etc. That we have done. That is the other 20% that is added on and the last 20% is base cost increase, salary increases, TNL, GNA, expense increase, etc.
So in some ways the 40% which is 20 and 20 we were prepared for and a portion of 60 also we were prepared for. But so much reduction relative to our expectation in volume and relative to the plants. And I’ve been saying we really wanted chemicals to grow until Q3. We have not shown in Q4 you will start to see bit of that reversal starting to show up as well in North America at least. And this is not relating to the tariff. Some of the share loss that we had will reverse and you will start to see that in Q4 numbers already and starting to show up in next year’s numbers because some of the customers that we have gotten back are long term customers.
The 20% that you see which is relating to some of our growth investments will also reduce but will not go away because we know for a period we will be continuing to invest net net. I think you will see the chemicals numbers starting to improve, get closer to the 10% number. But in our estimate, at least for the next year, we are off from the 17% profitability that chemicals was at. We are right now closer to trying to get the business to 13, 14% EBITDA. About double digits in profitability, but still extremely bullish on the prospects for growth.
Jonas Bhutta
Appreciate and all the best. Thank you.
operator
Thank you. The next question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Yeah, good afternoon and thanks for the opportunity. My first question is on industrial products. The EBIT for industrial products hasn’t grown despite strong growth in the top line. And part of the reason of course it declined in EBIT margin compared to last year. My question how one should think about the growth and the EBIT margin for the next 12 to 18 months in the business.
Ashish Bhandari
I think reasonably bullish. You will see, I think in industrial products it is not that year to date. To me our revenue performance is very good. Our backlog is building up nicely. I think we need one very good quarter on revenue which I expect and you will see some of that profitability coming back. I suspect we will not reach the profitability that we showed in industrial products last year. And I said that previously as well because our most profitable product line, which is heating, was growing relatively slower compared to Enviro. Enviro is our clean air product line.
And so guys, there’s a lot of feedback that I’m getting from somebody go on mute please, if you’re not speaking. If you can, please go on mute.
operator
So, Mohit, requesting you to kindly stay away from the mic because your breath is causing the noise. Thank you, management. You can continue. Sorry,
Ashish Bhandari
you can continue to breathe, but no, no, no, it’s perfectly okay, guys. We all do that. Not a problem at all. My apologies for calling it out. So we knew the mix was such that the numbers would come down, but it was a slight reduction over last year. Today right now we are tracking below 10%, which is something that you will see in Q4. As our revenue comes up, a lot of that profitability will also show up. The second thing that I would say is one of the good things which is happening is that within our industrial products platform, our cooling product line, which is also relatively profitable, where we have very specific ip, is starting to make its presence in data centers.
And in this last quarter we have had two wins, one domestic, one international, which together are substantial and potentially call out a larger pipeline which is possible. And that gives me a lot of comfort that the mix that we have and the growth that we have in industrial products is something that we can sustain.
Mohit Kumar
Understood. My second question, can you just help us with the prospects on the refinery side and the expected finalization of tenders given that the three large refineries are getting built up? Right. So are you seeing some. Are you hopeful of some closure over the next 12 to 18 months?
Ashish Bhandari
I would say yes. 12 to 18 months is the right time frame. Our pipeline overall in industrial infra continues to be good. Refineries also there is a pipeline, but we are lot more overall sanguine in terms of the kinds of opportunities we want to pursue. And certainly very large projects where there is significant construction and civil and if it is government related, is something we will be very, very careful about. Because what we have seen is time and again these projects get delayed because of matters which are not entirely in our control. But then we get left with the back end related costs and everything else.
So we are lot more comfortable with the pipeline that we have and we will look at refining and petrochemical, but not necessarily trying to go for a really big number or anything. If it has got significant civil and Construction then we will prefer to stay back. If it has got higher portion of like our equipment then we would of course bid on it. There’s a reasonable pipeline for both models.
Mohit Kumar
Understood. Thank you. All the best.
Ashish Bhandari
Thank you.
operator
Thank you. The next question is on the line of renu bed from IIFL Capital. Please go ahead.
Renu Baid Pugalia
Good afternoon and thank you for the opportunity. So my first question is if you can dwell a bit more on the order prospect pipeline covering broad based infra as well as industrial products. On the backdrop that we were sharing in the domestic market last three to four quarters there have been consistent delay in decision making on large projects. Recently we heard lnt receiving reasonable large steel project. So do you think decision making now tends to improve given uncertainty related to tariffs are broadly behind? And what is your outlook on pickup and private sector investments and the project pipeline, the domestic market?
Ashish Bhandari
Look, I think the private capex I still don’t see a much larger pickup which is broad based. Not yet. Yeah. And the tariff thing is very, very recent. So we have to see and I will in all of this I would leave the ethanol sector out here because the ethanol sector is going through a tougher period and we see many projects getting sold and all that. We have been fortunate. We have I think at least four orders where we have a handshake but we haven’t booked them. We haven’t done anything because we knew the projects had not closed financially. And what we are seeing is financial closure for many ethanol projects is very difficult. So if I leave those projects, the rest of it is reasonable.
I wouldn’t say like broad based is very good yet it has the potential to be very good, but not yet. That said, our pipeline of projects both large and small continues to be very healthy. Driven as much by international as by domestic. And you will see in this last quarter actually 50% of our product of our business was international compared to domestic. Of course if you have one large order which is international dangote that helps. But even beyond that we had was less than 600 crores. But overall our international number for the quarter was 1400 plus crores.
So there was a lot of other stuff that came in internationally as well, including the data center wins that we mentioned. So it was a good quarter internationally overall Also the pipeline remains decent and as you know, international typically is more profitable for us than domestic.
Renu Baid Pugalia
Got it. Secondly, you did allude to that company will selectively look at participation for boiler orders in domestic space. So how are we looking at order pipeline prospects in that segment? And recently we have seen Adani placing an order on TBW China for boiler components. Do you think given our relationship, which you’d had with TBW previously, there is any place for Thermax on that opportunity?
Mohit Kumar
On that specific opportunity? And that is not to tbw, that is to BNW China, sorry, BMW China. Yeah. So we don’t have a specific role to play on that one. Our supercritical pipeline continues to be, continues to be there. I think until we close something or we walk away saying this is no longer in play, you will have to be patient. I would say though, that power overall, not just supercritical, even subcritical, even captive power for utility or even for captive power, not utility, captive power and subcritical. Both of those is a pipeline that is also, as I’ve been saying, developed the highest that I have seen in the last two, three years.
Multiple customers in India and even a couple internationally and a subcritical utility and supercritical. That whole opportunity set is reasonably big.
Renu Baid Pugalia
And decision making could be expected early part of next financial year or it. May take longer or
Mohit Kumar
this year and early part of next financial year both.
Renu Baid Pugalia
Got it. Got it. Thank you. And still. Thank you.
operator
Thank you. The next question is on the line of Parikshit Kanpal from HDFC Securities. Please go ahead.
Parikshit Kandpal
Hi Ashish, Congratulations on a decent quarter. So first question in the last call. You had highlighted that in Q3 you tried to replicate both in Q3 and Q4, Levanese of Q4 last year, if you were expecting a significant pickup in execution, which reported execution was slightly softer. So what were the reasons behind it or any issues around execution you’re facing currently?
Ashish Bhandari
I think it just as I said last time, also that Q3 I had expected to be better, but many of our customers were reporting continued delays and the rains went right into October this year. So even Q3 got impacted at the beginning part. As I see right now, there are some minor cases of customers who are delaying revenue pickup for one reason or another. But I would say 9 out of 10 things are green and I expect to do, I would say double digit better than last year in revenue and a reasonably good profitable quarter, setting us up for next year with a backlog which is quite substantially better both in quantity and quality compared to the backlog we have.
Parikshit Kandpal
Just to clarify, the double digit is for the year as a whole, right?
Ashish Bhandari
No, no, double digit is quarter over quarter because until now we are barely, we are barely 1% or so ahead in revenue compared to last year. So I don’t think I can. We can do double digit for year on year but Certainly very good Q4 but setting us as I said up for a very good beyond.
Parikshit Kandpal
Second question. On the last call you had said that you will give some more color on data center prospects and opportunity or the dam. So, so you’ve already won orders. So if you can help us understand what is our play here and what kind of tam. One can look at both domestic and international markets.
Ashish Bhandari
So both domestic and international the TAM is very high and the product that we have has got a unique fit which is also very good in the sense that once the application we are able to prove the customer that from an engineering point of view we can do what we say we are doing. Then price is almost secondary and competition is also secondary. And this is international more so than domestic. The one, the win that we have had is a single order which is one of the largest we have had in schooling and that is for one of the marquee data center names in the US and you know, it is still just a very small number in the grand scheme of things.
So the question is how much more can we do. The good part is now with two wins, one in India, one international, our name is there now we are getting calls and we are getting asked and with the tariff getting addressed it should only make things easier I suspect both in tbw. Yes. And in cooling in this coming year we will be talking about increasing capacity and capex investments.
Parikshit Kandpal
On the cooling. So what is the product exactly for the data centers from after heating to cooling? That’s the product.
Ashish Bhandari
So I can share but you will have to go through our notes and for competitive reasons we’ll still not share what is the product. Yeah, and we will leave this, let it run for a bit longer and, and when it’s the right time we will share. Yeah, but it is something that we will continue to talk about and if you read our social media and all you will get some examples. But broadly we still keeping this very close to our chest.
Parikshit Kandpal
Okay.
Ashish Bhandari
Good. The margins are very good.
Parikshit Kandpal
Okay, sure. Thank you.
operator
Thank you. The next question is from the line of Amit Mahavar from ubs. Please go ahead.
Amit Mahawar
Hi Ashish.
Ashish Bhandari
Hi.
Amit Mahawar
My question is more for second segment. Segment one is very well taken care and I’m not worried about the margins that will eventually come with the mix. But in second segment are you happy with the the conversion rate of pipeline? You know, second segment houses TBW also which is having a cyclically favorable time on the industry but somehow we are yet to see more orders. So any Color on how should we think about you know this year, maybe next year orders for industrial and quick question on you know should we now assume you know I was reading the PPT which says that last year was the provision but this quarter doesn’t.
So can I see that as a recurring margin indicator for the max? Thank you.
Amit Mahawar
I think in what you see as a recurring margin there is still an overhang of the poor projects that we are continuing to carry. We and you can see that in the sub numbers if you take a look at TBSPL which is our biocng projects we reported a loss even in this quarter and all of practically our entire portfolio of TBSPL is going to go through PGTR this quarter and next quarter. Yeah and between those two quarters we expect to convert that into revenue and also move them from a red line to a black line.
We continue to carry NRL at a zero cost. We continue to carry FGDs at a relatively low profitability. Almost all of that between Q4, Q1, Q2 will get resolved after Q2 the only thing that will continue is NRL which also next year we should close out almost entirely in our estimates entirely. So I think this quarter was okay. Yeah. Now I have confidence based on the backlog that we have also that backlog is international fair bit even the domestic stuff we are taking is better in margins I think where you are which we can do substantially better and we will do substantially better and I wouldn’t say tbwes numbers are bad at all yet.
TBW 3/4 in a row has done what’s our order book on TBW is 2,700, 2,800 crores year to date. I think it’s somewhere there and in three quarters has already done more than what it did last year or close to and we have got a whole quarter to go through and we have a very good pipeline for Q4 as well. I think we see tbwes again as a place where on the current path it is on we may run out of capacity before anything else.
Amit Mahawar
That’s good to hear. Quick one last one from me. You mentioned about the quality of book changing and we can see the orders, the type of orders are very very clearly different than the ones taken in last couple of years, maybe 27, 28. Do you want to say that in industrial infra we can comfortably maintain you know a 10% margin band and you can give us some color on the type of orders. You know the closure speed and the capacity you have on the second segment. That’s it. Thank you.
Ashish Bhandari
The quality Right now, at least in this year is actually better than what I expect the mean to be. Yes, because we have had more international orders than we typically do. I do think in the next couple of quarters both on the EPC side and domestic we will see more pickup and more domestic projects like I had mentioned on the power side starting to show up. Overall from a direction perspective I’m comfortable with the number that you have stated the immediate past the orders that we have booked are perhaps better than that number but as we look forward some of what we may look for will dilute it somewhat.
Net net. I’m comfortable with the range that you are talking about. Absolutely
Amit Mahawar
sure. Thank you Ashish and good luck.
operator
Thank you. Participants who wish to ask a question may press star and one on their touchstone telephone. The next question is from the line of Mehul Panjanani from 40 cents please go ahead.
Unidentified Participant
Hello sir, thank you so much for the opportunity. Sir, my first question is with regards to the Dangote Industries order. So how long will it take to execute the complete order and when will we recognize the revenues?
Ashish Bhandari
Revenue we recognize on a periodic basis as we finish it the whole project Delivery is about 18 months but a reasonable revenue we will recognize in the next year, next year itself. Yeah, but the whole execution is 18 months.
Unidentified Participant
And sir what about what impact would. I mean there’s a slide on in a presentation on the input cost but given the commodity situation globally is very very is quite flaky. What kind of impact which it will have on if the prices have to rise from here on how would it impact it?
Ashish Bhandari
Look right now copper, steel are both going up. That is a slight negative on the business. I would only say it’s a slight negative because overall the commodity pressure is I think just starting to be seen. If it gets worse from this point on it could get substantial. But right now also there is a slight commodity pressure of the kind that we haven’t seen in the last couple of years especially in the projects business where we also have bit of an advantage of a cheaper rupee. We are looking to retire our risk by placing orders as early as we can and locking our margins and everything to the extent that we can.
But we do carry little bit of residual risk and I think in the last month to two months we have started to look at the commodity prices lot more carefully than what we have done in the last year or so and we are tracking a number internally on if what moves what what would the impact be to Thermax that work is going on and I Mean Rajendran shares that with me regularly.
Unidentified Participant
Sorry, please.
Ashish Bhandari
No, no, that’s it. Yeah.
Unidentified Participant
Answer regarding the data center sector opportunity, I mean I heard you respond to the question that we have two orders, one from US and market layer. So what kind of, what kind of revenues can we, what kind of orders can we see from the data from that?
Ashish Bhandari
I think our board, everyone is asking the same questions. The range is quite wide right now so we just have to be patient. The first one was very important and we loved what we saw. The question is can you, how many more can you do? And I guess we will know over the next with each passing quarter. The range of possibilities is very wide.
Unidentified Participant
And since we have been in this business, is it, what is it? Why is it that we have got into this sector only very recently?
Ashish Bhandari
No, see we were always in cooling and in cooling we have a few set of capabilities which are very unique and in some of those cases our IP is not just best in India, it is best globally as well in cases. And so when we are able to establish the value of that IP then the story changes. It’s always been part of our portfolio. The application specific out here, applying that IP to that application. That is something that is not new. We have been working on it for the past year and a half. It is only now that the success is starting to show up.
Unidentified Participant
Right. So my last question in this market win in US did we have competition from all over the globe or just the us.
Ashish Bhandari
Actually. With some amount of bravado I would say neither. You have to sell the application. Once you sell the application your competition is largely only from China.
Unidentified Participant
Okay, thank you so much sir and good luck to you.
Ashish Bhandari
Thank you.
operator
Thank you. The next question is in the line of Aditya from Kotak Institutional Equities. Please go ahead. Yeah.
Aditya Bansa
Hello everyone and thank you for the opportunity. The first question that I had was on the margins in the industrial product segment as in my understanding was given your comments last time around that mix would start turning supportive from the third quarter and then so margins and I’m assuming none of the RM headwinds would have hit you at in century Q It says some bit confused as to why the margins have kind of gone down when the commentary was that the mix will improve only.
Ashish Bhandari
I agree and it was disappointing. I think it was largely not. I think I know it is largely because on volume we underperformed relative to expectations and you will see Q4 some of that reversing. Yeah, Q4 so far is good and I am bullish on what we can show on all metrics in Q4.
Aditya Bansa
Understood. Just going to the segment too which. Is the industrial project, industrial Instram and some of those issues that were hitting you last quarter also are still hitting you this quarter on bioenergy and other aspects. Why has the margin shown an improvement then? Could you just explain us better? Is there any one off inside?
Ashish Bhandari
No, no, there’s no one off. Last quarter we took a big hit here. So that pulled the whole number down. I think across the board we are stabilizing and as I’ve shared, what is driving that stabilization is also very minutely and at a micro level managed and without those last time we had a negative one off. If you remove all of last time’s negative one off and the stability that we are seeing, that was the normalizing factor in projects you do have some positive and negative moves. Barring surprises in the periods that are coming, I see more positive moves than negative moves.
Aditya Bansa
Understood. And do you understand that the commentary on chemical segment that you made of 4Q making you reach toward 250 crore kind of business level number maybe on the other and close is still a possibility or that may get deferred?
Ashish Bhandari
No, no, very much a possibility. Not just a possibility, very much an expectation.
Aditya Bansa
Understood. Those are my questions. Thank you for responding.
Ashish Bhandari
Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the Touchstone telephone. The next question is on the line of Amit Anwani from PL Capital. Please go ahead.
Amit Anwani
Hello. Hi. So thank you for the opportunity. So first question on if you could give us an update on the green solutions business this time and where are we in terms of the megawatt addition? And we were facing some delays with I think couple of projects earlier. So target for megawatt addition and update on the green solutions business.
Ashish Bhandari
So Green Solutions Tosal good. Not that happy with orders in tosil in Q3. I mean they were practically zero Q4 I expect to be lot better. In terms of sorry, Hydrogen. We continue to make investments. We continue to carry a team of about 40 odd people that are just cost to the system right now. And then finally FEPL in this particular quarter we have see we are executing right now five projects of those projects. There are two very specific projects that are, that are two of. I mean and specifically there is a partner that we had for these projects who has gone through financial trouble and which has been a massive drain on Thomax based on delays that we have had of those two projects.
One project got finished in January and a substantial portion of the second project will get done this quarter as well. So we have got in that sense under performance in fepl. Our projections overall are that the new projects that we are doing which will start showing up in end of March and then finish off in June are some of the best projects that we are performing and have profitability, which is substantially better than anything we have done in the past. And because the projects are close to their end, we can see that end of sight as well.
I would say overall in terms of megawattage, this year we will add another 250 megawatts. And then next year we will get to close to 700 megawatts and close to 1.1 gigawatts in FY28. That is the plan that we have in between. We will look to monetize this business through some form or another. What that form looks like is something we are looking to work through.
Amit Anwani
Sure. So second question on the cooling business which you highlighted. We got the orders for data center. Just wanted to understand. I think you have, I can recollect you also talked about heating as an application for international market which is where we have the capability. Just wanted to understand ballpark what can be the addressable market for this kind of applications in a typical 1 megawatt data center. And for us can this area really scale up as a part of industrial product over next couple of years? Any understanding on.
Ashish Bhandari
At the core how the powering of the data center happens drives a lot how the fit of a Thermat solution happens. Which means that the way data centers are being powered in North America, which is different from anywhere else in the world there the value that we can add is substantially more than how the data centers are being powered in the rest of the world. Even in the rest of the world we have a specific solution which is value accretive which is what we have won in India. But the solution that is in North America is different from that solution.
And in the solution that we have for North America, our relative competition is lesser, the value add is more and the size of the opportunity is also bigger.
Amit Anwani
Right. So and in terms of solution, how is the like other already players supplying this and you’re able to win because of the product. Some color on competitiveness here still forming. Yeah,
Ashish Bhandari
it was maybe 2, 3/4 more than we can share. Yeah. Right now we would still like to keep it close to the chest.
Amit Anwani
Thank you.
Ashish Bhandari
We’ve spent a year and a half working this. So now we do work this a little longer before we share more.
Amit Anwani
Thank you sir. Thank you so much.
operator
Thank you. The next question is from the line of Hardik Sharda from Mavira amc. Please go ahead.
Hardik Sharda
Hi sir, good afternoon. I just wanted to know recently government. Has outlayed 20,000 crore for carbon capture. So how is Max positioned to tap this opportunity?
Ashish Bhandari
Very excited about that, very aligned. I think we have one of the best R and D programs domestically on carbon capture and also partnering with some of the global names on EPC capability around carbon capture. I look at it favorably. All I would say it’s early days because we’ve seen that with coal gasification also between outlay and how it gets dispersed, there could be a lot of things that can go wrong. And how the tenders and how this money will be outlayed and how will it be given. All of that needs to be studied. But first reaction, we love the idea and bullish on this.
Hardik Sharda
Could you highlight a few global EPC players?
Ashish Bhandari
No, because these are all things that you work on. So it is not right again to share but for some time I would share though that in India if you take a look, there was a project which got bid out for Kandla Port for biomass to ethanol. And I’m saying I’m calling this out because in that particular project Hermax was the winner. It’s a relatively small project, below 100 crores. But HerMax won it by delivering completely India based technology which means we built a solution for biomass classification along with the domestic partner. And the methanol island which is converting Finglas to methanol is completely homegrown technology and capability which we had demonstrated as part of our coal gasification project as well.
So some of these pathways which we have been working on are now starting to become interesting and even in carbon capture eventually after you capture you will need some monetization on how do I monetize this carbon capture, how do I utilize it? Many of those utilization pathways also Thermax has got current experience and also working with global licenses on potential technology partnerships as well.
Hardik Sharda
Got it. Thank you sir.
Ashish Bhandari
Thank you.
operator
Thank you. The next question is from the line of Aditya Shahu from HDFC Securities. Please go ahead.
Aditya Sahu
Hi sir. Thanks a lot for the opportunity. A while ago you had mentioned that you know, the data centers in the US are different. So is it possible if you can. Throw some light and elaborate a little. On how the data centers are different in US versus Europe or versus Asia?
Ashish Bhandari
I’ll leave it at that. Yeah, I think give us a couple of quarters. Let’s see how much of a Run do we have and then we can come and talk about it. Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone.
Ashish Bhandari
I think that’s it. No more questions?
operator
No, sir. Thank you very much, ladies and gentlemen. That was the last question. I would now hand the conference over to the management for the closing comments.
Ashish Bhandari
Thank you very much to everyone that’s on the call. Appreciate your patience also, I guess your patience also in terms of how we work on our numbers and. And everything. To me the quarter was okay, not, not great because on revenue and profitability we should have done better. But I take continued strength from a. The order book, the quality of our order book. I guess not having negative surprises is also a good thing. Given how we have disappointed in the past. I would say of the. I mean the categories in terms of NRL, BioCNG and FGD, they remain.
We haven’t added anything to the list and all three of these categories, we continue to work them down, down, down, down to the point that at least in turn, and I would add FEPL to this also, which is a different kind of thing, but again, places where we need to continue to improve execution. So to that list, nothing got added, no negative surprises. I really like how we have been able to win internationally against global competition. Being able to open up new application sets. I’m excited about that possibility and continue to be bullish on orders in the short to medium term on what we have.
Yeah. So that’s it. Thank you very much for listening to us and I look forward to sharing more as we continue to make progress. Thank you.
operator
Thank you sir. On behalf of DAM Capital Advisors limited that concludes this conference. Thank you for joining us. You may now disconnect your lines.