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Thermax is exploring the sale of a stake exceeding 51% in its renewable energy subsidiary First Energy

ICICIdirect Research 09 Oct 2026 DISCLAIMER

News: Thermax is exploring the sale of a stake exceeding 51% in its renewable energy subsidiary First Energy , with an estimated enterprise value of ~₹3,000 crore, according to media reports. The company is working with advisors on the potential transaction. First Energy operates ~800MW of renewable capacity and provides captive, group-captive and open-access renewable power solutions to commercial and industrial (C&I) customers, including hybrid and battery storage offerings. The business has faced execution challenges, including right-of-way issues and coordination with state governments; Thermax acknowledged in its FY26 annual report that First Energy had underperformed expectations and was implementing corrective measures.

View: A strategic investor could provide capital, execution expertise and operational support to address First Energy’s project-delivery challenges and accelerate growth in the C&I renewable energy market. For Thermax, a potential stake sale could reduce the operational burden and unlock value from the subsidiary; however, the transaction remains exploratory, with valuation and proceeds dependent on the stake sold and deal structure.

Impact: Positive

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