Thermax shares jump 7% as talks emerge over First Energy stake sale

Thermax's shares surged by roughly 7% to ₹3,350 on the BSE after reports surfaced that the company is exploring the sale of a controlling stake in its renewable subsidiary, First Energy. The proposed transaction could involve more than 51% of First Energy, which is estimated to have an enterprise value of about ₹3,000 crore and operates around 800 MW of renewable assets. First Energy provides captive, group-captive and open-access power, including hybrid and battery storage, but has struggled with right-of-way and state-government coordination issues, prompting corrective measures noted in Thermax's FY26 annual report.

A strategic buyer could supply the needed capital and execution expertise to address these challenges and accelerate growth in the commercial-industrial renewable market. For Thermax, the sale could reduce operational load and unlock subsidiary value, though the exact valuation and proceeds will depend on the final stake and deal structure. The stock's rise came as the BSE Sensex gained 1.13%, while Thermax's price had underperformed the broader market since July 2026.