Refex Industries Limited reported a standalone net profit of ₹73.39 crore for the quarter ended June 30, 2026, a 122% increase from ₹32.97 crore in the corresponding period of FY25. The surge was primarily driven by robust performance in its core Ash & Coal Handling business, which contributed significantly to the top line despite broader macroeconomic headwinds. Consolidated net profit rose to ₹64.55 crore from ₹20.37 crore YoY, reflecting improved operational efficiency and strategic realignment.

The Board of Directors, meeting on July 29, 2026, approved the unaudited financial results under Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the Statutory Auditors, M/s A B C D & Co LLP. The company also announced the re-designation of Ms. Lalitha Uthayakumar from President – Refrigerant Gas Business to General Manager – Accounts, effective August 01, 2026, following the discontinuation of the Refrigerant Gas Business.

Financial Performance

Standalone revenue from operations grew 76% YoY to ₹619.25 crore, compared to ₹351.11 crore in Q1FY25. Consolidated revenue from operations increased to ₹916.31 crore from ₹351.86 crore in the same quarter last year. The Ash & Coal Handling segment remained the primary revenue driver, contributing ₹610.50 crore in standalone segment revenue.

The company classified Power Trading, Refrigerant Gases, and Green Mobility segments as discontinued operations in accordance with Ind AS 105. Discontinued operations resulted in a standalone loss of ₹24.68 lakh and a consolidated loss of ₹997.63 lakh for the quarter.

Strategic Developments

Refex Industries is progressing with its Composite Scheme of Amalgamation and Arrangement involving Refex Green Mobility Limited, Refex Industries Limited, and Refex Mobility Limited. The National Company Law Tribunal (NCLT), Chennai Bench, directed the company to convene meetings of Equity Shareholders, Secured and Unsecured Creditors on August 05, 2026. The company had previously received 'No Adverse Observations' from BSE and NSE on March 16, 2026.

Additionally, the company forfeited upfront amounts aggregating to ₹130.69 crore related to convertible warrants allotted on November 07, 2024, as the balance consideration was not received within the stipulated 18-month period ending May 06, 2026. This forfeiture has been accounted for in accordance with SEBI ICDR Regulations.

What the Numbers Show

The significant divergence between standalone and consolidated net profit margins highlights the impact of discontinued segments on the group's overall profitability. While the standalone entity posted a healthy profit margin of approximately 11.8%, the consolidated figure stood at 7.0%, dragged down by losses in the Green Mobility and Windpower segments. This underscores the strategic rationale behind the ongoing demerger scheme, aiming to isolate higher-growth, profitable businesses from underperforming units. The substantial growth in revenue from operations, particularly in the Ash & Coal Handling business, indicates strong demand in the industrial sector, offsetting the negative contributions from discontinued activities.

Refex Industries Limited reported a significant improvement in profitability for the first quarter of FY27, with net profit after tax (PAT) rising 34.6% year-on-year to ₹247.2 crore. The growth was driven by strong operational execution in its core Ash & Coal Handling segment, which secured new orders worth ₹279 crore during the quarter, and the commencement of deliveries in its Wind Business through subsidiary Venwind Refex Power Limited (VRPL). This operational strength translated into an EBITDA margin expansion of 800 basis points, signaling improved cost efficiency and higher contribution from high-margin services.

The company filed its un-audited financial results with the stock exchanges under Regulation 30 of the SEBI Listing Regulations on July 29, 2026. Alongside the financial update, Refex announced that it has received approval from the National Company Law Tribunal (NCLT) to convene meetings of shareholders and creditors for its proposed demerger scheme involving Refex Green Mobility Limited (RGML). The Equity Shareholders' Meeting is scheduled for August 5, 2026.

Financial Performance

Refex Industries delivered strong top-line and bottom-line growth in Q1FY27 compared to the same period last year. Revenue from operations expanded significantly, while operating margins improved due to better business mix and economies of scale.

Note: Figures are standalone and from continuing operations.

Gross profit rose to ₹406.8 crore from ₹262.5 crore in Q1FY26, reflecting higher contribution from high-margin services. Other income declined to ₹30.0 crore from ₹52.5 crore in the prior year, but this was more than offset by the operational gains. The surge in EBITDA margin from 9.2% to 17.2% highlights the company's ability to leverage scale.

Business Segment Updates

Ash & Coal Handling: The company remains the largest organized player in India’s thermal ash management sector. As of June 30, 2026, the order book stood at ₹1,635 crore. The business benefits from regulatory mandates requiring 100% ash utilization at thermal power plants, with non-compliance penalties of ₹1,000 per ton driving demand for efficient handling solutions. Refex serviced over 40 plants and utilized over 50 million MT of ash in the past eight years.

Wind Business: Through its subsidiary VRPL, Refex delivered its first 5.3 MW wind turbine at Torrent’s Koppal project. The company has completed the ALMM listing for its 5.3 MW GWH turbine and is now initiating deliveries across other customers. This marks a strategic expansion into renewable energy infrastructure, leveraging India’s target of 140–150 GW wind capacity by 2030.

Mobility Demerger: The demerger of Refex Green Mobility Limited (RGML) into a new entity, Refex Mobility Limited (RML), is progressing as planned. Under the scheme, RGML will merge into Refex Industries Limited, and the mobility undertaking will be carved out into RML. Shares of RML will be issued to Refex shareholders at a 1:1 swap ratio. The process has received approvals from BSE, NSE, lenders, and the NCLT.

What the Numbers Show

The divergence between the decline in other income (₹30.0 crore vs ₹52.5 crore YoY) and the sharp rise in net profit underscores that the current growth trajectory is fundamentally operational rather than reliant on one-off gains. With EBITDA margins expanding by 800 basis points, Refex is successfully converting order book strength into superior profitability. The integration of wind turbine manufacturing adds a new growth vector, diversifying revenue away from the cyclical thermal power sector while maintaining high-margin service contracts in ash handling.