Refex Industries Q1 Results: Net profit rises 34.6% YoY

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).

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.

Metric	Q1FY27 (₹ Cr)	Q1FY26 (₹ Cr)	YoY Change
Revenue from Operations	2,049.6	1,554.4	+31.9%
EBITDA	350.0	207.8	+68.4%
EBITDA Margin	17.2%	9.2%	+800 bps
Net Profit (PAT)	247.2	183.6	+34.6%
PAT Margin	12.1%	8.1%	+400 bps

Note: Figures are standalone and from continuing operations.

The surge in EBITDA margin from 9.2% to 17.2% highlights the company's ability to leverage scale. 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.

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.