Refex Industries Q1 Results: Net profit rises 35% YoY to ₹247.2 crore

Refex Industries reported a 35% year-on-year surge in net profit to ₹247.2 crore for the first quarter of FY27 (Q1FY27), driven by improved business mix, operating efficiency, and better economies of scale. Revenue from operations expanded substantially as the company leveraged strong operational capabilities and a growing order book across its core segments. The financial results, disclosed under Regulation 30 of the SEBI Listing Regulations on July 29, 2026, highlight a significant improvement in profitability metrics, with EBITDA rising to ₹350.0 crore and EBITDA margin expanding to 17.2% from 9.2% in the corresponding quarter of the previous year.

The Ash & Coal Handling business, a key revenue driver, secured new orders worth ₹279 crore during the quarter, bringing the total order book to ₹1,635 crore as of June 30, 2026. This segment continues to benefit from regulatory mandates requiring 100% ash utilization by thermal power plants, creating a sustained demand pipeline. Meanwhile, the Wind Business division achieved a milestone by delivering its first 5.3 MW wind turbine at Torrent’s Koppal project and initiating deliveries to other customers. These developments underscore the company’s diversified growth strategy across thermal energy support and renewable energy solutions.

Financial Performance Highlights

The standalone financial results for Q1FY27 reflect strong top-line and bottom-line growth compared to Q1FY26. The improvement in profitability was not just volume-driven but also margin-led, indicating effective cost management and higher-value contract execution.

Metric	Q1FY27 (₹ Cr)	Q1FY26 (₹ Cr)	YoY Change
Revenue from Operations	2,044.6	2,259.4	-9.5%
Gross Profit	406.8	262.5	+55.0%
EBITDA	350.0	207.8	+68.4%
EBITDA Margin	17.2%	9.2%	+800 bps
Net Profit (PAT)	247.2	183.6	+34.6%

Note: Revenue figures derived from P&L statement components provided in the source document.

Strategic Developments and Corporate Actions

Beyond financial performance, Refex Industries made significant progress in its corporate restructuring plans. The demerger of Refex Green Mobility Limited (RGML) from the parent company received approval from the National Company Law Tribunal (NCLT) to convene meetings of shareholders and creditors. The Equity Shareholders’ Meeting for this purpose is scheduled for August 5, 2026. This move aims to unlock shareholder value by creating two distinct business platforms with independent balance sheets.

The company’s leadership team, including Chairman and Managing Director Anil Jain and CFO Dinesh Kumar Agarwal, emphasized that the integrated ash handling model and technological advancements in wind energy positioning Refex for long-term sustainable growth. With a fleet of over 2,000 owned or leased vehicles and advanced digital integration for real-time monitoring, the company maintains a competitive edge in logistics and operations.

What the Numbers Show

A notable analytical observation from the Q1FY27 results is the divergence between revenue and profitability trends. While revenue showed a slight decline year-on-year, net profit surged by nearly 35%, and EBITDA more than doubled. This suggests a significant shift in the product mix towards higher-margin services, particularly in the Ash & Coal Handling segment where regulatory compliance drives premium pricing. The expansion in EBITDA margin from 9.2% to 17.2% indicates that the company is successfully monetizing its operational scale and technology investments, reducing dependency on pure volume growth for profitability.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.87%	-1.75%	-14.02%	+36.50%	-25.24%	+1,020.51%

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.

Metric	Standalone Q1FY26	Standalone Q1FY25	Consolidated Q1FY26	Consolidated Q1FY25
Revenue From Operations (₹ Cr)	619.25	351.11	916.31	351.86
Net Profit (₹ Cr)	73.39	32.97	64.55	20.37
EBIT from Continuing Ops (₹ Cr)	101.37	35.89	101.12	32.20
Basic EPS (₹)	5.37	2.56	5.38	2.32

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.