Refex Renewables & Infrastructure Limited reported a consolidated net loss of ₹314 lakh for the first quarter ended June 30, 2026 (Q1FY27), a significant improvement from the ₹751 lakh loss recorded in the same quarter of the previous year. Consolidated revenue from operations grew 32.6% year-on-year to ₹2,220 lakh, driven by strong performance in the Commercial and Industrial (C&I) segment. Despite the operational recovery, statutory auditors M/s A B C D & Co. LLP highlighted material uncertainties regarding the group's ability to continue as a going concern, citing fully eroded net worth as of June 30, 2026.

The Board of Directors approved the unaudited standalone and consolidated financial results on August 04, 2026. The Board also noted the full redemption of 105 unlisted Non-Convertible Debentures (NCDs) amounting to ₹10.50 crore allotted to Northern Arc Emerging Corporates Bond Trust. Additionally, the Board approved the re-appointment of Kalpesh Kumar as Managing Director and Key Managerial Personnel for a three-year term commencing October 01, 2027, subject to shareholder approval at the 32nd Annual General Meeting (AGM) scheduled for September 18, 2026.

Financial Performance Overview

Consolidated revenue from operations stood at ₹2,220 lakh in Q1FY27, up from ₹1,935 lakh in Q4FY26 and ₹1,674 lakh in Q1FY26. Total expenses amounted to ₹2,697 lakh, resulting in a pre-tax loss of ₹128 lakh. Finance costs remained a significant burden at ₹1,159 lakh, although they decreased slightly from ₹1,232 lakh in the previous quarter. Employee benefit expenses rose to ₹325 lakh from ₹266 lakh. The year-on-year improvement in the consolidated net loss reflects a meaningful recovery in operating performance, particularly in the C&I segment.

On a standalone basis, the company reported a net loss of ₹341 lakh for the quarter, compared to ₹286 lakh in the prior quarter. Standalone revenue declined marginally to ₹201 lakh from ₹212 lakh. The standalone net worth also shows complete erosion, with reserves excluding revaluation reserves standing at negative values.

Segment-Wise Analysis

The Commercial and Industrial (C&I) segment continued to be the primary revenue driver, contributing ₹1,756 lakh or 79% of total consolidated revenue. This segment reported a positive result of ₹342 lakh, a sharp turnaround from the ₹63 lakh loss in the previous quarter. The Compressed Bio Gas (CBG) segment saw substantial growth, with revenue jumping to ₹451 lakh from ₹251 lakh, though it still reported a modest loss of ₹9 lakh.

Auditor's Qualifications and Concerns

The independent auditor's review report on the consolidated financial results carries a qualified opinion. The qualification arises from insufficient audit evidence regarding certain trade payables aggregating to ₹375.51 lakh and short-term borrowings of ₹127.03 thousand in two subsidiaries. Furthermore, fixed deposits of ₹41.65 lakh disclosed under other financial assets lacked sufficient supporting evidence. Consequently, the auditor could not determine if adjustments were necessary to outstanding liabilities.

Additionally, the auditor emphasized matters related to regulatory compliance. One subsidiary had foreign currency transactions with parties outside India where balances remained outstanding beyond the period permitted under RBI/FEMA regulations. Required annual filings under these regulations have not yet been completed. Another subsidiary, SEI Tejas Private Limited, has seen its net worth fully eroded, leading management to prepare its financial results on a liquidation basis.

What the Numbers Show

The divergence between the improving operational results in the C&I segment and the persistent overall losses underscores the heavy drag from finance costs and unallocable expenditures. While the C&I segment turned profitable with a ₹342 lakh result, unallocable expenditure net of unallocable income stood at ₹513 lakh, wiping out operational gains. This structure suggests that while core business units are stabilizing, corporate-level debt servicing and overheads remain unsustainable without further capital infusion or debt restructuring. The promoter's letter of support provides a temporary buffer, but the eroded net worth indicates severe equity dilution risk for existing shareholders.

Refex Renewables & Infrastructure Ltd announced that Mr. Jaya Krishna has ceased to hold the position of Director – Finance (Corporate Finance). The resignation, effective from the close of working hours on June 30, 2026, was accepted by the company following the submission of his letter dated June 04, 2026. The company stated that the departure was due to personal reasons.

The disclosure was made to The BSE Limited under Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notification also referenced the SEBI Master Circular bearing reference no. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Mr. Krishna was classified as a senior managerial person within the organization. The filing confirmed that there are no applicable details regarding a brief profile or director relationships to disclose in this instance, as the pertains to a cessation rather than an appointment.

Resignation Details

The following table outlines the key particulars regarding the change in the company's senior management:

The filing was submitted by Vinay Aggarwal, Company Secretary & Compliance Officer of Refex Renewables & Infrastructure Limited. The company's Registered Office is located at Second Floor, Refex Towers, Sterling Road Signal, 313, Valluvar Kottam High Road, Nungambakkam, Chennai – 600034, Tamil Nadu.