Refex Industries Limited has submitted monitoring agency reports for two preferential issues, detailing the utilization of funds raised through equity shares and warrants. The reports, prepared by CARE Ratings Limited for the quarter ended September 30, 2025, provide insights into the company's financial activities and adherence to stated objectives.

First Preferential Issue

The first preferential issue involved 50,00,000 equity shares and 1,25,75,000 warrants, totaling Rs. 219.69 crore. The company has received:

• 100% of equity share proceeds (Rs. 62.50 crore)
• 54.82% of warrant proceeds (Rs. 86.18 crore)

Second Preferential Issue

The second preferential issue comprised 81,77,068 equity shares and 1,11,70,000 warrants, amounting to Rs. 905.44 crore. The company has received:

• 100% of equity proceeds (Rs. 382.69 crore)
• 25% of warrant proceeds (Rs. 130.68 crore)

Fund Allocation

The funds have been allocated across various objectives, as outlined in the following table:

Key Observations

1. No Deviation: The monitoring agency reported no deviation from the stated objectives for fund utilization.

2. Promoter Share Pledge: There has been a significant increase in the promoter share pledge, rising from 10.37% in Q1FY26 to 30.19% in Q2FY26.

3. Loan Repayment Delay: Some loan repayments were completed 50 days after the stipulated three-month timeline.

4. Unutilized Funds: A portion of the unutilized funds has been parked in fixed deposits with Union Bank, earning interest rates of 7.25% and 7.50%.

5. Ongoing Implementation: The implementation of most objectives, including working capital, capital expenditure, and investment in subsidiaries, is ongoing and within the specified timelines.

The monitoring agency reports indicate that Refex Industries is largely adhering to its stated objectives for fund utilization. However, the increase in promoter share pledge and the slight delay in loan repayments may warrant attention from investors and stakeholders. The company continues to deploy funds across various segments of its business, with a significant portion allocated to working capital and investments in subsidiaries.

Refex Industries Limited , a leading player in the ash and coal handling sector, has reported a robust performance for the second quarter of fiscal year 2026. The company's financial results showcase significant growth and operational improvements, despite challenges posed by extended monsoon conditions.

Financial Highlights

• Total income from continuing operations reached INR 431.00 crores, marking a 15% sequential growth
• EBITDA nearly doubled to INR 74.00 crores from the previous quarter
• Net profit stood at INR 52.00 crores
• Margins for the quarter ranged between 10-12%, surpassing the typical 8-11% range

Operational Performance

The company's growth was primarily driven by its ash and coal handling operations. Refex Industries currently maintains a robust order book of approximately INR 1,200.00 crores in coal and ash handling services.

Business Segments and Strategy

Ash and Coal Handling

• The company is actively working across 40 thermal power plants, with multiple contracts in place
• Refex aims to increase its daily ash handling capacity by 60-65% over the next three years, targeting 105,000 to 110,000 metric tons per day

Wind Turbine Manufacturing

• Revenue from wind turbine manufacturing is anticipated to begin in Q3 and Q4 of FY2026, with the majority expected in Q4
• The company has secured orders for 253.7 megawatts of wind turbines, valued at approximately INR 1,225.00 crores

Mobility Vertical

• Refex is progressing with plans to demerge its mobility vertical into a separate listed entity called Refex Mobility Limited
• The demerger process is expected to take 6-7 months, subject to regulatory approvals

Power Trading

• The company has completely wound down its power trading operations to focus on core businesses with higher strategic and financial alignment

Management Commentary

Anil Jain, Chairman and Managing Director of Refex Industries, commented on the results: "Q2 FY2026 marked a period of steady improvement across our coal and ash handling business, despite the early and intense monsoon-led disruptions. With the monsoon period now largely behind us, we are seeing a steady pickup in site activity and volumes across our core ash and coal handling operations."

Future Outlook

Refex Industries remains optimistic about its growth prospects, particularly in the ash and coal handling segment. The company is actively participating in tenders across the country and expects to see continued momentum in the coming quarters. Additionally, the wind turbine manufacturing business is poised for growth, with the company targeting to scale up to competition in the next two years.

The management's focus on disciplined execution and operational efficiency, coupled with a strong order book and diversified portfolio, positions Refex Industries for consistent long-term value creation in the evolving energy and environmental services sector.