Refex Industries

Refex Industries delivered robust financial results for Q4 and FY26. Q4 FY26 revenue from continuing operations grew 18% YoY to INR701 crores, driven primarily by the Ash & Coal Handling business. EBITDA for the quarter significantly improved to INR141 crores, with the EBITDA margin expanding to 20.1% from 10.4% in Q4 FY25. For the full fiscal year FY26, EBITDA from continuing operations increased by 68% to INR350 crores, and the EBITDA margin improved to 17.2%.

FY26 marked a year of strategic transition and growth, with the company consciously reshaping its business portfolio towards sectors offering stronger scalability and better margin visibility. This involved reducing exposure to trading businesses like Refrigerant Gas and Power Trading, which have been largely discontinued. The focus has shifted to quality of profit and margin, leading to improved profitability despite a 9.73% YoY moderation in FY26 revenue for continuing operations to INR2,039 crores, attributed to plant transitions and restructuring.

The Ash & Coal Handling business remains a key growth driver, maintaining strong operational performance across major project sites. The segment recorded 28% growth in FY26 and has a robust order pipeline of INR1,500 crores, providing medium-term revenue visibility. Management aims to increase daily handling volumes from the current 70,000 tons to 90,000-95,000 tons in the current financial year, leveraging disciplined execution and technology. The business is expected to grow year-on-year, with contracts including escalation clauses to mitigate diesel price volatility.

The wind energy business entered an active execution phase, contributing INR233 crores in Q4 FY26. The company has an existing order book of INR1,860 crores, with INR1,500 crores expected to be executed in the current financial year. Management is aiming to reach 2 gigawatts of capacity by next year-end and is investing in localization to improve EBITDA margins from the current 8%. The segment also secured ALMM approval for its wind turbine platform, strengthening its market positioning.

The demerger process for the mobility business is progressing as planned, with key regulatory and procedural milestones achieved. The company expects the NCLT process to conclude within 60-90 days from June 1st, 2026. Post-demerger, the mobility platform will operate independently, focusing on an asset-light growth strategy, clean fuel expansion, and enterprise-led scaling. The business has already crossed INR100 crores in revenue within three years of operation and is expected to see good growth driven by government initiatives towards EVs.

Refex Industries has undertaken refinancing efforts in the current quarter to improve borrowing costs, incurring temporary processing charges of INR2-2.2 crores. The company maintains a healthy and underleveraged debt-equity ratio, with sufficient internal accruals and bank balances to fund current and future capital requirements. While promoter pledge on shares increased to 41%, management expects a large part of this to be removed over the next six months upon loan closure.

In the Ash & Coal Handling segment, Refex Industries positions itself as the single largest player, with other competitors being fragmented and operating across fewer plants. The company's moat is attributed to its operational efficiency, presence across 40 plants in multiple states, asset-light partnerships, and proprietary logistics technology. Management aspires to significantly grow its market share, aiming for a '2-digit' percentage over the next few years, ensuring that the second and third largest players remain far behind.