Refex Industries Q1 FY27 Earnings Call — Analysis (NSE: REFEX)

Refex Q1 FY27 standalone revenue surges 76% YoY to ₹619 Cr, PAT up 123% at ₹73.6 Cr, driven by ash handling; wind business delivers first 5.3 MW turbine and executes ₹295 Cr revenue with margins expected to improve.

4 Aug 2026 · Analysis by Alpha Inflection

The take

Q1FY27 Standalone Revenue ₹619 Cr ( +76% YoY ) . New guidance — FY27 wind business fy27 revenue ₹1,700-1,800 Cr . New story: Ash handling volume and margin resilience .

Results

Standalone revenue ₹619 Cr +76% YoY; EBITDA ₹105 Cr (margin 17%); PAT ₹73.6 Cr +123% YoY; ash handling volume run-rate 65-70k tons/day.

Financial highlights

Guidance

Ash handling FY27 volume run-rate targeted at 90k tons/day by Q4; wind business net margin expected at 5-6% by FY27-end on revenue of ₹1,700-1,800 Cr.

What management committed to

• Ash and coal handling per-day volume run rate will reach close to 90,000 tons by Q4 FY27. — 90,000 tons per day, Q4FY27
• Wind business revenue for FY27 will be close to ₹1,700-1,800 Cr. — ₹1,700-1,800 Cr, FY27
• Wind business will achieve a net margin (PAT) of 5-6% by the end of FY27. — 5-6%, FY27
• Ash handling EBITDA margin will be sustained in the 15-18% range going forward and net margin at 10-12%. — 15-18% EBITDA, 10-12% net, FY27
• Standalone (ash-handling-led) revenue growth in FY27 will exceed the prior year’s growth rate of ~28%. — better than 28%, FY27
• Mobility business demerger will be completed and it will be a separate listed company by the end of Q3 FY27. — Q3FY27
• Within 12 months from now, approximately 85% of wind turbine components will be localised in India. — 85%, Q2FY28
• Wind business EBITDA margin will reach 18-20% approximately 2 years from now as localisation and plant capacity increase. — 18-20%, FY29

Key themes

Strong ash handling, wind execution ramp, cost-conscious growth

How the narrative shifted

• Ash handling volume and margin resilience: Management positions ash handling as a scalable, integrated platform with high visibility, growing volumes from 65k to 90k tons/day, and stable 15-18% EBITDA margins.
• Wind business execution ramp to profitability: The wind segment is transitioning from development to delivery, with first turbine installed, ₹1,335 Cr order backlog, and a clear path to 5-6% net margin by FY27-end and industry margins later.
• Localisation to lift wind margins: Management frames import substitution and 85% localisation as the key to improving wind margins from break-even to 18-20% EBITDA over two years.
• Mobility demerger as value unlock: Demerger progressing via NCLT route; mobility will be a separate listed entity by Q3, allowing independent capital allocation, removing loss contribution from continuing operations.
• Regulatory tailwind for ash utilisation: Government focus on 100% ash utilisation, rising thermal capacity, and compliance mandates create an expanding addressable market; competition viewed as market discovery.
• Geopolitical diesel and logistics disruption managed: Intermittent diesel supply constraints and logistics issues from geopolitical events impacted operations but were mitigated by diversified fleet and technology; not expected to derail growth.
• Promoter pledge reduction and capital discipline: Promoters are reducing pledged shares through continuous repayment; net debt at zero; capital allocation prioritises domestic ash handling, with no immediate export or unrelated diversification.

Operational commentary

• Wind energy business: India’s first 5.3 MW wind turbine erected at customer site in Koppal, Karnataka; marks commercial deployment of next-gen platform.
• Wind segment executed ₹295 Cr revenue in Q1; remaining order book of ₹1,335 Cr expected to be fully executed in FY27.
• Ash & coal handling volume maintained at 65-70k tons/day; targeting 90k tons/day by Q4 FY27; working across 42 thermal plants (~30-35% penetration).
• Mobility demerger: NCLT approved convening of shareholder/creditor meetings; equity shareholder meeting next month; demerger expected to complete by end of Q3 FY27.
• Wind localisation underway: blades currently imported, local manufacturing within 6-12 months; 85% components targeted for localisation in 12 months, aiming for industry-level margins.
• Ash handling expanded into Rail-cum-Road (RCR) transport, leveraging railway freight discount to reach Northeast markets.
• Refrigerant gas manufacturing fully discontinued; mobility business to be separate listed entity, removing loss from continuing P&L by Q3-end.
• Diesel supply constraints from geopolitical disruptions managed without service interruption; one-time bank processing charge of ₹4 Cr impacted Q1 margins.

Analyst Q&A

• Q. Quantification of wind order pipeline in advanced stages?

  Very difficult to quantify; we look at substantial orders this year, at least maybe better than last year, and will announce when received.

• Q. Why does the presentation highlight standalone results instead of consolidated?

  It is to provide an apple-to-apple comparison because the wind business was not present in the same quarter last year and mobility is being demerged; consolidated presentations will resume from Q4.

• Q. Margin trajectory for ash handling: earlier 18-20% range was mentioned, now 12%; what is the sustainable margin?

  We always maintain EBITDA margin guidance of 15-18% and net margin 10-12%; this quarter we did 17% EBITDA margin and we will maintain the same momentum.

• Q. What will the consolidated order book look like by Q4 FY27?

  Very difficult to predict; currently ash handling order book is ₹1,635 Cr and wind order book ₹1,860 Cr; we are winning digital tenders, so hopefully a better order book by Q4.

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