REFEX - Refex Industries Limited Share Price

In the earnings conference call held on January 21, 2026, management expressed a positive outlook for Refex Industries Limited, showcasing a robust recovery in Q3 FY2026. Revenue surged by 38% sequentially, from Rs. 123 Crores in Q2 to Rs. 583 Crores in Q3, driven by increased ash and coal volumes as operational conditions normalized post-monsoon. Total income for the quarter reached Rs. 590 Crores, while profit before tax rose to Rs. 89 Crores, marking a 24% increase sequentially, and profit after tax increased by 29% to Rs. 67 Crores.

Management highlighted a strategic pivot, deciding to exit low-margin businesses, specifically power trading and refrigerant gas, to enhance focus on core operations. The upcoming demerger of Refex Green Mobility Limited is expected to bolster financial flexibility. The wind energy segment is advancing steadily, with a cumulative order of Rs. 1,860 Crores secured and initial customer orders being executed.

Looking forward, management anticipates continued operational momentum with multiple new ash projects commencing, aiming to capitalize on an existing open order of approximately Rs. 1,500 Crores in the ash and coal handling sector. The company expects ongoing growth in the ash handling business, with plans to ramp up daily handling capacity to 90,000 tons.

Regarding margins, the management is targeting an EBITDA margin of 11% to 12%, emphasizing that operational efficiency and discipline in execution will remain prioritized in the coming quarters. The strategy moving ahead involves focusing on both capacity expansion in the ash handling business and steadily ramping up initial contributions from the wind energy segment.

Major Questions and Answers from the Earnings Conference Call

Question 1: Ananya Khanna: Can you explain the timeline of the demerger scheme and the expected synergies?

Answer: We are waiting for final NOCs from lenders. Once received, the scheme is ready to be filed. We expect the demerger to conclude by April. Post-demerger, Refex Mobility will operate as a separate entity with enhanced strategic and financial flexibility, enabling it to focus on its core business effectively.

Question 2: Smit Jain: What is the purpose of the new subsidiary, Refex Engineering Products Private Limited?

Answer: This subsidiary, aligned with our Venwind project, targets the retail customer segment in the wind sector to enhance our offerings and capture additional market opportunities.

Question 3: Miten Shah: What is the update on the income tax raid and its impact on the company?

Answer: On December 9, there was an income tax search at our premises. No incriminating material was seized. We anticipate no impact on our business, as we uphold high governance standards. The income tax department will take three to six months to file their report.

Question 4: Aniket Madhwani: Can you confirm any revenue from the wind business this quarter?

Answer: We did not achieve wind revenue in the last quarter, but significant revenue is expected by the year-end thanks to several contracts that will start execution soon.

Question 5: Vivik Joshi: What is the status of the merger plan with Refex Green Mobility, and is there any asset transfer expected?

Answer: The merger is moving forward with expected completion by April. Refex Industries does not own any assets of Refex Green Mobility, ensuring it remains a standalone entity post-merger.

Question 6: Smit Jain: Are there performance guarantees associated with the wind turbines supplied?

Answer: We provide a warranty for the equipment's performance, focusing on uptime and parts but do not guarantee energy generation due to its dependence on wind conditions.

Question 7: Miten Shah: What are your projections for cash and debt levels?

Answer: We have over Rs.100 Crores in cash and consolidated debt around Rs.700 Crores. Most debt is working capital related, with only a small term loan for office premises.

Question 8: Rahul Bafna: What is the company's vision moving forward, given the stock's recent performance?

Answer: Our business growth demonstrates strength, and we expect it to continue. While market sentiment affects stock prices, we remain focused on delivering strong operational performance.

Question 9: Aniket Madhwani: Why is there a significant year-on-year top-line drop?

Answer: The decline reflects our strategic exit from low-margin businesses, such as power trading and refrigerant gas, resulting in a dip in revenue but an increase in profitability due to higher-margin operations.

These condensed summaries capture the key questions asked during the call and provide the management's detailed responses, addressing major concerns of stakeholders effectively.