💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue declined 10.65% YoY from INR 76.09 Cr in FY24 to INR 67.99 Cr in FY25. The Commercial & Industrial (C&I) segment, which contributes 95% of total revenue, saw a 2% decline to INR 64.62 Cr. The newly added Compressed Bio-Gas (CBG) segment generated initial revenue of INR 0.02 Cr (INR 2 lakh).

Geographic Revenue Split

Not disclosed in available documents, though operations are centered in India (Tamil Nadu, Andhra Pradesh, Maharashtra) with a new subsidiary incorporated in August 2024 for expansion into Sri Lanka.

Profitability Margins

The company is currently loss-making. Consolidated Loss before Tax widened by 172.6% from INR 8.32 Cr in FY24 to INR 22.69 Cr in FY25. Standalone losses also increased from INR 7.13 Cr to INR 9.15 Cr due to higher operational expenditures relative to declining revenue.

EBITDA Margin

Negative EBITDA worsened by 60.5%, moving from INR -2.78 Cr in FY24 to INR -4.46 Cr in FY25. This decline is attributed to increased borrowings and higher operational costs during the transition into new business segments like CBG.

Capital Expenditure

Planned capital expenditure includes the development of a 100 MW Solar Power Project for NTPC and a 100 MW Open Access solar project. While specific total INR Cr for these is not explicitly totaled, the company is leveraging subsidies like the MNRE CFA of INR 4 Cr per 4,800 kg of CBG capacity for its bio-gas expansion.

Credit Rating & Borrowing

Total debt increased 42.3% from INR 43.20 Cr in FY24 to INR 61.49 Cr in FY25. The Debt-Equity ratio moved from -0.97 to -1.16, reflecting increased leverage against a negative equity base of INR -52.94 Cr.

⚙️ Operational Drivers

Raw Materials

Solar modules (for repowering and EPC), solar water pumps, biomass (agri-residues, cattle dung), and Municipal Solid Waste (MSW) for CBG production.

Import Sources

Not specifically disclosed, though the company is targeting domestic municipal waste from Salem, Coimbatore, and Madurai for its CBG plants.

Key Suppliers

Not specifically named; however, the company procures solar modules for its supply-and-installation contracts and biomass from local municipal and agricultural sources.

Capacity Expansion

Current Solar O&M capacity is 127.5 MWp across 88 sites (up 2% from 124.9 MWp). Planned expansion includes a 100 MW Solar Project for NTPC (24-month timeline from PPA) and 700 TPD (Tonnes Per Day) of CBG processing capacity across three new plants in Tamil Nadu.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company is exposed to price volatility in solar modules and biomass aggregation costs, which are partially mitigated by government subsidies of up to 50% for biomass machinery (max INR 90 lakh).

Manufacturing Efficiency

Solar O&M efficiency is managed across 88 sites. CBG efficiency is targeted at 850 kg/day for the Vyzag plant and 200-250 TPD processing for new municipal projects.

Logistics & Distribution

Not disclosed as a specific percentage; however, CBG distribution is supported by the Ministry of Petroleum and Natural Gas schemes for biomass aggregation.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company is pursuing a multi-pronged strategy: 1) Foraying into Utility-Scale Solar and BESS with a 100 MW NTPC project; 2) Expanding the CBG footprint through the acquisition of Vyzag Bio-Energy and Spectrum Renewable Energy (SREPL); 3) Developing a 100 MW Open Access solar project for C&I clients; and 4) International expansion into Sri Lanka.

Products & Services

Solar modules, solar water pumps, solar home systems, EPC services, Operation & Maintenance (O&M) services, Compressed Bio-Gas (CBG), and Organic Manure.

Brand Portfolio

Refex, Refex Renewables, Refex Green Power, Refex Sustainability Solutions.

New Products/Services

Compressed Bio-Gas (CBG) and Organic Manure from press-mud and biodegradable waste; Battery Energy Storage Systems (BESS) are also being targeted in future tenders.

Market Expansion

Targeting the Sri Lankan market via Refex Renewables SL (Private) Limited and expanding municipal waste-to-energy projects in Tamil Nadu (Salem, Coimbatore, Madurai).

Market Share & Ranking

Not disclosed; however, India is the 4th largest producer of renewable power globally, and Refex is positioning itself within the 500 GW national target.

Strategic Alliances

25-year Power Purchase Agreement (PPA) with NTPC Limited for a 100 MW Solar Project; PPP mode agreements with municipal corporations for CBG plants.

🌍 External Factors

Industry Trends

The industry is shifting toward 'Green Hydrogen' and 'CBG' integration. India added a record 25 GW of renewable capacity in 2024 (34.63% increase). Refex is evolving from a pure-play solar O&M/EPC firm into a diversified renewable energy and waste-to-fuel company.

Competitive Landscape

Competes with other renewable EPC and O&M players in the C&I space; however, the shift to CBV and Utility-scale solar with PSUs like NTPC differentiates its portfolio.

Competitive Moat

The company's moat is built on its early entry into the Municipal Solid Waste-to-CBG segment under PPP models, which creates high entry barriers due to 20-year DBFOT contracts and specialized waste-processing requirements.

Macro Economic Sensitivity

Highly sensitive to government fiscal policy; the 53.48% increase in the MNRE budget (to INR 26,549 Cr) directly supports the company's project pipeline.

Consumer Behavior

Increasing demand from C&I customers for 'Open Access' solar to meet ESG goals and reduce power costs.

Geopolitical Risks

Trade barriers on solar components could impact EPC costs; however, national targets for 500 GW non-fossil capacity by 2030 provide a stable domestic policy environment.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with MNRE guidelines for Central Financial Assistance (CFA) and Ministry of Petroleum and Natural Gas (MoPNG) schemes for biomass procurement. Adherence to Ind AS 115 for revenue recognition from contracts.

Environmental Compliance

Operations are centered on ESG-positive activities (carbon footprint reduction); CBG projects are governed by the Fertilizer Control Order (FCO) 1985 for bio-slurry and manure.

Taxation Policy Impact

The company provided for deferred tax of INR 13.15 Cr in FY25 compared to INR 25.19 Cr in FY24.

Legal Contingencies

Pending litigations are disclosed in Note 34 of the financial statements; the company's auditors noted these impact the financial position, though specific INR values were not detailed in the summary.

⚠️ Risk Analysis

Key Uncertainties

The primary risk is the company's ability to continue as a 'going concern' given the negative equity of INR 52.94 Cr and widening losses. Project execution risk for the 100 MW NTPC project (24-month SCD) is also critical.

Geographic Concentration Risk

High concentration in India, specifically Tamil Nadu for new CBG projects, making it sensitive to state-level policy changes.

Third Party Dependencies

High dependency on municipal corporations for waste feedstock and NTPC for long-term revenue realization.

Technology Obsolescence Risk

Risk of solar module efficiency improvements making older O&M sites less competitive; mitigated by the company's foray into BESS and CBG.

Credit & Counterparty Risk

The current ratio of 0.98 indicates tight liquidity, though it improved from 0.44 due to short-term loans. Receivables quality is a key monitorable given the 10% decline in total operations revenue.