REFEX - Refex Industries

📊 NSE: REFEX 🏢 Trading 📅 Last Updated: 12/14/2025 11:45

💰 Financial Performance

Revenue Growth by Segment

Refex Industries Limited (RIL) consolidated revenue grew 78.4% to INR 2,467.66 Cr in FY25 from INR 1,383.43 Cr in FY24, primarily driven by the ash handling and coal trading segments which contribute over 96% of total revenue. The Refex group overall estimated FY25 revenue at INR 3,371.80 Cr, a 275% increase from INR 899.17 Cr in FY24 due to RIL becoming a subsidiary.

Geographic Revenue Split

Not disclosed in available documents, though the company maintains a diversified geographical coverage across India with key operations mentioned in Chennai, Tamil Nadu and Raipur, Chhattisgarh.

Profitability Margins

RIL operating margins moderated to 8.54% in FY25 compared to 10.61% in FY24. The group's PAT margin deteriorated to 17.74% in FY24 from 28.00% in FY23, while RIL's consolidated PAT margin declined slightly to 6.42% in FY24 from 6.72% in FY23.

EBITDA Margin

In Q2 FY26, EBITDA nearly doubled sequentially to INR 74 Cr from the previous quarter, representing an EBITDA margin of approximately 17.1% on revenue of INR 431 Cr. Historical operating margins for RIL have ranged between 10.75% and 13.08%.

Capital Expenditure

The company is undergoing significant capital expansion supported by an equity infusion of INR 1,147.81 Cr between FY24 and FY26 via preferential issues to promoters and non-promoters, with INR 513.38 Cr realized during FY25 to fund growth in ash handling and green energy verticals.

Credit Rating & Borrowing

Acuité upgraded the long-term rating to 'ACUITE A-' (Stable) and short-term rating to 'ACUITE A2+' for INR 105 Cr bank facilities. The group's interest coverage ratio (ICR) stood at 3.13 times in FY24, down from 5.24 times in FY23.

⚙️ Operational Drivers

Raw Materials

Coal (for trading) and Refrigerant gases (for refilling/refillery services) are the primary materials, with coal trading and handling representing the bulk of operational costs.

Import Sources

Coal is sourced domestically and imported under the Open General License (OGL) policy, allowing for free import based on commercial prudence; specific countries of origin are not disclosed.

Key Suppliers

Not disclosed in available documents, though the company maintains long-standing relationships with key suppliers to support its coal and refrigerant gas segments.

Capacity Expansion

Ash handling capacity is being ramped up to 90,000 metric tons by the end of FY26. Management targets a 60-65% growth in daily handling capacity over the next three years to meet rising demand from power plants.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but intense competition in the coal sector, driven by the Open General License policy, has led to low profitability margins in the trading segment.

📈 Strategic Growth

Expected Growth Rate

60-65%

Growth Strategy

Growth will be achieved by expanding daily ash handling capacity by 60-65% over three years, executing a healthy order book of INR 1,921.40 Cr (as of Sept 2024), and diversifying into green mobility and wind energy (Venwind). The company is also exiting the low-margin power trading business to focus on core high-growth verticals.

Products & Services

Coal trading, ash handling services for thermal power plants, refilling of refrigerant gases, solar power project execution (153.7 MW and 100 MW orders), and wind energy services.

Brand Portfolio

Refex, Venwind (Wind vertical), Refex Mobility (Green mobility vertical).

New Products/Services

Expansion into solar power projects with a 153.7 MW order valued at INR 750 Cr and a ~100 MW order valued at INR 475 Cr.

Market Expansion

The company is hiving off its Refex Mobility vertical into a separate listed entity to unlock value and is expanding its presence in the renewable energy sector through solar and wind projects.

Market Share & Ranking

Management indicates they are among the largest players in ash handling, though their current market share is estimated at approximately 1% of the total addressable market.

🌍 External Factors

Industry Trends

The industry is shifting toward mandatory ash handling and environmental compliance for power plants, growing at a steady pace. Refex is positioning itself by expanding handling capacity and diversifying into green energy to align with sustainability trends.

Competitive Landscape

Intense competition in coal trading due to the Open General License; competition in renewable energy from players like Suzlon and Inox Wind in the broader market.

Competitive Moat

Moat is built on the promoter's 23+ years of experience and established relationships with state power utilities. This provides a competitive advantage in securing rotating orders, though it is challenged by low entry barriers in coal trading.

Macro Economic Sensitivity

Highly sensitive to power sector demand and environmental regulations regarding ash disposal at thermal power plants.

Consumer Behavior

Shift toward green energy and sustainable mobility is driving the company's diversification into solar, wind, and electric mobility.

Geopolitical Risks

Vulnerable to changes in international coal trade policies and domestic import regulations under the Open General License.

⚖️ Regulatory & Governance

Industry Regulations

Coal can be freely imported under the Open General License (OGL). Ash handling is governed by environmental pollution control norms for thermal power plants.

Environmental Compliance

Operations are tied to environmental norms for ash handling and disposal; the company is pioneering sustainability through its core service offerings.

Taxation Policy Impact

The company is subject to standard corporate tax rates; however, it faces specific fiscal impacts from GST disputes.

Legal Contingencies

The company received a demand order from the Joint Commissioner, CGST Raipur Commissionerate for FY 2018-19 and 2019-20 totaling INR 10,06,91,418 (including tax and penalty).