Summary
Refex Industries Limited - Q3 FY2026 Earnings Call Summary Wednesday, January 21, 2026 04:30 p.m. IST
Event Participants
Executives 2 Anil Jain (Chairman and MD), Dinesh Kumar Agarwal (Whole-time Director & CFO)
Analysts 7 Ananya Khanna (Alpha Alternatives), Aniket Madhwani (Steptrade Capital), Gourav Jain (HNI), Kadaru Sahith (Kadaru Securities), Miten Shah (Individual), Rahil S. (Sapphire Capital), Smit Jain (Flawless Family Office)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹583 crores | +38% QoQ; sequential recovery driven by normalized site activity post-monsoon. |
| Total Income | ₹590 crores | Includes other income; sequential improvement from ₹431 crores in Q2. |
| PBT | ₹89 crores | +24% QoQ; driven by shift toward high-margin ash handling operations. |
| PAT | ₹67 crores | +29% QoQ; reflects improved operational efficiencies and business mix. |
| EBITDA Margin | 16.1% | Significant YoY improvement; management guides for 11-12% sustainable margins. |
| Order Book (Ash/Coal) | ₹1,500 crores | To be executed over 9-12 months; Includes multi-year O&M contracts. |
| Order Book (Wind) | ₹1,860 crores | Cumulative orders secured; execution starting Jan/Feb 2026. |
| Net Debt (Consol) | ~₹700 crores | Primarily non-fund based (BG/LC); working capital limits of ₹150 crores. |
Geographic & Segment Commentary
- Ash and Coal Handling: Revenue recovered strongly as monsoon impact subsided. The segment is shifting from pure ash moving to comprehensive end-to-end solutions, including O&M and silo management. Daily handling capacity is currently 72,000 tons, with a target to hit 90,000 tons in Q4.
- Wind Energy (Venwind): Secured ₹1,860 crores in orders from top-tier IPPs like Jindal Steel and Torrent Power. The business uses German technology (Vensys) to assembly 5.2 MW turbines. Deliveries are scheduled to commence from February 15, 2026.
- Green Mobility: This segment is undergoing demerger to operate as a separate entity. It focus on B2B employee transportation and rent-a-car services. Total assets to be transferred are approximately ₹220 crores.
Company-Specific & Strategic Commentary
- Business Rationalization: Management has exited power trading and refrigerant gas businesses to focus on high-margin core segments. This caused a YoY revenue dip but significantly improved EBITDA from ₹153 crores to ₹207 crores for the 9-month period.
- Demerger Strategy: The demerger of Refex Green Mobility Limited is expected to be completed by April 2026. This move is intended to provide strategic flexibility and move specific debt to the new entity.
- Technology Adoption: The wind business is pioneering 5.2 MW turbines in India with LIDAR technology. These machines are designed for 130m hub heights to capture better wind velocity, offering 3-3.5% higher generation than 3.2 MW peers.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| EBITDA Margin | 11% - 12% | Sustainable baseline target for standalone ash business; wind margins will be separate. |
| Handling Capacity | 90,000+ tons/day | Planned ramp-up in Q4 FY26 from current 72,000 tons/day. |
| Wind Revenue | “Significant” in Q4 FY26 | Based on delivery cycles starting Feb 2026 for the ₹1,860 Cr order book. |
| Demerger Timeline | April 2026 | Pending final NOCs from lenders before NCLT filing. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory/Tax | Income Tax search conducted in Dec 2025; management claims no incriminating evidence found, but final assessment orders may take 1-2 years. |
| Promoter Pledge | 25-26% of promoter holding is currently pledged; management cited margin calls due to stock volatility and plans to reduce this over 6 months. |
| Execution Risk | Wind business involves large 5.2 MW turbines; management must manage logistics for massive components and assembly via third-party vendors. |
| Market Competition | Lower realizations in certain states due to aggressive bidding; Refex is avoiding these by focusing on long-distance, high-margin contracts. |
Q&A Highlights
Wind Technology & Logistics
- Question: Is 5.2 MW technology proven in India and can it be transported? (Smit Jain)
- Answer: Global trends are moving toward 5-10 MW; 5.2 MW at 130m hub height offers 3%+ better generation. Logistics partners have confirmed transportability; 400 MW execution is starting shortly (Anil Jain).
Income Tax Search
- Question: What is the update on the Income Tax raid and its impact? (Miten Shah)
- Answer: Search ended peacefully Dec 9th; no incriminating docs seized. Company has highest governance; fake news in press has been challenged with SEBI and IT department (Anil Jain).
Order Book Execution
- Question: What is the timeline for the ₹1,500 Cr ash order book? (Aniket Madhwani)
- Answer: 40% to be executed in the next 4 months, 50% between 4-12 months, and 10% is long-term 3-year contracts (Dinesh Agarwal).
Promoter Pledging
- Question: Why has promoter pledging increased recently? (Vivek Joshi/Smit Jain)
- Answer: Borrowing at holdco level; stock price fall triggered margin calls which were serviced via own sources. Plan to substantially reduce pledge over next 6 months (Dinesh Agarwal).
Key Takeaway
Refex Industries reported a strong sequential recovery in Q3 FY2026, with revenue reaching ₹583 crores and PAT growing 29% QoQ to ₹67 crores. The performance highlights a successful strategic pivot away from low-margin power trading and refrigerant gases toward high-margin ash handling and renewable energy. The company is currently executing an ash/coal order book of ₹1,500 crores and has secured ₹1,860 crores in wind turbine orders, with revenue from the latter expected to materialize significantly in Q4. Strategic focus remains on the April 2026 demerger of the mobility business and expanding ash handling capacity to 90,000 tons/day. Key watch points include the resolution of the Income Tax assessment and the successful reduction of promoter pledges over the next six months. Management remains confident in maintaining 11-12% EBITDA margins as they transition toward comprehensive, long-term O&M service contracts.
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