Revenue
Margin
Demand
Guidance
Tone
Event Participants
Executives
3 Anil Jain, Dinesh Kumar Agarwal, Sonal Jain
Analysts
12 Chintan Mehta, Deepak Poddar, Gaurav Ashok Bhansali, Jasmine Surana, Miten Shah, Mohammed Murtaza, Parth Patel, Pinaki Banerjee, Saurabh Jain, Sudhir Bheda, Suhani Singh, Udit Sehgal
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (Continuing Operations) | ₹619 crores | +76% YoY (vs ₹351 crores), driven by strong ash/coal execution and first full quarter of wind turbine deliveries. |
| EBITDA | ₹105 crores | Margin of 17%; includes one-time ₹4.2 crores bank processing charges from loan takeover by Indian Overseas Bank. |
| Profit After Tax (PAT) | ₹73.6 crores | +123% YoY (vs ₹33 crores); PAT margin improved to 11.9% from prior year. |
| Ash/Coal Volume Run-rate | 65,000–70,000 tons/day | Q1 run-rate; Q2 seasonally slower, expected to scale to ~90,000 tons/day by Q4 FY27. |
| Wind Order Book | ₹1,860 crores | ₹525 crores executed in Q1; balance ~₹1,300 crores to be executed in FY27. |
| Coal & Ash Handling Order Book | ₹1,635 crores | Healthy pipeline; company winning tenders consistently across regions. |
| Net Debt | ~Zero | Net debt at zero; utilization primarily towards bank guarantees and LCs. |
Geographic & Segment Commentary
- Ash & Coal Handling: Largest contributor to revenue and profitability. Q1 run-rate was 65,000–70,000 tons/day across 42 thermal power plants (~30–35% industry penetration). Despite acute diesel supply constraints from geopolitical issues, diversified operations maintained uninterrupted service. Management targets ~90,000 tons/day run-rate by Q4 FY27.
- Wind Energy: Transitioned from order book creation to active delivery phase. Erected India's first 5.3 MW wind turbine at Koppal, Karnataka. Q1 wind revenue was ₹295 crores; FY27 revenue guidance is ₹1,700–1,800 crores with 5–6% net margin. Silvassa leased plant has 1 GW assembly capability (~₹5,000–6,000 crores revenue potential). Operating partner holds 23% equity, Refex holds 77%.
- Mobility (Discontinued Operations): Demerger progressing as planned. NCLT approved convening shareholder/creditor meetings; equity shareholder meeting scheduled next month. On completion (expected by end of Q3 FY27), mobility will operate as an independent listed entity with mirror shareholding.
Company-Specific & Strategic Commentary
- Mobility Demerger: NCLT approval received to convene shareholder meetings. The demerger will unlock value by creating an independent entity focused solely on premium sustainable mobility, with its own capital allocation framework.
- Wind Localization & Margins: Targeting 85% component localization within 12 months (blades in-house, rest via 60+ OEMs). Management expects wind net margins of 5–6% by FY27 year-end, ramping to industry-level EBITDA margins of 18–20% by FY29 as localization scales.
- Rail-Cum-Road (RCR) Expansion: Railway freight tariff discounts expected to open new geographies (e.g., Northeast India) for ash/coal handling, positively impacting future volume growth.
- Technology Ownership: Wind turbine technology is fully owned via direct transfer (no royalty/equity to tech partner), enabling in-house design, assembly, and localization efforts.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Ash/Coal Volume Run-rate | ~90,000 tons/day by Q4 FY27 | Q2 seasonally slow; Q3/Q4 scaling up. No capacity constraints - scaling through fleet and manpower additions. |
| Wind Revenue | ₹1,700–1,800 crores for FY27 | Based on existing order book of ₹1,860 crores; balance ₹1,300 crores to execute in FY27. |
| Wind Net Margin | 5–6% for FY27 | Expected to materialize in Q3/Q4 as transit billing completes and pre-operating expenses taper. |
| Core Business Growth | Better than last year's 28% CAGR | Driven by robust ash/coal handling momentum and consistent tender wins. |
| Wind Business Profitability | Turn profitable by end of FY27 | Margins to reach industry level (18–20% EBITDA) by FY29 as localization scales. |
| Mobility Demerger Completion | By end of Q3 FY27 | Post-demerger, mobility operates as a separate listed entity; losses removed from P&L. |
Risks & Constraints
| Risk | Context |
|---|---|
| Diesel Supply Disruptions | Geopolitical developments caused acute diesel shortages at many sites, impacting logistics. Diversified fleet network and technology-enabled processes mitigated major impact. |
| Wind Execution Ramp-up | Wind business is in early delivery phase; Q1 margins were negligible due to pre-operating expenses and billing timing for transit material. Execution of balance ₹1,300 crores order book in FY27 carries execution risk. |
| Q2 Seasonality | Ash/coal handling volumes historically slow in Q2 (monsoon), impacting quarterly revenue trajectory. Management expects recovery in Q3/Q4. |
| Promoter Pledge Levels | Promoter pledge exists but is being reduced on a milestone basis. Management expects further share release in next 15 days; no challenges indicated. |
Q&A Highlights
Ash/Coal Volume Run-rate and Scaling
- Question: What is the per-day volume run-rate and scaling plan? (Deepak Poddar, Sapphire Capital)
- Answer: Q1 run-rate is 65,000-70,000 tons/day. Q2 will be slower; Q3/Q4 will scale up. Target is ~90,000 tons/day by Q4 FY27. (Dinesh Kumar Agarwal)
Wind Business Execution and Margins
- Question: What was the wind revenue and margin profile? (Deepak Poddar, Sapphire Capital; Sudhir Bheda, Bheda Family Office)
- Answer: Wind revenue was ₹295 crores in Q1. FY27 target is ₹1,700-1,800 crores. Net margin target is 5-6%, achievable in Q3/Q4 as billing completes on transit material and pre-operating expenses taper. (Dinesh Kumar Agarwal)
Discontinued Operations and Demerger Timeline
- Question: When will losses from discontinued operations stop? (Deepak Poddar, Sapphire Capital)
- Answer: Refrigerant gas business is fully discontinued. Mobility business will be fully demerged by end of Q3 FY27, becoming a separately listed company with mirror shareholding. (Dinesh Kumar Agarwal)
One-time Expense Impact on Margins
- Question: Why was Q1 margin lower than Q4 despite similar revenue? (Sudhir Bheda, Bheda Family Office)
- Answer: Q1 margin was impacted by a one-time expense of ₹4.2 crores related to bank processing charges from loan takeover by Indian Overseas Bank. (Dinesh Kumar Agarwal)
Wind Order Pipeline and Growth
- Question: What is the order pipeline and growth trajectory? (Udit Sehgal, PinPoint X Capital)
- Answer: Order book is ₹1,860 crores; ₹525 crores executed. Balance will be done this year. Orders in advanced stage should close in 30-60 days. New orders will spill into next FY. (Dinesh Kumar Agarwal)
Wind JV Structure and Localization
- Question: Can you explain the wind JV structure and localization plan? (Chintan Mehta, Puniska Family Office; Udit Sehgal, PinPoint X Capital)
- Answer: Technology is directly transferred; operating partner holds 23% equity, Refex holds 77%. Silvassa plant is leased with ₹3.5-4 crores capex, 1 GW capacity. Blades are imported but will be localized in 6-12 months. Targeting 85% localization in 12 months to reach industry margins (18-20%) in ~2 years. (Anil Jain / Dinesh Kumar Agarwal)
Competition in Ash Handling
- Question: How do you view competition in the ash handling business? (Miten Shah, Individual Investor)
- Answer: Competition will create more awareness and complement the business. Refex is the only organized player; market discovery benefits everyone. (Dinesh Kumar Agarwal)
Railway Tariff Impact
- Question: How will railway tariff discounts affect coal/ash handling? (Udit Sehgal, PinPoint X Capital)
- Answer: Rail-Cum-Road (RCR) transport will positively impact volumes, opening up new geographies like Northeast India. (Dinesh Kumar Agarwal)
Promoter Pledge Reduction
- Question: What is the current promoter pledge level and trajectory? (Mohammed Murtaza, PinPoint X Capital)
- Answer: Pledge reduction is happening on a milestone basis. Further disclosure expected in next 15 days as shares get released. No challenges. (Dinesh Kumar Agarwal)
Standalone vs Consolidated Presentation
- Question: Why is the presentation emphasizing standalone results? (Miten Shah, Individual Investor)
- Answer: Standalone is used for Apple-to-Apple comparison since wind wasn't present last year and mobility is being demerged. Consolidated presentations will be appropriate from Q4 FY27 onwards. (Dinesh Kumar Agarwal)
Key Takeaway
Refex Industries delivered a strong Q1 FY27 with standalone continuing revenue of ₹619 crores (+76% YoY) and PAT of ₹73.6 crores (+123% YoY), driven by robust ash/coal handling (65-70k tons/day run-rate) and the first full quarter of wind turbine deliveries (₹295 crores). Strategic focus remains on scaling the wind segment — with a ₹1,860 crores order book, FY27 revenue guidance of ₹1,700-1,800 crores, and 5-6% net margin — while completing the mobility demerger by Q3 FY27 to remove arisings from consolidated P&L. Management guides ash/coal volumes to reach 90,000 tons/day by Q4 FY27 and core growth to exceed last year's 28% CAGR, supported by railway tariff benefits and consistent tender wins. Key watch points include Q2 seasonality, geopolitical diesel supply constraints, and execution of the ₹1,300 crores remaining wind order book; wind margins are expected to reach industry levels (18-20% EBITDA) by FY29 as localization scales.