Refex Industries: Navigating Growth and Green Transitions in Q2 FY26

Refex Industries Limited, a pioneer in sustainability-driven solutions in India, has reported a robust performance for the second quarter and half year ended September 30, 2025. The company's standalone financial results for Q2 FY26 reflect a period of steady improvement, with total income reaching INR 431.18 Crore. This marks a significant sequential growth of approximately 15% from the previous quarter. The underlying resilience of Refex's business model is further underscored by a nearly doubled EBITDA of INR 73.75 Crore and a net profit of INR 52.03 Crore for the quarter. These figures come despite early and intense monsoon-led disruptions in Q1 and continued rainfall in Q2, which had previously impacted operational efficiency.

The company's core Ash & Coal Handling business continues to be the primary revenue driver, demonstrating strong recovery and operational discipline. This segment, along with strategic advancements in Green Mobility and Wind Turbine Manufacturing, positions Refex for sustained long-term value creation. The management's conscious decision to wind down power trading operations, focusing instead on core businesses with higher strategic and financial alignment, further streamlines the company's portfolio for future growth.

Segmental Performance and Strategic Shifts

Refex Industries' H1 FY26 revenue breakdown clearly illustrates the dominance of its Ash & Coal Handling business. This segment contributed a substantial INR 755.99 Crore, accounting for 95.79% of the total revenue. The strong performance in this core area was complemented by contributions from Refrigerant Gas (INR 26.31 Crore, 3.33%) and Solar Power Generation and Related Activities (INR 4.86 Crore, 0.62%).

Notably, the Power Trading segment, which previously held a share, has been significantly scaled down, contributing only INR 0.78 Crore (0.1%). This strategic exit underscores management's commitment to focusing on higher-margin, strategically aligned businesses. The Green Mobility and Wind Energy verticals, while currently in their growth phases, are poised to become significant contributors in the coming years, reflecting Refex's broader transition towards a greener portfolio.

Driving Future Growth: Green Mobility and Wind Energy

Refex is actively reshaping its business structure to capitalize on emerging opportunities in the green economy. The proposed demerger of the Green Mobility business into a separate listed entity, Refex Mobility Limited, is a strategic move to unlock value for stakeholders and enable independent growth with financial flexibility. This vertical, operating over 1,410 electric vehicles across major Indian cities, has already abated over 36 Lakh kg of tailpipe CO2 equivalent, showcasing its commitment to sustainable transportation.

In the wind energy sector, Venwind Refex Power Limited, a strategic subsidiary, is set to revolutionize manufacturing in India. The company is focused on producing 5.3 MW wind turbines, aiming for a 5 GW annual production capacity within five years. With an exclusive technology license from Vensys Energy AG Germany and a newly inaugurated manufacturing facility in Silvassa, Gujarat, Refex is well-positioned to meet India's clean energy goals. The recent contract wins for 153.7 MW and another for INR 474.45 Crore underscore the strong market traction for their wind solutions.

Operational Excellence and Outlook

Refex's operational strategy in ash handling emphasizes efficiency and sustainability. The company utilizes cutting-edge technology, including fuel sensors and centralized GPS, to optimize logistics and ensure efficient ash utilization. This commitment extends to building strong partnerships with cement companies, road concessionaires, and government agencies. The company aims to increase its daily ash handling capacity by 60-65% over the next three years, targeting 105,000 to 110,000 metric tons per day.

Management is optimistic about continued momentum, anticipating new ash handling projects and sustained growth in its diversified portfolio. The focus on disciplined execution and operational efficiency, coupled with strategic transitions in green mobility and wind energy, positions Refex Industries for consistent long-term value creation in India's evolving industrial landscape.