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Refex Industries Q1 FY27: Profits surge as ash execution stays strong and wind enters delivery mode

Refex Industries opened FY27 with a sharp improvement in standalone profitability, helped by stronger operating leverage and a better business mix. For Q1 FY27, standalone revenue from continuing operations rose to INR 619.3 crore, up 76.4% year on year. EBITDA increased to INR 105.4 crore, up 166.0%, and profit after tax climbed to INR 73.6 crore, up 122.8%. Margins expanded meaningfully, with EBITDA margin at 17.0% versus 11.3% a year ago and PAT margin at 11.9% versus 9.4%.

The quarter was also about execution milestones across the group’s newer platforms. In the ash and coal segment, the company highlighted fresh order wins and a large closing order book. In wind, the company said it delivered and erected its first 5.3 MW turbine at a customer project site, signalling a shift from order creation to on-ground delivery. And in mobility, Refex continued the regulatory steps required for its planned demerger into a separately listed entity.

Q1 FY27 in numbers: growth with margin expansion

The company framed the quarter’s performance as a function of operational capability and a growing order pipeline, with profitability aided by efficiencies and scale. On the cost line, the presentation showed higher gross profit margin at 20.0% in Q1 FY27 compared with 15.5% in Q1 FY26. EBITDA margin moved up to 17.0%.

Below the EBITDA line, finance cost increased to INR 11.0 crore from INR 5.8 crore in Q1 FY26. In the earnings call, management attributed a one-time hit of INR 4 crore to bank processing charges linked to a loan takeover with Indian Overseas Bank, which it said gave the company better terms.

Ash and coal handling: scale, technology, and a large order book

Refex positions its ash and coal platform as an execution-heavy business supported by integrated capabilities. The presentation described end-to-end ash management across excavation, transport, utilisation, and compliance. It also laid out a technology-led workflow across sites, including GPS tracking, geo-fencing of loading and unloading points, fuel sensors, OCR, and camera-enabled verification. The stated aim is to reduce fake trips, improve reconciliation, and create traceability aligned to compliance needs.

In terms of market context, the company cited regulatory tailwinds. The presentation referenced MoEF and CC notifications requiring thermal power plants to achieve 100% ash utilisation, with financial penalties for non-compliance. It also highlighted the long runway created by legacy pond ash clean-up requirements.

On the operating side, management provided a clear volume datapoint. In the earnings call, the CFO said current ash handling volumes are around 65,000 to 70,000 MT per day. It expects Q2 to be seasonally slower and Q3 and Q4 to scale up. When asked about a year-end run-rate, management said the target is close to 90,000 MT per day by Q4.

The order book remains a key indicator of visibility. The investor deck stated that the ash and coal business secured new orders worth INR 279 crore during the quarter, and the order book stood at INR 1,635 crore as on June 30, 2026.

Wind (VRPL): from development to deliveries, with FY27 execution guidance

The wind subsidiary, Venvind Refex Power Limited, is being positioned as a manufacturing platform for 5.3 MW and above wind turbine generators. The presentation highlighted partnerships, ALMM approval status, and a confirmed order book. It also stated that VRPL delivered its first 5.3 MW turbine at Torrent’s Koppal project and started deliveries across other customers.

In the call, management described Q1 as part of a transition into active delivery. It said a key milestone was the successful erection of India’s first 5.3 MW wind turbine by its customer at Koppal, Karnataka, and that the turbine has started operating and is delivering results as projected.

Financially, management provided guidance that is unusually specific for a young manufacturing segment. In Q1, the CFO stated wind execution revenue of INR 295 crore. On profitability, management said margins were small in Q1 and should improve as billing catches up in Q3 and Q4. For FY27, it guided wind execution of roughly INR 1,700 to 1,800 crore and net margin of about 5% to 6%.

Management also shared details on the manufacturing footprint and localisation. It described the Silvassa facility as a leased assembly plant, with capex of about INR 3.5 to 4 crore largely for repairs and maintenance, and said it has about 1 GW of manufacturing capability. It also said blades are currently imported, but localisation is in progress, with a 6 to 12 month timeframe discussed. In response to a question on long-term margins, management said it expects to localise around 85% of components over about 12 months and see stronger margins as localisation and utilisation increase over the next couple of years.

Mobility (RGML): demerger steps move forward

Refex’s mobility business operates as a tech-led premium corporate mobility platform in five cities: Delhi NCR, Mumbai, Bangalore, Hyderabad, and Chennai. The investor deck disclosed a vehicle count of more than 1,750 as of June 30, 2026.

The bigger development is the planned demerger to unlock shareholder value. The presentation described the structure in three steps: RGML merges into Refex Industries and shares held by Refex Industries are cancelled; the mobility undertaking is carved out into a new company, Refex Mobility Limited; and Refex Mobility Limited issues shares to all Refex Industries shareholders at a 1:1 swap ratio, followed by listing.

On progress, the company said it has received BSE, NSE and lender approvals, and NCLT approval to convene stakeholder meetings. The equity shareholders meeting is scheduled for August 5, 2026.

In the call, management also clarified discontinued operations. It said refrigerant gas manufacturing has been completely closed down, and mobility is expected to move out of discontinued operations by the end of Q3 as it becomes a separate listed company.

What to track from here

Refex’s Q1 FY27 outcome was strong on profitability, with visible margin expansion alongside rapid revenue growth on standalone continuing operations. The documents also show a company in the middle of a portfolio transition: the ash platform remains the cash and execution engine, wind is moving into deliveries with FY27 execution guidance, and mobility is heading toward a separate listing via demerger.

Two practical watch points also stand out from the disclosed numbers and commentary. First is working capital and cash conversion. The FY26 standalone cash flow statement showed operating cash flow of INR 30.8 crore with a working capital outflow of minus INR 310.5 crore. Second is the near-term margin profile of wind, which management itself described as small in Q1 and dependent on delivery and billing phasing through Q3 and Q4.

The next few quarters will likely be read through three lenses: whether ash volumes scale toward the stated Q4 run-rate, whether wind executes the FY27 revenue guidance with improving net margin, and whether the mobility demerger stays on the disclosed regulatory timeline.