Refex Renewables says Rs 18.4834643 crore claim restricts plant

Refex Renewables & Infrastructure Limited said its Kolhapur compressed biogas plant operations were severely affected after Warana Sugar Limited restricted access, electricity and water supplies over alleged dues of Rs 18.4834643 crore. The subsidiary disputes the claim, legal proceedings are under way, and the financial effect remains unquantified as of September 30, 2026.

What has disrupted the Kolhapur CBG plant?

Warana Sugar has restricted access to the compressed bio gas, or CBG, plant for Refex Renewables personnel and affected its electricity and water supply, Refex Renewables said in its October 6, 2026 disclosure. The company said the restrictions severely affected operations at the Kodoli, Kolhapur facility.

The affected entity is Refex CBG Kolhapur Limited, a step-down subsidiary of Refex Renewables formerly known as Spectrum Renewable Energy Private Limited. The September 30, 2026 filing does not disclose the plant's capacity, output, utilisation, or the date on which access and utility restrictions began.

The auditor highlighted the dispute in its November 4, 2026 limited-review report on the unaudited consolidated results. The auditor said its conclusion on the financial statements was not modified in respect of the matter, while recording that the operational and financial consequences were unresolved.

What is the Rs 18.4834643 crore dispute about?

Warana Sugar's restrictions are linked to alleged dues of Rs 18.4834643 crore, an amount that Refex CBG Kolhapur disputes. Refex Renewables said the subsidiary contends that the dues were fully settled when it acquired the plant in August 2025.

That settlement position is the subsidiary's contention rather than a finding recorded by a court. Both parties have initiated legal proceedings, and the auditor described the matter as sub judice, meaning it remains before a court for determination.

Refex CBG Kolhapur has initiated proceedings and is evaluating legal remedies to secure the resumption of operations. The November 4, 2026 filing does not identify the court, a hearing date, any interim relief, or a detailed counterclaim by Warana Sugar beyond the alleged dues.

How much CBG business exposure does Refex Renewables report?

Refex Renewables has not quantified the financial implications of the restricted access and utilities, including the possible impact of a cessation of operations at the plant. It also does not separately disclose Refex CBG Kolhapur's revenue, costs, assets, liabilities, or cash flow for the quarter ended September 30, 2026.

The broader CBG segment reported revenue of Rs 2.78 crore in the September 2026 quarter, down from Rs 4.51 crore in the June 2026 quarter. The filing does not attribute that sequential decline, or any segment loss, specifically to the Kolhapur plant restrictions.

The CBG segment moved from a profit of Rs 0.09 crore in June 2026 to a loss of Rs 2.26 crore in September 2026. For the half year ended September 30, 2026, revenue rose to Rs 7.29 crore from Rs 1.13 crore a year earlier, while the segment loss widened to Rs 2.17 crore from Rs 1.65 crore.

What do Refex Renewables' consolidated results show?

Refex Renewables reported revenue from operations of Rs 16.73 crore for the quarter ended September 30, 2026, compared with Rs 22.20 crore in the June 2026 quarter and Rs 14.28 crore a year earlier. Commercial and Industrial operations contributed Rs 13.89 crore, compared with Rs 2.78 crore from CBG.

The group reported net profit of Rs 23.73 crore for the September 2026 quarter, following a net loss of Rs 3.14 crore in June 2026 and a net loss of Rs 14.32 crore in September 2025. Exceptional items of Rs 23.78 crore affected the September-quarter result, including liability write-backs and gains on trademark and investment transactions under a restructuring agreement.

Before exceptional items and tax, Refex Renewables reported profit of Rs 1.85 crore in the September 2026 quarter, compared with a loss of Rs 1.28 crore in June 2026. The company said group assets and liabilities are used interchangeably among segments, so it has not allocated assets or liabilities to CBG or to the Kolhapur plant.

What is management's plan while the case continues?

Management said Refex Renewables is evaluating and pursuing new business opportunities after the group's net worth was completely eroded at September 30, 2026. The auditor said the condition indicates a material uncertainty that may cast significant doubt on the group's ability to continue as a going concern, although the results were prepared on that basis.

During the September 2026 quarter, wholly owned subsidiary Refex Green Power Limited secured two 80-megawatt wind-power projects through competitive bidding by Solar Energy Corporation of India Limited and SJVN Limited. Management said each project has a 25-year power purchase agreement and that Refex Renewables is raising up to Rs 16.20 crore through a preferential equity issue.

Refex Renewables also said it received a letter of support from a promoter shareholder for relevant financial support. The filing does not state that the proposed equity issue, promoter support, or the two wind projects will resolve the Kolhapur access, power and water restrictions.

Conclusion

The disclosure establishes that the Kolhapur CBG plant has suffered an operational disruption: access for personnel has been restricted and electricity and water supplies have been affected. The disputed amount is Rs 18.4834643 crore, but Refex Renewables has not estimated lost production, revenue, costs, potential liability, or the effect of a plant shutdown.

The next developments to watch are Refex CBG Kolhapur's legal efforts to resume operations and any disclosure quantifying the disruption's financial effect. At the group level, management has disclosed plans to raise up to Rs 16.20 crore through preferential equity shares and to progress two 80-megawatt wind projects with 25-year power purchase agreements.