Refex Renewables' Q2 profit follows Rs 23.78 crore gains

Refex Renewables & Infrastructure Limited reported a consolidated profit after tax of Rs 23.73 crore for the quarter ended 30 September 2026, after recording Rs 23.78 crore of exceptional items. The reported profit followed a Rs 3.14 crore loss in the June 2026 quarter, while both its Commercial and Industrial and Compressed Bio Gas segments posted quarterly losses.

Why did Refex Renewables report a quarterly profit?

Refex Renewables reported profit because exceptional items of Rs 23.78 crore lifted profit before tax to Rs 25.63 crore in the September 2026 quarter. Before exceptional items and tax, the group reported a Rs 1.85 crore profit, compared with a Rs 1.28 crore loss in the June 2026 quarter and a Rs 12.41 crore loss in the quarter ended 30 September 2025.

The exceptional item reflected liability write-backs and gains on the sale of a trademark and investments under a restructuring agreement involving Refex Renewables, Sherisha Solar LLP, Ishaan Solar Power Private Limited and SILRES Energy Solutions Private Limited. The filing identifies a Rs 61.33 lakh gain from transferring SUNEDISON trademarks to SILRES and a Rs 2.74 crore loan write-off by SEI Tejas during the quarter.

Other income was Rs 13.49 crore in the September quarter, compared with Rs 3.49 crore in June 2026 and Rs 86 lakh a year earlier. This included a Rs 12.67 crore gain from the disposal of loss-making subsidiary Ishaan Solar, which, along with its subsidiary SEI Tejas, ceased to be a wholly owned subsidiary on 14 August 2026.

How did Refex Renewables' operating segments perform?

Refex Renewables' Commercial and Industrial and Compressed Bio Gas segments both recorded losses in the quarter ended 30 September 2026. Commercial and Industrial posted a segment loss of Rs 3.04 crore, reversing a Rs 3.42 crore profit in June, while Compressed Bio Gas reported a Rs 2.26 crore loss after a Rs 9 lakh profit in the preceding quarter.

Commercial and Industrial revenue declined by Rs 3.67 crore sequentially to Rs 13.89 crore, though it exceeded the Rs 12.99 crore reported in the September 2025 quarter. Compressed Bio Gas revenue declined to Rs 2.78 crore from Rs 4.51 crore in June, but was above Rs 1.11 crore a year earlier.

The Others segment reported Rs 6 lakh of revenue and an Rs 11 lakh segment profit in the September quarter. Refex Renewables said it does not allocate assets and liabilities by segment because group assets and liabilities are used interchangeably and such an allocation would not be meaningful.

What does Refex Renewables' balance sheet show?

Refex Renewables reported total assets of Rs 541 crore at 30 September 2026, compared with Rs 517.30 crore at 31 March 2026, while total equity remained negative at Rs 56.69 crore. Other equity improved to negative Rs 59.96 crore from negative Rs 84.60 crore over the six-month period.

Non-current borrowings increased to Rs 474.68 crore from Rs 453.74 crore at 31 March 2026, while current borrowings declined to Rs 13.58 crore from Rs 32.67 crore. Trade payables rose to Rs 18.94 crore from Rs 7.43 crore, and cash and cash equivalents increased to Rs 7.86 crore from Rs 5.85 crore.

Refex Renewables said accumulated losses had completely eroded its net worth, raising substantial doubt about its ability to continue as a going concern in the foreseeable future. Management cited the evaluation of new opportunities, a promoter shareholder's letter of financial support and a planned preferential equity issue of up to Rs 16.20 crore in preparing the accounts on a going-concern basis.

For the half year ended 30 September 2026, operating activities generated Rs 24.98 crore of cash, against Rs 6.27 crore a year earlier. Investing activities used Rs 22.50 crore and financing activities used Rs 47 lakh, resulting in a Rs 2.01 crore rise in cash, compared with a Rs 6.08 crore decline in the prior-year half.

What developments could affect Refex Renewables next?

Refex Renewables disclosed that its wholly owned subsidiary, Refex Green Power Limited, secured two 80-megawatt wind-power projects during the quarter through competitive bidding conducted by Solar Energy Corporation of India Limited and SJVN Limited. Each project has a 25-year power-purchase agreement, or PPA, according to the filing.

Refex Green Power also acquired 100% stakes in Refex Vayu SPV 1 Private Limited and Refex Vayu SPV 3 Private Limited, plus a 49% stake in Refex Vayu SPV 2 Private Limited. The first two entities became step-down subsidiaries, while Refex Vayu SPV 2 became an associate.

The Compressed Bio Gas business also faces an unresolved dispute at the Kodoli, Kolhapur plant operated by step-down subsidiary Refex CBG Kolhapur Limited. Warana Sugar Limited alleged dues of Rs 18.48 crore and restricted plant access, electricity and water supply, while the subsidiary disputes the claim and has initiated legal proceedings; Refex Renewables said the financial effects cannot presently be quantified.

Conclusion

Refex Renewables' Rs 23.73 crore quarterly profit was driven by Rs 23.78 crore of exceptional items and supported by Rs 13.49 crore of other income, including the Rs 12.67 crore disposal gain on Ishaan Solar. Revenue from operations fell to Rs 16.73 crore from Rs 22.20 crore in June, while the Commercial and Industrial and Compressed Bio Gas businesses both recorded segment losses.

The next disclosures should indicate progress on the proposed preferential equity issue of up to Rs 16.20 crore, the two 80-megawatt wind projects with 25-year PPAs, and legal efforts to resume operations at the affected Kolhapur CBG plant. Refex Renewables also disclosed continuing going-concern uncertainty alongside negative total equity of Rs 56.69 crore at 30 September 2026.