Financial Performance and Margins
During the first quarter of FY27, Refex Industries demonstrated significant growth in its standalone financials. Standalone revenue for continuing operations stood at ₹619 crore, a sharp rise from ₹351 crore in the corresponding quarter of the previous year. EBITDA for the quarter was reported at ₹105 crore, while the EBITDA margin settled at 17%.
The company's profitability saw a substantial boost, with Profit After Tax (PAT) growing 123% YoY to ₹73.6 crore. Management noted that while wind energy margins are currently impacted by pre-operating expenses, they expect a consolidated net margin of 5-6% for the wind business by the end of the fiscal year.
Strategic Segment Updates
- Ash Handling: The company currently operates across 42 thermal power plants, benefiting from the regulatory mandate for 100% ash utilization. EBITDA margins in this segment remain stable between 15-18%.
- Wind Energy: The segment is transitioning to a product-only supplier model. Refex currently holds an order book of ₹1,860 crore, of which ₹525 crore has been executed to date.
- Corporate Mobility: The demerger process is progressing, with NCLT approval received to convene meetings of shareholders and creditors for the restructuring.
- Component Localization: Plans are underway to localize 85% of wind turbine components within the next 12 months to improve supply chain efficiency and margins.
Management on Operational Momentum
We have entered FY27 with a strong momentum across our businesses supported by a robust execution, a healthy order pipeline and continued progress across our strategic growth platforms.
What to Watch
- Achievement of 90,000 TPD ash handling volume run rate by Q4 FY27.
- Revenue target realization of ₹1,700-1,800 crore from the wind segment for the full fiscal year.
- The upcoming equity shareholders meeting scheduled for next month regarding the mobility business demerger.
- Progress on the reduction of promoter pledge, which currently stands at approximately 43.5%.
