Refex Industries Q2 FY27 results: net profit up 40.1% to ₹50.69 crore, revenue up 78.4%

How did Refex Industries perform in Q2 FY27?

Refex Industries reported consolidated Q2 FY27 revenue of ₹761.32 crore, up 78.4% from ₹426.85 crore in Q2 FY26. EBITDA rose 44.7% to ₹101.95 crore from ₹70.48 crore, but its margin fell 3.1 percentage points to 13.4%. Profit before tax was ₹80.67 crore, up 26.2%, and net profit was ₹50.69 crore, up 40.1% from ₹36.19 crore. Basic EPS rose to ₹3.69 from ₹2.80.

Sequentially, revenue fell 16.9% from ₹916.31 crore in Q1 FY27 and total income fell 17.8% from ₹928.65 crore to ₹763.36 crore. EBITDA was ₹101.95 crore, down 4.7% from ₹106.95 crore, although the margin increased 1.7 percentage points to 13.4%. PAT fell 21.5% to ₹50.69 crore and basic EPS fell 20.6% to ₹3.69. On a standalone basis, Q2 FY27 revenue was ₹559.51 crore and PAT was ₹59.48 crore, with profit before tax of ₹52.03 crore.

What changed in Refex Industries' costs and profit?

Against Q2 FY26, total expenses rose 85.4% to ₹682.69 crore, mainly reflecting a 245.6% increase in cost of materials to ₹619.25 crore from ₹179.18 crore. Finance costs rose 155.6% to ₹16.92 crore, employee cost increased 22.6% to ₹13.40 crore, depreciation rose 24.3% to ₹6.40 crore and other expenses increased 77.8% to ₹11.36 crore. Other income declined 60.8% to ₹2.04 crore from ₹5.20 crore. There was no exceptional item.

Tax expense increased 13.4% to ₹21.12 crore from ₹18.62 crore in Q2 FY26. Despite the lower other income and higher cost lines, EBITDA rose 44.7% to ₹101.95 crore and PAT rose 40.1% to ₹50.69 crore. Against Q1 FY27, cost of materials fell 25.2% to ₹619.25 crore and other expenses fell 50.5% to ₹11.36 crore, while finance costs rose 31.0% to ₹16.92 crore and employee cost increased 24.3% to ₹13.40 crore. Other income fell 83.5% to ₹2.04 crore, and tax expense declined 18.8% to ₹21.12 crore.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹1,677.62 crore, up 111.6% from ₹792.87 crore in H1 FY26. Total income rose 109.3% to ₹1,692.02 crore from ₹808.45 crore, while profit before tax increased 80.4% to ₹181.22 crore from ₹100.46 crore.

H1 FY27 PAT was ₹115.25 crore, up 103.8% from ₹56.56 crore in H1 FY26. Basic EPS increased 92.2% to ₹8.40 from ₹4.37. The results reflect the contribution of continuing operations and the presentation of Power Trading and Refrigerant Gases as discontinued operations in the filing.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹3,509.47 crore, up from ₹2,842.70 crore at 31 March 2026. Total equity rose to ₹1,606.03 crore from ₹1,508.58 crore, while borrowings increased to ₹226.86 crore from ₹162.11 crore. Cash and cash equivalents were ₹322.42 crore against ₹183.71 crore; inventories increased to ₹113.37 crore from ₹76.07 crore, trade receivables to ₹1,250.93 crore from ₹886.25 crore and trade payables to ₹741.37 crore from ₹464.28 crore.

H1 FY27 operating cash flow was ₹77.09 crore, compared with ₹73.85 crore in H1 FY26. Investing cash flow was ₹48.12 crore against an outflow of ₹96.36 crore, while financing cash flow was ₹14.80 crore against an outflow of ₹23.61 crore. Capital expenditure was ₹31.33 crore in H1 FY27, compared with ₹28.92 crore in H1 FY26. The consolidated closing cash figure for the half-year cash flow statement was not provided.

How has Refex Industries done over the last 8 quarters?

Revenue reached its highest level in the available series at ₹934.17 crore in Q4 FY26 and then eased to ₹916.31 crore in Q1 FY27 and ₹761.32 crore in Q2 FY27. The lowest quarterly revenue was ₹383.25 crore in Q1 FY26, while Q2 FY27 revenue remained above every quarter before Q3 FY25.

PAT peaked at ₹94.45 crore in Q4 FY26, compared with the low of ₹20.37 crore in Q1 FY26. It subsequently fell to ₹64.55 crore in Q1 FY27 and ₹50.69 crore in Q2 FY27. EBITDA margin reached its high of 17.1% in Q4 FY26 and its low of 7.1% in Q3 FY25, before recovering to 13.4% in Q2 FY27. Revenue rose year on year in each of the last three quarters, while profit rose year on year in each of the last five.

Which businesses drove the quarter?

The ash and coal handling business reported Q2 FY27 revenue of ₹546.62 crore and EBIT of ₹91.03 crore, with an EBIT margin of 16.7%. Year-ago revenue and EBIT figures were not provided for this segment. Wind power reported revenue of ₹201.80 crore and EBIT of ₹9.04 crore, with an EBIT margin of 4.5%; comparable year-ago figures were not provided.

Green mobility revenue increased 49.2% to ₹36.13 crore from ₹24.21 crore. Its EBIT was a loss of ₹12.20 crore, compared with a loss of ₹8.84 crore in the year-ago quarter, and the EBIT margin was -33.8%. All other segments reported revenue of ₹12.90 crore and an EBIT loss of ₹4.57 crore, with an EBIT margin of -35.5%; year-ago figures were not provided.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the limited review reports of A B C D & Co LLP. The Audit Committee reviewed the results before board approval, and the company said it would publish the required extracts in newspapers and make the results available on its website. The same-day investor presentation stated that the ash and coal business secured new orders worth ₹346 crore and that the order book stood at ₹1,721 crore as on 30 September 2026. It also said the RGML demerger process would be completed in the next few months. No dividend, fund raise or appointment was disclosed in the same-day filings.

What did Refex Industries' management say?

Management said the first RMC plant at Charholi, Pune, began operations on 25 September 2026, followed by Hoskote in Karnataka and Kalyan near Mumbai, with a phased rollout across Mumbai, Bangalore, Hyderabad, Kolkata and Chennai. CFO Dinesh Kumar Agarwal said Refex was adopting a capital-light lease-based model to scale without significant fixed-asset investment. Management expects RMC profitability to become visible in 3-5 months and contribute meaningfully from FY28.

Management identified monsoon, waterlogging and transport constraints as factors that can temporarily reduce ash-handling volumes and revenue. It also cited working-capital control, plant ramp-up and competition for the RMC expansion, and said wind margin gains depend on timely indigenisation. Management noted that the working-capital cycle is around 130 days and billing or certification can take as long as 70 days. CFO Dinesh Kumar Agarwal said there would be no forced selling of promoter shares despite any fall in the share price.

How did Refex Industries shares react?

The stock fell 4.1% within five minutes of the filing, 5.0% after 15 minutes and 4.7% after 30 minutes. It closed the reaction day 4.1% below its pre-results close, and by the next day’s close it was down 4.8% from that close. The Waste Management industry median was flat on the reaction day and down 0.4% by the next day, leaving Refex’s excess move at -4.1 percentage points and -4.4 percentage points, respectively.

Earlier reaction-day moves were mixed: Refex fell 2.8% on 29 July 2026 and rose 4.2% on 26 May 2026. It fell 3.1% on 21 January 2026, 1.9% on 4 November 2025 and 8.0% on 12 August 2025; earlier results days included declines of 2.5% on 23 April 2025 and gains of 3.3% on 27 January 2025 and 2.1% on 13 November 2024.