Refex Industries Reports Strong Q4 Profit Growth Amid Strategic Shift

Refex Industries saw its Profit After Tax (PAT) surge by 67% year-on-year to ₹94 crore in the fourth quarter of FY26. The company's revenue for the quarter stood at ₹701 crore, an increase from ₹594 crore in Q4FY25.

Reader Takeaway: Profitability boost from business model shift; watch promoter pledge and working capital.

What just happened

Refex Industries announced its financial results for the fourth quarter and full year ended March 31, 2026. The company reported a significant jump in PAT for Q4FY26, driven by a strategic business realignment. Revenue for Q4FY26 was ₹701 crore, up from ₹594 crore in the prior year's comparable quarter. For the full year FY26, revenue was ₹2,039 crore, a decrease from ₹2,259 crore in FY25. However, EBITDA for FY26 rose to ₹350 crore from ₹208 crore in FY25, and PAT increased to ₹247 crore from ₹184 crore.

Why this matters

The improved profitability, particularly the 67% YoY PAT growth in Q4FY26, signals a successful transition towards higher-margin business segments. This strategic shift away from low-margin trading activities like Power Trading and Refrigerant gas towards Ash & Coal Handling and Wind Energy services is a key focus for the company and its investors. The strong order pipeline in these service businesses provides visibility for future revenue.

The backstory

Refex Industries has been actively working on restructuring its business operations. The company has been moving towards service-oriented, high-margin businesses. This includes significant focus on Ash & Coal handling for thermal power plants and developing its Wind Energy division. The company is also undergoing a demerger process, which is expected to be completed in approximately 90 days.

What changes now

With the strategic shift and a robust order pipeline, Refex Industries aims to consolidate its position in the service sector. The Ash & Coal Handling segment handles a significant daily volume and is viewed as an asset-light, long-term business. The Wind Energy division is moving into active execution, with plans for product localization to boost margins. The ongoing demerger is expected to unlock value and streamline operations.

Risks to watch

Key concerns for investors include the working capital intensity of the business, with receivable days typically between 105 and 125 days. Additionally, a significant portion of promoter shares, 41%, remains pledged. While management expects a reduction in this pledge over the next six months, it remains a point of watch for corporate governance.

Peer comparison

While direct peer comparison details were not provided in the filing, Refex Industries' strategic move towards specialized services like Ash & Coal handling and Wind Energy execution positions it within the broader industrial services and renewable energy infrastructure sectors. Companies in these sectors often benefit from long-term contracts and sustained demand from core industries like power generation.

Context metrics (time-bound)

• Q4 FY26 Revenue: ₹701 crore (vs ₹594 crore in Q4 FY25)
• Q4 FY26 PAT: ₹94 crore (vs ₹56 crore in Q4 FY25)
• FY26 Revenue: ₹2,039 crore (vs ₹2,259 crore in FY25)
• FY26 EBITDA: ₹350 crore (vs ₹208 crore in FY25)
• FY26 PAT: ₹247 crore (vs ₹184 crore in FY25)
• Ash & Coal Handling Order Pipeline: ₹1,500 crore (as of March 31, 2026)
• Wind Energy Order Book: ₹1,860 crore
• Promoter Share Pledge: 41%

What to track next

Investors should monitor the execution progress of the Ash & Coal handling order pipeline, the ramp-up of the Wind Energy business, the completion of the NCLT demerger process, and the planned reduction in the promoter share pledge. Continued margin improvement and working capital management will also be crucial.