Refex Industries Cuts Gases Unit, Profit Inches Up on Strong Coal Handling

INDUSTRIAL-GOODSSERVICES

Overview

Refex Industries posted a marginal 5% rise in consolidated profit after tax (PAT) to ₹61 crore for the December 2025 quarter. This occurred even as revenue from operations declined to ₹576 crore from ₹686 crore a year ago. The company's board has approved discontinuing the refrigerant gases business, which accounted for about 2.5% of total revenue, citing competitive pressures. The move aims to sharpen management focus and capital allocation towards core, higher-growth segments.

Profit Growth Amid Revenue Slump

Refex Industries reported a modest 5% year-on-year increase in consolidated profit after tax (PAT), reaching ₹61 crore for the third quarter ending December 2025. This profit growth was achieved despite a significant 16% drop in revenue from operations, which fell to ₹576 crore compared to ₹686 crore in the corresponding quarter of the previous year. The company's Ash & Coal Handling Business provided a substantial boost, recording a profit before interest and tax (PBIT) of ₹97 crore. However, other key segments, including Green Mobility and Wind Power, operated at a loss.

Strategic Exit from Refrigerant Gases

In a significant strategic shift, the board of Refex Industries has sanctioned the discontinuation of its refrigerant gases business segment. The company cited intense competition and pricing pressures as key challenges impacting this division, which contributed roughly 2.50% to the total revenue. Management stated the move is intended to streamline operations by enabling better allocation of focus and capital towards the company's core, higher-growth businesses. This follows a similar decision in August to cease the power-trading business due to profitability concerns and high compliance costs.

Market Reaction

The announcement did not sit well with investors. As of 11:20 AM on January 21, 2026, shares of Refex Industries traded down ₹7.60, or 3.12%, at ₹235.70 on the National Stock Exchange (NSE). The market appears to be weighing the revenue decline and the immediate impact of exiting a business line against the potential long-term benefits of strategic realignment.

Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommendation to buy or sell any securities. Readers should consult a SEBI-registered advisor before making investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.