Refex margin improves as revenue falls, but profit drops 21.47% sequentially
Lower expenses supported margins, but higher interest and sharply lower other income pulled down pre-tax and net profit.
Filed 28 Oct 2026, 19:40 IST · after market close · Refex Industries Ltd (REFEX)
Key takeaways
- Revenue fell 16.91% sequentially to Rs 761.32 cr, but expenses fell faster at 18.53%, lifting operating margin by 1.72 percentage points.
- Net profit declined 21.47% sequentially as interest expense rose 30.96% and other income fell 83.48%.
- Refex's 13.39% operating margin was 29.49 percentage points below the Utilities peer median of 42.88% across six reported companies.
Price around the results
Lower revenue, better operating conversion
Refex's consolidated revenue declined 16.91% sequentially to Rs 761.32 cr, while operating profit fell only 4.68% to Rs 101.95 cr. Expenses contracted faster than revenue, at 18.53%, which improved operating margin by 1.72 percentage points to 13.39%. Other income contributed only 2.53% of pre-tax profit, so the quarter's earnings were not materially dependent on non-operating income.
Interest and other income weakened profit below operating level
Pre-tax profit fell 19.77% sequentially as interest expense rose 30.96% and depreciation increased 9.78%. Other income dropped 83.48%, from Rs 12.35 cr to Rs 2.04 cr, adding to the pressure below operating profit. The tax rate rose by 0.30 percentage points to 26.18%, so a lower tax rate did not flatter net profit, which declined 21.47% to Rs 50.69 cr.
Margin remains lowest among six reported Utilities peers
Refex's 13.39% operating margin was 29.49 percentage points below the 42.88% median for six Utilities peers that had reported the quarter, placing it at the bottom of that comparison. Sequentially, margin improved from 11.67% in Q1FY27, but the available trend covers only one prior quarter and does not establish a multi-quarter direction.
RMC launch and ash handling broaden the operating plan
Management said Refex's first RMC plant at Chahroli, Pune, began operations on 25 September 2026, with two additional plants operational and phased expansion planned across markets including Mumbai, Bengaluru and Chennai. The company said it entered RMC as a downstream extension of its ash business, using fly ash as a partial cement replacement. Management also said expected capacity additions include 1,800 MW from companies taken over from the NCLT and described an integrated model combining ash-plant operations with ash utilisation.
Results were filed after market close
Refex filed these consolidated results at 19:40 IST on 28 October 2026, after the market closed. There is therefore no market reaction to assess in this update.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹761 cr | ₹916 cr | -16.91% |
| Other income | ₹2 cr | ₹12 cr | -83.48% |
| Expenses | ₹659 cr | ₹809 cr | -18.53% |
| Operating profit | ₹102 cr | ₹107 cr | -4.68% |
| Operating margin (%) | 13.39% | 11.67% | — |
| Interest | ₹17 cr | ₹13 cr | +30.96% |
| Depreciation | ₹6 cr | ₹6 cr | +9.78% |
| Profit before tax | ₹81 cr | ₹101 cr | -19.77% |
| Tax | ₹21 cr | ₹26 cr | -18.83% |
| Net profit | ₹51 cr | ₹65 cr | -21.47% |
| EPS (₹) | ₹3.69 | ₹4.65 | -20.65% |
Operating margin of 13.39% compares with a Utilities sector median of 42.88% across 6 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Refex commenced operations at its first RMC plant in Chahroli, Pune, on 25 September 2026.
Guidance & outlook
- Refex targets carbon neutrality by 2040 and water neutrality by 2035.
Expansion
- Expected capacity additions include 1,800 MW from companies taken over from the NCLT.
- Refex’s first RMC plant at Chahroli commenced operations, two additional plants are operational, and phased expansion is underway across multiple cities.
- Refex plans a phased expansion of its RMC business across nine markets, including Mumbai, Bengaluru and Chennai.
New products
- Refex entered the RMC business with high-performance concrete solutions using fly ash and fine aggregates.
New initiatives
- Refex is developing an integrated ash-handling model combining plant O&M with complete ash utilization.
- Partner-led investments are intended to upgrade ash-handling systems without upfront capex for the Genco.
- Refex entered RMC as a forward integration of its ash business, using fly ash as a partial cement replacement.
- Refex’s Trees for Life programme pledges to plant 100,000 saplings by 2030.
Competition
- Refex describes its ash and coal handling business as India’s largest organized player.
What to watch
- Whether revenue recovers from Rs 761.32 cr in the next quarter.
- Whether operating margin holds above 13.39% after the 1.72-percentage-point sequential improvement.
- Whether interest expense moderates from Rs 16.92 cr and other income remains near Rs 2.04 cr.