20% Lower Circuit: EV stock falls after Income Tax conducts search operations

SYNOPSIS: Refex Industries faced Income Tax search operations, prompting full cooperation from the company. Its stock hit the lower circuit following the development, though operations remain unaffected, and updates will be provided as required.

During Friday’s trading session, shares of a company with a diverse portfolio encompassing ash & coal handling, eco-friendly refrigerant gases, green mobility initiatives, and wind energy solutions, hit a 20 percent lower circuit on the stock exchanges. What triggered this steep fall? Let’s break it down in this article.

With a market cap of Rs. 3,481 crores, shares of Refex Industries Limited hit a 20 percent lower circuit to a new 52-week low at Rs. 254.35 on BSE, as against its previous closing of Rs. 317.9.

The stock has delivered negative returns of around 52 percent in one year, and has fallen by over 29 percent in the last one month. Additionally, the stock is currently trading at a discount of more than 53 percent from its 52-week high of Rs. 547.

What’s the News:

According to the latest filings with the stock exchanges, Refex Industries Limited has disclosed that the Income Tax Department conducted search operations at the company’s registered office as well as at various locations associated with the Refex Group. The searches commenced on 9th December 2025.

The company stated that its management and officers have fully cooperated with the authorities throughout the process, providing all necessary information as requested. Refex Industries affirmed that it will continue to update the stock exchanges on any further reportable developments in accordance with SEBI Listing Regulations.

Refex Industries further clarified that the search operations have had no impact on its business activities, which continue to operate smoothly without any disruption. The company added that the process remains ongoing and that it will continue to engage with the authorities under the guidance of its legal advisors. It reiterated its commitment to transparency and confirmed that all required disclosures will be made to stakeholders in line with applicable laws.

Financials & More:

Refex Industries reported a marginal decline in revenue from operations, experiencing a year-on-year decrease of nearly 0.23 percent, from Rs. 428 crores in Q2 FY25 to Rs. 427 crores in Q2 FY26.

In contrast, the company’s net profit increased during the same period from Rs. 31 crores to Rs. 36 crores, representing a rise of more than 16 percent YoY. In Q2 FY26, Refex Industries Limited reported segment-wise revenues of Rs. 409 crore from Ash & Coal Handling, Rs. 12 crore from Refrigerant Gases, Rs. 0.17 crore from Power Trading, Rs. 24.2 crore from Green Mobility, Rs. 2.13 crore from Solar Power, and Rs. 3.63 crore from Wind Power.

Refex Industries Limited is a pioneer in sustainability-driven solutions in India, with a diverse portfolio encompassing ash & coal handling, eco-friendly refrigerant gases, and green mobility initiatives.

Through its subsidiary, Refex Green Mobility Limited, the company has entered into the electric mobility space, offering electric vehicle (EV) services for passenger mobility, addressing corporate transportation needs and B2B2C applications using four-wheeler EVs. Adding further depth to its green portfolio, Venwind Refex Power Limited, a strategic subsidiary, has been established to drive a new era in wind turbine manufacturing in India.

Written by Shivani Singh

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