Refex Industries Bags ₹29.34 Cr Pond Ash Transportation Contract from Maharatna PSU

Synopsis:- A fresh transportation order from a Maharatna public sector power producer has put a Chennai-based ash and coal handling company in focus, with Refex Industries Limited securing a Rs. 29.34 crore contract to move pond ash to NHAI road projects over a 12-month period, a modest addition against the company’s much larger revenue base but one that adds to its core ash-handling franchise.

A Chennai-headquartered ash and coal handling company came into focus after disclosing a fresh order from a major power producer. The order, procured from a Maharatna Central Public Sector Enterprise, covers the transportation of pond ash to National Highways Authority of India road projects, where pond ash is used as a construction material in road embankments. The disclosure was filed under Regulation 30 of the SEBI Listing Regulations read with SEBI’s January 2026 Master Circular.

With a market capitalization of Rs. 4,742.30 crore, the shares of Refex Industries Limited were trading at Rs. 345.60 per share, up 2.58 percent from its previous closing price of Rs. 336.90 apiece. It is trading at a P/E of 19.83.

Order Update

The order, valued at approximately Rs. 29.34 crore, covers the transportation of pond ash to NHAI road construction projects and is to be executed over 12 months. The customer has been identified only as a “Maharatna” company, the highest classification tier for central public sector enterprises, which typically points to a major state-run power generator. The company confirmed no promoter-group interest in the awarding entity and that the order does not fall within related-party transactions.

Against FY26 consolidated sales of Rs. 2,277 crore, the order amounts to roughly 1.3 percent of one year’s revenue, a routine addition for a company of this scale rather than a material catalyst on its own. The more relevant context is that this falls squarely within Refex’s core ash and coal handling vertical, where the company has positioned itself as the largest organised player in India, managing tens of thousands of tonnes of ash daily across more than a dozen power plants. Repeat order flow of this kind from public sector power producers is the steady, recurring business that underpins that segment, even if individual contracts rarely move the needle on their own.

Financial Context

Refex’s FY26 numbers show a mixed picture worth laying out plainly. Consolidated sales declined slightly to Rs. 2,277 crore from Rs. 2,468 crore in FY25, a trailing twelve-month contraction of roughly 8 percent, even as operating profit rose sharply to Rs. 357 crore from Rs. 210 crore, lifting operating margin from 8 percent to 16 percent. Net profit for the year came in at Rs. 204 crore against Rs. 158 crore in FY25, a year-on-year increase of around 29 percent.

However, the composition of profit shifted: other income swung from a positive Rs. 50 crore in FY25 to a negative Rs. 13 crore in FY26, meaning a meaningful part of FY25’s profit before tax came from non-operating items that did not recur. Stripped of that swing, the underlying improvement in operating performance this year looks stronger than the net profit growth figure alone would suggest, and the FY25 number should not be read as a clean base for comparison.

Cash conversion remains an area to watch. Cash from operating activity was Rs. 107 crore against an operating profit of Rs. 357 crore in FY26, a CFO-to-operating-profit ratio of just 35 percent, while debtor days rose to 142 from 100 a year earlier and working capital days climbed to 144 from 94 both flagged by Screener’s automated checklist as deteriorating trends. Cash used in investing activities was substantial at Rs. 268 crore, reflecting continued expansion into adjacent businesses such as refrigerant gases and renewable energy, funded partly through Rs. 65 crore of net financing inflows.

A separate point worth flagging directly: promoters have pledged 41.3 percent of their holding, a meaningfully high proportion that warrants independent confirmation of current pledge status, particularly given the stock’s roughly 40 percent decline over the past year even as profits have grown.

Business Overview

Refex Industries Limited specialises in eco-friendly refrigerant gas trading and comprehensive coal procurement and ash disposal solutions, and describes itself as the largest organised player in ash handling in India, serving more than 19 power plants across states including Madhya Pradesh, Karnataka, Chhattisgarh, Bihar and Maharashtra. Clients in this segment include NTPC, UltraTech Cement and Adani Group entities, among others. For FY26, the company reported consolidated sales of Rs. 2,277 crore and net profit of Rs. 204 crore, with return on capital employed at 22.4 percent and return on equity at 17.8 percent. Promoter holding stood at 55.85 percent as of the May 2026 shareholding update.

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