Refex Industries Ltd Management Discussions

This Management Discussion and Analysis (MDA) Report provides an overview of the operational and financial performance of Refex Industries Limited for the financial year ended March 31, 2026.

Global Economy Overview

The global economy remained resilient during FY 2025 - 26 despite geopolitical tensions, evolving trade policies, supply-chain realignments and commodity-market volatility.

According to the IMF, global growth is projected at approximately 3.1% in 2026, and Global inflation is expected to remain elevated at approximately 4.4% before moderating. Emerging markets, particularly in Asia, remained the principal contributors to global growth, with India among the fastest-growing major economies. Geopolitical developments, including the Russia - Ukraine conflict, tensions in the Middle East, and escalating US - China trade tariffs, significantly impacted global energy markets, trade flows, and supply chains during the year. The resulting volatility in energy, commodity, and freight costs intensified pressures across logistics, manufacturing, and energy-intensive sectors, reinforcing the need for greater energy security, resilient operations, and diversified supply chains. These trends continued to support investments in renewable energy, electrification and alternative-fuel mobility solutions, although conventional power generation remains critical for meeting global energy demand. Businesses also accelerated the adoption of AI, digital technologies and sustainable operating practices to enhance competitiveness and resilience in an evolving economic landscape.

Indian Economy Overview

India reinforced its position as the worlds fastest-growing major economy in FY 2025 - 26, with real GDP growth estimated at 7.6%, driven by resilient domestic demand, improving private investment and continued government-led infrastructure development and reforms.

Key Economic Indicators:

Indias economy remained resilient during FY 2025-26, with strong performance in manufacturing (11.5%), services (8.7%) and construction (7.1%) sectors. Retail inflation moderated to 2.1%, aided by robust agricultural output and effective supply-side measures. The Government continued its fiscal consolidation efforts, budgeting a fiscal deficit of 4.4% of GDP while maintaining a significant capital expenditure outlay of Rs.11.21 lakh crore (3.1% of GDP). Investments across railways, roads, housing, defense, urban infrastructure and logistics are expected to strengthen industrial competitiveness and support long-term economic growth. India also remained an attractive investment destination, recording a historic FDI inflow of over USD 94 billion in FY 2025 - 26 and cumulative inflows of USD 843 billion since 2014 -15. The country ranked 38th in the Global Innovation Index 2025, supported by a vibrant startup ecosystem comprising over 120 unicorns.

Indias power sector continued its growth trajectory, with installed generation capacity reaching approximately 524 GW as of February 2026. The Country successfully met a record peak power demand of 250 GW from non-renewable sources, while healthy coal inventories and improved fuel availability supported reliable power generation. Continued investments in power and infrastructure remain critical to supporting Indias expanding economy and strengthening long-term energy security.

Policy Environment

The Government continued to emphasize fiscal discipline, infrastructure development, domestic manufacturing and structural reforms. A capital expenditure outlay of Rs.11.21 lakh crore, along with initiatives such as Make in India and the National Manufacturing Mission, supported industrial growth and competitiveness across roads, railways, logistics, energy and urban infrastructure. Sustainability also remained a key priority, with India pursuing its targets of 500 GW non-fossil energy capacity by 2030 and Net Zero emissions by 2070 under the Panchamrit strategy.

Economic Outlook

Indias economic outlook remains positive, supported by strong domestic demand, infrastructure investment and a growing focus on manufacturing and localisation. The World Bank projects GDP growth of around 6.6% in FY27, led by services and infrastructure. Sustaining this momentum will require navigating global trade restrictions and commodity prices volatility, while addressing the challenge of creating 90 million non-farm jobs by 2030. Higher investments in education and healthcare will also be critical to fully realize Indias demographic dividend and support the long-term Viksit Bharat 2047 vision. Meanwhile, higher fuel prices and energy-security concerns are expected to drive continued investment in renewable energy, electrification and lower-emission mobility, encouraging businesses to increasingly adopt electric vehicles for logistics and fleet operations. However, the pace of adoption will remain influenced by vehicle economics, financing availability and charging infrastructure. Simultaneously, rising electricity demand and grid stability requirements are expected to sustain investment in conventional energy and related infrastructure services.

Industry Structure & Developments

a) Coal & Ash Handling

1. Coal Handling Industry Overview

The global coal industry remained resilient during FY 2025 - 26 despite geopolitical uncertainties and the ongoing energy transition. Coal continued to play a critical role in meeting rising electricity demand and ensuring reliable base load power, particularly across emerging economies. Geopolitical developments, including the Russia - Ukraine conflict and disruptions to key maritime trade routes, influenced global coal trade flows, freight rates, and supply-chain dynamics. India recorded a historic milestone by producing over 1.15 billion tons of coal during FY 2025 - 26, reinforcing domestic energy security. Coal continued to underpin the countrys power sector, accounting for nearly 75% of electricity generation.

FY 2025 - 26 also marked a significant year for captive and commercial coal mining, with production reaching 210.46 million tons, an increase of 10.22% over the previous year. Dispatches grew by 7.35% to 204.61 million tons, supported by improved mining efficiencies and logistics infrastructure.

To strengthen domestic supply further and reduce import dependence, the Ministry of Coal operationalized 12 captive and commercial coal blocks, adding over 86 million tons of annual production capacity. Looking ahead, the Government plans to operationalize 100 additional coal mines by FY30, targeting an incremental 500 million tons of annual capacity. Despite robust domestic production, imports remained necessary to meet coking coal requirements and regional supply-demand imbalances. During FY 2025 - 26, India imported

246.37 million tons of coal, comprising 66.33 million tons of coking coal and 180.04 million tons of non-coking coal, with Indonesia, Australia, and South Africa remaining key sourcing partners. However, thermal coal imports by power plants declined to a four-year low, reflecting improved domestic availability.

Opportunities and Challenges

Indias coal sector continues to play a vital role in supporting power generation and energy-intensive industries such as steel, cement, and aluminium. Ongoing policy reforms, commercial mining liberalization, and investments in mining, evacuation infrastructure, and integrated multi modal logistics, port mechanization are improving operational efficiency and encouraging greater private sector participation. Increasing adoption of advanced mining technologies, digitalization, automation, and carbon management solutions is further enhancing productivity and operational sustainability. However, the sector continues to face structural and environmental challenges. Stringent environmental regulations, increasing focus on emissions and land use, and Indias long-term carbonization objectives are accelerating the transition towards cleaner and more efficient coal utilization. In addition, fluctuations in international coal prices, evolving trade dynamics, and logistics constraints continue to influence market stability and operating performance. Despite these challenges, coal handling and logistics businesses are expected to remain strategically important, supported by infrastructure modernization, supply-chain optimization, and sustained demand for reliable fuel movement across Indias industrial and power sectors.

Future Outlook

Coal is expected to remain a cornerstone of Indias energy mix over the medium term, supported by rising electricity demand, rapid industrialization, and the need for dependable base load power. Coal-based installed capacity is projected to reach nearly 250 GW by 2030, ensuring continued demand across the power and industrial sectors. The Government remains focused on enhancing domestic coal availability through accelerated mine development, greater private sector participation, and continued market reforms. For FY 2026 - 27, the Ministry of Coal has set a production target of 1.31 billion tons, while maintaining its long-term objective of achieving 1.5 billion tons of annual coal production by 2030. The sector is also expected to witness continued investment in digital technologies, mechanization, infrastructure modernization, and sustainable mining and coal handling practices. As India balances energy security with environmental responsibility, the coal industry is expected to remain an integral part of the Countrys evolving energy and industrial landscape.

2. Ash Handling Industry Overview

Coal-based thermal power continues to account for nearly three-fourths of Indias electricity generation, making ash management an important aspect of the countrys energy and environmental landscape. As ash generation increases alongside power demand, effective utilization has become both an operational necessity and a significant industrial opportunity.

According to the Central Electricity Authority (CEA), 189 thermal power plants with an installed capacity of 214.06 GW consumed approximately 886.96 million tons of coal during FY 2024 - 25, generating 318.8 million tons of ash. Ash utilization reached 307.1 million tons, translating into a utilization rate of 96.34%, reflecting continued progress towards the Governments goal of 100% ash utilization. Chhattisgarh, Uttar Pradesh, Maharashtra, Madhya Pradesh and Odisha remained the largest ash-generating states, driven by their concentration of coal-based power generation assets. Despite the improvement in annual utilization levels, India continues to carry an estimated 1.7 billion tons of legacy ash accumulated over decades, creating significant environmental and land-management challenges. The issue is further amplified by the relatively high ash content of Indian coal, which typically ranges between 35% and 50%. These factors continue to drive the need for large-scale ash evacuation, beneficiation, transportation, and utilisation solutions across infrastructure, construction, mining, and industrial applications.

Revised MoEF&CC Guidelines

The policy environment for ash utilisation strengthened further during FY 2025 - 26 with the Ministry of Power issuing revised guidelines aimed at accelerating 100% utilisation of both current and legacy ash. The revised framework promotes transparent ash allocation, encourages long-term tie-ups with bulk consumers, supports exports, and facilitates the adoption of multi modal transportation solutions such as rail, waterways, pipelines, and Rail-cum-Road (RCR) systems to improve evacuation efficiency. It also rationalizes transportation support by capping the liability of thermal power plants for utilisation projects beyond 300 km at the notional cost of road transport up to that distance.

Opportunities and Challenges

The ash management industry is undergoing a structural transformation, driven by stricter utilisation mandates, increasing regulatory oversight, and the growing adoption of circular economy principles. Thermal power plants are increasingly preferring integrated, end-to-end models covering ash evacuation, dyke management, transportation, utilisation, compliance and digital monitoring, creating opportunities for organized operators with comprehensive capabilities. Government initiatives such as the Ash Utilization Monitoring Portal and ASTRAM are further enhancing transparency, traceability and utilisation planning across the sector. Indias expanding infrastructure ecosystem continues to create significant demand for ash utilisation. The pace of national highway construction has increased from approximately 12 km per day in 2014 to nearly 29 km per day in 2025, while the National Highway network has expanded from about 91,000 km to over 146,000 km during the same period. This growth is supporting increased utilisation of ash in roads, embankments, soil stabilization, and other construction applications.

The sector is also witnessing growing efforts to develop new utilisation avenues. NTPC, Indias largest power producer, continues to promote sustainable ash management through initiatives such as ash brick manufacturing, mine reclamation, agricultural applications, geo-polymer concrete roads, lightweight aggregate plants, ash-based nano concrete aggregates, and other innovative ash utilisation technologies. These initiatives are helping expand the commercial applications of ash and strengthen circular economy outcomes. However, the sector continues to face challenges including regional demand imbalances, high transportation costs, environmental sensitivities surrounding ash ponds, and the limited commercial adoption of several emerging utilisation avenues. Addressing these constraints will require continued investments in logistics infrastructure, technology, and market development.

Future Outlook

Looking ahead, the ash management industry is expected to witness sustained growth, supported by Indias expanding thermal power base, rising infrastructure investments, and an increasingly robust regulatory focus on achieving 100% ash utilisation. As policy frameworks, digital monitoring systems and utilisation ecosystems continue to evolve, the industry is expected to increasingly adopt integrated service models, with a single operator managing the entire value chain - from ash handling and evacuation to transportation, utilisation and regulatory compliance. Ash is increasingly being recognized not as a waste by-product but as a valuable industrial resource that can support sustainable infrastructure development, conserve natural resources, and reduce the environmental footprint of construction activities. With growing emphasis on resource efficiency, circular economy practices, and environmental stewardship, the sector is well positioned to play an increasingly important role in Indias infrastructure and industrial growth journey.

b) Wind Power Industry Overview

Indias wind-energy industry entered FY26 with stronger momentum, supported by higher project activity and capacity commissioning. During the year, 6.05 GW of new capacity was added, compared with 4.15 GW in FY25, taking cumulative installed capacity to 56.09 GW as of March 31, 2026. This represents a significant increase from 21.04 GW in March 2014 and reinforces Indias position as the worlds fourth-largest wind-power market by installed capacity. The demand environment for wind turbines and related components is being driven by Indias growing electricity requirements and the broader expansion of renewable-energy infrastructure. Wind is also gaining importance alongside solar and storage, particularly in hybrid projects that provide a more balanced generation profile. Green-energy open-access arrangements are expanding the customer base beyond traditional utility procurement, with commercial, industrial and captive consumers increasingly participating in the market. India has also developed a substantial wind-turbine manufacturing ecosystem. Annual manufacturing capacity increased from approximately 10 GW in 2014 to around 24 GW by March 2026. The domestic value chain includes turbine manufacturing, blades, towers, castings, forgings, gearboxes, generators, project development, engineering, construction and long-term operations and maintenance services.

Opportunities and Challenges

India has substantial untapped wind resources. The National Institute of Wind Energy has assessed gross wind potential at approximately 695.5 GW at a hub height of 120 meters and 1,163.9 GW at 150 meters. The higher potential at increased hub heights reflects the opportunity presented by modern turbine platforms, which can make lower-wind-speed sites commercially viable and generate higher output from a given land parcel. Growth opportunities exist across utility and public-sector procurement, commercial and industrial open-access projects, hybrid and storage-supported projects, and the repowering of older wind farms. Hybrid projects can improve the utilisation of evacuation and transmission infrastructure while providing a more diversified generation profile. Repowering can increase output from established wind sites by replacing older, lower-capacity turbines with newer technology. Indias manufacturing and engineering capabilities also provide opportunities in equipment and component exports, operations and maintenance, refurbishment, life-extension services and performance monitoring. Wind energy additionally benefits from the absence of fuel-price exposure at the generation stage, the potential for long-term price visibility and its ability to complement other renewable sources. However, the sector continues to face execution challenges relating to transmission availability, land acquisition, right-of-way approvals and coordination between project construction and grid development. Delays can affect equipment ordering, commissioning schedules, revenue commencement and working-capital requirements. Project economics are also influenced by financing costs, tariff levels, construction timelines, wind resource quality and actual generation. Larger turbine platforms require specialized transportation, road infrastructure, cranes and skilled installation capabilities. Manufacturers also remain exposed to fluctuations in input costs and component availability. Repowering projects may involve additional complexities relating to ownership structures, existing power-purchase agreements, land rights and available grid capacity.

Future Outlook

The outlook for Indias wind-energy industry remains positive, supported by rising electricity demand, renewable-energy targets, energy-security priorities and the increasing requirement for renewable power that can complement solar generation and support more balanced power-supply profiles. Indias installed wind capacity is estimated to increase from 56.09 GW at the end of FY26 to approximately 107 GW by 2030. Achieving this level would require the addition of around 51 GW of capacity, translating into sustained demand for wind turbines, blades, towers, generators, castings, forgings, gearboxes, electrical systems and related engineering and construction services. However, the pace of growth will depend on the timely conversion of announced projects and tenders into firm orders, financial closure and commissioning. Domestic turbine-manufacturing capacity of approximately 24 GW annually provides India with a strong base to serve future project demand and potentially expand its role in global wind equipment supply chains. Higher project volumes could support greater manufacturing scale, increased localisation and deeper development of domestic component suppliers. At the same time, the shift towards higher-capacity turbines, larger rotor diameters and increased hub heights will require continued investment in product development, specialized manufacturing, logistics, installation capabilities and quality systems. The realization of this opportunity will depend on transmission readiness, land availability, policy continuity, access to financing, project execution and supply-chain reliability. Manufacturers with proven technology, a localized supply chain, financial flexibility, disciplined execution capabilities and an established operations and maintenance platform are likely to be better positioned to capture the industrys growth. c) Mobility Industry Overview

Indias corporate mobility sector is undergoing a structural transformation. Organized, technology-led, and sustainability-focused operators are increasingly emerging as the preferred choice for enterprise transportation. This shift is being shaped by a confluence of demand-side, policy, and market forces that are fundamentally redefining how enterprises procure and manage mobility services.

Key Drivers:

1. Rise of Global Capability Centres (GCCs):

The continued expansion of GCCs across Indias major metros is a significant driver of volume growth for organized corporate mobility. India is home to over 1,700 GCCs employing 1.9 million professionals as of 2024, with the sector projected to grow to approximately 2,400 GCCs employing over 2.8 million people by 2030. Concentrated across Bengaluru, Hyderabad, Pune, Chennai, Mumbai, and Delhi NCR, GCCs typically operate with stringent vendor governance, safety, and compliance standards, making them natural adopters of technology-led mobility partners with strong service accountability.

2. Soaring Business Travel:

Rising business travel across corporate India, coupled with growing emphasis on employee safety and premium experience, is driving demand for reliable mobility solutions for executive travel, client visits, rentals, and airport transfers - segments where fragmented vendors and mass-market aggregators consistently underperform on consistency and trust. This demand is further supported by Indias rapidly expanding airport network, with every new airport and route creating incremental need for dependable airport-transfer mobility across surrounding catchment areas.

3. Corporate ESG Mandates:

Indias evolving ESG and sustainability reporting landscape is further accelerating the adoption of clean-fuel mobility solutions for employee transportation. SEBIs Business Responsibility and Sustainability Reporting (BRSR) framework, with its growing emphasis on Scope 1, 2, and emissions disclosures, is encouraging companies to reduce transportation-related emissions as part of their broader net zero and sustainability commitments.

4. EV Transition Policy Push:

Government initiatives and state-level EV policies continue to drive EV adoption nationally, with a growing EV share of overall mobility. This policy tailwind supports the availability and corporate acceptability of EV fleets for organized operators.

5. Formalization and Premiumisation:

Enterprises are no longer evaluating mobility purely on cost. Rising employee safety expectations, stricter governance standards, and the reputational risks of service disruptions are accelerating the shift toward organized operators. Technology-led, premium mobility is increasingly a procurement standard, not a discretionary upgrade.

6. Market Gap:

Indias corporate mobility market, despite its scale and growth potential, remains largely unaddressed by a credible, full-service operator. Existing players each solve part of the problem - aggregators offer reach but not reliability; technology platforms offer visibility but not fleet ownership; local vendors offer familiarity but not consistency or compliance. This fragmentation represents a compelling long-term opportunity to build scale and differentiated value. While long-term sector fundamentals remain strong, near-term challenges persist. These include higher EV acquisition and financing costs, inadequate charging and CNG infrastructure in Tier-2 markets, and the continued cost competitiveness of conventional fuels, which may leave a meaningful share of the industry reliant on conventional fuels for longer than anticipated.

Opportunities & Challenges

Refex operates a predominantly EV fleet, supported by a limited number of CNG vehicles, positioning the Company at the forefront of Indias transition toward sustainable mobility, aligned with the nations Net Zero 2070 target and SEBIs ESG disclosure requirements. This strengthens our positioning among corporates that increasingly prioritize sustainability, safety, and regulatory compliance in vendor selection. Our proprietary technology platform, spanning automated dispatch, real-time fleet monitoring, and route optimization, enhances operational efficiency and service reliability, while long-term engagements with marquee clients across IT/ITES, BFSI, consulting, and hospitality sectors provide a stable and resilient revenue base. Refex is well positioned to capitalize on multiple structural tailwinds. Indias clean mobility ecosystem is gaining strong momentum, driven by sustained policy support and accelerating infrastructure development. Public EV charging infrastructure has expanded more than five-fold, from 5,151 stations in December 2022 to 27,737 stations by March 2026, with 22,753 already operational. Key initiatives such as MoRTHs highway electrification program and the PM E-DRIVE scheme continue to strengthen this ecosystem. The PM E-DRIVE scheme, now extended until March 2028 within its Rs.10,900 crore outlay, targets the rollout of charging stations across cities, highways, and key transport corridors. These developments are progressively improving charging accessibility and EV adoption, while strengthening the long-term viability of EV fleet operations. Beyond clean-fuel tailwinds, Indias corporate mobility market presents a substantial growth opportunity. The combined Employee Transport Services (ETS) and Corporate Car Rental (CCR) market is expected to grow at a 10.7% CAGR to approximately USD 22 billion by 2030, making it one of the fastest-growing corporate mobility markets globally. Indias low penetration relative to global peers, where corporate mobility vehicle adoption is markedly higher, further highlights the significant headroom for organized operators. The sector remains structurally fragmented, with organized players accounting for a relatively small share of the market. While this creates near-term competitive intensity, it also presents a meaningful long-term consolidation opportunity for well-capitalized, technology-driven operators such as Refex. However, the broader transition toward EV-led fleet operations continues to face structural challenges. EV mobility remains relatively capital-intensive, requiring substantial investment in vehicles and charging infrastructure, though over the total ownership period, EVs typically offer lower fuel and maintenance costs relative to conventional vehicles, making the long-term economics increasingly compelling as fleet utilisation improves. Limited availability of skilled EV maintenance technicians may increase operational downtime, while relatively high financing costs, typically ranging between 9% and 11% for commercial fleet financing, place added pressure on cash flows and profitability across EV-dependent businesses. At the operational level, employee familiarity with conventional vehicles and residual range anxiety may also moderate the pace of EV adoption within corporate fleets, requiring active change management by enterprises transitioning to cleaner mobility solutions Additional risks include evolving ESG disclosure requirements and emission standards, which could raise compliance costs; competitive pressure from both organized and unorganized players, including continued attempts by app-based ride-hailing aggregators to enter the sector despite their structural disadvantages in driver reliability, service consistency, and dedicated fleet resources; and potential moderation in economic growth that could affect corporate mobility spending. However, Indias long-term macroeconomic outlook remains supportive of sustained sector expansion. Refex remains focused on navigating this evolving landscape through disciplined capital allocation, a technology-first operating model, and operational agility, enhancing our ability to mitigate risks, capture opportunities, and drive sustainable long-term growth.

Future Outlook

Indias corporate mobility market is expected to sustain its strong growth through 2030, driven by continued GCC expansion, rising business travel, and increasing corporate emphasis on safety, reliability, and compliance in vendor selection. The shift from unorganized to organized service providers is expected to continue, favoring operators with established technology platforms, dedicated fleets, and consistent service delivery. Adoption of clean-fuel fleets within corporate mobility is also expected to accelerate, supported by government policy, expanding charging infrastructure, and growing ESG disclosure requirements. The pace of this transition, however, will remain dependent on EV financing costs, infrastructure availability in Tier 2/3 markets, and battery supply chain constraints. Overall, the sector presents significant long-term opportunities for integrated, technology-led, and sustainability-focused operators. Refex remains well placed to participate in and benefit from this structural transformation. d) Solar Energy Industry Overview

Indias renewable energy sector continued to witness strong momentum during FY 2025-26. As of 31 March 2026, the countrys non-fossil fuel installed capacity stood at 283.46 GW, including 274.68 GW of renewable energy capacity. Solar energy remained the primary growth driver, with cumulative installed capacity reaching 150.26 GW, comprising 110.43 GW of utility-scale projects, 25.73 GW of rooftop solar, and 14.10 GW under KUSUM and off-grid installations. The year also marked a record for solar deployment, with annual additions of 44.61 GW, significantly surpassing the previous high of approximately 23.8 GW. Distributed Renewable Energy (DRE) contributed 16.31 GW, accounting for 36% of total additions, led by 8.71 GW of rooftop solar installations and 7.67 GW under the PM-KUSUM program. Supporting this growth, Indias domestic solar module manufacturing capacity expanded to approximately 172 GW, strengthening the Countrys renewable energy supply chain and self-reliance ambitions.

Policy Environment

The policy and regulatory landscape for renewable energy continued to evolve during FY 2025-26, with several measures aimed at strengthening domestic manufacturing, improving project economics, and enhancing supply-chain transparency. The reduction in GST on renewable energy devices and components from 12% to 5%, effective September 22, 2025, is expected to lower the cost of key equipment used across renewable energy and hybrid projects. In addition, the Government introduced a Basic Customs Duty (BCD) exemption on capital goods used in lithium-ion cell manufacturing from February 2026 to March 2028, supporting the development of domestic battery storage capabilities. The launch of the Renewable Energy Equipment Import Monitoring System (REEIMS) in October 2025 has improved import transparency and procurement oversight, while updates to the Quality Control Order (QCO) strengthened standards for solar modules, batteries, and inverters, reinforcing the importance of compliance across the renewable energy value chain. The introduction of a 500 MW Contract for Difference (CfD) pilot signals increasing policy support for revenue stability in renewable energy projects, while initiatives such as the Jaiv-Urja Mitra program are helping build a skilled workforce to support the growth of emerging clean energy sectors.

Solar & grid trends

The renewable energy sector is also witnessing evolving market dynamics as increasing renewable energy penetration in several states places downward pressure on merchant power prices during daylight hours. As a result, the importance of energy storage, grid integration, and hybrid renewable solutions is growing, with solar-plus-battery configurations offering opportunities to enhance project economics through energy arbitrage and grid support services. At the same time, the expansion of open access and merchant procurement markets, which added 2.7 GW during Q1 2026, is broadening the pool of industrial off-takers, although it also introduces greater exposure to price volatility. In addition, transmission constraints and evolving ISTS waiver policies continue to create location risks, making projects with captive, onsite, or localized off-take arrangements comparatively more resilient to evacuation and grid-related uncertainties.

Macroeconomic & geopolitical risks

The sector also remains exposed to certain external risks. Sustained volatility in global energy markets, particularly arising from geopolitical developments in the Middle East, could increase logistics, transportation, and spare-parts costs while exerting pressure on working capital requirements. Supply-chain disruptions and delays in regulatory compliance approvals, including ALMM and QCO requirements, may extend procurement timelines for key equipment such as solar modules, inverters, compressors, and purification systems, potentially impacting project execution. In addition, tighter credit conditions and interest rate volatility could increase financing costs for greenfield projects and affect overall project economics.

Future Outlook

Several strategic measures can help mitigate execution and cost risks. Prioritizing domestically manufactured equipment can reduce exposure to import-related disruptions while supporting compliance with ALMM and QCO requirements. A phased approach to capital expenditure, including deferral of non-critical investments where feasible, may help optimize procurement costs and benefit from improving equipment availability. In parallel, industry-led skill development initiatives such as the Jaiv-Urja Mitra program can support the creation of a trained workforce required to meet the growing operational and maintenance needs of the clean energy sector.

Business Overview

Refex Industries Limited has built a diversified yet synergistic portfolio of businesses focused on addressing critical infrastructure, energy transition, and sustainability requirements.

The Companys operations comprise:

Coal & Ash Handling

Wind Energy Solutions - through subsidiary Venwind Refex Power Limited

Premium Corporate Mobility - through subsidiary Refex Green Mobility Limited

Each business addresses large and growing markets while benefiting from favorable policy support, rising customer demand and strong industry fundamentals.

Ash & Coal Handling

Ash & Coal Handling remains the Groups largest business vertical and a key contributor to revenue and profitability. The business provides integrated ash management solutions spanning ash evacuation, transportation, utilisation, and regulatory compliance for thermal power producers. Refex has established itself as one of Indias leading organized ash management service providers, servicing more than 40 thermal power plants across 15+ states and facilitating the utilisation of several million tons of ash. Its integrated operating model enables customers to access end-to-end services through a single partner, supported by an execution platform comprising over 2,500 owned and leased vehicles with the capability to handle more than 70,000 MT of ash per day. During FY2025-26, the business strengthened its market position through new order wins, contract expansions, and higher ash handling volumes across key customer locations. The Company also expanded ash utilisation across cement, infrastructure, mine-filling, and construction applications, supporting improved utilisation levels and regulatory compliance. Operational excellence continues to be supported through technology-enabled processes, including ERP systems, GPS-enabled fleet tracking, OCR-based verification, digital documentation, and centralized monitoring platforms. These initiatives have enhanced asset utilisation, operational visibility, and execution efficiency while enabling scalable operations across multiple project locations. During the year, the Company also strengthened its organizational capabilities through the induction of experienced leaders and domain specialists across key business functions. The long-term outlook remains favorable, supported by rising electricity demand, continued thermal power generation, stricter ash utilisation regulations, and increasing adoption of integrated outsourcing models. With its nationwide execution capabilities and comprehensive service offerings, Refex is well positioned to capitalize on the growing demand for end-to-end ash management solutions.

Wind Energy Solutions - Venwind Refex Power Limited

Refex Industries Limited operates its Wind Energy business through Venwind Refex Power Limited (VRPL), its 73.28% owned subsidiary. Venwind is focused on delivering next-generation wind energy solutions that are reliable, cost-efficient and purpose-built for Indian wind and grid conditions, positioning the business to participate in Indias rapidly expanding renewable energy market.

Backed by an exclusive technology license from Vensys Energy AG, Venwind combines globally recognized German technology and turbine engineering expertise with strong domestic manufacturing capabilities. This convergence enables the development of high-performance wind turbine generators tailored to Indias diverse climatic, wind and operating environments. Strategic partnerships with globally recognized technology providers further strengthen the companys competitive position and its ability to deliver reliable and efficient wind energy solutions. Venwind has introduced a 5.3 MW wind turbine platform incorporating globally proven technology and designed specifically for Indian operating conditions. In a significant industry milestone, Venwind became the first company to receive Approved List of Models and Manufacturers (ALMM) certification for a 5.3 MW wind turbine platform, reinforcing its technological leadership and readiness for deployment in the Indian market. The company has established a manufacturing facility at Silvassa for the assembly of hubs, nacelles and drivetrains. This facility supports Venwinds commitment to local manufacturing excellence and the increasing localisation of critical wind energy infrastructure. Building on its capabilities as a wind turbine OEM and a confirmed order book of over 400 MW secured within its first year of operations, Venwind is poised to scale its presence, support the localisation of critical wind energy infrastructure and capture the long-term opportunities arising from Indias accelerating renewable energy transition.

Premium Corporate Mobility

Refex Industries Limited operates its Premium Corporate Mobility business through its 100%-owned subsidiary, Refex Green Mobility Limited (RGML). The business provides premium mobility solutions focused on employee transportation services, corporate rentals, and B2B2C mobility services. As of March 31, 2026, the Company operated around 1,750 vehicles across Chennai, Bengaluru, Hyderabad, Mumbai, and Delhi NCR, serving a diversified customer base comprising leading multinational corporations and large domestic enterprises. The Companys asset-light operating model, technology platform, and strong customer relationships continue to support scalable growth. During the year, the proposed demerger of the mobility business achieved significant progress, including approvals from stock exchanges and lenders. The proposal aims to create two focused businesses with independent growth strategies and enhanced value creation potential. The mobility business remains well-positioned to benefit from the continued formalization of Indias corporate mobility market, growing demand for safe, reliable, technology-enabled mobility solutions, and the increasing emphasis on sustainable, clean-fuel transportation driven by corporate ESG commitments and regulatory disclosure requirements.

Financial Performance

During the year under review, the Company achieved a standalone turnover of Rs.2,075 crore as against Rs.2,430 crore during the previous year. The movement in revenue was mainly on account of the discontinuation of the Power Trading & Refrigerant business during the year, which were relatively low-margin in nature. Despite the reduction in top line, the Company delivered a significantly stronger operating performance, supported by improvement in margins across its core business operations. Your Company has reported a profit before tax (PBT) of Rs.333 crore for the year under review as compared to PBT of Rs.241 crore for the previous year on a standalone basis, which is an upside of 38.17%. Your Company has reported a profit after tax (PAT) of Rs.246 crore as against a profit after tax of Rs.189 crore during the previous year on a standalone basis, which is an upside of 30%.

The Companys operating profit margins stood at 17.2% and net profit margins stood at 11.9% on a standalone basis.

Particulars (Rs. In Lakhs)	STANDALONE		CONSOLIDATED
(Continuing operations)	2025 - 26	2024 - 25	2025 - 26	2024 - 25
Revenue from Operations (Net)	2,03,920.28	2,25,942.95	2,27,673.51	2,25,942. 95
Other Income	3,002.17	5,249.89	2,531.66	4,990.96
Total Income	2,06,922.45	2,31,192.84	2,30,205.17	2,30,933.91
Expenditure (other than Tax)	1,73,456.45	2,07,906.69	1,97,162.13	2,08,090.63
Exceptional Items	-	-	-	-
Profit before Tax (PBT)	33,466.00	23,286.15	33,043.04	22,843.28
Current Tax expense for current year	8,642.47	4,785.17	8,648.09	4,785.17
Deferred Tax	104.44	145.46	156.67	88.47
Profit after Tax (PAT)	24,719.09	18,335.52	24,238.28	17,969.64
Earnings Per Share (Rs.) (Basic)	18.57	14.99	18.18	14.70
Earnings Per Share (Rs.) (Diluted)	18.35	14.35	17.97	14.07
Net Fixed Assets	14,452.62	14,712.35	16,024.57	23,915.99
EBITDA Margins (%)	17.2%	9.2%	15.7%	9.1%
PAT Margins (%)	11.9%	7.9%	10.5%	7.8%

Note: The above table does not include the revenue pertaining to power trading and refrigerant business

During the year under review, the Company achieved a consolidated turnover of Rs.2,412 crore as against Rs.2,468 crore during previous year. The Company has reported a profit before tax (PBT) of Rs.277 crore for the year under review as compared to PBT of Rs.200 crore for the previous year on a consolidated basis, resulting in a growth of 39%. The Company has reported a profit after tax (PAT) of Rs.204 crore as against a profit after tax of Rs.158 crore during the previous year on a consolidated basis, thereby an increase of 29%. The Companys operating profit margins stood at 15.7% and net profit margins stood at 8.45% on a consolidated basis.

Segment - wise Performance

Particulars (Rs. In Lakhs)		As at March 31, 2026		As at March 31, 2025
Segment Revenue (Net Sales/Income)
Ash & Coal Handling Business		2,01,266.90		2,23,557 .31
Refrigerant Gas- Manufacturing (Refilling) and Sales*		3,455.08		6,158.81
Green Mobility*		9,951.53		3,764.69
Sale Of Service		1,486.58		465.00
Power Trading*		83.57		10,899.87
Solar Power - Generation and Related Activities		1,036.99		1,162.07
Windpower		23,753.23		-
Others		129.81		758.57
Total		2,41,163.69		2,46,766.32
Segment Results
Ash & Coal Handling Business		35,375.36		21,817.50
Refrigerant Gas- Manufacturing (Refilling) and Sales		(134.35)		309.44
Green mobility		(3,823.51)		(2,683.55)
Sale Of Service		368.58		314.73
Power Trading		(42.61)		473.12
Particulars (Rs. In Lakhs)	As at March 31, 2026		As at March 31, 2025
Solar Power - Generation and Related Activities	436.80		579.12
Windpower	222.69		(176.57)
Others	12.21		47.84
Unallocable expenditures	(2,696.73)		(2,956.83)
EBIT (except other Income & Exceptional Item)	29,718.44		17,724.80
Finance	3,207.53		1,773.47
Other Income	2,531.66		4,990.96

For the year ended March 31, 2026, the overall revenue remained broadly stable, although the composition of the revenue evolved significantly, reflecting the increasing contribution from emerging businesses and a strategic shift towards sustainable growth sectors. Ash & Coal Handling Business, which continued to remain the Companys principal business segment revenue stood at Rs.2,013 crore, supported by disciplined execution and technology and continued expansion of our capabilities. During the year, the Wind Energy segment commenced revenue contribution and reported revenue of Rs.238 crore, this represents full year of active execution for the business, reflecting the successful operationalization of projects and the Companys growing presence in the renewable energy sector. The Mobility segment posted a 164% revenue increase, scaling from Rs.38 crore to Rs.100 crore. The strong performance was driven by the continued expansion of the Companys technology-enabled mobility platform, and growth in fleet operations across major metropolitan markets. The Companys better operating performance and improved margin profile indicate its focus on scalable businesses with stronger earnings quality and long-term growth potential.

Risks & Concerns

The Board of Directors of the Company has a Risk Management Committee in place to formulate, implement, and monitor the Companys risk management framework. The Committee is responsible for periodically reviewing the risk management plan and ensuring its continued effectiveness. The Audit Committee provides additional oversight with respect to financial risks and internal control mechanisms. Key risks identified across business verticals and functions are systematically evaluated and addressed through appropriate mitigation measures on an ongoing basis. Given the dynamic nature of the business environment, Refex is exposed to a range of internal and external risks. To effectively manage these, the Company has implemented a robust and customized Risk Management Framework (RMF) across all its business verticals. The framework facilitates proactive risk identification, assessment, and mitigation, with close oversight by senior management. The Company remains committed to the disciplined implementation of the RMF, reinforcing operational resilience, regulatory compliance, and sustainable growth through the guidance of its experienced leadership team.

Internal control systems and their adequacy

Internal checks and controls covering operations of the Company are in place and are constantly being improved upon. Adequate systems exist to safeguard Companys assets through insurance on reinstatement basis and maintenance of proper records. The Company has well-defined procedures to execute financial transactions.

M/s Sudarsan & Co., Chartered Accountants, the internal auditor, monitors and evaluates the efficiency and adequacy of internal control systems in the organization, its compliance and its effectiveness with operating systems, accounting procedures and policies of the Company. Further, A B C D & Co. LLP, the statutory auditors, have audited the financial statements included in this Integrated Annual Report and have issued an attestation report on the Companys internal control over financial reporting (as defined in Section 143 of the Companies Act, 2013). Based on the observations of the internal auditor, the process owners undertake the corrective actions and improvements in their respective areas. Significant audit observations and corrective actions thereupon are presented to the Audit Committee. The partners of both, Statutory Auditor and Internal Auditor attend the Audit Committee meetings, as and when invited and considered necessary by the Audit Committee. The Audit Committee also meets the Companys statutory auditors to ascertain, inter-alia , their views on the adequacy of internal control systems and keeps the Board of Directors informed of its major observations periodically. Based on its evaluation [as defined in Section 177 of the Companies Act, 2013 and Regulation 18 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015], the Audit Committee noted that, as of March 31, 2026, the Companys internal financial controls were adequate and operating effectively and no material weakness exists during FY26.

Material developments in human resources / industrial relations front, including number of people employed

Great Place to Workr Trust IndexT Certification

Refex was recognized as a Great Place to Workr for the fourth consecutive year, reflecting the strength of its people practices, employee experience, and commitment to continuous improvement. The certification process provides valuable employee feedback, helping the Company identify strengths and opportunities to enhance workplace culture further and engagement. At Refex, people remain a key driver of long-term success. The Company continues to focus on attracting, developing, and retaining talent through robust HR policies, digital platforms, and structured capability-building initiatives that support a high-performance culture and leadership development.

Employee Stock Option Plan (ESOP)

Refex extended participation in its Employee Stock Option Plan (ESOP) to all eligible employees. Spearheaded by our Managing Director, Mr. Anil Jain, this initiative was implemented with fairness, transparency, and a clear commitment to recognizing performance while strengthening long-term employee engagement and retention. By broadening ESOP participation beyond traditional management levels, Refex has enabled employees across the organization to participate more widely in the Companys growth journey. The initiative underscores the Companys commitment to recognizing performance, fostering engagement, and aligning employee interests with long-term business success.

Capability Building & Digital Readiness

During FY 2025 - 26, Refex continued to strengthen workforce capabilities through targeted learning initiatives across leadership, behavioral skills, digital fluency, and functional excellence. A key highlight was the Companys AI capability-building program, which reached over 350 employees through 88+ learning hours across 15 sessions. These initiatives underscore Refexs commitment to building a future-ready workforce and strengthening digital capabilities across the organization.