Refex Industries Ltd Management Discussions

Management Discussion & Analysis

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, 2025.

Global Economy

The global economy navigated FY 2024-25 with moderate growth and demonstrated resilience amidst a complex macroeconomic landscape marked by continued monetary tightening, geopolitical tensions, and supply chain realignments. According to the IMF, global GDP growth held steady at 3.1% in 2023 and is forecasted to remain at 3.2% in 2024, followed by a modest increase to 3.3% in 2025, driven by robust domestic demand in select emerging markets and a modest recovery in global trade.

Advanced economies, led by the United States, buoyed by strong labor markets maintained steady growth as inflation moderated closer to central bank targets. However, elevated interest rates and tight credit conditions continued to weigh on consumer demand and business investments. The Eurozone faced subdued growth hampered by weak industrial activity and prolonged energy price volatility stemming from the geopolitical aftermath of the Russia - Ukraine conflict, while Japan showed signs of revival owing to resilient exports and accommodative fiscal policies. Emerging markets, particularly in Asia, remained the primary engines of global growth. India sustained its position as one of the fastest-growing major economies, underpinned by strong domestic consumption, Indian

Economy government-led infrastructure expansion, and a thriving digital economy. Chinas recovery was uneven amid structural adjustments in its real estate sector and subdued external demand. Other Asian economies, including Indonesia and Vietnam, benefitted from supply chain diversification and increased foreign direct investment. According to the World Trade Organization, global merchandise trade volume grew by 2.6% in 2024, recovering from near-stagnant growth of 0.8% in 2023. However, it remained below historical averages due to trade fragmentation, policy uncertainty, shifting supply chains, and continued realignment of global production networks.

Energy and key industrial commodity prices remained volatile, driven by geopolitical developments and climate-related disruptions.

Overall, the global economic environment in FY 2024-25 was characterized by cautious optimism due to renewed geopolitical tensions (notably in the Middle East and Eastern Europe), financial sector vulnerabilities, high debt levels in low-income countries, and climate-related disruptions. Businesses worldwide continued to adapt to a "new normal" shaped by supply chain diversification, digital transformation, demographic shifts, green investments and evolving sustainability expectations.

Indian Economy Overview

India continued to shine as the fastest-growing major economy in FY25, with GDP growth estimated at 6.8%, a slight moderation from 8.2% in FY24.

The expansion was driven by healthy domestic consumption, a revival in private capital expenditure, and sustained government focus on infrastructure and digitalization.

Key Economic Indicators

• GDP Growth: Real GDP grew by 6.8% in FY25, fueled by robust performances in the services (7.2%) and construction (10.8%) sectors. Agriculture grew at 3.8%, while manufacturing saw moderate growth of 6.2% amid global demand slowdowns.

• Inflation: Retail inflation eased to 4.6% in FY25 from 5.4% in FY24, reaching a six-year low of 3.2% in April 2025, driven by lower food and fuel prices. However, food inflation remained elevated at 8.4%, primarily due to price volatility in vegetables and pulses.

• Fiscal Management: The fiscal deficit was maintained at 4.8% of GDP, supported by strong corporate tax revenues and controlled expenditure. Capital expenditure rose significantly to Rs. 10.5 trillion, reflecting a 10.1% increase in budgetary allocation for infrastructure development.

• Investment and Innovation: India improved its position as a preferred investment destination, with FDI inflows amounting to over USD 81.04 billion (DPIIT estimates), driven by investor confidence in policy continuity and economic fundamentals. India ranked 39th in the Global Innovation Index 2024, reflecting a vibrant innovation ecosystem with 118 unicorn startups valued at over Rs. 3.0 lakh crore (USD 354 billion).

• Industry: The Index of Industrial Production (IIP) registered a growth of 5.8%, with key manufacturing segments showing improved capacity utilization and production recovery. The Production Linked Incentive (PLI) schemes continued to attract investments, particularly in electronics, pharmaceuticals, and renewable energy sectors.

Policy Environment

The Government of Indias focus on fiscal prudence, infrastructure development, and structural reforms underpinned economic resilience. Initiatives such as Make in India, the National Logistics Policy, and digitalization efforts reduced trade costs and enhanced export competitiveness. The Union Budget 2025-26 allocated Rs. 11.21 lakh crore (USD 129.0 billion) for capital expenditure, reinforcing long-term growth prospects. Additionally, Indias commitment to achieving 40% non-fossil energy by 2030 and Net Zero Emissions by 2070 through the Panchamrit strategy highlighted its focus on sustainability.

Economic Outlook

For FY26, Indias GDP growth is projected to range between 6.3% and 6.8%, with services and infrastructure remaining the key drivers. However, challenges such as global trade restrictions, commodity price volatility, and the need for sustained job creation (90 million non-farm jobs by 2030) require strategic focus. Investments in education and healthcare, projected to rise to 6.5% and 3.8% of GDP by FY2048, respectively, will be critical to harnessing Indias demographic dividend and achieving the Viksit Bharat 2047 vision. Continued emphasis on clean energy, supply chain localization, and digital innovation positions India favorably for sustained medium-term growth.

Industry structure and developments

a) Refrigerant Gases Industry Overview:

The refrigerant gases industry plays a vital role in enabling modern cooling solutions across sectors such as residential and commercial HVAC, refrigeration, automotive, cold chain logistics, pharmaceuticals, and data centers. These gases, owing to their thermodynamic properties, are critical in heat absorption and transfer processes.

Globally, the refrigerant gases market was valued at approximately USD 25 billion in 2024, with a CAGR of 4.5%. The Asia-Pacific (APAC) region continues to lead global demand, and the Indian market mirrored global trends, growing at an estimated 6-7% CAGR, driven by increased penetration of air conditioning in residential and commercial buildings, rising cold chain infrastructure for food and pharmaceutical industries and demand from the automotive AC segment, especially electric vehicles, and increased construction of data centers driving chiller demand.

The industry is undergoing a structural shift in response to environmental concerns. Traditional refrigerants like R-22 and R-134a saw declining usage due to regulatory restrictions. Environmentally friendly ultra-low GWP alternatives, including hydrofluoroolefins (HFOs) such as R-1234yf, R-1234ze, and R-1233zd and natural refrigerants like CO₂ and ammonia, gained traction. Blends such as R-410A and R-32 continued to dominate in transitional use, particularly in residential and light commercial air conditioning applications.

The global shift away from high Global Warming Potential (GWP) refrigerants—guided by international frameworks such as the Kigali Amendment to the Montreal Protocol and national policies like Indias Hydrofluorocarbon (HFC) Phase-down Plan—has significantly reshaped industry dynamics. India ratified the Kigali Amendment in 2021 and formally commenced its HFC phase-down schedule in 2024, aligned with the National Cooling Action Plan. These initiatives aim to accelerate the adoption of green refrigerants and boost localized production.

Major global and Indian manufacturers focused on innovation, developing low-GWP refrigerants that meet performance, safety, and environmental criteria. Companies also invested in backward integration and local manufacturing to ensure price competitiveness and regulatory compliance. This shift is expected to stimulate demand for new-generation refrigerants, while encouraging R&D and localization in line with the governments Atmanirbhar Bharat initiative.

Opportunities and Challenges

The refrigerant gas industry in India faces a multifaceted set of challenges and opportunities. On the challenges front, the high cost and limited availability of next-generation refrigerants continue to constrain widespread adoption. Regulatory complexities, evolving international trade norms, and the need for a skilled workforce trained in handling newer refrigerant types further compound the issue. The transition to environmentally compliant formulations demands complex chemical reformulations and entails substantial capital investments in R&D and infrastructure. Additionally, the market faces pricing volatility due to anti-dumping duties and import restrictions, while illegal blending and the circulation of counterfeit refrigerants pose serious safety and compliance risks.

Despite these hurdles, the sector is also ripe with opportunity. Government initiatives such as the India Cooling Action Plan (ICAP) offer incentives for the development and deployment of green cooling technologies. Incentives for cold chain, electric mobility, and infrastructure under schemes such as PLI are expected to further boost domestic refrigerant demand. The industry stands to benefit from rising export potential to emerging markets that are also transitioning to climate-compliant refrigerants. Furthermore, there is growing scope for technological partnerships and collaborations focused on sustainable refrigerant development and innovative system designs, positioning India as a key player in the global transition toward low-GWP solutions.

Future Outlook

The Indian refrigerant gas industry is poised for a structural transformation driven by regulatory reforms, environmental imperatives, and technological innovation. With national and international policies shaping production, imports, and consumption patterns, industry players must adapt by investing in sustainable product portfolios, enhancing technical capabilities, and fostering supply chain resilience, steadily shifting toward sustainable and energy-efficient solutions. The industry is expected to grow at a CAGR of 6-8% over the next five years, propelled by the increasing adoption of low-GWP refrigerants. This momentum is supported by investments in domestic manufacturing, R&D for next-generation refrigerants, and the development of advanced cooling systems. Long-term industry growth will be defined by innovation, regulatory agility, and alignment with Indias broader climate and energy-efficiency goals. India is well-positioned to become a key hub for green refrigerant technologies, leading the charge toward a low-carbon future in cooling.

b) Ash & Coal Handling

I. Ash Handling

Industry Overview

According to industry estimates, the global fly ash market was valued at USD 8.44 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 3.24% from 2025 to 2035, reaching USD 12 billion by 2035. In India, the fly ash market was valued at USD 543.45 million in 2024, with an anticipated CAGR of 5.7% through 2034, reflecting strong domestic demand.

India remains heavily reliant on coal to meet its growing energy demands, with over 70% of electricity generated by coal-based thermal power plants. As a result, fly ash—a byproduct of coal combustion—has emerged as both a critical waste management challenge and a resource of strategic industrial value.

According to the Central Electricity Authority (CEA), India generates approximately ~300 million tonnes (MT), with a utilisation rate of 78%, reflecting sustained progress in handling the byproduct. The states of Chhattisgarh, Uttar Pradesh, West Bengal, Madhya Pradesh and Maharashtra account for the highest amount of ash production in the country. However, 1,677.3 million tonnes of legacy ash continue to pose environmental and logistical challenges. The Indian coal used in thermal plants contains high ash content (24-63%) compared to imported coal (3-20%), further compounding the issue.

Operationally, ash is collected through electrostatic precipitators or baghouses and is managed either as dry fly ash or in wet slurry form. Dry ash is stored in silos and transported by trucks, bulkers, or rail to their utilisation avenues. The remaining ash is moved to the ash dykes in the form of a slurry. Bottom ash, heavier and collected from the furnace base, is generally transferred via pipelines to ash dykes.

Ash has found diverse applications across multiple industries, with the cement sector accounting for 26.53% of its utilization, followed by roads and embankments at 20.59%, and brick and tile manufacturing at 10.18%. Other uses include mine backfilling and reclamation of low-lying areas. Innovative applications such as geopolymer concrete, ceramic products, synthetic aggregates, and artificial reef ecosystems are also emerging. Government infrastructure initiatives like Bharatmala Pariyojana and the Pradhan Mantri Gramin Sadak Yojna (PMGSY) have significantly driven the demand for ash in road construction. Additionally, the application of fly ash in constructing embankments for railway lines is gaining traction.

However, improper management of this ash results in severe environmental consequences such as airborne particulate pollution causing respiratory health problems, groundwater contamination through heavy metal leaching, soil degradation, and significant land use reduction due to the space occupied by ash ponds.

In response to the environmental risks associated with ash disposal, the Ministry of Environment, Forest and Climate Change (MoEFCC) has mandated 100% utilization of ash, implementing a penalty regime starting in April 2022 under the "polluter pays" principle. This regulation prohibits any dumping of ash in landfills or water bodies and enforces strict compliance deadlines based on existing utilization rates.

Compliance timelines vary depending on the plants current utilization rate:

Utilisation Rate	First Compliance Cycle	Second Compliance Cycle
> 80%	3 years	3 years
60-80%	4 years	3 years
< 60%	5 years	3 years

Failure to comply attracts a penalty as high as Rs. 1000/ tonne.

Additionally, thermal power plants located within 300 kilometers of government infrastructure projects must cover the entire cost of ash transportation, promoting its use in constructing roads, dams, and embankments. This prompts all major power plants hoarding massive quantities of ash in their dykes to supply to these projects.

NTPC, Indias largest power producer, has implemented numerous initiatives to promote sustainable ash management, including on-site manufacturing of fly ash bricks for internal use, mine reclamation efforts through afforestation of ash disposal sites, and agricultural trials in partnership with the Indian Institute of Soil Science. The organization also allocates 20% of its fly ash free of cost to brick and tile manufacturers. Further, NTPC has also been promoting Geo-polymer concrete roads, Lightweight aggregate plants, collaborative R&D projects on soil science, aggregate alternatives, and gypsum vermiculate plaster, and Fly ash-based Nano Concrete Aggregates (NACA), a substitute for natural stone

Opportunities and Challenges of the Ash Industry

The ash handling sector is undergoing significant transformation driven by policy mandates encouraging modernization of ash collection and disposal systems, digitization of monitoring and tracking for regulatory compliance, and increased outsourcing to specialized third-party operators. Long-term outsourcing contracts are increasingly preferred as they enhance operational efficiency, improve accountability, and offer scalability, allowing plant operators to focus on core operations. Companies with integrated logistics, infrastructure access, and proven expertise in handling high ash volumes are emerging as strategic partners. Digitization of fly ash tracking and monitoring is becoming more widespread, enhancing traceability, compliance, and optimization of dispatch and logistics.

Government initiatives continue to play a pivotal role in advancing fly ash utilization through incentives such as subsidies and tax benefits, mandates requiring power plants to bear transportation costs, and dedicated task forces aimed at stimulating market demand. Infrastructure development efforts, such as storage silo construction and rail logistics enhancements, also underpin sector growth.

Despite the progress, several challenges persist. These include fluctuating market demand, logistical constraints particularly for plants located far from potential utilization site community resistance near ash ponds due to health and environmental concerns, and the high resource demands of ensuring regulatory compliance and real-time monitoring. While the use of fly ash in the construction of roads, embankments, and flyovers is well established and gradually expanding, its overall potential remains underutilized.

Realizing the full potential of fly ash as a valuable by-product requires a coordinated effort involving technological innovation, supportive policy frameworks, infrastructure development, and strategic industry partnerships.

Future Outlook

Looking ahead, the ash management industry is expected to expand in tandem with Indias growing thermal power capacity and increasingly stringent environmental regulations. The shift from viewing ash as mere waste to regarding it as a valuable resource aligns with a broader circular economy vision, emphasizing sustainability and resource efficiency.

As awareness grows and infrastructure adapts, ash can become a cornerstone in reducing construction- related carbon emissions and conserving natural resources. The outlook remains promising for stakeholders who prioritize environmental stewardship and operational excellence.

II. Coal Handling

Industry Overview

The global coal trading sector witnessed significant volatility in FY 2024-25, influenced by macroeconomic uncertainties, geopolitical tensions, and an accelerating global transition toward cleaner energy sources. Despite the push for decarbonization, coal continued to play a pivotal role in meeting baseload energy demands, particularly in emerging economies in Asia.

In India, coal remains the backbone of power generation, accounting for nearly 73% of total electricity production. The sector continues to play a pivotal role in supporting the countrys growing power demand amid rising population, industrialization, and economic development. Despite Indias ambitious clean energy transition, coal is expected to maintain its central position in the energy mix in the medium term due to its reliability and cost-effectiveness.

In FY 2024, India achieved record domestic coal production of nearly 1.04 billion tonnes. The introduction of Mission Coking Coal and recent policy liberalization under the Commercial Mining framework created new avenues for private players, boosting trading volumes and enhancing transparency. At the same time, Indias draft National Coal Logistics Plan with significant investments in evacuation infrastructure eased evacuation bottlenecks and improved supply chain efficiency.

However, logistical challenges, quality-specific industrial requirements, and seasonal supply-demand mismatches necessitated imports, with thermal and coking coal imports totaling around 240 million tonnes with Indonesia, Australia, and South Africa remaining key trading partners. The coal trading industry continued to experience structural shifts influenced by global pricing volatility, tightening environmental regulations, and increased scrutiny of emissions and sustainability. Traders navigated fluctuating international prices and currencies, port capacity constraints, rising freight costs and compliance requirements.

The Ministry of Coal has set an ambitious target to scale domestic production to 1.15 billion metric tonnes in FY 2026, aiming to reduce reliance on imports and strengthen energy security. As part of its action plan for FY26, the Ministry of Coal has announced a more flexible approach to coal linkages, allowing supply to consumers irrespective of specific end-use requirements, thereby expanding access and market responsiveness. The ministry also plans to conduct three commercial mine auctions in FY26, with the successful auction of 25 mines anticipated. Coal production and dispatch from commercial mines in the current financial year is targeted at 203.4 million tonnes, with seven new commercial coal mines expected to commence production during the year.

To strengthen domestic production capacity, the ministry has set an ambitious target of opening 100 new mines by FY30, aiming to add an additional 500 million tonnes of annual production capacity. In FY25, 13 mines were operationalized, contributing 83 million tonnes. For FY26, the ministry plans to operationalize more than 20 new mines with a cumulative capacity exceeding 80 million tonnes per year, involving coal public sector undertakings (PSUs), as well as commercial and captive mines.

Opportunities and Challenges of the Coal Industry

Indias coal industry presents a dual narrative of critical opportunities and significant challenges. On the opportunity front, coal remains a cornerstone of Indias energy security, supporting electricity generation and playing a vital role in powering heavy industries such as steel, cement, and aluminium. Ongoing government reforms such as commercial mining liberalization, auctioning of coal blocks, and large-scale infrastructure investments are opening the sector to private participation and modernizing production and logistics. There is considerable scope for innovation through advanced mining technologies, digitalization, cleaner coal technologies (e.g., supercritical and ultra-supercritical power plants), and carbon capture and storage (CCS) solutions. Additionally, coal continues to contribute to job creation, industrial growth, and regional development, particularly in mineral-rich states.

However, the sector faces mounting challenges. Environmental concerns around emissions, air pollution, and land degradation have intensified regulatory scrutiny. The global shift towards renewable energy and Indias own net-zero commitments are placing pressure on the coal industry to decarbonize. Furthermore, price volatility in international coal markets, logistical bottlenecks, and fluctuations in demand from energyintensive industries can affect profitability and operational stability. Ensuring a just transition for coal- dependent communities while balancing growth and sustainability will be key to the sectors long -term resilience.

Future Outlook

While global pressure for cleaner fuels intensifies, coal will continue to serve as an essential transitional fuel for Indias industrial and power sectors over the medium term. Coal-based power capacity is projected to peak at around 250 GW by 2030. In the near term, the priority remains on maintaining a delicate balance between energy security, industrial demand, and sustainability.

The coal sector is increasingly being reshaped by its ability to integrate digitalization, modernize infrastructure, and adopt environmentally responsible practices. As a result, it is evolving into a critical pillar of Indias energy and industrial landscape, even as it adapts to global climate imperatives.

c) Power Trading

Industry Overview

The Indian power trading industry plays a critical role in ensuring efficient energy distribution and balancing supply-demand mismatches across regions.

In FY25, the global electricity trading market was valued at approximately USD 27.5 billion in 2024, with projections to reach USD 28 billion by 2026, growing at a CAGR of around 2-3%.

As per the All-India Power Generation report released by the Central Electricity Authority (CEA), the total electricity generation in the Country from April 2024 till February 2025 stood at approximately 1,433 billion units. The total installed power generation capacity as of March 31, 2025 stood at 483.26 GW, with non-fossil fuel-based sources accounting for about 46%.

Indias transmission network also expanded moderately during FY 2024-25. According to a release by the Press Information Bureau (PIB) on January 1, 2025, 10,273 ckm of transmission lines (of 220 kV & above) were added in calendar year 2024. Despite this progress, power trading continues to operate with limited margins and constrained flexibility, making it a relatively low-priority area for expansion from our business standpoint.

Key Developments in FY25:

• Renewable Energy Slowdown: While renewables remain the fastest-growing energy source globally (~34% growth in 2024), FY25 saw a slowdown in investment pace due to supply chain constraints and high financing costs.

• Policy Shifts: The Indian government introduced reforms to enhance liquidity in power exchanges, including extended trading hours and new derivative products. The push for 500 GW of non-fossil fuel capacity by 2030 continued to shape trading dynamics.

• Technology Adoption: Advanced analytics and blockchain-based platforms have gained traction as it will help build transparent and efficient trading processes.

Opportunities and Challenges

Emerging technologies in storage and smart grids offer new opportunities for efficiency and resilience. At the same time, challenges remain around ageing infrastructure, high capital costs, and ensuring grid stability towards the renewable transition.

Future Outlook

The outlook for Indias power sector remains robust, underpinned by the Governments continued investments in infrastructure, renewable energy expansion, and grid modernization. The investments across the different projects of the Government of India, such as PM Gati Shakti National Master Plan, aim to enhance interregional power flow and support the evacuation of electricity from new generation facilities.

While these developments play a crucial role in national energy security and system reliability, we view the transmission and power trading segments as foundational enablers of sectoral stability rather than areas of strategic commercial expansion for our company. Market-based power trading remains constrained by several factors including regulated price, limited market liquidity, and policy sensitivity, all of which restrict scope for differentiated value creation.

d) Solar Energy

Industry Overview:

The global solar energy market in FY25 continues to demonstrate resilience and growth, driven by increasing demand for clean energy, technological advancements, and supportive government policies. The market size for solar energy is projected to grow from USD 169.5 billion in 2024 to USD 219.35 billion in 2025, reflecting a robust compound annual growth rate (CAGR). In the United States, the solar industry installed 10.8 gigawatts direct current (GWdc) of capacity in Q1 2025, though this represents a 7% decline from Q1 2024, indicating some market volatility. Residential solar installations reached 1.1 GW in Q1 2025, down 4% from Q4 2024 and 13% year-over-year, yet demand persists due to rising electricity costs and consumer interest in sustainability.

India is the 3^rd largest energy-consuming country and ranks 4th globally in Renewable Energy installed Capacity. The installed solar energy capacity has witnessed a dramatic surge growing over 33 times in the past decade and now stands at 107.95 GW, reflecting Indias strong emphasis on solar expansion. In 2024 alone, the country added a record 25 GW of renewable energy capacity, marking a 34.63% increase over the previous year. According to the National Institute of Solar Energy (NISE), the countrys solar potential is estimated at 748 GWp, indicating significant headroom for future growth. Since 2014, the total installed renewable energy capacity has more than doubled, showing an increase of around 135%, reinforcing Indias global leadership in the clean energy transition.

Key Developments in FY25:

Key developments include a surge in utility-scale solar projects, fuelled by declining costs of photovoltaic (PV) technology and long-term power purchase agreements. Globally, the solar PV market is expected to grow by 10% in 2025, reaching 655 GW under a medium scenario, despite challenges such as supply chain constraints and policy uncertainties. Innovations in solar tracker technology and energy storage systems are enhancing efficiency and grid reliability, with battery storage capacity projected to rise by 14.9 GW to 30.9 GW in the U.S. alone.

Opportunities and Challenges:

The solar energy sector presents numerous opportunities alongside key challenges that shape its growth trajectory. Technological innovations such as advancements in energy storage, bifacial solar panels, and solar tracking systems are driving greater efficiency and expanding market potential. Emerging markets, particularly in regions like Africa and Southeast Asia with abundant solar resources, offer significant untapped growth opportunities. Additionally, rising corporate commitments to net-zero emissions and robust government initiatives aimed at achieving carbon neutrality in areas like the EU and U.S. are fostering a favorable environment for solar energy expansion. However, the industry also faces notable challenges. Policy uncertainty, including shifts in government incentives or trade regulations, can destabilize investments. Competition from other renewable energy sources like wind and hydrogen intensifies the fight for market share. Moreover, economic fluctuations such as inflation and rising interest rates can escalate financing costs for solar projects. Finally, outdated grid infrastructure in certain regions poses integration challenges, hindering the deployment of large-scale solar systems.

Future Outlook:

Indias ambitious target of achieving 500 GW of renewable energy capacity by 2030 demands the addition of approximately 50 GW annually over the next five years. To support this goal, the Union Budget for 2025-26 has allocated Rs.26,549 crore to the Ministry of New and Renewable Energy (MNRE), marking a substantial 53.48% increase from the previous years Rs.17,298 crore. This funding is set to accelerate the development of various renewable energy projects, including solar, wind, and green hydrogen. A major beneficiary is the PM Surya Ghar Muft Bijli Yojana, which has received Rs.20,000 crore almost double last years revised allocation aimed at expanding residential solar access. The PM-KUSUM Scheme, promoting energy security for farmers, saw a modest increase to Rs.2,600 crore. The National Green Hydrogen Mission has also been prioritized with a Rs.600 crore allocation, reflecting Indias ambition to lead globally in green hydrogen production. Furthermore, Rs.600 crore has been allocated to strengthen the Green Energy Corridor, enhancing intra-state grid infrastructure, and Rs.1,500 crore has been earmarked for solar power grid expansion. However, the wind sector experienced a 37.5% cut, receiving only Rs.500 crore compared to Rs.800 crore last year.

Globally, the solar industry is poised for robust growth, with the market projected to reach USD 111.11 billion in 2025 and grow at a CAGR of 6.4% through 2032. Several trends are shaping this future. Energy storage integration is gaining momentum, with U.S. battery storage capacity expected to hit 30.9 GW by 2025, helping address intermittency and improve grid stability. Technological advancements in PV efficiency such as perovskite cells and next-generation inverters are driving cost reductions and performance improvements. Decentralized energy solutions, including residential and community solar projects, are expanding access in emerging markets. Strong policy backing and increased investment toward net-zero goals are further propelling solar adoption, with the broader renewable energy market expected to grow from USD 1 trillion in 2021 to USD 2 trillion by 2026. Additionally, workforce development through targeted training programs is essential to meet growing demand in areas such as installation and maintenance, ensuring the industrys sustainable expansion.

e) Green Mobility Industry Overview

The green mobility sector, particularly corporate transportation services leveraging vehicles running on cleaner fuel, is poised for significant growth in India, driven by supportive government policies, increasing corporate focus on sustainability, and rising demand for cost-effective, eco-friendly transportation solutions.

Key drivers include:

• Corporate ESG Mandates: SEBIs Business Responsibility and Sustainability Reporting (BRSR) framework, mandatory for the top 1,000 listed companies by FY 2026-27, emphasizes Scope 1, 2, and 3 emissions reporting, pushing companies to adopt green mobility solutions for employee commuting to meet net-zero goals.

• Urbanization and Workforce Needs: With 75% of Indias workforce expected to be in urban centers by 2030 (NITI Aayog), demand for efficient employee transportation is rising, particularly in IT, manufacturing, and BFSI sectors.

• Consumer Preference: A 2024 survey by the Ministry of Road Transport and Highways (MoRTH) indicates 83% of urban commuters prefer new energy vehicles (NEVs) for workplace travel, driven by lower operating costs and environmental awareness.

However, challenges such as high upfront costs for electric vehicles, limited charging infrastructure for EV and CNG refilling stations in Tier-2 cities, as well as battery supply chain constraints in EV may hinder short-term growth.

Opportunities & Challenges:

Refex operates a fleet entirely powered by clean fuel, positioning itself at the forefront of Indias transition to sustainable mobility. This strategic alignment with the countrys net-zero targets for 2070, and SEBIs ESG disclosure requirements, enhances our appeal among corporates focused on sustainability and compliance. Proprietary route optimization and telematics systems drive operational efficiency and reduce fuel consumption, while long-term contracts with clients across BFSI, IT/ITES, BPO, and KPO sectors offer revenue stability. Our early adoption of BRSR Core metrics further strengthens our ESG leadership and positions us ahead of regulatory curves.

Looking ahead, Refex is well-placed to capitalise on multiple structural tailwinds. The National Green Hydrogen Mission, with a USD 21 billion outlay, signals robust institutional support for clean fuel adoption. Additionally, SEBIs mandate for ESG disclosures across corporate value chains is accelerating demand for sustainable commuting solutions, particularly among listed entities. The planned rollout of 10,000 EV charging stations by FY 2027, under MoRTH, is expected to improve infrastructure reach, enabling further expansion into Tier-2 and Tier-3 cities.

However, the green mobility industry is not without its challenges. The business is capital-intensive, with high upfront investments in electric vehicles and charging infrastructure, limiting scalability in smaller or cost- sensitive markets. A shortage of skilled EV maintenance technicians increases operational downtime by approximately 10%, compared to conventional ICE fleets. Additionally, the current cost of EV financing, with interest rates ranging from 9-11 % (RBI data), places further strain on cash flows and profitability.

Several external risks also warrant consideration. Regulatory uncertainty, including potential changes to SEBIs ESG requirements or emission standards, could drive up compliance costs. Market risks persist from both organised and unorganised competitors, as well as from client-side budget cuts in the face of economic slowdowns. The 2024 Ministry of Mines report has flagged global lithium shortages, which could raise battery costs by up to 25% by FY 2027. Import duties on battery components, and exposure to international supply chain disruptions, also pose financial and operational risks. Finally, any moderation in Indias GDP growth, projected at 6.5% in FY 2026, may dampen corporate demand for premium mobility solutions.

Refex continues to monitor these dynamics closely and proactively deploy mitigation strategies through financial prudence, strategic partnerships, and operational agility to maintain growth and resilience in this evolving ecosystem.

Future Outlook

Refex remains committed to deliver high-quality mobility services through its fully integrated B2B & B2B2C platform offering company-owned clean fuel vehicles, verified professional driver partners, and a robust technology driven operations framework to ensure seamless experiences.

f) Wind Power

Venwind Refex Power Limited (VRPL) is a strategic subsidiary of Refex Group, established to revolutionize wind power manufacturing in India through cutting-edge technology, localized production, and sustainable growth.

The company aims to achieve an ambitious 5 GW annual production capacity over the next 5 years, combining global expertise and supply chain partnerships.

Industry Outlook

Indias wind power sector is a strategic pillar of the nations renewable energy ambitions. Installed capacity reached approximately 50GW (March 2025), ranking India fourth worldwide and underscoring the sectors proven scalability. Looking ahead, the Ministry of New and Renewable Energy (MNRE) has set an ambitious target of 140-150 GW of wind power by 2030, aligning with the broader goal of 500 GW of cumulative nonfossil fuel capacity within the same horizon.

As the demand for clean energy grows, there is an increasing need for advanced wind turbine manufacturing to support this expansion. Domestic production of wind turbines is expected to play a crucial role in meeting this demand, driven by technological advancements, government incentives, and strategic partnerships with global players. With the above view, the Indian Wind Turbine Manufacturers Association (IWTMA) has also committed to achieving 100 GW by 2030, supported by a domestic manufacturing capacity of over 18 GW annually.

Opportunities and Challenges:

Over the next 2-3 years, Indias wind turbine manufacturing and trading sector stands to benefit from several strong growth drivers. Accelerated capacity addition targets, especially the MNREs push for 140-150 GW by 2030, are creating sustained demand for turbines and components. Additionally, government incentives such as production-linked schemes, hybrid project bids, and domestic content mandates are fostering greater investment in local manufacturing and technology upgrades, positioning India as a competitive hub for both domestic deployment and exports.

However, the sector must navigate persistent challenges. Grid infrastructure and transmission constraints continue to limit the integration of new wind capacity. Further, while the government policies aim to boost selfreliance and reduce import dependence, it may increase short-term production costs and strain local supply chains, particularly for specialised components. Balancing localisation with supply chain resilience will be critical to sustaining cost-effective growth and unlocking the sectors full potential.

Future outlook:

Indias wind power sector is poised for sustained double-digit growth over the next decade, driven by rising demand, progressive policy support, and a focused push toward domestic manufacturing through robust supply chains and technological advancement. These converging dynamics will not only accelerate the countrys energy transition but also establish wind as a key pillar of economic growth and large-scale job creation.

Discussion on Financial Performance with Respect to Operational Performance

Overview of the financial performance during the year - we achieved unprecedented milestones, attaining the highest revenue and profits, with revenue surpassing the Rs.2,400 crore mark. This remarkable growth was propelled by a substantial 77% increase in revenue from operations from nearly Rs.1,370 crore in FY 2023-24 to approximately Rs. 2430 crore in FY 2024-25.

The growth in revenue was primarily attributed to the significant expansion of the business verticals. Throughout the year, we executed a strategic shift from outsourcing vehicles from vendors to utilising our own fleet for ash transportation, leading to notable cost savings in logistics. Net Profit grew by 87%, rising from nearly Rs.100 crore in FY 2023-24 to around Rs.189 crore in FY 2024-25.

This increase was propelled by effective control over fixed overheads, operating leverage optimisation, and the substantial revenue generated during the year.

Our operating profit margins stood at 8.47%, while net profit margins were at 7.79% during the year.

Overview of Financial Performance:

Particulars	STANDALONE		CONSOLIDATED
	2024-25	2023-24	2024-25	2023-24
Revenue from Operations (Net)	2,43,001.62	1,37,055.78	2,46,766.31	1,38,287.03
Other Income	5,249.89	1,814.68	5,035.81	1,812.62
Total Income	2,48,251.51	1,38,870.46	2,51,802.12	1,40,099.65
Expenditure (other than Tax)	2,24,182.82	1,25,700.00	2,31,810.76	1,27,966.46
Exceptional Items	-	-	-	-
Profit before Tax (PBT)	24,068.69	13,170.46	19,991.36	12,133.19
Current Tax expense for current year	4,982.13	3,208.22	4,982.13	3,208.22
Current tax expense relating to prior years	-	(105.22)	-	(105.22)
Deferred Tax	145.46	(27.26)	(829.12)	(267.68)
Profit after Tax (PAT)	18,941.10	10,094.72	15,838.35	9,297.87
Earnings Per Share ( Rs.) (Basic)	15.46	9.12	12.93	8.40
Earnings Per Share ( Rs.) (Diluted)	14.80	9.08	12.38	8.36
Net Fixed Assets	14,712.35	8,811.82	23,915.98	11,116.89
EBITDA Margins (%)	8.91	10.85	8.50	10.57
PAT Margins (%)	7.79	7.36	6.41	6.27

During the year under review, the Company achieved a standalone turnover of ~ Rs.2,430 crore as against ~ Rs.1,371 crore during previous year, which is an increase of 77%. During the year, Ash & Coal handing business grew substantially by more than 100%, driven by volume growth.

Your Company achieved a consolidated turnover of ~ Rs.2,468 crore as against ~ Rs.1,383 crore during previous year, thereby reflecting a growth of 78%.

Your Company has reported a profit before tax (PBT) of ~ Rs.241 crore for the year under review as compared to PBT of ~ Rs.132 crore for the previous year on a standalone basis, which is an upside of 83%.

Your Company has reported a profit before tax (PBT) of ~ Rs.200 crore for the year under review as compared to PBT of ~ Rs.121 crore for the previous year on a consolidated basis, resulting in hike of 65%.

Your Company has reported a profit after tax (PAT) of ~ Rs.190 crore as against a profit after tax of ~ Rs.100 crore during previous year on a standalone basis, which is an upside of 90%.

Your Company has reported a profit after tax (PAT) of ~ Rs.158 crore as against a profit after tax of ~ Rs.93 crore during previous year on a consolidated basis, thereby, booking an increase of 70%.

Segment-wise Performance:

		(Rs. In Lakhs)
Particulars	As at March 31, 2025	As at March 31, 2024
Segment Revenue (Net Sales/Income)
Ash & Coal Handling Business	2,23,557.31	94,558.23
Refrigerant Gas- Manufacturing (Refilling) and Sales	6,158.81	7,230.71
Electric Vehicle	3,764.69	1,231.25
Sale Of Service	465.00	5,564.26
Power Trading	10,899.87	28,089.75
Solar Power - Generation and Related Activities	1,162.06	1,036.26
Windpower	-	-
Others	758.57	576.57
Total	2,46,766.31	1,38,287.04
Segment Results
Ash & Coal Handling Business	21,817.50	12,073.72
Refrigerant Gas- Manufacturing (Refilling) and Sales	309.44	(160.38)
Electric Vehicle	(2,683.55)	(737.15)
Sale Of Service	314.73	2,845.81
Power Trading	473.12	39.35
Solar Power - Generation and Related Activities	579.12	437.42
Windpower	(176.57)	-
Others	47.84	29.44
Unallocable expenditures	(2,956.83)	(1,271.76)
EBIT (except other Income & Exceptional Item)	17,724.80	13,256.45
Finance Cost	2,769.26	2,935.88
Other Income	5,035.81	1,812.62
Exceptional Items	-	-
Share of Profit/(Loss) from Associates	-	-
Profit /Loss before Tax	19,991.36	12,133.19

For the year ended March 31, 2025, Refex delivered a robust 78% year-on-year growth in total segment revenue, rising from Rs. 1,383 crore in FY 2023-24 to Rs. 2,468 crore in FY 2024-25.

This performance was driven primarily by a 136% surge in the Ash & Coal Handling Business, which grew from Rs. 946 crore to Rs. 2,236 crore, reaffirming its position as the companys anchor segment.

Refex has significantly scaled its coal supply and ash handling operations during the year, becoming a key full- solution partner to thermal power plants. Over 30 thermal power stations are added to the companys portfolio including NTPC and state-run plants. By leveraging a fleet of 2000+ owned and leased vehicles, Refex disposed of over 10+ million tonnes of ash up more than 100 % YoY resulting in higher profit margins and reduced costs. Strategic investments in digital tools, fleet expansion, and strengthened business development teams have positioned Refex as the largest organized ash management service provider in India.

In FY 2024-25, the company supplied 1,370 MT of refrigerants, reflecting a CAGR of 25.1% per year over the five- year period. Refex has successfully expanded its market footprint into secondary and tertiary cities, onboarding over 40 new dealers to strengthen its distribution network. The Company continues to maintain strong partnerships with leading original equipment manufacturers (OEMs) such as LG, MYTVSparts, KI Mobility, Voltas, and Cars24, its innovative offerings include 450 ml cans, on-site refilling stations, and new products like low global warming potential (GWP) and zero ozone depletion (ODS) refrigerants such as R290 cans and HC blends. Additionally, the Company has diversified into the sale of high-quality copper tubes, registering 71 MT in sales during the year.

The Green Mobility segment posted a 206% revenue increase, scaling from W 12 crore to W 38 crore, reflecting early traction in the clean mobility portfolio. Although the segment is still incurring operating losses (W 27 crore), the trajectory signals strong potential amid expansion.

While Power Trading revenue declined by 61% (from W 281 crore to W 109 crore), the segment remained marginally profitable. Other segments such as Refrigerant Gas and Solar Power also delivered stable performance, with improved margins.

Refexs strong topline momentum and operational leverage in core businesses underscore its commitment to diversified, sustainable growth.

Risk and concerns

The Board of Directors of the Company has a Risk Management Committee to frame, implement and monitor the risk management plan for the Company. The Committee is responsible for monitoring and reviewing the risk management plan and ensuring its effectiveness.

The Audit Committee has additional oversight in the area of financial risks and controls. The major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis.

Refex operates in a dynamic environment with multiple internal and external business risks. To address these, the Company has implemented a robust, customized Risk Management Framework (RMF) across all business verticals.

This framework enables proactive risk identification and timely mitigation, overseen closely by senior management. The Company believes that the RMF be followed strictly to ensure compliance and resilience, supported by 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).

The Companys internal controls are commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance with corporate policies.

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.

A process has been set up for periodically apprising the senior management and the Audit Committee of the Board about internal audit observations of the Company with respect to internal controls and status of statutory compliances. Business heads and support function heads are responsible for establishing effective internal controls within their respective functions.

These have been established across the levels and are designed to ensure compliance with internal control requirements, regulatory compliance and appropriate recording of financial and operational information. The internal audit team periodically conducts audits across the organization, which include review of operating effectiveness of internal controls.

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, 2025, the Companys internal financial controls were adequate and operating effectively and no material weakness exists during FY25.

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

Great Place to Work? T rust Index™ Certification

This year, we once again participated in the Great Place to Work? Trust Index™ Certification and proudly emerged, for the third consecutive time, as a certified great workplace.

This milestone is a testament not only to the maturity and strength of our people practices and employee experience, but also to our commitment to continuous improvement. The certification process serves as a valuable opportunity to hear directly from our employee - offering meaningful insights into what were doing well and where we can do better.

We view this feedback as a powerful catalyst, helping us co-create a workplace that is not only high-performing but also fulfilling, inclusive, and joyful for every member of Team Refex.

Your Company believes that its employees are its core strength and accordingly development of people and providing a best-in-class work environment is a key priority for the organization to drive business objectives and goals. Robust HR processes and policies along with Digital HR tools are in place, which enables building a stronger performance culture and at the same time developing current and future leaders.

For the last few years, we have had peaceful and healthy industrial relations at all our work places.

Employee Stock Option Plan (ESOP)

In a landmark move towards inclusive growth and recognition, Refex offered participation in its Employee Stock Option Plan (ESOP) to all eligible employees—ranging from drivers to general managers. This initiative, led by our Managing Director, Mr. Anil, was executed with fairness, transparency, and a commitment to rewarding performance while boosting employee retention. Unlike traditional models that reserve ESOPs for certain senior roles, Refexs inclusive approach underscores our deep-rooted belief that every Refexian adds value to the organizations growth story.

This initiative is designed to recognize the dedication and hard work of every employee, regardless of their title or position. Unlike many organizations that restrict Employee Stock Ownership Plans (ESOPs) to senior levels, this approach includes all employees from drivers to general managers underscoring the Companys commitment to inclusive growth. It reflects a deep appreciation for the contributions of every individual and reinforces the organizations belief in shared success and collective progress.

Life Insurance

Refex places utmost importance on the security and well-being of its employees. A comprehensive life insurance scheme has been introduced for all employees regardless of position, background, pay status, or age. The coverage offers a high sum assured up to W 5 crores with minimal employee contribution and substantial support from the organization. We are also exploring ways to extend this benefit beyond an employees tenure with us.

Health Insurance

To strengthen our commitment to employee well-being, the company has doubled the health insurance coverage limit for all employees. Additionally, the Company-wide physical health check-ups have been organized to promote proactive health management.

Personal Accident Insurance

All Refex employees are covered under Personal Accident Insurance. This policy ensures financial security in case of accidents resulting in partial, total, or permanent disabilities, or unfortunate loss of life.

Workmens Compensation:

Under this policy, the Company has covered 135 workers for unforeseen events, however utmost safety measures are already accommodated within the usage of PPEs to ensure a safe work environment (accident/ incident free).

Health Camp

For the holistic well-being of employees, company-wide health screenings, including extensive blood tests and calcium monitoring, were conducted. Webinars by medical experts further educated employees on maintaining good health.

The KMP (Key Managerial Personnel) Workshop

The KMP Workshop is a high-impact orientation designed exclusively for Refexs leadership team. Structured as a masterclass, this program equips our key managerial personnel with a comprehensive understanding of the strategic, cultural, legal, and ethical dimensions of leadership at Refex. This immersive experience serves as a foundational platform to ensure that Refex leaders are well-versed in governance, risk, culture, and performance. It empowers them to lead with purpose, align with regulatory expectations, and contribute to sustainable, responsible growth.