Refex Renewables & Infrastructure Ltd Management Discussions

Global Economic Context

The global economy is navigating a period of moderate but cautious expansion, with growth constrained by elevated interest rates, rising tariff barriers, geopolitical tensions, and weakened trade. Recovery is expected to consolidate in 2026 as monetary policies ease in some regions and targeted fiscal support is deployed.

Metric	2024 (Actual)	2025 (Projection)	2026 (Projection)
Global real GDP growth (%)	3.3%	2.8%	3.0%

India: Macroeconomic Position (Early 2026)

India has become the worlds fourth-largest economy. The Country is maintaining a strong post-pandemic recovery trajectory, driven by robust domestic consumption, revival in private investment, and continued public capital expenditure.

Key macro highlights:

Real GDP Growth (FY 2025 26): 6.8 7.0%, supported by construction, manufacturing, services, digital infrastructure, and rising rural and semi-urban demand.

Mer chandise exports (Jan Mar 2025): USD 123.4 billion. Top export segments include Engineering Goods (24.6%), Petroleum Products (18.3%), and Organic & Inorganic Chemicals (7.4%).

Rising employment and easing in ation have strengthened private consumptionandconsumerconfidence.

Indias energy security remains a central policy focus: approximately half of domestic natural gas demand is met by imports, underpinning the strategic emphasis on domestic alternatives such as Compressed Biogas (CBG) and other renewables.

(Sources: IBEF, Ministry of Commerce & Industry, COP28 final decisions, UNFCCC)

Indias Power Sector

India remains the third-largest producer and consumer of electricity in the world. FY 2025 26 was a landmark year - renewable energy crossed 50% of total installed capacity for the first time, record capacity additions were achieved, and peak demand hit an all-time high of 270.82 GW in May 2026 driven by intense heatwave conditions.

Installed Capacity Snapshot (As of March 31, 2026)

Metric	March 2026	March 2025	Change
Total Installed Capacity	532.74 GW	472.47 GW	+60.27 GW (+12.8%)
Non-Fossil Fuel Capacity	283.47 GW (53.2%)	232.41 GW (49.2%)	+51.06 GW
Fossil Fuel Capacity	249.27 GW (46.8%)	240.06 GW (50.8%)	-
Solar Capacity (Total)	150.26 GW	107.95 GW	+42.31 GW (+39.2%)
Wind Capacity	56.09 GW	51.06 GW	+5.03 GW (+9.8%)
Large Hydro	51.17 GW	46.93 GW	-
Small Hydro	5.17 GW	5 GW	Stable
Bio Power / Cogeneration	10.87 GW	10.65 GW	Modest growth
Waste to Energy	0.88 GW	0.84 GW	Stable
Nuclear	8.78 GW	8.78 GW	No change
Gas	20.12 GW	20.13 GW	Stable
Coal	221.94 GW	219.3 GW	Slight increase

Fuel-wise Installed Capacity (31 March 2026) — CEA Data

Category	Installed Capacity (MW)	% Share
Coal	221,940	41.7%
Lignite	6,620	1.2%
Gas	20,122	3.8%
Diesel	589	0.1%
Total Fossil Fuel	249,272	46.8%
Solar (Total)	150,261	28.2%
Ground Mounted	114,873	21.6%
Rooftop (PM Surya Ghar)	25,728	4.8%
Hybrid / KUSUM / Off-grid	9,660	1.8%
Wind	56,095	10.5%
Large Hydro	51,165	9.7%
Biomass / Cogeneration	10,869	2.0%
Small Hydro	5,171	1.0%
Waste to Energy	877	0.2%
Nuclear	8,780	1.6%
Total Non-Fossil Fuel	283,468	53.2%
TOTAL	532,740	100.0%

Sector-wise Ownership (March 31, 2026)

Sector	Installed Capacity (MW)	% Share
Central Sector	124,108	23.3%
State Sector	130,000	24.4%
Private Sector	278,632	52.3%
TOTAL	532,740	100%

Supply and Demand Dynamics

While capacity additions were record-breaking, actual generation growth in FY 2025 26 was moderate, re ecting commissioning timelines, seasonal resource variability, and grid absorption constraints.

Metric	FY 2025 26	FY 2024 25	Growth
Total Generation (Utilities)	1,840 BU	1,829.7 BU	+0.56%
Renewable Generation (excl. Large Hydro)	308.81 BU	255.01 BU	+21.10%
Solar Generation	173.53 BU	144.16 BU	+20.38%
Wind Generation	106.09 BU	83.33 BU	+27.29%
Wind + Solar Combined	276.61 BU	—	15.14% of total generation

 

Peak Demand & Energy Shortage
Period	Peak Demand / Shortage	Notes
FY 2025 26 (Govt. projection)	270 GW	Met
FY 2025 26 (Actual recorded)	242.49 GW (Jan 2026)	Recorded by PIB
May 2026 (Heatwave peak)	270.82 GW	All-time record; met
FY 2024 25	250 GW	Met
Energy Shortage FY 2025 26	0.03%	Near-total elimination of deficit
Projected FY 2030 Peak	335 GW	Planning estimate

 

Per Capita Electricity Consumption
Year	Per Capita Consumption	Notes
FY 2013 14	957 kWh	Base year
FY 2023 24	1,395 kWh	+45.8% vs 2013 14
FY 2024 25	1,460 1,538 kWh	+52.6% vs 2013 14
Global Average	3,486 kWh	India at 44% of global average

 

Renewable Energy Growth Trajectory (2014 2026)
Energy Type	March 2014	March 2026	Growth Factor
Solar	2.82 GW	150.26 GW	53.28x
Wind	21.04 GW	56.09 GW	2.66x
Total Renewable (excl. Nuclear)	76.38 GW	274.68 GW	3.59x
Non-Fossil (incl. Nuclear)	—	283.47 GW	—

 

Indias Global Ranking in Renewable Energy
India ranks among the top global performers in renewable energy capacity and additions.
Category	Indias Global Rank
Total Renewable Energy Capacity	3rd
Solar Energy Capacity	3rd
Wind Energy Capacity	4th
Electricity Producer (overall)	3rd
Renewable Capacity Additions (FY 2025 26)	Among top 3 globally

Electrification and Supply Quality

Village and household electrification has been sustained and improved through distributed solar programmes and grid expansion. PM Surya Ghar Muft Bijli Yojana and KUSUM have driven significant rooftop and off-grid growth.

Category	2014	2025	2026
Rural Electricity Supply (hrs/day)	12.5	22.6	Trending toward 23+
Urban Electricity Supply (hrs/day)	—	23.4	Near 24 in major cities
PM Surya Ghar Beneficiaries (cumulative)	—	11.6 lakh	34.3 lakh (22.7 lakh added in FY 2025 26)

Standalone BESS Battery opportunity in India

Government of India announced a "Big Push to Battery Energy Storage," confirming a VGF scheme for 30 GWh of Battery Energy Storage Systems (BESS), in addition to the 13.2 GWh already underway totalling to 43.2 GWh. The additional Viability Grant Funding (VGF) will be 5,400 Crore (USD 635 M). VGF from the government aims to attract 33,000 Crore (USD 3.9 B) in investment, meeting the Countrys BESS requirement till 2028.

Traction from 2018 to May 2025 a. Total Renewable Energy (RE) with ESS Tenders

		RE Capacity	ESS Capacity (GWh)
Project Stage	Number of Tenders	GW	BESS Capacity	PSP Capacity
Notice Inviting Tender	5	1.21	10.06
RfS	24	8.06	12.58	35.25
Bidding Closed	7	1.20	6.90
Cancelled	29	11.43	7.22	31.63
Awarded	20	11.17	9.14
Under Construction	20	9.22	7.59	39.45
Operational	7	0.16	0.50	0.00
Total	112	42.45	53.99	106.33

 

b. Standalone BESS Tenders
Project Stage	Number of Tenders	Capacity (GWh)
Notice for Tender	2	10.02
Tender Open	6	4.90
Bidding Closed	5	4.00
Cancelled/ On Hold	9	4.70
Awarded	7	4.40
Under Construction	6	4.50
Operational	1	0.04
Total	36	32.56

Future Outlook

a. V GF (Viability Gap Funding) from Government of India: The VGF support is currently structured at up to 18 lakh per MWh ($21,170/-) or 30% of the capital cost, whichever is lower. The VGF is disbursed in tranches. b. The Central Electricity Authority (CEA) in its National Electricity Plan (NEP) 2023, estimated that 236 GWh of BESS would be required by 2031-32 [PIB, April 3, 2025 (Release ID: 2118325); PIB, May 31, 2023]. This clearly indicates a demand far exceeding the current installed capacity, creating a substantial gap for us to fill.

Targets, Outlook & CEA Projections (2026 2035)

Indias 2030 target of 500 GW non-fossil capacity remains central to planning. As of March 2026, 283.47 GW is installed, leaving ~216.5 GW to be added by 2030 an annual average of roughly 54 GW. FY 2025 26 additions demonstrate feasibility. CEAs long-term projection expects total installed capacity to double to ~1,121 GW by FY 2035 36, with non-fossil sources contributing ~70% of the mix by then.

• Near-term (2030): 500 GW non-fossil target; green hydrogen scale-up to 5 MMT/year; 30 GW offshore wind target under development.

CEA 20th Electric Power Survey: Installed capacity could reach ~1,121 GW by FY 2035 36, with non-fossil ~786 GW.

Requir ed annual additions to meet 2030 non-fossil target: 54 GW/year (achievable given FY 2025 26 performance).

Renewable Energy Outlook

Indias renewable energy sector is undergoing a structural shift. By April 2025 India had 232 GW of non-fossil capacity. 2024 saw a record addition of 25 GW of renewable capacity (a 34.6% increase over 2023). The Governments 2030 targets imply ambitious annual additions for the remainder of the decade.

• National target: 500 GW of non-fossil fuel capacity by 2030 this requires roughly 50 GW of additions per year over the next five years.

Gr een hydrogen: target of 5 million tonnes annually by 2030, which requires about 125 GW of additional renewables capacity to produce the required renewable electricity.

Offshor e wind: a national target of 30 GW by 2030 has been announced to diversify coastal renewable resources.

Budget allocation: MNRE received 26,549 crore in the Union Budget 2025 26 (a 53.48% increase versus the prior year), signaling stronger fiscal prioritization of renewables, green hydrogen, household solar, and grid infrastructure integration.

(Sources: Budget documents, MNRE, PIB)

Challenges in Indias Clean Energy Transition

Land acquisition and community resistance especially in ecologically sensitive and tribal areas cause project delays of 6-12 months.

Grid integration and infrastructure deficits intermittency of renewables, immature storage and forecasting solutions, and transmission bottlenecks delay renewable absorption.

Appr oval process delays forest clearances, environmental NOCs, and right-of-way approvals frequently add 6-12 months to project timelines.

Impor t dependence despite PLI (Production Linked Incentive) schemes, India continues to rely on imports (wafers, raw materials) from China; critical minerals like lithium and cobalt remain import-dependent.

T endering and PPA delays aggressive bidding and DISCOM off-take uncertainty can delay PPAs or force retenders, adding up to 12 months of delay.

Open access restrictions high cross-subsidy surcharges and transmission charges limit the economics of open-access purchases for many consumers.

Batter y energy storage system (BESS) integration costs and lifecycle uncertainties these raise costs for hybrid projects combining storage and renewables.

Waste Management in India and the CBG Opportunity

India faces a rapidly growing municipal solid waste (MSW) challenge. Properly addressing MSW is both an environmental necessity and an economic opportunity; CBG production converts organic wastes into a valuable fuel while generating bio-manure as a by-product.

MSW trends and gaps:

MSW generation: ~55 million tonnes in 2023; projected to rise to ~165 million tonnes by 2030 and 436 million tonnes by 2050 if current trends continue.

Leg acy waste: over 250 million tonnes remain untreated across approximately 2,300 dumpsites.

Segr egation and processing: less than 30% of waste is properly segregated; only about 25 30% of total waste is scientifically processed (composting, recycling, bio-methanation).

Government programs Swachh Bharat Mission (Urban) 2.0 (2021 2026) and ISWM (Integrated Solid Waste Management) frameworks emphasise source segregation, recycling, composting, waste-to-energy (including CBG), and scientific landfilling. Urban Local Bodies (ULBs) are required to ramp up MRFs (Material Recovery Facilities), bio-methanation units, and composting infrastructure to meet goals.

(Source: MoHUA, MoEF&CC)

Compressed Biogas (CBG): waste-to-energy pillar and strategic role

CBG (compressed biogas) is positioned as an important domestic substitute for imported natural gas and CNG. It supports energy security, reduces greenhouse gas emissions, improves waste management, and creates rural and urban employment opportunities. India has rolled out several programmes to scale CBG production and market integration.

Programme	Target / Status (2026)	Notes
GOBARdhan	500 Bio-CNG plants (program-level)	Budgetary support: 10,000 crore; aims to promote bio-CNG from organic waste
SATAT (2018)	5,000 CBG plants target (programme)	As of 2026: 210 commissioned; 1,094 active Letters of Intent (LOIs) in FY 2025-26
Mandatory Blending Obligation (MBO)	1% CBG blend from FY 2025 26, scaling to 5% by FY 2028 29	Requires Oil Marketing Companies (OMC) to blend CBG into total CNG/PNG consumption; supports domestic offtake and demand creation
DPI (Pipeline Infrastructure)	Scheme outlay 994.5 crore (FY 2023 24 to FY 2025 26)	Objective: connect CBG plants to City Gas Distribution (CGD) networks; reduces logistics costs

Market context: global CBG market was USD 7.32 billion in 2023 and is projected to grow to USD 18.07 billion by 2031 (CAGR ~11.96%). Drivers include emissions regulations, subsidy support, and national energy strategies in multiple jurisdictions.

(Source: Markets & Data, MNRE, PIB)

Feedstock Availability in India

Overview

Indias feedstock base for Compressed Biogas (CBG) production has expanded significantly in 2026. The total theoretical CBG potential is now estimated at 62 65 million tonnes annually, supported by a diverse and growing biomass resource base.

The composition of feedstock contributions re ects both structural stability (press mud, animal waste) and rapid growth (MSW, agri-residues).

Feedstock Category Analysis

1. Agricultural Residues

Contribution to CBG Potential: 32% of total. Annual availability around 150 MMT. Primary sources include rice straw, wheat straw, maize stalks, sugarcane bagasse, mustard stalks and groundnut shells. Key producing states are Punjab, Haryana, Uttar Pradesh, Bihar and Madhya Pradesh.

• Seasonality: High requires post-harvest aggregation and storage.

Methane yield: Rice straw 0.20 0.25 m3/kg; wheat/maize 0.25 0.30 m3/kg.

Cost: 2,000 2,500/tonne (location dependent).

2026 developments: Stubble burning restrictions and biomass aggregation schemes are driving formal collection.

Oppor tunity: Dedicated energy crops (Napier grass) are being piloted on marginal lands.

2. Municipal Solid Waste (MSW)

MSW has emerged as a dominant and fast-growing feedstock for CBG in 2026, driven by urbanisation, improved collection and government waste management programmes.

Metric	Value / 2026 baseline	Notes
Daily generation (National aggregate)	2.80 lakh TPD	2026 consolidated estimate
Annual generation (National)	62 65 MMT	MoHUA / MoSPI derived baseline
Processed scientifically (FY 2024 25)	96,259 TPD ( 68% of collected)	Processing share improved vs prior years
Share compostable/organic	50%	Primary feedstock fraction for bio
		methanation
Bio-methanation share	0.9% of processed waste	Fastest-growing processing segment but
		still small in absolute scale

MSW composition, regional generation and city-level volumes vary widely. Major city daily generation examples: Delhi ~11,000 TPD; Mumbai ~8,000 TPD; Hyderabad ~8,000 TPD; Bengaluru ~6,000 TPD. Proper source segregation is critical organic fraction yields the majority of methane and contamination severely reduces digester performance.

3. Animal & Poultry Waste

Contribution: 41% of theoretical CBG potential. Annual availability around 190 MMT. Sources: cattle dung (dairy), poultry litter and other livestock waste. This feedstock is relatively stable, less seasonal, and suitable for continuous plant operation.

Methane yields: Cow dung 0.18 0.22 m3/kg; poultry litter 0.20 0.30 m3/kg.

Aggr egation challenge: Geographic dispersion requires cooperative models and co-digestion strategies.

2026 tr ends: Dairy cooperative (NDDB) initiatives and gaushala tie-ups are formalising supply chains.

4. Sugar Industry Press Mud

Press mud is highly valuable for CBG: concentrated, high-yield, and typically available at mill gates. 2026 estimates put press mud at about 12.4 MMT annually based on sugarcane production projections.

Metric	Value (2026)	Notes
Sugarcane production (est.)	47.6 MMT	First advance estimates for 2025 26
Press mud generated	12.4 MMT	Approx. 3 tonnes press mud per 100 tonnes sugarcane
CBG potential from press mud	496,000 tonnes	High methane yield: 0.30 0.40 m3/kg
Economic value (at 54/kg SATAT MGP)	Rs. 2,678 Cr	Indicative valuation for the press mud stream

Strategic advantages: press mud is contractable, concentrated (reducing logistics costs), and offers high digestion performance. For Refex and similar operators, co-locating or securing long-term supply agreements with sugar mills (e.g., Gurudutta Sugar in Kolhapur) materially improves plant economics and feedstock reliability.

5. Sewage Sludge

Contribution: ~11% of feedstock base; annual availability ~50 MMT from STPs. Sewage sludge offers a stable urban feedstock source but often requires pre-treatment (dewatering, contaminant removal) and careful heavy-metal monitoring.

Methane yield: 0.15 0.25 m3/kg (lower than animal waste or press mud).

Challenge: Industrial sewage mixing increases risk of heavy metals and toxic inhibitors; testing and conditioning required.

2026 status: Several STPs in metros piloting sludge-to-CBG projects under MNRE and ULB programmes.

Feedstock Mix by CBG Market Segment

Feedstock Segment	Estimated Market Share (2026)	Characteristics
MSW-based	44%	Fastest-growing; aligns with Swachh Bharat Mission and ULB processing needs
Agricultural residue	32%	Seasonal; aggregation schemes improving supply reliability
Animal waste-based	18%	Stable, year-round supply; cooperative integration increasing
Press mud	4%	High-yield, concentrated, contractable small share by count but high value
Sewage sludge & others	2%	Emerging niche projects with urban STPs

Feedstock Aggregation & Logistics

Key government programmes and infrastructure developments are improving aggregation, collection and pre-processing capabilities across feedstock categories.

• Biomass Aggregation Machinery Scheme: Government support of 50% of procurement cost (max Rs. 90 lakh/set) through FY 2026 27 (total outlay Rs. 564.75 Cr) is formalising agri-residue collection.

Material Recovery Facilities (MRFs) and enhanced segregation: ULBs scaling up source segregation and MRF capacity to increase organic fraction quality for bio-methanation.

Dedicated energy crops (e.g., Napier grass) pilots are underway on marginal lands to provide a predictable biomass stream with yields 12 15 t/acre/year.

Logistics: aggregation typically adds 20 30% to feedstock cost; centralised hubs, bale transport and farmer cooperatives help reduce costs.

Feedstock Cost Dynamics

Feedstock	Typical Cost ( /tonne)	Notes
Press mud	0-500	Often available at low/no cost at mill gates; sometimes attracts a tipping fee
Agricultural residue	2,000-2,500	Seasonal volatility; aggregation adds cost
Animal waste (cow dung)	500-1,500	Cooperative models can lower procurement costs
MSW	500-1,500	ULB tipping fees vary; mixed waste lowers usable fraction
Sewage sludge	0-500	Often provided free or with STP disposal payments
Food waste	1-3/kg ( 1,000-3,000/tonne)	High methane yield (0.6 0.8 m3/kg) but collection logistics concentrated in urban areas

Regulatory & Market Support Framework

SA TAT Minimum Guaranteed Price (MGP): 54/kg for CBG remains a key offtake assurance mechanism, indexed to crude in some formulations and supporting investment certainty.

Centr al Financial Assistance (CFA): 4 Cr per 4,800 kg CBG/day; up to 10 Cr/project. Additional feedstock bonuses for agri-residue usage support blended-feedstock projects.

State incentives: Uttar Pradesh, Andhra Pradesh, Maharashtra and others provide capital subsidies, production-linked support and concessions that improve project bankability.

Regional Feedstock Concentration

Regional concentrations determine logistical economics. Key national patterns in 2026 include: Maharashtra, South India and the northern plains as major MSW and agricultural residue generation zones; Uttar Pradesh and Maharashtra as leading press mud producers due to sugarcane volumes.

Region / State	Key Feedstock	Notes
Delhi NCR	MSW	High urban organic fraction; potential for city-scale bio-methanation
Maharashtra	MSW, Press mud,	sugar industry waste Largestcombined MSW generation and significant
	Agri-residue
Tamil Nadu	MSW, Press mud (south mills)	Refex ULB projects and MSW to CBG opportunities
Uttar Pradesh	Press mud, Agri-residue	Largest sugarcane production; high press mud availability
South India (TN, AP, KA)	MSW, Poultry waste,	Strong poultry clusters and emerging MSW processing capacity
	Agri-residue

Challenges in Feedstock Realisation

Last-mile collection: Dispersed agri-residue and animal waste need aggregation hubs and farmer-coop models.

Seasonality mismatch: Storage, blending and exible plant operation required to smooth seasonal supply.

Quality & contamination: Mixed/contaminated MSW and variable residue moisture reduce yields and increase O&M issues

Cost pr essure: Aggregation adds 20 30% to base feedstock cost; logistics optimization is critical.

Regulat ory friction: Competing uses for agri-residue (soil incorporation) and ULB policy choices may limit diversion to CBG

Future Feedstock Outlook (2026 2030)

Feedstock	2026 Estimate (MMT)	2030 Projection (MMT)
Agricultural Residue	150	160 170
Animal Waste	190	200+
MSW	62 65	165
Press Mud	12.4	14 15
Sewage Sludge	50	60+
TOTAL	465	600+

With improved collection, aggregation and processing, cumulative practical CBG production potential could rise from the current 62 65 MMT (2026) toward 75 80 MMT by 2030 depending on investment in MRFs, bio-methanation capacity and supportive state policies.

Key Government Initiatives supporting CBG

• Central Financial Assistance (CFA): 4 crore per 4,800 kg/day CBG capacity (derived from 12,000 m3/day biogas), with a maximum of 10 crore per project.

Biomass aggregation machinery support: MoPNG provides up to 50% of procurement cost (max 90 lakh per set), scheme valid FY 2023 24 to FY 2026 27 (total outlay ~ 564.75 crore).

Mark et Development Assistance for city compost: 1,500 per tonne to fertilizer companies and compost producers; FOM and bio-slurry included under the Fertilizer Control Order (FCO) to formalize markets for by-products.

Pipeline infrastructure support (DPI scheme): 994.5 crore to connect CBG plants to CGD networks and reduce offtake friction.

State-le vel incentives: several states (Punjab, Maharashtra, Haryana, Uttar Pradesh, Andhra Pradesh, Bihar) provide capital subsidies, land lease facilitation, electricity duty waivers, and other incentives to promote CBG investments. Details vary by state.

Refex: Strategic positioning in renewables and CBG

Refex is positioned to capture value across renewable electricity (Solar and Wind) and waste-to-energy (CBG) markets.

The Companys integrated strategy combines project development, operations and management (O&M), and productization of by-products such as fermented organic manure (BioDhanic).

Renewable energy (Solar & Wind)
O&M footprint and pipeline:
Metric	Value / Notes
Assets under O&M	127.5 MW across 89 sites in 11 states
Current capacity	FY 25-26: 129 MW (DC)
(sites & capacity)
Recent order wins	100 MW Solar with NTPC (FY 24 25) - Connectivity approvals secured and land acquisition in final stage. Execution plans under assessment
	196 MW Wind (SECI) - PPA Signed, Connectivity Applied & In-Principal Grant received. Initial development and statutory approval process underway.
Future Target	Participate in SECI, REMCL, GUVNL, SJVN, NTPC tenders.
	Develop 100 MW open-access solar for C&I segment

Refex monitors all sites remotely via an asset monitoring platform and follows predictive and preventive maintenance routines to maximise uptime and generation.

Compressed Biogas (CBG) & waste processing Refex activities

Current operations and pipeline:

Oper ating 30 TPD MSW-based CBG plant commissioned in 2024.

April 2025 award: three ULB projects in Tamil Nadu aggregating to 700 TPD CBG capacity (MSW feedstock).

Ambition: build a combined pipeline of 10,000 TPD CBG and waste-processing capacity across India through tenders, private projects, and acquisitions, leveraging diversified feedstocks (MSW, press mud, agri residues).

Value chain integration: Refex aims to capture multiple revenue streams tipping fees and O&M in municipal contracts, CBG offtake for transport and industry, and sale of fermented organic manure (BioDhanic) through e-commerce channels like Amazon. Inclusion of FOM in FCO formalizes this revenue stream.

Market dynamics and growth outlook (2026 2030)

Why 2026 is an in ection point: a combination of policy mandates, fiscal support, and a growing waste supply base creates strong tailwinds for CBG and associated services. Key demand drivers and enablers include mandatory blending (MBO), pipeline connectivity investments, SATAT and GOBARdhan programme activity, and growing municipal demand for waste processing.

Mandatory Blending Obligation (MBO): 1% CBG blending effective FY 2025 26, scaling to 5% by FY 2028 29, creates structured domestic demand.

Pipeline infrastructure funding: DPI and separate allocations reduce logistics costs by connecting plants to CGD networks.

F eedstock growth: sugar industry press mud and rising MSW volumes provide scalable feedstock options for diversified plant designs.

Emplo yment and local economy: CBG projects create direct on-site jobs and larger indirect employment in aggregation, equipment manufacturing, logistics, and farm inputs.

Summary: Indias clean energy and CBG landscape in 2026
Dimension	Status / Commentary
Global economy	Slowing from 3.3% (2024) to projected 2.8% (2025) and 3.0% (2026); trade and tariff risks persist
Indias growth	6.8 7.0% (FY 2025 26); 4th-largest economy; domestic demand strong
Renewable capacity	232.41 GW non-fossil capacity (April 2025); 25 GW added in 2024; target 500 GW by 2030
CBG market	Rapid expansion: 108 plants commissioned under SATAT (as of 2026), 1,094 LOIs active, global market
	growing 12% CAGR
Budget support	MNRE allocated Rs. 26,549 crore in FY 2025 26; targeted funding for household solar, green hydrogen,
	grid integration
Feedstock	Large theoretical potential: 60 MMT CBG potential; 11.4 MMT press mud from sugar; MSW rising to
	165 MMT by 2030
Challenges	Land, approvals, grid integration, import dependence for critical materials, recycling gaps
Refex position	127.5 MW O&M; 30 TPD CBG plant; 700 TPD ULB projects (TN); 10,000 TPD pipeline ambition;
	BioDhanic product channel

Discussion on Financial Performance with respect to Operational Performance

The key financial highlights for the financial year 2025-26 (" FY26") is summarized below:

( in 000s)

	Standalone		Consolidated
Particulars	2025-26	2024-25	2025-26	2024-25
Revenue from Operations (Net)	99,030	1,87,567	6,64,675	6,79,853
Other Income	30,514	17,679	61,466	59,832
Total Income	1,29,544	2,05,247	7,26,141	7,39,685
Expenditure (other than Tax)	2,49,589	2,96,726	10,73,857	9,75,696
Exceptional Items	-	-	-	9,062
Profit / (Loss) before Tax	(1,20,045)	(91,479)	(3,47,753)	(2,26,950)
Provision for Income Tax	-	-	4,560	5,532
Provision for Deferred Tax	(156)	362	77,413	1,31,502
Profit / (Loss) after Tax	(1,19,889)	(91,841)	(4,29,726)	(3,63,984)
Earnings Per Share ( ) (Basic & Diluted)	(26.66)	(20.74)	(95.27)	(81.26)
Net Fixed Assets	7,740	8,204	40,13,066	41,09,811
EBITDA Margins (%)	(69)	(33)	40	48
PAT Margins (%)	(121)	(49)	(65)	(54)
D/E Ratio (In times)	(1.29)	(1.16)	(6)	(10)

Standalone Financial Performance of your Company:

During the year under review, the Company has achieved a standalone turnover of 990.30 lakh in the financial year 2025-26 compared to 1,875.67 lakh during corresponding previous year registering a decline of ~47.20%. The Company has reported a loss of 1,198.89 lakh as against a loss of 918.41 lakh during corresponding previous year with an increase in loss of 280.48 lakh over the previous year on standalone basis.

Consolidated Financial Performance of your Company:

The Company has achieved a consolidated turnover of 6,646.66 lakh in the financial year 2025-26 compared to 6,798.53 lakh during corresponding previous year registering a decline of ~2.23%.

The Company has reported a loss of 4,297.16 lakh as against a loss of 3,639.34 lakh during corresponding previous year with an increase in loss of 657.82 lakh over the previous year, on consolidated basis.

Segment wise or Product wise Performance

S.No.	Particulars	Segment Revenue (Consolidated basis)
		FY26 ( in lakh)	FY25 ( in lakh)
1.	Commercial & Industrial	6,043	6,462
2.	Compressed Bio-Gas ("CBG")	504	2
3.	Others	98	334
	Total	6,646	6,798

Commercial and Industrial segment comprise of supply, installation, commissioning and maintenance of ground mount solar power plants and rooftop and sale of electricity.

During FY26, the total revenue from the operations declined to 6,646/- lakh from 6,798/- lakh during FY25, which is slight downside by ~2.23%.

In the Commercial & Industrial segment, revenue from the operations decreased by ~6.48% from 6,462/- lakh during FY25 to 6,043/- lakh during FY26.

Further, the revenue from CBG segment increased by 25,100% from 2/- lakh during FY25 to 504/- lakh during FY26.

Other key developments during FY26 include:

During the year under review, Refex Green Power Limited ("RGPL"), a wholly- owned subsidiary of the Company, had been awarded 03 tenders for establishment of Municipal Solid Waste based Bio CNG plant at Salem (200 TPD), Coimbatore (250 TPD) and Madurai (250 TPD), under PPP mode on Design, Build, Finance, Operate and Transfer ("DBFOT") Basis for a period of 20 years.

For this purpose, 03 (three) new companies have been incorporated as subsidiaries by RGPL, thereby becoming step-down subsidiaries of your Company. The details are as follows:

1. Ref ex CBG SPV (Coimbatore) Limited (incorporated w.e.f. May 03, 2025)

2. Ref ex CBG SPV (Salem) Limited (incorporated w.e.f. May 03, 2025)

3. Ref ex CBG SPV (Madurai) Limited (incorporated w.e.f. May 07, 2025)

Further, Ourland Engineering Works Private Limited ("OEWPL"), lead consortium bidder, has been awarded a tender for Establishment of 100 TPD Municipal Solid Waste based Bio-CNG plant in Tiruchirappalli under PPP mode on DBFOT Basis for a period of 20 years, vide Letter of Acceptance dated September 22, 2025 (received on October 06, 2025), issued by Tiruchirappalli City Corporation, wherein, Refex CBG Kolhapur Private Limited, a step-down subsidiary of the Company, is a consortium partner.

The Selected Bidder has incorporated Ourland Ecosphere CBG (SPV) Private Limited on December 03, 2025, as a Special Purpose Vehicle [with shareholding of consortium of entities, i.e., OEWPL (51%) and Refex CBG Kolhapur Private Limited (49%)] under the Companies Act, 2013 (in which Refex CBG Kolhapur Private Limited made investment in equity on February 11, 2026), prior to execution of the Concession Agreement (Concessionaire) which shall be responsible for designing, engineering, financing, procurement, construction, operation and maintenance of the Project under and in accordance with the provisions of a long term concession agreement (Concession Agreement) to be entered into between the Concessionaire and the Authority in the form provided by the Authority as part of the Bidding Documents pursuant thereto.

Consequently, Ourland Ecosphere CBG (SPV) Private Limited has become an associate company of the Company.

Compressed Bio-Gas (CBG)

Refex Sustainable Solutions Limited ("RSSL"), a wholly owned subsidiary Company, on February 11, 2025, has entered into and executed a Share Purchase Agreement for acquisition of controlling stake up to 100% of the total voting powers, from the existing promoters of Refex CBG Kolhapur Private Limited, thereby, proposes to make this entity, a subsidiary of RSSL and step-down subsidiary of the Company.

RSSL has completed the acquisition of 91.43% equity share capital / voting rights of Refex CBG Kolhapur Private Limited during FY26 (26.07% on August 05, 2025, 45.98% on August 08, 2025 & 19.38% on March 30, 2026), upon fulfilment of various conditions precedent as specified in the Share Purchase Agreement dated January 28, 2025, effective from February 11, 2025.

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 ASDS & Co., Chartered Accountants, Internal Auditor, have monitored and evaluated 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 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. Significantaudit 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.

The Company has adopted a policy on communication with Those Charged with Governance, aligned with NFRAs Circular dated January 7, 2026, ensuring structured and documented engagement between the Statutory Auditors and the Audit Committee/ Board.

These have been established across the levels and are designed to ensure compliance with internal control requirements, regulatory compliance and appropriate recording of financialand 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, 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 development in Human Resources, Industrial relations and number of people employed

Great Place to WorkR Trust Index Certification

This year, Refex Group once again participated in the Great Place to WorkR Trust Index Certification and was proud to be recognised, for the fourth consecutive time, as a Certified Great Workplace.

This achievement stands as a testament not only to the maturity and depth of our people practices and employee experience, but also to our unwavering commitment to continuous improvement. The certification process affords a valuable opportunity to engage directly with our employees, yielding meaningful insights into what we are doing well and where there is room to grow. We regard this feedback as a powerful catalyst one that helps us co-create a workplace that is not merely high-performing, but also fulfilling, inclusive, and joyful for every member of Team Refex.

Your Company firmly believes that its employees constitute its core strength, and accordingly, nurturing talent and cultivating a best-in-class work environment remain abiding priorities in advancing the organisations business objectives and goals. Robust HR processes and policies, reinforced by digital HR tools, have enabled the Company to build an increasingly strong performance culture while simultaneously grooming current and future leaders.

Over the past several years, the Company has sustained harmonious and healthy industrial relations across all its workplaces. A central area of focus remains the cultivation of a performance-driven workforce, undertaken in tandem with a steadfast commitment to the health and well-being of employees and their families. Numerous policies and benefits have been introduced to deepen employee engagement and welfare, and the Company continues to strive toward a work environment that is collaborative, growth-oriented, and conducive to enabling employees to realise their fullest potential. Our Human Resources function has consistently placed employee well-being at the very heart of business sustenance, and all safety protocols were rigorously observed throughout the year. The Company remains confident that its employees are its foremost differentiator in delivering best-in-class products and services to its customers.

The number of permanent employees on the rolls of the Company as on March 31, 2026 stood at 70 (Seventy).

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 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 re ects a deep appreciation for the contributions of every individual and reinforces the organizations belief in shared success and collective progress.

Employee Development

In the scenario of changing technologies and rapid enhancement of processes, your company improvised its investment in solidifying the abilities of employees. The approach is structured and based on career oriented and career development plans. The Company is evolving its attitude by introducing a competency-based management system and various assessment centers. The Company gives a learning platform providing self-nominated and manager-nominated learning programs through a hybrid model, which includes online classes and on-the-job trainings.

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 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.

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.

Key Financial Ratios

As required under Regulation 34(3) read with Part B of Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the details of key financial ratio are mentioned hereunder:

S.No	Ratios	FY 2025-26 Amount Ratio (Rs)	FY 2024-25 Amount Ratio (Rs)	Variance	Reason for variance above 25%
	Current Asset	3,51,434	1,92,984
a)	Current Ratio Current	1.16	0.98	18%	-
	Liability	3,03,837	1,96,316
	Debt Service EBITDA	(37,501)	(44,603)		The variance is on account of reduction of negative EBITDA.
b)	Coverage Principal +	(0.15)	(0.35)	(57%)
		2,47,859	1,25,707
	Ratio Trade Receivables Interest Sales	99,030	1,87,567		The decrease is on account of
c)	Average Trade	20.01	50.52	(60%)	lower revenue in the current
	Turnover Ratio Trade Receivables Net Credit	4,949	3,713		year.
		49,491	1,27,151		The decrease is on account of
d)	Payables Purchase	1.96	4.02	(51%)	lower purchases and reduction
	Turnover Ratio Average Trade Payables	25,281	31,641		of trade payables.
	Net Capital Sales	99,030	1,87,567
e)	Turnover Working	2.08	(56.30)	(104%)	The variance is on account of
	Ratio Capital	47,597	(3,332)		negative working capital.
	Net Profit Net Profit	(1,20,045)	(91,479)		As the company has incurred loss during the CY and PY,
f)		(121%)	(49%)	149%
	Ratio Turnover	99,030	1,87,567		comparison with the PY is not logically meaningful

- Return on equity, Return on capital employed & Net profit ratio not shown due to negative net-worth. - Inventory turnover ratio is not applicable for the current year as the company did not hold any inventory during the year. - Debt equity ratio is not shown as the companys shareholders equity is negative due to accumulated lossess.

Conclusion

2026 marks a structural shift in Indias energy landscape. The convergence of reinforced policy support, accessible infrastructure financing, and mandatory blending obligations has moved CBG from a niche alternative to a commercially viable asset class at scale. For integrated clean-energy players, the current opportunity lies in the precise coordination of the value chain: from secure feedstock aggregation and plant development to long-term offtake and high-value by-product monetisation. Refexs integrated model leveraging synergies across solar/BESS, CBG operations, and the commercialisation of BioDhanic is uniquely positioned to capture this multi-dimensional growth. By aligning our operational expertise with national energy security and waste-management priorities, we are set to deliver sustainable value in a de-risked and rapidly expanding market.

Managements Responsibility Statement

The Management is responsible for making the Companys standalone and consolidated financial statements and related information mentioned in this Annual Report.

It believes that these financialstatements fairly re ect the form and substance of transactions, and reasonably represent the companys financial condition and results of operations in conformity with Indian Generally Accepted Accounting Principles/ Indian Accounting Standards.

For and on behalf of the Board of Directors of
Refex Renewables & Infrastructure Limited
Kalpesh Kumar	Anil Jain
Managing Director	Director
DIN: 07966090	DIN: 00181960
Place: Chennai	Place: Chennai
Date: August 04, 2026	Date: August 04, 2026