Synopsis :- A small cap company is in the spotlight today after receiving a domestic order worth Rs. 29.82 crore.
A small-cap company specialising in trading eco-friendly refrigerant gases and providing comprehensive solutions for responsible coal procurement and ash disposal, is in the spotlight today after receiving orders from a Maharashtra entity.
With the market capitalization of Rs. 4,811.84 crore, the shares of Refex Industries Ltd closed at Rs. 351.60, down by 1.84 percent from its previous day’s close price of Rs. 358.20 per equity share.
What’s the News?
Refex Industries Limited has secured a domestic order worth approximately Rs. 29.82 crore from a Maharashtra-based entity for the transportation of ash for an NHAI road project. The contract, focused on supply and logistics services, is scheduled to be executed within a period of five months, further strengthening the company’s presence in the infrastructure and environmental management segment. As of Q2FY25, the company has an order book of Rs. 1,200 crore.
Market Overview
India’s ash supply is projected to grow steadily over the next decade due to continued reliance on coal for energy production. Installed coal-based power capacity is expected to increase from 205.6 GW in 2025 to 251.6 GW by 2033, while coal consumption may rise from 786 million MT to 1,274 million MT.
Electricity generation from coal, which currently accounts for 73% of total generation (119 billion units), is projected to stabilize at 50% (192 billion units) by 2033. Consequently, yearly fly ash generation is expected to rise from 340 million MT in 2025 to 544 million MT, and total pond ash available in dykes will increase from 1,677 million MT to 2,012 million MT. This growth is supported by the development of new thermal power plants to meet rising electricity demand, projected to grow at 9% annually.
About the Company
Refex Industries Limited, incorporated in 2002 and based in Chennai, operates in fly ash management, hydrofluorocarbon refilling, solar power generation, coal trading, and power trading services. It also provides coal yard management and operates electric vehicles.
A return on equity (ROE) of about 18.9 percent, a return on capital employed (ROCE) of about 20.9 percent and debt to equity ratio at 0.14 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 27.4x lower as compared to its industry P/E 55.5x.
Refex Industries Limited reported revenue of Rs. 427 crore in Q2FY26, remaining flat YoY compared to Rs. 428 crore in Q2FY25 but showing a solid 17 percent QoQ growth from Rs. 366 crore in Q1FY26. Profit for the quarter stood at Rs. 36 crore, reflecting a 16 percent YoY increase from Rs. 31 crore and an impressive 80 percent QoQ rise from Rs. 20 crore, highlighting strong margin improvement and operational efficiency.
Written by Akshay Sanghavi
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