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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 65.00 | ACUITE A- | Stable | Assigned | - |
| Bank Loan Ratings | 165.00 | ACUITE A- | Stable | Reaffirmed | - |
| Bank Loan Ratings | 85.00 | - | ACUITE A2+ | Assigned |
| Bank Loan Ratings | 135.00 | - | ACUITE A2+ | Reaffirmed |
| Total Outstanding | 450.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuite has reaffirmed its long-term rating of 'ACUITE A-' (read as ACUITE A minus) on the Rs.165.00 Cr. bank facilities and short-term rating of ‘ACUITÉ A2+’ (read as ACUITE A two plus) on the Rs. 135.00 Cr. bank facilities bank facilities of Refex Industries Limited (RIL). The outlook is 'Stable'.
Acuite has assigned its long-term rating at 'ACUITE A-' (read as ACUITE A minus) and short-term rating at 'ACUITE A2+' (read as ACUITE A two plus) on the Rs. 150.00 Cr. bank facilities bank facilities of Refex Industries Limited (RIL). The outlook is 'Stable'. Rationale for rating The rating reaffirmation reflects RIL’s improved operating performance, supported by healthy order book position and healthy financial risk profile couple with adequate financial flexibility to avail loans from Banks & Financial Institutions. The rating further draws strength from Promoters’ extensive experience in industry and long track record of operations. However, the rating is constrained by working capital intensive operations and presence of intense competition in the sectors. |
| About the Company |
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Refex Industries Limited (RIL) was incorporated in 2002 in Chennai, Tamil Nadu. RIL is primarily into coal trading, ash handling for power plants and refilling of refrigerant gases in India. RIL has also forayed into the logistic services to power plants, such as handling and disposal of fly ash and crushing of uncrushed coal. Besides, RIL also operates a 5.18 megawatt (MW) solar power plant at Vituza village, Barmer, Rajasthan. RIL is a publicly listed company on BSE and NSE. The company is promoted by Mr. Anil Jain and Refex Holding Private Limited (RHPL). The current directors of the company are Mr. Anil Jain, Mr. Dinesh Kumar Agarwal, Mr. Siripurapu Susmitha, Mr. Sivaramakrishnan Vasudevan, and Ms. Latha Venkatesh.
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| About the Group |
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Refex Industries Limited (RIL) is part of the Refex Group, which operates across diversified businesses. RIL has two direct subsidiaries: Refex Green Mobility and Venwind Refex Power Limited. Refex Green mobility is engaged in providing integrated electric vehicle (EV)-based transportation services. Its offerings combine electric vehicles, trained drivers, and both on-site and off-site support to deliver sustainable mobility solutions.Venwind Refex Power Limited focuses on the trading, manufacturing, production, assembly, distribution, and marketing of energy assets, including their components and related equipment. In addition, it provides consulting and engineering services, as well as Engineering, Procurement, and Construction (EPC) solutions. Venwind also manages and operates power plants based on wind energy sources, contributing to the growth of renewable energy infrastructure.Further, RIL is demerging its Green Mobility business into a new, separately listed entity called Refex Mobility Limited (RML), following a consolidation step where its subsidiary, Refex Green Mobility Limited (RGML), merges into the parent company, Refex Industries (RIL). This creates two distinct companies: RIL will focus on its core Ash & Coal handling, while RML will concentrate solely on sustainable, clean-fueled mobility solutions, aiming to unlock shareholder value by providing focused platforms for growth. Shareholders of RIL will receive shares in RML in the same proportion as their existing holdings.
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| Unsupported Rating |
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Not Applicable
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| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has considered the consolidated business and financial risk profile of RIL, with its subsidiaries: Refex Green Mobility Limited, Refex EV Fleet Services Private Limited (formerly known as O3 Mobility Private Limited), Venwind Refex Power Limited (VRPL) and Venwind Refex Power Services Limited (VRPSL) along with its step down subsidiaries to arrive at the rating. The list of subsidiaries and its step down subsidiariesand consolidated has been added below, separately in the Annexures-2.
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| Key Rating Drivers |
| Strengths |
| Promoters’ extensive experience in industry and long track record of operations
Refex Industries Limited (RIL) is managed by Mr. Anil Jain and Mr. Tarachand Jain, supported by a team of experienced professionals. Mr. Anil Jain has been associated with the group since its inception; this has helped the group to establish strong market presence. He has over 23 years of experience in heading various business operations and is actively involved with various trade bodies such as The Associated Chambers of Commerce and Industry in India (ASSOCHAM) and the National Solar Energy Federation of India (NSEFI). Mr. Jain oversees the day -to-day operations of the companies under the group. The directors' long-standing experience and the company’s established track record have enabled it to build strong relationships with key suppliers and customers. Acuité believes that the promoter's extensive industry experience will support the group’s business risk profile over the medium term. Improvement in scale of operations supported by a healthy order book Refex Industries Limited (RIL) reported consolidated revenue of Rs. 2,467.66 Cr. in FY25, improve from Rs.1,383.43 Cr. in FY24. The growth was driven primarily by the ash and coal handling segment, which contributed Rs. 2,235.57 Cr. in FY25 compared to Rs. 945.59 Cr. in FY24. The company’s unexecuted order book stood at Rs. 2,524.60 Cr. as of November 2025, providing visibility for future revenues. Although revenues improved, the company’s operating margins deteriorated to 8.54 per cent in FY25 from 10.61 per cent in FY24. similarly, the PAT margins sightly deteriorated to 6.42 per cent in FY25 as against 6.72 per cent in FY24. In H1FY26, RIL recorded revenue of Rs. 793 Cr. (Rs. 1019 Cr. in H1FY25) and EBITDA of Rs. 107 Cr., with margins of 13.49% (PY: 8.93% in H1FY25). The improvement in profitability in current year is on account of descaling of low profit businesses and improved realisations in growing segments such as ash handling. Acuite believes, the operating performance of RIL will strengthen further, supported by scale expansion and a healthy order book position. Healthy financial risk profile The financial risk profile of RIL remained healthy, marked by strong net worth, low gearing, and robust debt protection metrics. The tangible net worth of the company increased significantly and stood at Rs. 1,192.43 Cr. in FY25 as compared to Rs. 462.86 Cr. in FY24, on account of additional equity shares and warrants allotted through a preferential issue in November 2024 amounting to Rs. 905 Cr. Out of this allotment, the company realized Rs. 513.38 Cr. during FY25 and rest is expected to realise by FY27. The company’s total outstanding debt of Rs. 286.06 Cr. comprises Rs. 187.13 Cr. of long-term debt, Rs. 79.84 Cr. of short-term debt, Rs. 1.27 Cr. of unsecured loans from promoters, and Rs. 17.83 Cr. of CPLTD as of March 31, 2025. The gearing (debt to equity ratio) stood at 0.24 times in FY25 as compared to 0.46 times in FY24.Further, the debt protection metrics of RIL remained strong, with an Interest Coverage Ratio (ICR) of 9.39 times in FY25 as against 5.59 times in FY24. The Debt Service Coverage Ratio (DSCR) stood at 5.48 times in FY25 compared to 4.25 times in the previous year. The net cash accruals to total debt (NCA/TD) stood at 0.67 times as on March 31, 2025, as compared to 0.50 times in the previous year. Additionally, RIL extended corporate guarantees of Rs. 83.75 Cr. as of March 31, 2025, to its subsidiaries and other group companies. This could weaken the company’s leverage and overall financial risk profile in the event of any invocation of these guarantees.Acuite believes the financial risk profile of company will remain healthy, supported by strong net cash accruals against debt obligations. |
| Weaknesses |
| Working capital intensive operations
RIL’s operations are working capital intensive in nature, as reflected by gross current assets (GCA) of 194 days in FY2025 against 128 days in FY2024. The debtors’ collection period elongated to 100 days in FY2025 from 81 days in FY2024. Inventory days stood at 1 day in FY2025 compared to 2 days in FY2024. Additionally, creditors’ days increased to 37 days in FY2025 from 20 days in FY2024. The GCA days are estimated to be in the range of 200 to 250 days in FY2026. Furthermore, the company’s fund-based working capital limit utilization remained moderate at ~58% over the last five months ending April 2025. In May 2025, RIL raised a working capital limit of Rs. 50 Cr., which is expected to further ease the working capital requirements of the company. Acuite believes that the operations of the company will continue to remain working capital intensive due to the nature of its business. Presence of intense competition in the sectors; impact of change in regulations RIL is exposed to the current import policy, coal can be freely imported under the Open General License by the consumers themselves, considering their needs based on their commercial prudence, thus enabling the entry of many players into the sector and also uncertainties in the ash handling business being dependent upon the government regulation and ash producers leading to vulnerability of the players in the industry and intense competition.Acuité believes that any change in regulations and policies could have an impact on the business risk profile of Refex Industries Limited. |
| ESG Factors Relevant for Rating |
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Refex Group has established a robust ESG governance framework with a fully autonomous ESG team reporting directly to the CEO and MD, leads the implementation and oversight of key governance practices. The group has established comprehensive policies such as QHSE, ABAC, Code of Conduct, and CSR are in place, supported by an effective grievance redressal mechanism. ESG performance is reviewed quarterly by the board, and sustainability disclosures are made annually in the public domain, the group aims to achieve Net zero emissions by 2040 and become water positive by 2035. In FY 2023-24, over 100,000 tons of carbon emissions were abated, and 50 million+ metric tons of coal ash were recycled. RHPL group has restored 71 hectares of degraded land and rehabilitated multiple water bodies, including a 1 km project in Odisha. A dedicated centre for ecosystem restoration was launched in partnership with UNGCNI, alongside coastal mangrove restoration efforts. CSR efforts have exceeded 350 per cent of the mandated spend, focusing on child education, water conservation, biodiversity, and humanitarian support. The refrigerant gas plant operates as a carbon-negative facility and contributes power back to the grid.
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| Rating Sensitivities |
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| Liquidity Position |
| Adequate |
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The company’s liquidity position is adequate. It generated sufficient net cash accruals (NCAs) of Rs. 190.95 Cr. in FY2025 as against its maturing debt obligations of Rs. 12.23 Cr. during the same period. Further, it is expected to generate cash flows of ~Rs. 221.41–389.00 Cr. as against repayment obligations of ~Rs. 17.83–18.08 Cr. over the medium term. Reliance on fund-based working capital limits remained moderate, with average utilization at ~58% over the past five months ending April 2025. The cash and bank balance for FY25 stood at Rs. 281.62 Cr., while the current ratio for FY25 stood at 3.29 times.Acuite believes that the company’s liquidity position will remain adequate over the medium term on account of expected steady cash accruals.
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| Outlook: Stable |
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| Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 2467.66 | 1383.43 |
| PAT | Rs. Cr. | 158.38 | 92.98 |
| PAT Margin | (%) | 6.42 | 6.72 |
| Total Debt/Tangible Net Worth | Times | 0.24 | 0.46 |
| PBDIT/Interest | Times | 9.39 | 5.59 |
| Status of non-cooperation with previous CRA (if applicable) |
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Not Applicable
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| Any Other Information |
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Acuite has noted recent developments relating to income tax matters concerning Refex Group. In December 2025, the Income Tax Department conducted search operations at the registered office of the company and certain other locations linked to the Group. As of now, Refex Group has not received any notice of tax demand from the Department. Acuite Ratings also notes the penalty imposed on the Promoter, Chairman, and Managing Director of the Group for insider trading. Acuite will continue to closely monitor the developments in this regard, and this will remain a key monitorable.
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| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm • Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm |
| Note on complexity levels of the rated instrument |
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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||||||||
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