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| Product | Quantum (Rs. Cr) (SEBI) | Quantum (Rs. Cr) (Other FSR) | Long Term Rating | Short Term Rating | Regulated By |
| Bank Loan Ratings | 0.00 | 206.00 | ACUITE A | Stable | Assigned | - | RBI |
| Bank Loan Ratings | 0.00 | 112.05 | ACUITE A | Stable | Upgraded | - | RBI |
| Bank Loan Ratings | 0.00 | 4.00 | - | ACUITE A1 | Assigned | RBI |
| Bank Loan Ratings | 0.00 | 337.95 | - | ACUITE A1 | Upgraded | RBI |
| Total Outstanding | 0.00 | 660.00 | - | - | - |
| Total Withdrawn | 0.00 | 0.00 | - | - | - |
| Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
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Rating Rationale |
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Acuite has upgraded its long-term rating to 'ACUITE A' (read as ACUITE A) from 'ACUITE A-' (read as ACUITE A minus) on the Rs.112.05 Cr. bank facilities and short-term rating to ‘ACUITÉ A1’ (read as ACUITE A one) from ‘ACUITÉ A2+’ (read as ACUITE A two plus) on the Rs.337.95 Cr. bank facilities bank facilities of Refex Industries Limited (RIL). The outlook is 'Stable'. |
| 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. 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. RIL has discontinued operations in power trading, refrigerant gases segments to improve overall efficiencies. 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 Limited (RGML) 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. 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 Limited (RIL). This creates two distinct companies: RIL will focus on its core Ash & Coal handling, while RML will concentrate solely on sustainable, clean-fuelled 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. Venwind Refex Power Limited (VRPL) 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. |
| Unsupported Rating |
| Not Applicable |
| 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, and Venwind Refex Power Limited (VRPL) along with its step-down subsidiaries Refex EV Fleet Services Private Limited (formerly known as O3 Mobility Private Limited), Refex Engineering Products Private Limited,Refex Mobility Limited,Venwind Refex Projects Limited and Venwind Refex Power Services Limited (VRPSL) to arrive at the rating. The list of subsidiaries and its step-down subsidiaries 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 24 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. Steady growth in scale of operations, supported by improvement in profitability along with healthy order book
On a consolidated level, RIL reported revenue of Rs. 2,276.74 Cr. in FY26 (FY25: Rs. 2,259.43 Cr.) The reported financial performance pertains to the continuing operations, as power trading, refrigerant gases and green mobility businesses have been classified as discontinued operations. The ash and coal handling segment remained the principal revenue contributor, accounting for Rs. 2,012.57 Cr. In FY26. (FY25: Rs. 2235.57 Cr.). As of June 2026, the company had an unexecuted order book of Rs. 2,518.36 Cr., providing revenue visibility over the medium term. Despite revenue remaining at a similar level, the company’s operating profitability improved, with EBITDA increasing to Rs. 361.68 Cr. in FY26(FY25: Rs. 207.20 Cr.), resulting in an EBITDA margin of 15.89 per cent in FY26 (FY25: 9.17 per cent). Similarly, PAT increased to Rs. 242.38 Cr. in FY26(FY25: Rs. 179.70 Cr.), with the PAT margin improving to 10.65 per cent in FY26(FY25: 7.95 per cent). The improvement is on account of a higher contribution from the ash handling business, which generates materially higher margins than coal trading, along with the discontinuation of standalone low-margin operations. During FY26, the company continued to focus on integrated ash handling contracts while restricting coal trading primarily to composite contracts, resulting in an improved business mix and higher operating profitability. The improvement in profitability was also supported by better operating leverage arising from higher ash handling volumes during the year. In Q1FY27, RIL(Consolidated) reported a revenue of Rs. 916.30 Cr. (Q1FY26: Rs. 351.86 Cr.), EBITDA of Rs. 107 Cr. (EBITDA margin of ~12 per cent) as against Rs. 37 Cr. (EBITDA margin ~10 per cent) in Q1FY26, while PAT stood at Rs. 65 Cr. in Q1 FY27 as against PAT of Rs. 20 Cr in Q1FY26. Acuité believes, that RIL’s operating performance would improve steadily supported by healthy order book position, sustained execution in the ash handling business and gradual scaling up of operations at VRPL. Healthy financial risk profile The financial risk profile of RIL remained healthy, marked by strong net worth, low gearing, and comfortable debt protection metrics. The tangible net worth of the company increased to Rs. 1,491.68 Cr. as on March 31, 2026 from Rs. 1,190.98 Cr. as on March 31,2025, primarily on account of retention of profits and increase in securities premium arising from equity issuances during the year. Consequently, gearing improved to 0.15 times in FY 2026(FY25: 0.24 times). Debt protection metrics remained comfortable, with the Interest Coverage Ratio (ICR) at 10.58 times in FY26(FY25: 14.44 times) and the Debt Service Coverage Ratio (DSCR) at 2.74 times in FY26 (FY25: 4.52 times).Further, the Debt-to-EBITDA improved to 0.58 times in FY26(FY25:1.12 times),while the Net Cash Accruals to Total Debt (NCA/TD) improved to 1.17 times in FY26(FY25: 0.66 times). Acuité believes the financial risk profile of company will remain healthy, supported by strong net cash accruals and absence of any large debt funded capex or working capital borrowings. |
| Weaknesses |
| Working capital intensive operations
RIL’s operations remained working capital intensive , as reflected by Gross Current Assets (GCA) of 374 days in FY26 (FY25: 212 days). The increase in GCA days was primarily driven by a significant rise in other current assets, which largely comprise contract assets (unbilled revenue), advances to suppliers and other receivables arising from the milestone-based execution of ash handling contracts, along with an increase in receivable days. The debtors’ collection period elongated to 142 days in FY26 (FY25: 109 days), primarily due to higher receivables from the ash handling business, wherein billing and collections are linked to achievement of contractual milestones and completion of multi-level quantity certifications by customers. Inventory days increased to 14 days in FY26 (FY25: 1 day), mainly on account of inventory held by Venwind Refex Power Limited (VRPL) for execution of wind turbine orders and the initial scale-up of manufacturing operations. Creditors’ days also increased to 92 days in FY26(FY25: 31 days), largely on account of higher utilisation of the TreDS platform for financing payments to MSME transporters and vendors. Furthermore, the company’s average utilisation of fund-based working capital limits remained moderate at ~85.5% over the last six months ending June 2026. Acuité 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 an ESG governance framework with a dedicated ESG team reporting directly to the CEO and MD, responsible for implementation and oversight of the group’s sustainability initiatives. 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, while sustainability-realted disclosures are made annually through the business responsibility and sustainability report (BRSR) and sustainability report. The group has set sustainability targets of achieving carbon neutrality by 2040 and becoming water positive by 2035. During FY24-25, the group handled over 1 Cr. metric tonnes of coal ash for productive utilisation across reads, cement manufacturing and mine backfilling supporting economy initiatives. The group also continued its ecosystem restoration initiatives, including restoration of degraded land, water conservation, afforestation and mangrove restoration programmes in collaboration with the UNGCNI. Its CSR initiatives continue to focus on education, healthcare, water conservation, biodiversity conservation and community development.
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Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| Liquidity Position |
| Strong |
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The company’s liquidity position is strong, supported by net cash accruals of Rs. 262.38 Cr. in FY2026 against maturing debt obligations of Rs. 72.59 Cr., during the year. It is expected to generate cash accruals in the range of Rs. 312.25 – 420.09 Cr., against repayment obligations of Rs. 22.22 – 35.00 Cr. over the medium term. However, reliance on fund-based working capital limits is moderate, with an average utilisation of 85.55% over the 6 months ending June 2026. The cash and bank balance stood at Rs. 183.89 Cr. and the current ratio was 1.83 times as of March 31, 2026. Liquidity is expected to remain strong, supported by steady accrual generation in the near to medium term.
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None |
| Key Financials (Consolidated) | ||||||||||||||||||||||||
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During FY26, the company classified its Power Trading and Refrigerant Gased businesses as discontinued operations. Further, the Green Mobility business has also been classified as discontinued pursuant to theproposed merger of Refex Green Mobility Limited with Refex Industries Limited, followed by the demerger into Refex Mobility Limited under the approved composite scheme. Accordingly, the FY26 financial statement present the results of these businesses separately as discontinued operations which are restated in FY25 financials also. |
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| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| Any Other Information |
| None |
| 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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| Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||||||||||
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Contacts |
List of instruments and names of regulators of the instruments |
