Refex Industries delays demerger and resets margin guidance
Management pushed back the mobility business spin-off by three months and clarified that previous margin targets were net profit, not EBITDA.
— 2 earlier stories on Refex Industries Ltd. →What's new
- Mobility business demerger delayed by 75-90 days until August.
- Ash handling capacity expansion target pushed from Q4 FY26 to FY27.
- Management clarified that prior 11-12% margin guidance referred to net profit, not EBITDA.
Why this matters
The repeated revisions to timelines and the clarification on margin metrics raise questions about management's communication. Investors are now looking at a different set of targets than those previously communicated.
What we're watching
- Whether the August deadline for the mobility demerger holds.
- Actual EBITDA margins in FY27 against the new 15-18% target.
- Execution progress on ash handling capacity in FY27.
The full read
Refex Industries reported a 68% increase in EBITDA and a 34% rise in net profit for FY26. The headline numbers look strong. But the conference call revealed several shifts in strategy and guidance that complicate the outlook. The mobility business demerger is now delayed by 75-90 days, with a new target of August. The company also pushed its ash handling capacity expansion timeline from Q4 FY26 to FY27. Management clarified that its previous 11-12% margin guidance referred to net profit, not EBITDA, and introduced a new 15-18% EBITDA margin target for FY27. The wind energy segment provided a bright spot, contributing ₹238 crore in its first year of operations. The shift in guidance and the delay in key corporate actions suggest that the company's operational roadmap is less certain than previously communicated. The next test is whether management can hit the revised FY27 targets without further delays.
Questions answered
- What is the status of the mobility business demerger?
- The demerger is delayed by 75-90 days. Management now expects the process to conclude around August.
- How did the ash and coal handling business perform?
- The segment grew 28% in FY26. This growth occurred after the company shed low-margin trading revenue.
- What was the contribution of the wind energy segment?
- The segment contributed ₹238 crore in its first year of execution.
- How does the new EBITDA margin guidance compare to previous statements?
- Management clarified that its earlier 11-12% guidance referred to net profit. It now provides a specific 15-18% EBITDA margin target for FY27.
- When will the ash handling capacity targets be met?
- The target date has moved from Q4 FY26 to FY27.
Story so far
All notes on REFEX →- 27 May 2026 · 1:53 PM IST Refex Industries delays demerger and resets margin guidance
- 1d ago Refex Industries posts 35% annual profit growth to ₹247 crore
- 1d ago Refex Industries profit jumps 35% as margins widen