Refex Posts Staggering Annual Growth But Momentum Slows Sequentially
Refex Industries' Q1 revenue and profit soared over 160% and 216% year-on-year, though both metrics declined from the previous quarter.
Refex Industries reported a massive year-on-year surge in Q1 FY27 earnings, though sequential performance softened. The company's net profit margin improved annually but fell from the prior quarter's peak.
Refex Industries has delivered a quarter of powerful year-on-year expansion, with revenue and profit more than doubling, but the figures also reveal a sequential cooling from the record highs of the previous quarter. This paints a picture of a company still riding a strong long-term growth wave, albeit with some near-term volatility.
The numbers are striking. Revenue for Q1 FY27 reached ₹916.3 crore, a 160.4% leap from the same quarter last year. Profit after tax grew even faster, jumping 216.9% to ₹64.55 crore. This translated to a net profit margin of 7.0%, a 120 basis point improvement year-on-year, showing the company converted its explosive revenue growth into even stronger bottom-line gains. However, compared to the preceding quarter (Q4 FY26), both revenue and profit dipped by 1.9% and 31.6%, respectively, with the net profit margin retreating from 10.1%.
A look at the recent quarterly trajectory shows the scale of the company's ascent and the context for the latest sequential dip.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 916.3YoY +160% | 934.17 | 351.86 |
| Profit (₹ Cr) | 64.55YoY +217% | 94.44 | 20.37 |
| Net Profit Margin (%) | 7.0YoY +21% | 10.1 | 5.8 |
The trailing twelve-month (TTM) performance remains robust, with revenue at ₹2,853.34 crore and profit at ₹247.9 crore, yielding a TTM net profit margin of 8.7%.
Key Points
- The company maintains a strong balance sheet, with a low debt-to-equity ratio of 0.12 and a healthy interest coverage ratio of 10.04.
- Return metrics are solid, with Return on Equity (ROE) at 19.95% and Return on Capital Employed (ROCE) at 24.06%.
- Despite a 27.7% decline in the stock price over the past year, the three-year return stands at 92.4%, a 24.4% annualised rate.
- The stock trades at a P/E of 12.8, a significant discount to the industry average P/E of 58.4.
The immediate challenge for Refex is to stabilise its quarterly profitability after the exceptional Q4, proving that its underlying margin improvement is sustainable beyond periodic peaks.
Live Chart
· REFEX
(BSE)
ISIN: INE056I01025
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