Refex Industries Limited (REFEX) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Refex Industries Limited Q1F527 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand over to Mr. Parth Patel. Thank you, and over to you, sir.

Thank you. On behalf of MEFG InTime, I welcome you all to Reflex Industries Limited Q1 FY27 Unleashed Conference Call. On the management side, we have Mr. Anil Jain, Chairman and Managing Director, Mr. Dinesh Kumar Agarwal, Old-Time Director and Chief Financial Officer, Mr. Sonal Jain, Head of Accounts and Taxation. I hope everyone had an opportunity to go through our investor debt that we have uploaded on exchange in the company's website. I would like to mention a short disclaimer before we begin the call. This call may contain some of the forward-looking statements which are completely based upon our belief, opinion, and expectations as of today. These statements are not a guarantee of our future performance and involve unpositioned risks and uncertainties. With this, now I hand out the call to Mr. Anil J. What do you serve?

Thank you very much, Pat. Good morning, everyone, and thank you for joining us for the Refx Industries Learning Call for the first quarter ended June 30, 2026. We have entered FI27 with a strong momentum across our businesses, supported by a robust execution, a healthy order pipeline, and continued progress across our strategic growth platforms. Let me take you through the businesses, the various segments, and what we have done over there. Starting with our ash and coal handling business, it continued to deliver a strong operational performance during the quarter and remained the largest contributor to the company's revenue and profitability. Over the years, Refix has built one of India's most comprehensive technology-enabled ash utilization platforms, providing integrated solutions across the entire value chain. Including ash evacuation, transportation, utilization, logistics management, and regulatory compliance, which is most important. This integrated approach has enabled us to create a robust nationwide ecosystem for sustainable ash management and the most preferred vendor to go for thermal power plants. During the quarter, the business benefited from healthy execution across major project locations, supported by our growing order book, Improved Operating Environment Compactivity, corresponding last year. And sustained demand for integrated ash management solutions. During the quarter, we also witnessed imprevalent diesel supply constraints and logistics disruptions arising from ongoing geopolitical developments. There were acute shortages of diesel supply at many of our locations, but we still managed to cover most of it. However, our diversified operations, extensive fleet network, technology-enabled process, and strong execution capabilities enabled us to maintain uninterrupted service delivery for our customers. The industry fundamentals continue to remain strong, driven by increasing power demand, expansion of thermal generation capacity, and greater regulatory focus on achieving 100% ash utilization. As customers increasingly seek integrated and technology-driven partners who can deliver operational excellence along with regulatory compliance, Refx remains very well positioned to capture the emerging opportunities. Our integrated business model continues to strengthen customer relationship, improve revenue visibility, and reinforce our position as a trusted partner for comprehensive hash management solution. Going forward, we remain focused on expanding our presence across broader ASH value chain, including downstream value-added applications, which we expect to contribute meaningfully over the coming quarters and years, and create additional avenues for sustainable growth and value creation. Moving to our wind energy business, we continue execution of customer project deliveries under the existing order books during the quarter. As highlighted in our previous interaction, this business has successfully transitioned from the initial development and out-of-work creation phase into an active delivery phase. We believe this segment has the potential to emerge as a significant growth engine for reflux, supported by the long-term structural opportunity in India's renewable energy sector, especially wind. A key milestone during the quarter was the successful erection of India's first 5.3 megawatt wind turbine by our customer at its project site in Koppal, Karnataka. This was a very odd moment for all of us and for the country. This marks an important step towards the commercial deployment of our next generation wind turbine platform. As we scale this business, we remain focused on further strengthening our manufacturing ecosystem, supply chain capabilities, and execution excellence. Coming to a mobility business, execution remains on track. The business continues to operate on an asset-like model and has added a few new clients during the quarter, further strengthening our presence in the premium corporate mobility segment. The demerger process is progressing as planned. During the quarter, we received approval from the Honorable NCLT Court to convene meetings of shareholders and creditors as part of the scheme arrangement. Personal to NCLT's direction, the equity shareholders meeting has been scheduled for next month. Upon completion of the demerger, the mobility business will operate as an independent entity, focused exclusively on premium, clean, reliable, and sustainable mobility solutions with its own growth strategy, capital allocation framework, and operational priorities. We believe this restructuring will unlock significant long-term value by enabling sharper strategic focus and enhanced execution capabilities, both for effects industries and effects mobility. Now, I hand it over to Dinesh Agarwal for taking you through the financial numbers.

Thank you. Thank you, Anandji. I will now take you through the financial performance of the company for the quarter ended 30th June 2026. On a standalone basis, revenue for the continuing operations for the quarter stood at 619 crore compared to 351 crore in the corresponding quarter in the previous financial year. representing a year-on-year growth of 76%. EBITDA for the quarter stood at 105 crore compared to 39.6 crore in the corresponding quarter for the previous financial year. EBITDA margin stood at 17%. Profit after tax for the quarter stood at 73.6 crore compared to 33 crore during the same period in the previous financial year, which represents a growth of 123%. Fat margin improved to 11.9% compared to the previous period in the same financial year. Our balance sheet continues to remain healthy, and we remain committed to maintaining financial discipline, while simultaneously investing in the growth opportunities across our business. With this, I like to open or request the operator to open the floor for the question.

Ananya, we can open the floor for coaching.

Hello.

Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Deepak Kodar from Sapphire Capital. Please go ahead.

Yeah, I'm audible, sir. Hello. Okay, okay. Thank you very much for this opportunity, sir. So just first up, wanted to understand this first quarter, what was our ash coal handling per day volume run rate?

It is 65,000, 65,000 to 70,000.

65,000 to 70,000. Okay, okay. And how should one look at the scaling up? I mean, as we go through.

Q2 will be little slow. Q3 and Q4 will be scaling up.

Okay, and then by 4Q, this run rate, I mean, we are targeting 1 lakh tons kind of a run rate by 4Q?

Target is there to close to 90,000.

Okay, okay, and then 90,000 is the run rate that we are targeting. Okay, I understand. And in terms of your wind business, I think we had got 300 crores kind of execution, right, this quarter?

Yeah, 298 crores.

And were we able to break even at 300? So what's the margin there in wind business?

Margin, very, very small margin, but margin is there. I mean, we'll have a better margin in the following quarter also. We've got this part is on transit also, part of the material. All billing has not happened, which will happen in Q3 and Q4. We'll have a better margin in the coming quarters.

Okay. And this entire year, we're targeting, what, 1,700, 1,800 crores kind of execution in Bint?

Yes, it should be close to 1,700, 1,800 crores.

And what should be the margins we target for this year as a whole for Bint business? It should be around five to six percent. Five to six percent. Okay, okay, understood. And on your coal and ash handling business, I think we have maintained in the past a 30-35% kind of CAGR, but I think first quarter itself we have seen a very good growth of close to 75-76% in spite of the issues you mentioned about the geopolitical issues. So how should one look at this growth overall for the entire year?

We maintain the growth like past financial year. Always Q4 and Q1 always are a better result. And Q2 will be a little slower. Q3 and Q4 again will be better. We'll be maintaining a better CIR in the current financial year.

Better? I mean, last year I think we were at about 28%, right? So we'll do better than that this year, right? Yes, sure. Okay, understood. And just one last thing, can you throw some more light on the nature of this discontinued operation? I mean, and by when this will go away, the loss from the discontinued operation?

There is two things in the discontinued operation. One is the refrigerant gas manufacturing, which is fully discontinued in the last quarter. And other one is the reflex mobility, that is green mobility business, which will, I mean, I anticipate by end of Q3, it shouldn't go off completely.

But by 3Q end, it will go off. So we'll not have any loss in our P&L from this business, I mean, post-3Q.

Yes, yes.

Okay, and where, I mean, discontinued in the sense we are just closing this down?

No, no, I mean, refrigerant gas business has been completely closed down, whereas the mobility will be a separate listed company, it will be a mirror fairholding will happen, and it will be a new company, new listed company will be, it will be operated under the new listed So, so it's a part of the merger thing, I mean, yeah. Part of the merger and the merger.

Okay. I got it. That's very helpful, sir. I mean, I would like to wish you all the best. That's it for my sake. Thank you.

Thank you. The next question is from the line of Sudeer Beda from Beda Family Office. Please go ahead.

Yeah, good morning, sir, and congratulations for good set of numbers year to year, year on year. Sir, there are two queries. First, I think in… In the turbine business, we did a good turnover, and I was just listening to your previous question by participants, that you will be still able to maintain 5 to 6% margin on a turnover of 17 to 1800 crores. So this is a 5 to 6% is net margin, or how it is? Because first Q1, there is no margin at all. In fact, there is a beta loss of 34 lakhs.

Yeah. It is a net margin, Sudhirbhai. Thank you, Sudhirbhai. It will be a net margin in the Q3, Q4, 5 to 6 percent of the net margin. By business, we speak only the net margin which never speaks EBITDA by nature of our way we internally operate. So, it is a net margin only, Sudhirbhai.

So, the console or combined margin of Q1 and Q2 will tilt toward Q3 and Q4. Is it a right understanding?

In the wind turbine business, yes. In wind turbine business.

Thank you. And one more question on your core business, where if we really look at the Q4 turnover and Q1, there is not much difference. You did what you did in Q4 and the same kind of 30-40 crore less you did in a Q1 of current financial year. But there is a big difference in the margin. Margin was much lesser in Q1 compared to Q4 of last year, in spite of the turnover being remaining 5 or 10% less than Q4. So, how do you see that happening or panning out?

Martin is close to the same only, Swiriji. Only there is a one-time expenses of other expenses that has been booked is the bank processing charge. Since there is a takeover happened and we got a better term from the Indian Overseas Bank and takeover of the loan as well because of that.

Can you quantify the number? What is that extraordinary? That is 4 crore. 4.4 crore. Okay. Thank you and all the best. And we believe that you will continue to grow at the same rate which you have grown in the past two years. Thank you very much.

Thank you. The next question is from the line of Udit Sehgal from Pinpoint X Capital. Please go ahead.

Good afternoon, sir. Regarding the wind power business, sir, how is the bid pipeline and the order pipeline going forward? Like for this year, we are targeting around 1500 to 1800. So how about next year?

As of now, 1,960 crore of order is there in the hand. In that, already 525 crore order has been executed. And the balance towards 1,300 crore order will get executed in the current financial. There is few orders in the advanced stage of closure, and hopefully we should close in next 30 days to 60 days time.

Okay. These would spill over to next year, sir, the execution for these orders?

No, this will completely get distributed in the current financial.

No, I mean to say the new order that you get now.

No, new order will spill over to next year.

Okay, okay. And what kind of growth rate are we looking in the wind business, sir?

I mean, if you see the last financial year, it was only 225, and this year it will be a very good one. So, growth comparison in the initial year will be a wrong way to look into, but it will have a very, very good growth.

Okay, okay. Got it, sir. And regarding the coal and ash handling business, we expect to maintain the similar kind of margins going into Q2, Q3, Q4?

Yes.

Thank you. The next question is from the line of Pinaki Banerjee from AUM Capital Private Limited. Please go ahead.

Thank you, sir. Thanks for the opportunity. Sir, one question is like your core business like in the form of Flyrash or Wind Power are both concentrated at present only on the domestic side only. So are you thinking of expanding at the international level and what steps are you thinking of?

No, it is only for domestic. Focus is as of now only to strengthen our presence in the domestic market. And there is no immediate plan for the export. It is only for the domestic market.

Okay, sir. And next question, sir, is how much of cash and bank are you having on your books now?

Cash and debt.

Debt is almost, I mean, if you see it, I mean, net debt to zero level. I mean, whatever utilized debt is measured towards the bank guarantee and the LCs. We have a good bank balance.

Okay. Okay, sir. That's all from my end. Thanks and all the rest for the question.

Thank you. The next question is from the line of Jasmine Surana from VT Capital. Please go ahead.

Good morning, sir. My question is regarding the margin guidance you've given for action coal handling. In the last quarter, you said there's been 18-20% margin range will be sustainable going ahead, and right now you've said that the 12% margin will continue. So, maybe there's a conclusion on my end, if you could please clear that.

As admin margin, we always maintain that EBITDA margin will be 15 to 18 percent, and net margin will be 10 to 12 percent. That is what we see always in the call. And the current quarter, we have done 17 percent of EBITDA margin, and we will maintain the same momentum in the coming, going forward.

Okay. Thank you, sir.

Thank you. The next question is from the line of Chintan Mehta from Punishgag family office. Please go ahead.

Like our technology partner are royalty payments or they are just one-time technology charging to us how the JV is structured and how much percentage of stakes we own and they own or going to own. So if you can explain that structure of the joint venture and how we are reliable on technology on that.

It is a technology is a direct transfer. They don't own any equity there. It is a complete transfer of technology. And that is, I mean, JV partners do not own any shares there. And it is a complete, we have paid the money for the technology transfer.

Understood.

And we have a partner, they own 23%, and our company owns somewhat close to 76, 77%.

Okay, sir, which partner, and how the, I mean, what contribution they are going to bring, and how much equity they have infused?

They manage the complete operations, and they are from industry, and they are from, they manage the complete operations of the business.

So, they are financial partner, or manage the complete operations?

They manage the complete operations.

Okay, and how much equity they infused on it for the 23%?

Yes, it has all been disclosed. If you go back and read the disclosure, it has all been disclosed.

Understood, no problem. And sir, if you can explain the Silvasa unit economics, like how much capital we have invested there, and how much capacity we are there, and how much peak revenue we can expect it there.

I can take this, Inesh. So, currently in Sylvester, it's a leased facility. We are not, the total capex done by is only on the limit of repairs and maintenance, which is close to about 3 and 4 crores. It has a capability of about 1 gig hour of manufacturing capability. Again, in wind, if you see 100% components are not manufactured in your factory, it is like the automobile company where there are OEMs who make different parts and they're going to have something which happened. So, Silvasa plant is a pure assembly plant where most of the components gets made from different parts of the country and they come there and they get assembled over there. All the design, etc. of the parts are owned by us. And this one gigawatt technically could mean roughly about 5-6000 crores of revenue.

Thank you. So, we are the turbine manufacturer and the parts manufacturer, not the wind blade manufacturers.

We make all of that, sir. We make the whole turbine, including towers, the nacelle, and the blades. Currently, the blades are being imported, but the localization is under progress. In about 6 to 12 months, we will have our own localization done in India.

Thank you, sir. My question is regarding this 300 crore turnover kind of wind turbine and we are neck to neck break even. So let's say if I divide it in four quarters, each quarter would be 300 to 400 kind of. It would be no margin for us.

Like Dinesh explained earlier, we have just started operations. So there are a lot of pre-operating expenses, the new business development expenses, which are all taken into account now and written up as expenses. So as we progress towards the end of the year, we'll be able to achieve the margins which we have spoken about.

Okay, understood, sir. And, sir, in an ash handling business, our 98,000 target per day, if you can throw a roadmap like a FI 28, FI 29, kind of when we are going to achieve that, or broadly, and second, sir, on industry penetration, for example, how much industry is penetrated, how many plants, or something on data driven, like, it's underpenetrated, still on ash or coal handling side.

I can take that.

We'll be, I mean, we'll be crossing 75,000, 80,000 in the Q4 of this financial year. And currently, we are working in 42 thermal power plant. And as penetrations is, we are working in 30, 35% of the thermal power plant in India today. And there is a lot of potential for the future opportunities.

If you can throw that on a lot of potential, like because of compliance, everyone wants to do that, but how much they are handling by themselves or not penetrated or not handling at all.

If you can read the presentation which is uploaded, it is mentioned in that.

No, I got it, sir, but if you have some broader, more data or something, if you can. No, not that. Okay, understood, sir. No problem. And, sir, if you can throw some mobility part, we are looking for any strategic partner in future if we get more capital after demerger?

No, we are not. I mean, but it's still under demerger and it's under the legal process. So, currently, we don't have any plans of getting any partners. I think once the demerger happens and this runs as an independent entity, as a requirement of the business council, we will look at it, sir.

Understood, sir. Okay. Thank you. Thank you so much, sir. Thank you.

Thank you. Reminder for all participants, please press star and 1 to ask a question. Participants who wish to ask a question may press star and 1. The next question is from the line of Gaurav Ashok Bansali from Augment Enterprise. Please go ahead.

Hello, sir. My question is, what will our order book look like by Q4, the consolidated order book?

Very difficult to predict, Omgara. As of now, 1,635 crore of coal and assembly order book is there. And out of 1,860 in the Wynn business, 525 crore is executed. And that is the remaining 1,300 crore of order book is there. Q4 will have a good order book. I mean, we are winning majority of tender now during last four months. Hopefully, we will have a better order book on the Q4 of this financial.

Okay, sir. Thank you. That's all from my side. Good luck.

Thank you. The next question is from the Lion of Murtaza from Pinpoint X Capital. Please go ahead.

Hi, sir. Good morning. Thank you for the opportunity. As the earlier participant has asked, you had mentioned that some of the wind orders are in advanced stages. So is it possible for you to quantify what kind of quantum either is in the advanced stage or what sort of number is in the pipeline for the wind segment?

I think it's very difficult to quantify because the inquiry could be in gigawatts, but the actual conversions, you know how it works in India. It's not very easy to predict the actual conversion, but as and when we get orders, I think we'll definitely announce it. We do look at substantial orders this year, definitely at least as maybe better than what we had last year.

Understood, sir. And, sir, once our mobility demerger is completed, so I just wanted to understand how are we planning to work with the capital allocation, and, like, would it be a bit more focused on the wind side of things, or would it be a bit more focused towards ash handling? I just wanted to understand that a bit better. Thank you.

See, capital allocation for both the businesses will happen based on the requirements. I think as the profitability and the revenue keeps growing, I think the capital allocation will be planned. Obviously, we will require from time to time we will keep updating the shareholders and the investors on which direction we are going. Currently, the focus is more on the ash handling business. There is not much of capital requirement in the wind business. But as we do indigenization and a lot of growth and localization, so maybe if there are some capital requirements, it will be at the entity level, we will try and see if we can raise some working capital or term work on the banks. Otherwise, some capital allocation from holding company could happen there.

I just wanted to also understand that we have already delivered our first turbines to a particular project. So I just wanted to understand what sort of feedback are we receiving from there and how is it on ground? How is it working?

It is completely installed. I think it's a 130-meter height turbine. The installation was done very well. It started operating, and it is giving the desired results as projected by us to the customer, and the customer is happy, and there could be a potential negotiation for the next orders from the same customer also.

Understood. So that's great. Thank you very much. All the best for the future.

Thanks. Thank you.

Thank you. The next question is from the line of Suhani Singh from Ross Capital. Please go ahead.

Hello. Good afternoon. So, I just had a few questions. Ash and coal handling volumes were reported at approximately 68,000 to 70,000 cents per day. Could you provide an update on quarter 1 FY26 exit run rate and volume outlook for the year?

The volume of ads, as we have disclosed always, we have been close to 70,000, 65,000 to 70,000. Q2, it will slow down. Q3 and Q4, again, it will pick up. And there is, capacity constraint is not there. I mean, it is like multiplying the fleet and the people. And we are expecting a good growth in the coming quarters.

Okay, I'm sorry. So, sir, are you still confident of reaching the previously gained 90,000 to 95,000 funds per day ran rate? And what timeline would we agree?

Yes, in the Q4 of this financial year, we will see that.

Oh, that helps. One more question, sir. Last few. Could you provide some guidance on the profitability trajectory of the Wynn business, especially where does this segment stand today in terms of profitability? Do you expect it to reach break-even or turn profitable by 527?

Anil, you take it up.

Yeah, I think we just spoke about this, at least two or three investments, that this business will achieve about 5% to 6% margin by end of this year, and this will become profitable by end of this year.

Okay, that's it. Thank you. That's all from my time.

Thank you. The next question is from the line of Mahesh Sharma from Sharma LLP. Please go ahead.

Mr. Sharma, your line is unmuted. Please go ahead.

This participant's line is not being connected. We will move on to the next participant. Saurabh Jain from ThinkWealth. Please go ahead.

First of all, congratulations for a good set of numbers. My question is, what is projected revenue in Wynn Business for FY27? Any specified number for regarding this?

I think we said that we have existing order books which will complete this year, and that's the prediction for now.

Does that answer your question, Mr. Saurabh Jant?

Yes, ma'am.

Okay, thank you. The next question is from the line of Murtaza from Pinpoint X Capital. A follow-up question.

Hi again, sir. I just wanted to talk upon the pledge. So, just wanted to understand, can you give an update on the current pledge level and what's the reduction trajectory going forward?

There is, we have done a disclosure last month. There is a reduction from the places happening. We'll be doing another disclosure in the next 15 days. There is a further reduction of the places happening. And there is a continuous repayment, continuous payment is happening. On a milestone basis, release of this fare is happening. And we expect certain fare will get released in the next two weeks' time. And it is going as far as the plan. There is no challenge in that. And there will be a regular basis of the release of the inflation.

Understood, sir. Understood. Thank you. Thank you very much. All of you guys.

Thank you. The next question is from the line of Mateen Shah from Individual Investors.

Hello. Am I audible? Yeah, thanks for giving opportunity and congratulations on posting good set of numbers. So the first question would be like, you know, if I were to see the media release and the presentation, you know, it shows basically, you know, it highlights mostly on the standalone results. So, I would just like to know why is that so busy? Because we predominantly, I mean, not only are into ash and cold airing, but even the wind energy also reflects. I can understand the mobility is going to get emerged. So, if you can just elaborate on that. Why highlight on the standalone as of now?

There is no specific thing. It is only mobility business is getting demolished. Wind business is getting stabilized. It is very, very new. Very new. It is the second quarter of operations in the wind business. And it is the right representation because in the same quarter in the previous financial year, wind business was not there and the mobility business is getting demolished. So it is the right comparison of apple to apple and because of that, it is the right comparison. There is no other specific reason. If you see previous year, same quarter, it is only 327. And if I do a comparison of a consolidated number of 900, it will be a wrong comparison because wind business itself was not there in the previous year in the same quarter. That is the reason focusing is only so that it is Apple to Apple comparison.

Going forward, you know, as and when the wind turbine sector, you know, decent contribution, then we will probably be showing contributed numbers in the presentation as well, correct?

Yeah, it is more of a giving a right comparison of apple to apple, nothing else. I mean, going forward quarter on quarter, numbers will keep adding up. I mean, like Q4 already, wind is there. So when we present Q4 of this year, consolidated presentations will be a right way to refresh.

No, understood, understood. Also, second thing, you know, I can see, I mean, really great traction in the ash and coal mining business, you know, as we started from 2018. And I've been seeing it scaling up, you know, since last five years. And like rightly you said in the previous concourse also, you know, the same kind of diadents that we have delivered. So, but, you know, I can see huge opportunity in this and we are also growing very healthy in this, you know. But, you know, as from my personal experience, whenever there is healthy margins and healthy time, you know, we see the competition intensifying, you know, when others also come to know about it. So, how do you see the competitive intensity, you know, as of now and going forward? It will help only.

Competition is going to help, because it will create more awareness among the customers, more awareness among the partners, vendor partners, and it will help the business. I mean, we are only organized business player in this industry. If you more come, it will help the business. It is rather a competitor, it will complement us. I mean, always, I mean, now we are discovering the market. I mean, somebody else also will work along with us to discover more markets. It will help the, it is a huge, huge gap of opportunities are there, and opportunity is there for few more players. It is not a challenge, it will be an opportunity.

Got it, Kodak. Also, I mean, since we have seen, you know, we have almost entering the execution stage of wind turbine installation, you know. And the typical problems that, you know, I have seen in this sector is, you know, regarding land acquisition and also, you know, last mile connectivity of power connection. So, can you just elaborate on these two points for the ongoing projects, you know, I mean, how is it placed as of now regarding land acquisition?

For us is very simple. We are only a product supplier. We don't do any part of VPC at all. So the customer buys the product from us. Our job is to deliver the turbine, tower, and the blade to the wind site installation. Everything is not in our scope at all. So see, currently the market has matured where all the IPPs have their own process of getting land and connectivity. They have a separate installers who install it, and they have a separate regulatory people who can take care of the regulatory part of it. So, all the wind turbine manufacturers have moved from the combined EPC business to a just supply-alone business.

Got it, got it. So, so, you mean to say we will be fully paid, you know, once we have supplied from, yes, yes, yes.

There could be a 5% which could be waiting for the installation and testing to be completed to ensure that the turbine works, otherwise 95% of the money comes here.

That is a performance. Understood. And also, recently, I have heard regarding, you know, replacement of old blades by new ones, something like that. Any, any five, any order book are we seeing regarding this particular, you know, the thing?

We haven't got any orders for a replacement still. It is still in discussion with various forums, but on ground, we have not seen any orders yet.

Got it, got it. Also, if I may ask one more question, so, you know, since I've been more focused into wind sector earlier, you know, unfortunately, we've seen a lot of birds, you know, getting killed because of the turbines as such. And recently, there is a development of, you know, converting one of the blades into black color or something like that. So, is it something that the company is also looking out for, I mean, you know, or thinking of, you know, something to preserve, you know, our nature as such? Do we have any thought on that?

No, definitely, as a Jane, we always believe that we should not harm anybody at all, any living being. Honestly, there is no technology in the world which can actually avoid tilling of the birds. We definitely try our best to see the high wind velocity when the blades are there, the kind of speed at which it goes. 99% of the birds nowadays don't come closer to the turbines. I think the recognition of turbines has happened in that locality. But the 1% chance, I don't think anybody can help. I mean, our intent will not be, our intent will be to see whatever we can do to save that. We will definitely try our best.

Got it, got it, got it. And also, last question, I mean, as of now, I'll comment with you again. Recently, we saw, you know, a whip up in the promoter stake as such. So, do we see further increase in the same way? I know, I mean, quite a whole statement, but if you can highlight on the same also.

Sorry.

When the opportunity comes, we will keep acquiring from the market. We see when there is an opportunity, we will keep acquiring the shares from the market.

Got it. And what is the realization, you know, in ash and coal hunting, around, realization in ash and coal hunting, is it same as 250 and 400 per ash and coal, same, or how is it like?

It is a, it is a, it is per kilometer, per kilometer per ton. It is varies from 450 rupees to 1200 rupees. Got it. Got it. It is, it is purely a distance and distance.

Got it, got it. Thanks a lot as of now, and really appreciate it, and again, conclusion on good set of numbers. Really, really appreciate it.

Thank you. The next question is from the line of Shintan Mehta from Punisca Family Office. Please go ahead.

Hi, sir. Thank you so much again for the opportunity. I wanted to know the 5.2 megawatt turbine scope in the sector, like... It's, you know, how much market size it is and what the specification of it. It's a larger turbine than normal 3 megawatt, that I got it, but how much visibility which we have on this technology and this size.

I think the size of the

market is not determined by the size of the wind turbine. I think the wind industry itself is growing, and the government is having an ambition to achieve 100 gigawatts by 2030. So, the market will keep growing. I think the better technology and better size will always get a priority. Currently, the market is not determined by the size of the turbine.

I understand, sir. Okay, okay, sir. And, sir, just last, I mean, just a clarification. You talked about the net margin. It's a price margin at win level 6-7%. This year ended, you are looking for, correct?

Sorry, I missed that.

You mentioned, someone mentioned that at a net margin, wind business would be close to 6-7%. So, net margin, we are talking about the pet margin this year ended closing, correct?

Well, 5-6%, yes.

Yeah, okay, at pet level.

Yeah. Yeah, yeah. Thank you so much, sir. Thank you. The next question is from the line of Udit Sehgal from Pinpoint X Capital. Please go ahead.

Sir, there are some recent news articles regarding, you know, the railways being used for coal and ash handling. So, how does that affect us, like positively or negatively?

This is going to affect positively only. Railway transport is there for a long time. And we have started also into the, that is called RCR, Rail Come Road. And it is going to help the complete industry. I mean, railway came out with a discount in the tariff, flight tariff, and it is going to help to take it to newer area like northeast, where the power plants are left and the requirements for cement companies are there. And it will help us to transport more from West Bengal, Jharkhand, Bihar to northeast of India, and it will help positively to the industry. And it is new avenue. It will add to our new numbers. I mean, in addition to the road, what we are doing, we'll be doing more in the railway also. Excellent, sir.

And regarding the wind business, the whole industry seems to be in tailwinds, like I think FY26 was the highest ever installation and FY27 almost, I think, is a target of 9 to 10 gigawatt. So, do you feel like, I mean, there is a shortage of turbines is what we're hearing in the market. So, do you feel the same tailwinds or is it business as usual?

No, the tailwinds will be there because I think today the renewable energy is shifting towards one source to multiple source. Everybody is looking at installing wind, solar, and storage because government now needs round-the-clock power and not seasonal power. Seasonal power is actually causing a lot of grid stability. So I see that the next 5, 7, 10 years, whenever the, I mean, it's not just 5, 7, I think for the next future, there will be a mixture of all three renewable energy, which will be installed. So I see there's a lot of tailwind.

And we see, so, the turbine makers, they are generally making 18% to 20% EBITDA. So, what is our plan for backward integration? How much time will it take, and when can we aspire to reach those kind of margins?

Like I said, the localization process is in place. I think 12 months from now, we'll have about 85% of the components localized. So we can see a similar margin two years down the line when the localization and the plant capacity increases.

Excellent. And this localization, sir, we are getting done from, like, third parties or anything we are doing in-house as well?

Now, like I said, we are working with multiple OEMs across the country for developing our products. We own the technology license and design. Like an automobile company, we have more than 50, 60 vendors who develop various products for us. And the blades will be manufactured in-house. Restore will be developed in third-party locations.

So, say, from FI 28, we can see the margins increasing once the localization starts. Okay, sir. Thank you.

Best of luck, sir. Thank you.

Thank you. Ladies and gentlemen, due to time constraints, that was the last question. I now hand over to the management for closing remarks.

To conclude, we are pleased with the progress achieved during the first quarter of financial year 27. Our core business continues to execute well, our order pipeline remains friendly, and our strategic growth platform continues to advance in line with our long-term business. We remain focused on building sustainable business, creating long-term value for all stakeholders, strengthening rough expositions across key growth sectors. I'd like to thank all participants for this call, for their continued interest and support towards the effects. Should you require any further clarification or additional data points, please, please to reach out to our in-house investor relations, Mr. Gossam and Pankti, or the MUFCT. Thank you. Thank you so much.

Thank you, everyone.

On behalf of REPEX Industries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.