Refex Industries Limited (NSE: REFEX) Q3 2026 Earnings Call dated Jan. 21, 2026
Corporate Participants:
Anil Jain — Chairman and Managing Director
Dinesh Kumar Agarwal — Whole-time Director and Chief Financial Officer
Analysts:
Ananya Khanna — Analyst
Smit Jain — Analyst
Mithin Shah — Analyst
Aniket Madhwani — Analyst
Vivek Joshi — Analyst
Kadaru Sahith — Analyst
Srijan Kaushik — Analyst
Rahil S — Analyst
Rahul Bafna — Analyst
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to Refex Industries Limited Q3FY 2026 earnings conference call. Please note all participant lines will be in the listen-only mode and this conference is being recorded. We have with us today from the management team Mr. Anil Jain, Chairman and MD. We will begin the call with opening remarks from the management team and post that we will open the floor for questions. With that, I hand over the call to Mr. Anil Jain, Chairman and MD, over to you, sir.
Anil Jain — Chairman and Managing Director
Thank you so much. Good evening everyone and thank you so much for joining us. It’s been a great Q3 for us. Q3 FY26 marked a very strong sequential recovery for Refex led by a very significant improvement in activity levels across our ash and coal handling business as site accessibility and ground condition normalized following the extended monsoon impact during the first half of the year. On a quarter-on-quarter basis, revenue increased by INR160 crores rising from INR123 crores in Q2 to INR583 crores in Q3 representing a 38% sequential growth.
This improvement was driven primarily by higher ash and coal volumes handled during the quarter. Total income for the quarter stood at INR590 crores compared to INR431 crores in Q2. While cost of goods sold increased from 79% to 81%, this was largely due to a change in margin mix with no major operational deviation during the period. Despite this, operating performance improved meaningfully. Profit before tax increased to INR89 crores compared to INR71 crores in Q2 reflecting a 24% sequential growth, while profit after tax rose to INR67 crores up 29% quarter on quarter.
In order to achieve stronger return profiles by redeploying capital and focus towards core businesses, the management has taken a strategic call to exit power trading and refrigerant gas business. Our mobility business continues to strengthen its operational foundation with teams actively engaging enterprise clients and working towards calibrated fleet expansion with a clear focus on utilization and unit economics. The demerger of Refex Green Mobility Limited is progressing as per the approved composite scheme following which the mobility business will operate as a separate entity with enhanced strategic and financial flexibility.
The wind business continues to progress steadily with execution of initial customer orders underway while internal capabilities are being strengthened to support future scale. The business has already secured a cumulative order of INR1860 crores. Looking ahead with multiple new ash projects commencing, the site activity stabilizing across regions, we expect operational momentum to continue the coming quarters. There is already an open order of close to about INR1500 crores for the ash and coal handling business that the team is currently executing.
While it continues to engage with large power plants to win newer contracts, Refex remains well positioned, supported by a strong order book, disciplined execution and a prudent capital allocation. We thank all of you for all the support and trust in us. Thank you so much. Over to you, Swapnil.
Operator
Sir, may we begin with the question and answer session now?
Anil Jain — Chairman and Managing Director
Yes, we can.
Questions and Answers:
Operator
Thank you very much, sir. Ladies and gentlemen, we will now begin with the question-and-answer session. [Operator Instructions] We’ll take our first question from Ms. Ananya Khanna of Alpha Alternatives.
Please go ahead with your question.
Ananya Khanna
Yeah. Hello. First of all, congratulations on a good set of numbers. I wish to understand the timeline of the demerger scheme, how long it’s expected to take and the expected synergies from the same.
Anil Jain
On the demerger, I think we currently are waiting for some final NOCs from the lenders as soon as it comes. The scheme is ready to be filed and we are trying our best to ensure that this can happen as soon as possible. Once it is demerged, the Refex Mobility will run as a separate entity where it will have more liberty to do its own business. And also it will have its own — all the debt, etc will also move to that entity.
Dinesh Kumar Agarwal
Timeline. Mr. Anil. That it will — we expect by April end it should get finished.
Ananya Khanna
All right, thank you.
Anil Jain
Next question.
Operator
Thank you so much. Our next question is coming in from the line of Smit Jain of Flawless Family Office. Please go ahead with your question.
Smit Jain
Can you hear me? Hello.
Operator
Yes.
Smit Jain
I had a couple of questions. One is I can see that we’ve started a new subsidiary, Refex Engineering Products Private Limited. What exactly is this for?
Dinesh Kumar Agarwal
Yeah, that is below the venwind [Phonetic]. To do that is again for the wind project only. There is no specific. This is all targeting the retail customer in the same wind segment.
Smit Jain
Okay. All right, thank you. The second question was related to the wind energy segment only. Even the larger companies that I can — that I know of are currently working on 3.3 and 4.2 megawatt wind turbines. Right. And we are — we’ve come up with 5.2. And what they’ve said is that the size of 5.2 wind turbines is very difficult to transport. And again, it is also that the wind flow is not the same all across. So 5.2 is not a proven technology in India yet. So why exactly are we wanting to be the pioneers and not work on something which is already proven and is working?
Anil Jain
So just to answer the question, Smit, I think first of all, logistics-wise, we don’t see any major challenge in moving of these turbines. We have spoken to all the large logistics companies in the country where we are executing close to about 400 megawatts of order in the next few months. All these logistics companies have confirmed that they can transport and move these equipments from the plant to these sites. Second. Yes, just to give you a little color on the global market, if you take today the average size of the wind turbine, globally it has reached almost 5 megawatts.
So countries, various countries, even with low wind speed are actually moving to 6, 8, 10, 12, 15 megawatt wind turbine sizes. Also, these machines are at a 130 meter hub height where actually the wind velocity is reasonably better. If you look at an apple-to-apple comparison of a per-megawatt-kilowatt-hour generation between a 2.5 megawatt or 3.2 megawatt in one location to 5.3, this will definitely give you more than 3% to 3.5% of additional generation. Second, all our machines contain LiDAR which actually detects the direction of the wind.
So when you see the nacelle and the blades, etc., it actually moves in the direction on which the wind is blowing. Which is the first time in the country where these blades can move and can identify where which direction the wind is blowing and can turn to that direction so that they get adequate wind to rotate and generate energy. So I think these technologies are definitely proven around the world. And the orders we have got are from the likes of Jindal Steel, Torrent and KP Green, who are all very large IPP companies and have done their detailed research and understood these products before even placing the orders.
Smit Jain
Fair enough. Okay, so what we’re saying is we don’t see any problem in getting the right of way to transport these machines and the technology. Although it’s proven all across, you see that the unit economics would work in India also for the same.
Anil Jain
Yes.
Smit Jain
Fair enough. Thank you. I’ll fall back in the queue. Thanks.
Operator
Thank you so much. We’ll take our next question from the line of Smit. Sorry, that is from the line of Miten Shah, he is an individual investor. Please go ahead with your question.
Mithin Shah
Yeah. Am I audible?
Operator
Yes, please.
Mithin Shah
Yeah. Thank you for giving opportunity. So first question what I would like to ask is what is the update on the income tax rate what we’ve seen in the disclosure as well as in the media and any impact regarding the same?
Anil Jain
Thank you Mithin for asking this question. Yes, we had an income tax search on 9th of December in our office premises and — in the office premises and house of the — my house and the senior executive. As such, there is no incriminating documents, documents or anything seized or taken by income tax department. We do see that there is a process by which they have an investigation and they will be filing their reports with the central circle where the assessment will be done. We don’t see any impact on the company or the business.
The company has been having the highest governance as far as business and everything else is concerned. There was a fake news which was in the press, one of the large newspaper carried. We have written to those newspapers and also written to the income tax department about these fake news and to clarify that this news is not officially released by income tax. We had also filed these documents with the SEBI and sometime back as soon as the search got over. It was — the search was ended very peacefully and we don’t see anything impacting the business or long term growth of the company.
Mithin Shah
Sure. So you mean to say we have still yet to receive a formal conclusion from the IT department, am I right?
Anil Jain
Yes, generally it takes [Speech Overlap] Yeah. Generally it takes three to six months for them to file the report with central circle and the assessment order generally takes one or two years to be issued to us.
Mithin Shah
Sure. So the second question would be like, okay, it is good to see an increase or uptake in the business with respect to previous quarter as we come up from the monsoon period. But, however, if we compare our numbers with respect to the same quarter last year, we see a dip in the numbers basically. So is there any specific — I mean what would be the reason for that?
Anil Jain
Mithin, like we discussed, we have been discontinuing businesses which are very low margin or negative margin like refrigerant gas business and the power trading business, which actually contributed to close to INR150 crores, INR200 crores last year in the same quarter. And also if you see, while we were discussing that, most of the focus is going to be on high margin ash moving business, management business rather than any trading business which we were carrying on earlier. So as a conscious decision, we have ensured that while the revenues might not grow quarter on quarter to the same as last year but the profitability will be much larger and bigger and better than last year even with lower revenues.
Mithin Shah
Yeah, I can understand the reason for the discontinued operation. I’m even comparing for the ash handling sector, ash and coal handling sector as well. Even segment-wise if you see, you know it has dipped quite 10% to 15%.
Anil Jain
That’s what I said. There are two reasons. One is obviously during H1 we had an extended monsoon, which actually did give a little bit of delay in starting some of the work. Second, on the coal trading front also, we have reduced the trading to a drastic extent to ensure that this low-margin trading business is out of — is not contributing to a larger revenue or profitability.
Mithin Shah
Understand. I have more questions but I’ll join the queue again. Thanks. Thanks a lot so much.
Anil Jain
Welcome.
Operator
Thank you so much. Our next question is coming in from the line of Aniket Madhwani of Steptrade Capital. Please go ahead.
Aniket Madhwani
Yeah, hello. Am I audible?
Operator
Yes please.
Aniket Madhwani
Yeah, so my question was regarding the wind revenue. So in last Con Call you guided that wind revenue would start from Q3 or Q4 and will expect to contribute in FY26. So any revenue executed in this quarter from Venwind?
Anil Jain
Last quarter, we did not achieve any revenue. But yes, this quarter as committed this year end, we will end with substantial revenue from the wind business.
Aniket Madhwani
Okay, so can I have a breakup of the revenue in this quarter?
Anil Jain
Obviously we don’t want to give a leading statement. Most of the contracts which we have have to be executed between nine months to 15 months. So hopefully the first contract, the execution will start in the next few days. It’s already in the progress so it should start in next few days.
Aniket Madhwani
Got it. And my, so second question was regarding the order book. So am I right? You have mentioned 1500 order book currently outstanding?
Anil Jain
For wind or for.?
Aniket Madhwani
No. Overall. Ash and aggregate.
Anil Jain
Yeah, Dinesh, go ahead.
Dinesh Kumar Agarwal
INR1,500 crore order book is in ice and coal handling segment. And INR1,850 crore is there in the wind supply segment.
Aniket Madhwani
Thousand
Dinesh Kumar Agarwal
Eight fifty, to be precise, it is INR1,860 crores.
Aniket Madhwani
Sorry, could you please repeat for wind segment
Dinesh Kumar Agarwal
INR1860 crore.
Aniket Madhwani
Okay, got you. Thank you.
Operator
Thank you so much. We will take our next question from the line of Vivek Joshi, who is an Individual Investor. Please go ahead with your question. Yes, please go ahead.
Vivek Joshi
Yeah, I have two questions. One is what is the status update on the merger plan?
Anil Jain
We just updated that to the previous caller that it is in progress and we are expecting the NCLT order, the merger completion by maybe end of April.
Vivek Joshi
Okay, end of April. And roughly what will be the division of the assets within this, like companies?
Dinesh Kumar Agarwal
It is a 100% subsidiary and Refex Industries doesn’t own any assets of the Refex Green Mobility. So it is a 100% subsidiary and it will be a parallel separate listing completely.
Vivek Joshi
Okay. No but since it’s consolidated, what percentage of the assets are in — sits in this Just to get an idea from the balance sheet because right now we just see the consolidated numbers.
Dinesh Kumar Agarwal
INR220 crore.
Vivek Joshi
Okay. So from the net assets, INR220 crores get transferred to Mobility, right?
Dinesh Kumar Agarwal
Yes.
Vivek Joshi
Okay, thanks. And could you also update the recent pledging of shares by the promoters? Any particular reason for the same.
Dinesh Kumar Agarwal
No, we have — I mean we have done three months back. That is a borrowing at the holding company level.
Vivek Joshi
Oh, thank you so much. All the best.
Anil Jain
Thank you.
Operator
Thank you. We’ll take our next question as a follow-up question from Smit Jain. Please go ahead with your question.
Smit Jain
Hi. Thanks. This is again regarding the pledge that we’ve done. With the current fall in the share price, like, will we have to double down on the existing pledge that we’ve given? Because I’m sure we’ll have to service the difference also. Right. Like how much we’ve borrowed and the collateral that we’ve given.
Dinesh Kumar Agarwal
Yeah. Company has taken steps. Prepaid, you are right, the margin call came and we have paid from the own source and we have securitized the lender.
Smit Jain
Okay, fair enough. The second thing was in the presentation I can see that we’ve given the TAM for the ash handling business to be INR68,000 crores. So is that opportunity available per year or is that the current — is that the total market size that is available and only a part of it can be realized each year?
Dinesh Kumar Agarwal
Can you tell me? I mean, can you tell…
Smit Jain
The page number?
Dinesh Kumar Agarwal
No, no your question. Can you again repeat the question?
Smit Jain
So I was saying that in the presentation we’ve given the total available market size for the ash handling business to be INR68,000 crores. So I wanted to understand, is that the opportunity available each year like INR68,000 crore is the market size available each year or is that the total available market size at this point in time and only a certain part of it can be realized by any of the company each year? How does it work?
Dinesh Kumar Agarwal
We have to divide this market opportunity into two segments. One, every year which gets accumulated is the — what is generated in the particular financial year. Every year 340 million of ash get generated.
Smit Jain
Correct.
Vivek Joshi
And there is a — and that is a different. That is another INR10,000 crore market every year. And there is a 50,000, 50, 55,000 crore of the legacy ash which is accumulated and available in the pond of the various power plant today. So that INR55,000 crore of market will every year it will keep — I mean it will reduce and also increase because all the power plant are not able to dispose off 100% of the ash which is generated every year. 340 million metric tons of ash. And I mean it will be a INR67,000 crore. You can divide like INR10,000 crore to INR15,000 crore in the market every year is there. Out of INR50,000 crore, some will reduce, some will increase, keep on increasing. This market size to my knowledge at any point of time INR50,000 crore market will be there for next 10 years.
Smit Jain
Okay so 15,000 is the incremental value which is going to increase each year and will be available with companies to book. And like the 55,000 is a legacy which will keep getting amortized and like there would be additions to it also as the entire reserve is increasing.
Dinesh Kumar Agarwal
Yes.
Smit Jain
Fair enough. Okay. And how do we see this business evolving for us? Like, is this going to be like a strong business area, focus area for us for the next few years and how do we see us growing in this segment?
Dinesh Kumar Agarwal
Government of India, again, after a few years, again, they are pushing the thermal power plant. 50 gigawatt capacity has been targeted in next five to seven years. And again, everybody, all top CPSUs are setting up and including few private company like Adani, JSW, they are all setting up the new power plant.
And another big opportunity is majority of the power plants were in NCLT where that is getting resolved and capacity addition is also happening in the existing power plant, where 10 years back they have done like capacity, they took a permission of 3,600 megawatt, but they have commissioned only 1,800. That 1,800 has never seen the days.
Now that 1,800 megawatt, new company, new group which has taken over are adding to the capacity. It will close to 40 to 50 megawatt will get added in though government target is five to six years, I see another 10 years this will get added. I mean, it may not happen in five years but it will happen in next 10 years, new capacity will get added. That again that is an additional opportunity for all of us and I mean coal is going to stay, coal power plant is going to stay for next 20 to 30 years. Though renewal portfolio also will increase, but coal power, it is not, will get completely reduced
Smit Jain
Okay, thank you so much. Thanks. I’ll fall back in the queue.
Operator
Thank you so much. We’ll take our next question from the line of Gaurav Jain of HNI. Please unmute yourself. Yes, please go ahead with your question, Mr. Jain? It seems we don’t have a response from that line. We’ll move to our next participant, Mr. Kadaru Sahith of Kadaru Securities. Please go ahead with your question.
Kadaru Sahith
Hello.
Operator
Yes.
Kadaru Sahith
Yes. For Q3 FY26 we have seen the EBITDA margin as 16.1%. And in last quarter as well, we have seen it as 17.42%. So can we expect this as a sustainable one or is it a one-off thing like in last year as the same quarter, we have got it as 7.52%.
Dinesh Kumar Agarwal
Yeah. This will continue. I mean, this will be anywhere between, as I said in my last quarter call, it will be between 11% to 12%. 12% is a sustainable one. I mean, this is due to a lot of realignment. This will be there. Though our target is to do better for year on year, I mean quarter on quarter. But we can safely assume 12%, 11% to 12% will be the number which will keep continuing.
Kadaru Sahith
Okay, thanks.
Operator
Thank you so much. We have a follow up question coming in from Ananya Khanna. Please go ahead.
Ananya Khanna
Yeah, so I wish to understand two things. First of all, can you explain to me how exactly your multiyear tie-ups work with companies that you cater to in the ash handling and coal handling segment in the sense that what are the contractual — what are the terms of the contract, what is the tenure of the contract and how does it exactly work? Is there some sort of a bidding involved, etc., etc.? Secondly, I want to understand what’s your outlook on the mobility segment with respect to say the model that you currently follow.
Do you expect the demand aggregator and rail — the ride hailing part of the segment to grow by any chance?
Anil Jain
I’ll answer that, Ananya. On the mobility business, I think we can talk about our business. We are a pure B2B business where we do employee transportation and rent a car service. So both these businesses are growing very fast in the country and we don’t see any chance of this — the demand reducing because mobility is something which is growing continuously. We don’t have any inputs on the ride-hailing apps or the business what is happening around. On the second part, I think Dinesh can take up the question obviously, he can answer that.
Dinesh Kumar Agarwal
Yeah, ash business completely, ash and coal business completely through a bidding process only and contract period is anywhere between five months to three years. Majority of the INR1500 crores of contract will get executed over next nine months to 12 months. I mean, majority, like 50% will get executed in next four to five months, 50% in the 12 months, and around 30% of INR1,500 crores is over a period of three years.
We are now tying off for the long-term contract and bidding for the long-term contract, working with many private plant and the government plant to work on a comprehensive ash management where we take complete O&M of the ash handling plant. We also do certain capex so that we tie off anywhere between three to 10 years with the power plant and handle the complete comprehensive ash management, handling the ash, taking care of the O&M of the ash handling plant and also setting up the — taking care of their silos area. So we also depute people there so that we’ll become a solutions provider to these power plants. And we are working towards that three to 10 years of the — signing for the three to 10 years for the contract.
Ananya Khanna
All right. So understood. So you do an end-to-end — you provide end-to-end solutions to your customers in the ash handling segment, right?
Dinesh Kumar Agarwal
Yes that is — as of now, we are handling one part of ash handling, few contracts which we have signed is an end-to-end. Our target is all new customers we are targeting for the end-to-end solutions so that we sign any — all contract for a long-term contract like three to 10 years contract.
Ananya Khanna
All right, understood. Thank you.
Operator
Thank you so much. We have a follow-up question coming in from Aniket Madhwani. Please go ahead with your question now.
Aniket Madhwani
Yeah, hi. So just — I just want to know about the current daily handling capacity as you mentioned previously that you are ramping up towards 90,000 per day. So I just want to know the current daily handling capacity in coal and ash.
Dinesh Kumar Agarwal
Yeah. Capacity, there is no constraint on handling any capacity because it is very. I mean very — I mean we have kept a bench of — setup a team where we keep adding it to that bench and as of now on a daily basis we are handling close to 72,000 tons of the ash and we are ramping up; this quarter will cross 90,000 and capacity, we can handle more than 1 lakh tons also. Capacity there is no constraint because it is only increasing the manpower there, trained manpower there and also putting additional fleet there where we work anyway fleet we worked on a hybrid model of own and the attach that Is hiring model.
That challenge is not there in the — increasing the capacity.
Aniket Madhwani
Got it. And as you mentioned, the Venwind will be contributing significantly in this quarter, coming quarter. So could you just give an insight what are you expecting to close in FY26 on an aggregate level?
Dinesh Kumar Agarwal
See, as a policy we are not doing a leading number, but to tell you, Venwind will be a crown in the jewel. It will be — it is really doing well. We have signed with a top-notch company in India, top IPP player in India.
We are well progressing towards the — we are meeting the timeline, what is committed to all the customers. Delivery is starting from February 15th onward. Part of the delivery will happen in March, within March, and again, it will keep adding, because from now, it is a continuous delivery will happen. Initial period of, from the order date till now, engineering happens, there is a lot of other work happens on the ground. Delivery getting started from now every month from February onward we have a delivery cycle. It will contribute significantly to the Refex group. I mean, we expect wind business will be a crown in the jewels for the Refex industry.
Aniket Madhwani
Got it, got it. And what margins are we expecting in that segment?
Dinesh Kumar Agarwal
Yeah, I mean it will be like other competitor what they are reporting. Initially we have, we’re setting off. We’re working at a very, very competitive price to win the order but we’ll be making a very decent profit in the wind segment.
Aniket Madhwani
Got it, yeah. Thank you. That’s all.
Operator
Thank you so much. We have another follow-up question coming in from the Individual Investor, Mithin Shah. Mr. Shah, please go ahead.
Mithin Shah
Yeah. Thank you for giving opportunity again. So correct me you know if we would see the TAM of the ash and coal hunting business as we also discussed last time that presently we, I think we are handling about not even 1% or around 1% of the total TAM basically we are serving, so we not even scratched the surface in that context. How have we grown in terms of handling this metric per ton in terms of CAGR, and could you please also elaborate on the realization per metric ton, as I see it is roughly around INR400 per metric ton?
How has this also panned out in over the years? What was it earlier and how is it now and what do we expect going ahead?
Dinesh Kumar Agarwal
We are growing at 48% CAGR in quantity, and average rate is anywhere between INR555 to INR700. And it will keep growing at this speed because market, as you rightly said, TAM is very, very large. It is only tapping. Projects are available. We are choosing at what margin we need to do the business. And we are not taking all the projects as it comes.
We are very, very particular about the quality of the work and also our margin. We will keep growing at this speed. I mean, past also, we have grown from 6 million tons to 10 million tons. This year also, it will be like a 50% jump in the quantity. We will keep growing because market size is very, very high. It is not about 50% growth, it is, market is huge, and we are expanding our team and the fleet rapidly into the market and the states. Few of the states, we are again adding our team where our presence was not there, we have entered during last quarter. We are entering another new state in this quarter. It will keep growing, the speed of growth will keep continuing from what is there in the past, it will keep growing in the coming quarters.
Mithin Shah
Yeah. So I understood there is no constraint on increasing the capacity, as I understood from this Con Call, but how about the realization? Like you said, 550 to 700? Is that also — do we also see an uptrend in the realization per se?
Dinesh Kumar Agarwal
That is few of the cases, few of the state’s realization has gone down due to instant bidding, which are — that are the projects we have knowingly left it. But few of the states’ realizations start improving because people who have, local player who have taken the order has not executed because it was not viable to execute. And few of the places, realization improves where the distance is long. So that new project we have — whatever the new project we have owned and declared to the stock exchange, disclosed to the stock exchange, all are long distance and better realizations.
Mithin Shah
Got it. And just one request, we would appreciate if the Con Call is conducted say at least next day post the results because we see the presentation and the media release from the company as a disclosure as well as the results so if you can just give us at least half a day or day for us to go through it and then, so that we can — we are at least we are in a good mood to ask some better questions to the management and to understand more the company. It is a genuine request.
Dinesh Kumar Agarwal
Noted your feedback and we’ll keep in mind. It was internally tough [Phonetic] for us to prepare so much in the same day board meeting, having so many calls
Mithin Shah
You guys are also very occupied.
Dinesh Kumar Agarwal
Since morning 8:30 we are all preparing for all this. We will keep in mind. Thanks.
Mithin Shah
Yeah, thanks. Again, I have more questions but I’ll stand in queue. Thanks a lot.
Operator
Thank you so much. We’ll take our next question from Vivek Joshi, the Individual Investor. Please go ahead.
Vivek Joshi
Yeah, my question was if you take a — like a slightly longer term view, three, five years. So do you have some idea of what percentage of your business will be from ash, coal and green mobility? Just to get an idea of how the company is thinking.
Anil Jain
Like Green Mobility will be demerged. So it will be a separate entity, especially Refex industry on a standalone basis, Refex industries will have 100% business, maybe 95% business from ash and coal handling only.
Vivek Joshi
And like 5% from wind, right?
Anil Jain
No, you’re talking about consolidated. Consolidated. I mean, obviously we don’t have such a long projections to make over here. But substantial business will be between ash and coal and wind. Mobility will again get demerged. So it will be a separate entity and there won’t be any consolidation.
Vivek Joshi
Okay, thank you so much.
Operator
Thank you so much. We’ll take our next question from Srijan Kaushik, the Individual Investor. Mr. Kaushik, please go ahead with your question.
Srijan Kaushik
Hello. Am I audible?
Operator
Yes, please.
Srijan Kaushik
Yeah. My question is regarding the recent pledge of equity shares with this Catalyst Trusteeship limited. So what’s the reasoning behind the same? And moreover this — what is the percentage of shares that are being placed right now and are there any plans for the reduction of this placed shares?
Dinesh Kumar Agarwal
See, this catalyst pledge was related to a borrowing at a Holdco level and there is a plan next, over a period of next six months, substantial pledge will get reduced. As of now, close to 25%, 26% of the promoter holding has been pledged and this will get substantially reduced over a period every month there is a plan. It will get reduced over a period of next six months. Substantial reductions will happen.
Srijan Kaushik
Okay. Okay. Thank you.
Operator
Thank you so much. We have a follow-up question coming in from Smit Jain. Mr. Jain, please go ahead.
Smit Jain
Yes. Do we have to give any performance guarantees on the wind turbines that we supply and or do we take any execution risk also?
Dinesh Kumar Agarwal
We don’t take any executions on our head. It is a pure-play supply of wind turbine. Pure play. It is purely we supply. There is an advanced bank guarantee to be given for the supply and that PVG to be given and that PVG comes back once we supply the turbines.
Smit Jain
No performance guarantee also.
Dinesh Kumar Agarwal
We are not paying any EPC work or installations work for any of the projects. India is…
Smit Jain
[Speech Overlap] right?
Anil Jain
Can you repeat that?
Smit Jain
No performance guarantee is also given, right? Just to probably understand
Anil Jain
No, no. On the machines, we have a performance guarantee on the machines’ performance only, not on the generation of kilowatt hour, etc. We do not give any unit-wise guarantees for generation because they are all dependent on the wind velocity and the other maintenance, etc. Wherever we are doing the O&M, the machines’ performance, any spares, etc. There is a warranty on the machine, which we give for 12 months and beyond that, five years as a
Performance of the equipment, uptime of the equipment is what we give them.
Smit Jain
So it’s like straightforward how it is similar to buying an electronic appliance…
Anil Jain
Exactly, exactly. Like buying a fridge or refrigerator or something.
Smit Jain
Correct. Okay. And like is the risk reward justified because I am assuming it is a competitive market, the margins that we are making is, I mean, I would say is fairly low. And if suppose there is any default in the machines working, the payment outflow that would have to be paid like would be a certain amount and that would be a higher amount. So is the risk reward justified at this point? Do we see our machines performing well?
Anil Jain
Definitely machines will have to perform very well. I mean that’s what we are trying to portray. And as a company we want to ensure that the quality is at the — is the topmost priority for these machines. And on the performance side, definitely these are all proven machine where the technology is again from a German technology and globally close to about 20 gigahertz of these machines from a Chinese manufacturer is operating. So we don’t see any major failure. We don’t see any failure at all as far as equipment is concerned.
Smit Jain
Okay, fair enough. Thank you. Thanks.
Operator
Thank you so much. Our next question is coming in from the line of Rahul Bafna, who is a student. Please go ahead with your question. Mr. Bafna, please unmute your microphone. We don’t have a response from Mr. Rahul Bafna’s line. We’ll take Ananya Khanna for a follow-up question. Please go ahead Ms. Khanna?
Ananya Khanna
Yeah, hi. Sir, you mentioned that you have a license from a German company to manufacture wind turbines in-house, correct? So I want to understand are any IO seeking to be an — I mean you definitely seek to be an OEM for wind turbines. Right? But at the moment are any significant functions with respect to the manufacturing process outsourced or is everything done in-house end-to-end?
Anil Jain
Generally manufacturing of wind turbine is very similar to a car or something like that, where all the parts are manufactured by various vendors across the country. And these are all manufactured under our load license. The product development and engineering is done by us. They are all contract manufacturers. So some of the parts like maybe most of the steel towers, etc., are also third-party manufacturing. So it’s more like an assembly center which all the wind turbine manufacturers have.
Ananya Khanna
All right, so product design and assembly is what happens in-house, right?
Anil Jain
Yes.
Ananya Khanna
Thank you.
Operator
Thank you so much. We’ll take a follow-up question from Mithin Shah. Please go ahead.
Mithin Shah
Yeah, so one more request. If in the subsequent presentation, like we’ve indicated for ash and coal handing business the current order book stands at INR1500 crores. I would request if you could also include for the wind energy sector as well the current order book say in terms of megawatt, gigawatts or in terms of revenue. And also if you can also include the projected or targeted timeline for this order book. If that’s a fair request.
Dinesh Kumar Agarwal
Yeah, Mithin Ji, I have already told, I would say it’s there in the PPT also INR1860 crores is the order book for the wind segment and it is there in the PPT one of the slides and this has to be closed — executed between three to 12 months from today. And that is the wind. And the INR1500 crores, this has to be, all order is from five months to three years. Majority, if I divide that INR1500 crores, 40% has to be executed in next four months. Next four to 12 months, it has to be executed around 50% and balance 10% to 15% belongs to the three years contract.
Mithin Shah
Yeah, I did hear this in the previous reply, as you said. Basically it’s just a request, if this can be included in the presentation as well, in an elaborated manner in how this would be executed. That’s a request. And second thing, I’m a little bit enthused about this wind energy business. This Venwind, is it the name of the subsidiary or is it the name of the OEM — original OEM from where we are getting the transfer of technology?
Anil Jain
The name of the original OEM is Vensys Energy. So the name of the subsidiary is called Venwind Refex Private Limited. The name Venwind was coined from Ven of the Vensys and wind to demonstrate what the company is doing and Refex is the prefix to that.
Mithin Shah
Perfect. So correct. Is there any royalty that needs to be paid to the parent company? Is there any contract as such, you know, annually on a quarter?
Anil Jain
Yes, there is a royalty which is to be paid after three years on a year on year basis which could range from anywhere between 0.25% to 0.5% depending on the volume we do.
Mithin Shah
Correct, correct. And is there any, who is handling this vertical? I mean, because as I believe it is a very complicated vertical basically on a standalone itself only where we see a lot of competition in the country as well. So is there any dedicated professional or a CEO who with a sound pedigree or prior experience, who is looking after it dedicated?
Anil Jain
So a very professional team with a cumulative experience of more than 150 years is managing this business. Anirudh Khemka is the CEO for the business. He has been in the industry for a very, very long time and associated with large companies like NEPC, etc., in the past. And the whole team, the top management who are in this is from various wind companies who have served more than 10 to 15 years or even longer and been part of the industry.
Mithin Shah
Got it, got it. Thanks a lot. As usual, I have more questions but I’ll definitely ask if I get an opportunity.
Operator
Mr. Shah, we request you to ask all your set of questions now if you have any?
Mithin Shah
Yeah okay. Yeah, yeah, sure. So my next question would be, are there any investments planned for this fiscal? I mean, hardly there is any timeline or for the next fiscal or going ahead?
Dinesh Kumar Agarwal
No, there is no. There will be a very, very small capex will happen both at RA [Phonetic] level and small will happen in the Venwind level and there is no — any big plan of investment in this quarter.
Mithin Shah
Correct, correct. And.
Dinesh Kumar Agarwal
Sorry like some of the investment is lying as a loan in the subsidiary which may get converted into either OCD or equity depending on the structure of whatever agreed with the respective SPV and that will happen in this quarter.
Mithin Shah
Noted. Okay, okay. Probably the last question I would present would be what is the cash in hand? And also the debt as of now we speak.
Dinesh Kumar Agarwal
Not having the number in hand as of now. We have substantial…
Mithin Shah
Indicative?
Dinesh Kumar Agarwal
We have more than upward of INR100 crores. We have good amount of cash in hand.
Mithin Shah
Okay and what about the cash on the consolidated level? Sorry, debt on the consolidated level?
Dinesh Kumar Agarwal
Debt at a consolidated level will be 300, it is around INR700 crore. Majority of that is non-fund-based.
Mithin Shah
For the working capital?
Dinesh Kumar Agarwal
All is working capital. INR150 crores will be the CC limit. INR550 crores will be the BG and LC limit.
Mithin Shah
Okay. So as such, long term is as good as nil. It is only primarily for the working capital.
Dinesh Kumar Agarwal
Yeah. Only small term loan. That is also — that is INR37 crores of term loan that is for the office building is there. Other than that, nothing. No term loan.
Mithin Shah
Perfect. Perfect. That — I mean, I think that’s enough for today. Thanks. I’m really appreciate for your response and I wish you all the best.
Dinesh Kumar Agarwal
Thank you.
Operator
Thank you so much. Thank you. We will take our next question from the line of Rahil S. of Sapphire Capital. Please go ahead with your question.
Rahil S
Hello, good evening. Am I audible?
Operator
Yes, please.
Rahil S
Yes. Hi. So I wanted to clear my confusion about the EBITDA margins outlook you have provided. Is this on a consolidated basis, you have said? So 11% to 12% for quarter four and the entire year. And you would like to do better going ahead quarter on quarter. But then why was our margins on a higher side in the last two quarters? And why would it not sustain at those levels, which is mid-teens?
Dinesh Kumar Agarwal
No, no. It is depending on the contract to contract. We are not telling it will not sustain. There is a multiple contract has a multiple, I mean, different type of margin. It is on the execution which happens during that period that decides the overall margin for that quarter. We always target for a higher margin and we expect also it will be a better margin. But since multiple contracts will get executed, it will leverage
Rahil S
So in the previous two quarters, two and this current one, which ended, the margins were like mid-teens because of the nature of the contract as well?
Dinesh Kumar Agarwal
No, no nature of contract all largely same only. Depending on the bid-to-bid margin differs.
Rahil S
Okay, but on a steady state you are guiding 12% and your aim is always more. That’s what you’re saying.
Dinesh Kumar Agarwal
Yeah.
Rahil S
And that is considering once the wind revenue also kicks in?
Dinesh Kumar Agarwal
Wind will be — wind revenue. I’m speaking at a standalone level of Refex industry. Wind will have a different margin.
Rahil S
What will be your consolidated outlook on the margins going ahead? What can one expect.
Dinesh Kumar Agarwal
As of now, I mean, we are not speaking on the leading number on the guidance on this thing. But it will have a better margin than the first.
Rahil S
All right, sir. Okay, thank you so much.
Operator
Thank you. We’ll take our next question from Rahul Bafna. Please go ahead with your question.
Rahul Bafna
Hello. Am I audible?
Operator
Yes, please.
Rahul Bafna
Regarding sir, this, whatever this income tax raid and everything has happened, it has totally crashed the prices of shares and everything. So we have been an investor from last year and the stock is continuously going down. So what is the next vision for that? At the end of the day, it is business. So as a stakeholder, everyone, we have also invested to earn. Nothing seems right. We waited for quite a long time and nothing is right. Almost 50% down the stock is. So what is the next vision for the company? If we hold, what to do? What not to do?
Anil Jain
I think, Rahul, over the last one hour we have spoken about the guidance, business, everything. We really do not have any say on the stock price or comments on the stock price. I think that is market-driven. Like you have seen, the business has been growing month on month, quarter on quarter. So, the company is doing very well and it will continue to do very well going forward also. We don’t have any comments on the stock price, please.
Rahul Bafna
Any information regarding when the stock split is happening? Demerger is happening?
Anil Jain
There is no stock split or — the demerger, we have always given the guideline that by end of April it will happen, sir.
Rahul Bafna
End of April. Okay sir. Thank you. Best of luck.
Anil Jain
Thank you.
Operator
Thank you so much. We have our next question coming in from the line of Aniket Madhwani. Please go ahead.
Aniket Madhwani
Yeah, hi. I was just going through the P&L and just realized that there is a significant dip year-on-year basis. I mean, if you compared it to the December 2024 number, so there is around 16% drop in top line. So any specific reason for that?
Anil Jain
Aniket, I think we did explain that earlier also. It is because of the discontinuation of power trading business and the refrigeration business, refrigerant gas business. That is why there’s a dip.
Aniket Madhwani
Okay. So you will be expecting the — I mean, you will be expecting to improve in coming quarters, right? Hello?
Dinesh Kumar Agarwal
Our profit will keep improving. I mean, our focus is creating maximum profit in the business. We are realigning the strategy, we have discontinued where margin is less like power trading, refrigerant gas, which we have spoken. And we are also — our focus is more on growing the service business, which is ash handling and the mining service business. We are not concentrating on more of a coal trading also, we are reducing it. That is the reason revenue drop has happened, whereas profit has increased from year on. I mean, if you compare, it was EBITDA level, it was INR153 crore, and it is now, this nine months, it is INR207 crore.
Aniket Madhwani
Done. Yeah. Thank you.
Operator
Thank you so much. Ladies and gentlemen, that was the last question for today. Hence, we will now close the Q and A session. On behalf of Refex Industries Limited, we conclude today’s conference. Thank you for joining us.
Dinesh Kumar Agarwal
Thank you so much.
Operator
[Operator Closing Remarks]