TANFAC Industries Reports Q1 FY27 Results, Completes Major Capital Raise for Strategic Expansion

TANFAC Industries Reports Q1 FY27 Results, Completes Major Capital Raise for Strategic Expansion​

TANFAC Industries Limited, a key player in India's fluorine chemicals sector, has released its unaudited financial results for the quarter ended June 30, 2026. The company reported quarterly revenue of approximately ₹187 crore, marking a 6.3% year-on-year growth, although it experienced a 3.1% decline quarter-on-quarter due to disruptions arising from the geopolitical situation in West Asia.

The results show the impact of both market dynamics and operational challenges on profitability. While revenue showed robust health driven by high demand for Solar Grade DHF and improved capacity utilization, operating EBITDA was influenced by elevated fuel costs, which are largely attributed to the West Asia situation. Profit After Tax (PAT) was affected by lower operating profit and deferred tax adjustments during the quarter.

A detailed look at the quarterly financial performance is provided below:

Strategic Milestones and Future Plans​

During the reporting period, TANFAC achieved a defining milestone through the successful completion of its ₹250 crore Qualified Institutional Placement (QIP). This was followed by a proposed preferential issue amounting to approximately ₹100 crore, led by promoter Anupam Rasayan India Limited.

The proceeds from these capital raises are earmarked to fund the company's 20,000 MTPA HFC-32 refrigerant gas project, which requires a total investment of approximately ₹390 crores. The project is reportedly on track and is scheduled for commissioning by the end of Q3 FY27.

Managing Director Mr. Afzal Malkani commented that the strong support from institutional investors and the promoter underscores their confidence in TANFAC’s long-term strategy and growth potential. He added that the capital raise has transformed the company’s balance sheet, making TANFAC net debt-free and providing financial flexibility for future expansion.

Operational Insights and Outlook​

The company highlighted that profitability was affected by elevated sulphur prices; however, it expects the benefit of cost pass through to be reflected over a normal 30–45 day pricing cycle. Furthermore, the quarter saw temporary demand disruptions linked to geopolitical situations in West Asia, affecting parts of the fluorochemical value chain.

Despite these near-term external headwinds and increased raw material costs due to higher Sulphur prices, TANFAC remains focused on long-term growth. The company plans to continue evaluating opportunities to expand downstream fluorinated chemicals, enter next generation fluorochemicals, and strengthen backward integration.

TANFAC Industries Ltd is a joint sector company promoted by Anupam Rasayan India Limited and Tamil Nadu Industrial Development Corporation (TIDCO). It is engaged in the manufacture of Anhydrous Hydrofluoric Acid, Solar Grade DHF, Sulphuric Acid, Specialty Chemicals, Potassium Fluoride and value-added products.

Stock Price Movement​

TANFAC Industries Ltd. finished Friday's trading session at ₹2702.40, edging higher after a 0.51% gain. The shares moved throughout the day within an intraday range stretching from a low of ₹2626.05 to a high of ₹2734.80.