TANFAC Industries Limited's Board of Directors, at their meeting held on May 06, 2026, approved the audited financial results for the quarter and financial year ended March 31, 2026, and recommended a final dividend of Rs. 4.50 per equity share of face value Rs. 5 each (90%) for FY26. The board meeting, which commenced at 12.30 p.m. and concluded at 5.15 p.m., fulfilled the agenda communicated to BSE Limited on April 29, 2026. Auditors Singhi & Co., Chartered Accountants, issued an Unmodified Opinion on the audited financial results, confirming compliance with applicable accounting standards.

Q4 Performance Highlights

On a year-on-year basis, TANFAC Industries' Q4 performance reflected margin compression despite healthy revenue growth. Q4 EBITDA declined to Rs. 303M from Rs. 358M in the same period last year, with the EBITDA margin contracting sharply to 15.71% from 20.80%. Net profit for Q4 stood at Rs. 180M compared to Rs. 227M in the corresponding quarter of the previous year, while revenue grew to Rs. 1.93B from Rs. 1.7B YoY. The following table summarises the key Q4 metrics:

Financial Performance Overview

TANFAC Industries delivered strong revenue growth for FY26, with revenue from operations rising to Rs. 71,107.40 lakhs from Rs. 55,698.07 lakhs in the previous year. However, net profit for the full year declined to Rs. 7,014.29 lakhs compared to Rs. 8,814.71 lakhs in FY25, reflecting higher input and operational costs. The following table summarises the key financial metrics:

Note: EPS for all comparative periods has been restated based on the sub-division of shares given effect from March 9, 2026.

Cost and Expense Breakdown

Total expenses for FY26 rose significantly to Rs. 62,077.87 lakhs from Rs. 44,117.70 lakhs in FY25, driven primarily by higher raw material costs. The key expense components for FY26 are detailed below:

Balance Sheet Highlights

As at March 31, 2026, TANFAC Industries' total assets stood at Rs. 52,773.57 lakhs, up from Rs. 42,641.14 lakhs in the previous year. Shareholders' funds increased to Rs. 37,316.57 lakhs from Rs. 31,197.41 lakhs, supported by growth in other equity to Rs. 36,319.07 lakhs. Key balance sheet figures are presented below:

Cash Flow Summary

For the year ended March 31, 2026, net cash generated from operating activities was Rs. 4,340.07 lakhs, compared to Rs. 3,284.19 lakhs in the previous year. Cash used in investing activities was Rs. 9,055.78 lakhs, primarily on account of capital expenditure of Rs. 8,244.87 lakhs. Net cash from financing activities stood at Rs. 3,811.31 lakhs, supported by short-term borrowings. Overall, cash and cash equivalents declined to Rs. 2,107.39 lakhs from Rs. 3,011.80 lakhs at the beginning of the period.

Key Corporate Developments

The board, at its meeting held on January 9, 2026, approved several significant initiatives that are expected to shape the company's growth trajectory. These include the setting up of a 20,000 MTPA new downstream Fluorinated product plant at its existing manufacturing location at an estimated cost of Rs. 495 crores, to be funded through a mix of debt and equity. The board also approved raising of funds up to Rs. 500 crores via Qualified Institutional Placements (QIP) or private placement, which was subsequently approved by shareholders at an Extraordinary General Meeting (EGM) held on February 23, 2026. Additionally, the company effected a sub-division of equity shares from face value of Rs. 10 each to Rs. 5 each, approved at the same EGM and given effect from March 9, 2026.

The company operates in a single segment — Chemicals in India — with all activities evolving around the same, and therefore has no reportable primary or secondary segment under Ind AS 108. The audited results were reviewed by the Audit Committee and approved by the Board of Directors at the meeting held on May 06, 2026. The formal communication was signed by Vinod Kumar S, Company Secretary & Compliance Officer.

TANFAC Industries Limited has announced a major business development with the signing of a long-term supply agreement with Blue Star Limited on April 29, 2026. The contract involves the supply of key fluorinated products with an estimated annual value of Rs.61 crores, marking a significant milestone for the joint sector company.

Agreement Details and Structure

The partnership establishes TANFAC Industries as a key supplier to Blue Star Limited, which is described as a large Original Equipment Manufacturer (OEM) company. The agreement encompasses the supply of fluorinated products manufactured according to agreed specifications, ensuring quality and consistency in the supply chain.

Regulatory Compliance and Disclosure

The company has fulfilled its regulatory obligations by disclosing this material agreement under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made through proper channels to BSE Limited, ensuring transparency for stakeholders and investors.

Key Contract Specifications

The agreement includes several important structural elements that provide operational flexibility for both parties:

• Product Specifications: Supply of fluorinated products as per mutually agreed specifications
• Contract Duration: Long-term arrangement for indefinite period
• Termination Provisions: Mutual termination clause providing flexibility to both parties
• Related Party Status: The agreement does not constitute a related party transaction
• Promoter Interest: No promoter or group company interest in the agreement

Company Background

TANFAC Industries Limited operates as a joint sector company in partnership with TIDCO and Anupam Rasayan India Ltd. The company is headquartered at SIPCOT Industrial Complex in Cuddalore, Tamil Nadu, with additional operations from its Chennai office. This strategic partnership with Blue Star Limited demonstrates the company's capability to secure substantial long-term contracts in the specialized chemicals sector.

The agreement represents a significant business opportunity for TANFAC Industries, providing revenue visibility through a structured long-term partnership while expanding its presence in the fluorinated products market segment.