Tanfac Industries has announced its audited financial results for the quarter and financial year ended March 31, 2026. The company reported its highest-ever quarterly and full-year revenue from operations of Rs 193 crores and Rs 711 crores, respectively. The Board of Directors has recommended a final dividend of Rs. 4.50 per equity share for the financial year 2025-26, subject to shareholder approval.

Strategic Expansion and Capital Expenditure

In line with its long-term growth strategy, the company is progressing with a capital expenditure plan of approximately Rs. 495 crores to expand its downstream fluorinated product portfolio. The development of the 20,000 TPA fluorinated product plant is proceeding as scheduled and is expected to be commissioned by Q3 FY27.

The following table summarizes the key parameters of the announced investment:

Business Wins and Operational Highlights

Over the last five months, Tanfac Industries secured three consecutive long-term supply arrangements for fluorinated products with leading global customers. These contracts aggregate to approximately Rs 3,612 crores over a period of 5-7 years, along with an additional agreement valued at around Rs 61 crores per annum for an indefinite duration.

The company also successfully commissioned both phases of its Solar Grade DHF project, with a total annual capacity of 20,000 metric tonnes, in June and October 2025 respectively. It has secured orders for Rs 1,068 crores to be executed over the next 3.5 years, strengthening the project's revenue visibility.

Financial Performance

For the financial year 2026, the company achieved a Gross Profit margin of 37.5% and an Operating EBITDA margin of 15.8%. The Net Profit margin stood at 9.9%. The Return on Equity (ROE) was reported at 34%, while the Return on Capital Employed (ROCE) was 65% for FY26.

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.