TANFAC Industries Limited has filed its Annual Secretarial Compliance Report for the financial year ended March 31, 2026, confirming adherence to key securities regulations. The report, submitted to BSE Limited, was issued by Ms. Kalyani Srinivasan, a Practicing Company Secretary, following an examination of the company's documents, filings, and website.

The audit assessed compliance with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR), and other relevant frameworks. While the company largely met the requirements, the report identified two specific deviations during the review period.

A fine of ₹25,000 was imposed regarding the Dividend Distribution Policy under Regulation 43A of SEBI LODR. The observation noted that while the company shared a general link for policies in its Annual Report, it did not provide a specific weblink for the Dividend Distribution Policy as required. The management clarified that the policy is accessible via the general link, and the auditor concluded the company is in compliance.

The second deviation involved the disclosure of Related Party Transactions under Regulation 23(9) of SEBI LODR. A fine of ₹5,000 was recorded because the company submitted the related party details in XBRL within 24 hours of the financial results submission. The report noted a delay of twelve hours in this process. The company has since submitted the details as required.

Beyond these deviations, the report confirmed full compliance with other critical areas, including the adoption and timely updation of policies, maintenance of a functional website, and the preservation of documents. It also verified that no directors are disqualified under Section 164 of the Companies Act, 2013, and that the company does not have any subsidiaries.

The auditor confirmed that the company obtained prior approval from the Audit Committee for all related party transactions entered into during the review period. Additionally, there were no actions taken by SEBI or Stock Exchanges against the listed entity, its promoters, or directors during the financial year.

Compliance Status Overview

TANFAC Industries Limited has announced its financial results for the fourth quarter and fiscal year ended March 31, 2026. The company reported record revenue figures for both the quarter and the full year, supported by strong operational performance and strategic growth initiatives.

Financial Performance

For the full year FY26, tanfac industries achieved its highest ever revenue from operations of ₹711 crore, representing a 27% year-on-year increase from ₹557 crore in FY25. The company reported a Profit After Tax (PAT) of ₹70 crore for the year, compared to ₹88 crore in the previous year.

In the fourth quarter of FY26, revenue from operations stood at ₹193 crore, an 11% increase from ₹173 crore in the preceding quarter. Operating EBITDA for FY26 was ₹112 crore, a decrease from ₹129 crore in FY25, with margins normalizing to 16% compared to 23% in the previous year.

Operational Highlights

The company maintained high capacity utilization levels across its plants during the year. The Sulphuric acid plant operated at 101% capacity utilization, while the hydrofluoric acid plant operated at approximately 95%. The specialty fluoride segment recorded a utilization level of around 41%, which is expected to improve as demand for value-added products scales up.

Management noted that working capital efficiency improved, with the cycle reducing by 8 days to 91 days in FY26. Return on equity was reported at 19%, while return on capital employed stood at 20%.

Strategic Developments and Expansion

TANFAC Industries continues to execute its expansion strategy within the fluorine value chain. The company has announced a capital expenditure plan of approximately ₹495 crore. This includes an investment of ₹405 crore towards setting up a 20,000 metric tons per annum HFC-32 manufacturing facility and ₹90 crore for other value-added fluorinated products.

The HFC-32 project is scheduled for commissioning by Q3 FY27. Management indicated that approximately 65% of the proposed capacity for this project is already supported by long-term customer contracts. Additionally, the company is planning to further strengthen its position in solar grade DHF through an additional plant capacity of 20,000 metric tons per annum.

Future Outlook

Looking ahead, the company expects operating EBITDA margins to remain in the range of 15% to 18% from its existing business. With long-term customer contracts in place, the ramp-up of solar grade DHF revenues, and the commissioning of new downstream capacities, management expressed confidence in the medium to long-term growth outlook.