Tanfac Industries filed its annual report for FY26, reporting a record revenue from operations of ₹71,107.40 lakh, a 27.67% increase over FY25. The company achieved its highest-ever production volumes with hydrofluoric acid capacity utilisation at 95%.

Profit after tax (PAT) declined to ₹7,014.29 lakh from ₹8,814.71 lakh in the previous year, as margins normalised following exceptional realisations in FY25. Operating EBITDA was ₹11,206.40 lakh, representing a margin of 15.76%, down from 23.14% in FY25.

Financial Performance

The decline in profitability was driven by higher raw material costs, particularly sulphur, and increased depreciation following the commissioning of expanded hydrofluoric acid and solar-grade diluted hydrofluoric acid (DHF) capacities. Gross profit rose to ₹26,634.11 lakh, but the gross margin contracted to 37.46% from 45.20% in FY25.

Operational Highlights

Tanfac commissioned both phases of its 20,000 TPA solar-grade DHF facility in June and October 2025. The company secured long-term orders aggregating approximately ₹1,06,800 lakh for solar-grade DHF, covering close to 85% of annual capacity until FY29.

Additionally, the company announced capital expenditure of approximately ₹49,500 lakh for a 20,000 TPA HFC-32 refrigerant gas facility, targeted for commissioning by end-Q3 FY27. Long-term supply agreements covering 67.5% of the planned capacity have been secured.

Balance Sheet and Dividend

Net debt stood at ₹4,661.33 lakh as on March 31, 2026. However, the company became net debt-free after the reporting period following a Qualified Institutional Placement (QIP) of ₹25,000 lakh completed in Q1 FY27.

The Board recommended a final dividend of ₹4.50 per equity share for FY26. The 52nd Annual General Meeting is scheduled for September 23, 2026.

What the Numbers Show

While revenue growth was robust at nearly 28%, the significant contraction in EBITDA margins highlights the pressure from input cost inflation and new asset depreciation. The post-year-end QIP effectively neutralises the year-end net debt position, providing capital for the upcoming refrigerant gas project without leveraging the balance sheet further.

Tanfac Industries received in-principle approval from BSE Limited for a preferential issue of equity shares. The company plans to allot 4,24,647 equity shares at an issue price of ₹2,341 per share.

The issuance targets both promoter and non-promoter investors. Each equity share has a face value of ₹5. The total value of the proposed issue amounts to approximately ₹9.94 crore based on the disclosed share count and price.

Regulatory Compliance

The company notified the exchange pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. BSE granted the in-principle approval under Regulation 28(1) of the same regulations on August 31, 2026.

Tanfac Industries must ensure strict compliance with the Companies Act, 2013, and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The issuer is required to obtain necessary statutory approvals before proceeding with the allotment.

Internal Controls and Listing

BSE advised the company to strengthen internal controls to monitor trades by proposed allottees. This measure aims to prevent non-compliance with Chapter V of the ICDR Regulations regarding intra-day trading or sales before the allotment date.

The company must submit a listing application within twenty days from the date of allotment, as per Schedule XIX of the ICDR Regulations. Failure to comply may attract fines as specified in recent SEBI circulars. The exchange reserves the right to withdraw the approval if submitted information is found incomplete or misleading.