Tanfac Industries submitted its Business Responsibility and Sustainability Report (BRSR) for FY26 to the Bombay Stock Exchange on September 1, 2026. The filing details the company's environmental, social, and governance disclosures for the financial year ending March 31, 2026.

The report covers the company's standalone operations in fluorine-based chemical manufacturing. It includes data on energy consumption, water usage, waste management, and employee welfare. The disclosures were prepared in accordance with SEBI's BRSR framework.

Environmental Performance

The company reported total energy consumption of 5,74,354 GJ for FY26, up from 4,42,343 GJ in the previous year. Renewable energy consumption increased significantly, with 70,562 GJ sourced from renewable sources compared to nil in FY25. Total greenhouse gas emissions (Scope 1 and 2) stood at 50,733.55 tCO2e, rising from 35,154 tCO2e in FY25.

Water withdrawal totaled 6,44,283 kiloliters, primarily from third-party sources. The company discharged 73,758.7 kiloliters of treated effluent. Waste generation rose to 2,969.62 metric tonnes from 1,699 metric tonnes in the prior year.

Safety and Employee Welfare

The company recorded a Lost Time Injury Frequency Rate (LTIFR) of 0 for employees and 0.579 for workers in FY26. This compares to an LTIFR of 1.35 for employees and 0.67 for workers in FY25. There were no fatalities among employees or workers during the current fiscal year.

Spending on employee well-being measures was 0.10% of total revenue, down from 4.11% in the previous year. The company employs 182 permanent employees and 436 workers. Training coverage reached 100% for all permanent employees on health, safety, and skill upgradation.

What the Numbers Show

While total energy consumption and GHG emissions rose alongside higher operational activity, the share of renewable energy in the mix expanded from zero to approximately 12.3% of total consumption. This shift coincided with a reduction in energy intensity per unit of physical output, which fell from 0.00371 in FY25 to 0.0023958 in FY26, indicating improved operational efficiency despite higher absolute usage.

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.