TANFAC Industries Limited has announced an Extra-Ordinary General Meeting (EGM) scheduled for February 23, 2026, to consider several significant corporate actions including equity share sub-division and substantial fund raising initiatives.

Share Sub-division Proposal

The company's board has approved a proposal to sub-divide existing equity shares from face value of ₹10 to ₹5 each. This restructuring will effectively double the number of shares while maintaining the same total capital value.

The sub-division aims to enhance liquidity of the company's equity shares and encourage participation from small investors by making shares more affordable. The board believes this restructuring will be in the best interest of shareholders while maintaining the same authorized, issued, subscribed and paid-up equity share capital amount.

Fund Raising Through QIP

The EGM will seek approval for raising funds up to ₹500 crores through Qualified Institutional Placement (QIP). The company proposes to issue up to 10,00,000 equity shares of ₹10 face value (equivalent to 20,00,000 shares of ₹5 face value post sub-division) to qualified institutional buyers.

The proceeds will be utilized for establishing a refrigerant gas plant for fluorinated chemical production, debt repayment, working capital requirements, and general corporate purposes. A credit rating agency will monitor fund utilization on a quarterly basis until complete deployment.

Board Appointments

The EGM agenda includes two significant board appointments. Mr. Afzal Harunbhai Malkani will transition from Non-Executive Non-Independent Director to Managing Director for a five-year term from January 09, 2026 to January 08, 2031.

Mr. Malkani brings over 25 years of experience in finance, corporate finance, and capital markets, having previously served as CFO at Anupam Rasayan India Limited and Zen Technologies Limited.

Additionally, Mrs. Sandhya Venugopal Sharma, a 1995 batch IAS officer and current Chairperson of TIDCO, will be appointed as Nominee Director. Her extensive administrative experience includes significant roles in the Department of Space and various state government positions.

Meeting Logistics

The EGM will be conducted through Video Conferencing (VC) and Other Audio Visual Means (OAVM) on Monday, February 23, 2026 at 11:00 AM, complying with MCA circulars. Remote e-voting will be available from February 20, 2026 (9:00 AM) to February 22, 2026 (5:00 PM), with February 16, 2026 as the cut-off date for voting eligibility.

The company has appointed M.D. Baid Associates as scrutinizer for the e-voting process, ensuring fair and transparent conduct of the meeting. All resolutions require shareholder approval, with the fund raising proposal requiring special resolution approval.

TANFAC Industries Limited reported mixed financial results for the third quarter of FY26, with net profit declining significantly despite maintaining stable revenue levels. The Chennai-based chemical manufacturer announced these results following a Board meeting held on January 21, 2026.

Financial Performance Overview

The company's financial performance for Q3FY26 showed contrasting trends in revenue and profitability metrics:

The most notable aspect of the results was the sharp decline in net profit to ₹1,557.41 crores in Q3FY26, compared to ₹3,480.39 crores in the same quarter of the previous year. This represents a substantial decrease of 55.23%, highlighting significant pressure on the company's bottom line.

Expense Analysis and Cost Pressures

The decline in profitability can be attributed to increased operational expenses across multiple categories. Total expenses rose to ₹15,324.69 crores in Q3FY26 from ₹13,191.67 crores in Q3FY25, representing a 16.17% increase.

Raw material costs emerged as the primary cost driver, increasing by 10.26% to ₹10,949.50 crores. Employee benefit expenses also rose significantly by 19.84% to ₹657.79 crores, partly due to the implementation of New Labour Codes which resulted in an incremental liability of ₹45.50 lakhs.

Nine-Month Performance Trends

The nine-month performance presented a more balanced picture, with revenue showing strong growth while profitability remained under pressure:

For the nine months ended December 31, 2025, revenue from operations grew substantially by 34.53% to ₹51,799.57 crores, demonstrating strong business momentum. However, net profit declined by 20.33% to ₹5,210.55 crores, reflecting the impact of higher operational costs throughout the period.

Strategic Expansion and Capital Plans

The Board of Directors approved several significant strategic initiatives during their January 9, 2026 meeting:

The company plans to establish a 20,000 MTPA downstream fluorinated chemicals plant at its existing manufacturing location with an estimated investment of ₹495 crores. This expansion will be funded through a combination of debt and equity, with the latter raised via Qualified Institutional Placements (QIP) of up to ₹500 crores.

Earnings Per Share and Dividend Information

Earnings per share for Q3FY26 stood at ₹15.61, significantly lower than ₹34.89 in Q3FY25. The company maintained its paid-up equity share capital at ₹997.50 crores with a face value of ₹10 per share. The Board had previously recommended a final dividend of ₹9.00 per equity share for FY25, which was approved by shareholders and distributed.

Regulatory Compliance and Future Outlook

The company operates primarily in the chemicals segment in India and has maintained compliance with all regulatory requirements. The implementation of New Labour Codes from November 21, 2025, has been factored into the current results, with the company continuing to monitor developments for future adjustments. The planned expansion into fluorinated chemicals represents a strategic move to diversify the product portfolio and capture growth opportunities in specialized chemical segments.