Financial Performance Highlights

Quarterly Performance (Q2 FY27 vs Q2 FY26)

  • Revenue from Operations: ₹230.5 crores (vs ₹168.7 crores in Q2 FY26), growth of 36.6% YoY
  • Other Income: ₹3.8 crores (vs ₹0.6 crores in Q2 FY26)
  • Total Revenue: ₹234.3 crores (vs ₹169.3 crores in Q2 FY26)
  • Cost of Goods Sold: ₹155.7 crores (vs ₹102.7 crores in Q2 FY26)
  • Gross Profit: ₹74.8 crores (vs ₹66.0 crores in Q2 FY26)
  • Gross Margin: 32.5% (vs 39.1% in Q2 FY26)
  • EBITDA: ₹31.1 crores (vs ₹27.5 crores in Q2 FY26)
  • EBITDA Margin: 13.3% (vs 16.2% in Q2 FY26)
  • Depreciation & Amortization: ₹5.0 crores (vs ₹4.0 crores in Q2 FY26)
  • EBIT: ₹26.0 crores (vs ₹23.4 crores in Q2 FY26)
  • EBIT Margin: 11.3% (vs 13.9% in Q2 FY26)
  • Finance Cost: ₹1.7 crores (vs ₹0.8 crores in Q2 FY26)
  • Profit Before Tax: ₹24.4 crores (vs ₹22.7 crores in Q2 FY26)
  • PBT Margin: 10.6% (vs 13.4% in Q2 FY26)
  • Tax: ₹5.3 crores (vs ₹5.5 crores in Q2 FY26)
  • Profit After Tax: ₹19.0 crores (vs ₹17.2 crores in Q2 FY26)
  • PAT Margin: 8.3% (vs 10.2% in Q2 FY26)
  • EPS: ₹8.93 (vs ₹8.61 in Q2 FY26)

Half-Yearly Performance (H1 FY27 vs H1 FY26)

  • Revenue from Operations: ₹417.7 crores (vs ₹344.7 crores in H1 FY26), growth of 21.2% YoY
  • Other Income: ₹4.7 crores (vs ₹1.6 crores in H1 FY26)
  • Total Revenue: ₹422.4 crores (vs ₹346.3 crores in H1 FY26)
  • Cost of Goods Sold: ₹273.9 crores (vs ₹211.6 crores in H1 FY26)
  • Gross Profit: ₹143.7 crores (vs ₹133.1 crores in H1 FY26)
  • Gross Margin: 34.4% (vs 38.6% in H1 FY26)
  • EBITDA: ₹60.6 crores (vs ₹57.4 crores in H1 FY26)
  • EBITDA Margin: 14.4% (vs 16.6% in H1 FY26)
  • Depreciation & Amortization: ₹9.7 crores (vs ₹7.9 crores in H1 FY26)
  • EBIT: ₹50.8 crores (vs ₹49.5 crores in H1 FY26)
  • EBIT Margin: 12.2% (vs 14.4% in H1 FY26)
  • Finance Cost: ₹2.7 crores (vs ₹2.2 crores in H1 FY26)
  • Profit Before Tax: ₹48.1 crores (vs ₹47.3 crores in H1 FY26)
  • PBT Margin: 11.5% (vs 13.7% in H1 FY26)
  • Tax: ₹12.2 crores (vs ₹10.8 crores in H1 FY26)
  • Profit After Tax: ₹35.9 crores (vs ₹36.5 crores in H1 FY26)
  • PAT Margin: 8.6% (vs 10.6% in H1 FY26)
  • EPS: ₹17.35 (vs ₹18.31 in H1 FY26)

EPS calculated on weighted average basis considering additional shares issued pursuant to QIP on June 25, 2026 and preferential issue on September 09, 2026

Management Commentary

Management stated that Q2 FY27 was a landmark quarter with highest-ever quarterly revenue of approximately ₹230 crores, growing 36.6% YoY mainly driven by realization growth. The company expanded its product portfolio by introducing new value-added specialty products within existing customer base.

Gross profit per tonne in AHF business remained largely stable, with margin percentage moderation attributed to higher product realizations increasing the revenue base. Elevated sulphur prices impacted input costs, but signs of price moderation are emerging. Newly introduced products are in initial ramp-up phase with margins yet to reach optimal levels.

Management expects H2 FY27 to deliver stronger performance than H1 FY27 driven by improved operating leverage from raw material price moderation and scale-up of newly introduced products.

Strategic Developments & Expansion

Fundraising Activities

  • Preferential issue of approximately ₹100 crores completed during the quarter, led by promoter Anupam Rasayan
  • Qualified Institutional Placement (QIP) of ₹250 crores completed in June 2026
  • Total ₹350 crores raised through equity issuances primarily allocated towards HFC-32 project

Capacity Expansion

  • Solar Grade DHF manufacturing capacity enhanced from 20,000 MTPA to 25,000 MTPA through debottlenecking with nominal capital expenditure
  • HFC-32 refrigerant gas project progressing as per pre-determined timeline

HFC-32 Refrigerant Gas Project Details

  • Investment: ₹495 crores to establish plant at Cuddalore
  • Planned capacity: 20,000 MTPA HFC-32 refrigerant gas
  • Targeted commissioning: Q3 FY27
  • Secured supply arrangements:
  • Long-term supply contract with Japanese customer for fluorinated product: 7,500 MTPA, ₹337.5 crores p.a., 7 years
  • MoU with large multinational company for supply of key fluorinated product: 5,000 MTPA, ₹250 crores p.a., 5 years (starting January 2027)
  • Long-term agreement with leading air conditioning and commercial refrigeration company: ₹61 crores p.a., infinite duration

Balance Sheet Position (as of September 30, 2026)

Equity & Liabilities

  • Total Equity: ₹736.8 crores (vs ₹373.2 crores as of March 31, 2026)
  • Equity Share Capital: ₹10.8 crores (vs ₹10.0 crores)
  • Other Equity: ₹726.0 crores (vs ₹363.2 crores)
  • Total Non-Current Liabilities: ₹76.4 crores (vs ₹8.7 crores)
  • Borrowings: ₹66.1 crores (vs ₹0.0 crores)
  • Lease Liabilities: ₹0.6 crores (vs ₹0.0 crores)
  • Provisions: ₹1.2 crores (vs ₹1.5 crores)
  • Deferred Tax Liabilities: ₹8.5 crores (vs ₹7.3 crores)
  • Total Current Liabilities: ₹192.9 crores (vs ₹145.9 crores)
  • Borrowings: ₹69.5 crores (vs ₹92.8 crores)
  • Lease Liabilities: ₹0.2 crores (vs ₹0.0 crores)
  • Trade Payables: ₹75.9 crores (vs ₹25.1 crores)
  • Other Current Liabilities: ₹43.5 crores (vs ₹26.3 crores)
  • Provisions: ₹1.5 crores (vs ₹1.5 crores)
  • Current Tax Liabilities: ₹2.3 crores (vs ₹0.2 crores)

Assets

  • Total Non-Current Assets: ₹497.7 crores (vs ₹273.6 crores)
  • Property, Plant and Equipment: ₹235.9 crores (vs ₹211.7 crores)
  • Capital Work-in-Progress: ₹153.0 crores (vs ₹28.5 crores)
  • Right to Use of Assets: ₹0.7 crores (vs ₹0.0 crores)
  • Investments: ₹1.5 crores (vs ₹1.5 crores)
  • Other Financial Assets: ₹3.0 crores (vs ₹2.8 crores)
  • Other Non-Current Assets: ₹103.6 crores (vs ₹29.1 crores)
  • Total Current Assets: ₹508.3 crores (vs ₹254.1 crores)
  • Inventories: ₹147.3 crores (vs ₹92.8 crores) - increased due to bulk procurement of fluorspar to ensure supply continuity amid geopolitical tensions
  • Investments: ₹58.4 crores (vs ₹17.0 crores)
  • Trade Receivables: ₹165.8 crores (vs ₹110.5 crores)
  • Cash and Cash Equivalents: ₹99.1 crores (vs ₹21.1 crores)
  • Bank Balances other than cash: ₹9.4 crores (vs ₹0.6 crores)
  • Other Financial Assets: ₹4.1 crores (vs ₹5.4 crores)
  • Current Tax Assets: ₹1.0 crores (vs ₹1.7 crores)
  • Other Current Assets: ₹23.1 crores (vs ₹5.1 crores)
  • Total Assets: ₹1,006.0 crores (vs ₹527.7 crores)

Company Background

TANFAC Industries Limited is a joint sector company with TIDCO and Anupam Rasayan India Ltd. The company operates in the fluorochemicals value chain with manufacturing facilities at SIPCOT Industrial Complex, Cuddalore, Tamil Nadu.

Key Management Contacts

  • Mr. N.R. Ravichandran, President & Chief Financial Officer
  • Mr. Azharuddin Jariwala, Head – Investor Relation