TANFAC Industries Reports Q1 FY27 Net Profit of ₹16.85 Crore; Operational Revenue Up 6.3% YoY to ₹187.18 Crore

TANFAC Industries Limited (BSE: 506854, CIN: L24117TN1972PLC006271), a leading manufacturer in India's fluorine chemicals sector, announced its unaudited financial results for the first quarter ended June 30, 2026 (Q1 FY27).

The company registered steady top-line growth driven by higher capacity utilization and increased contribution from Solar Grade Dilute Hydrofluoric Acid (DHF). However, profitability faced pressure due to elevated raw material and fuel costs resulting from geopolitical tensions in West Asia.

Top-Line Growth and Revenue Performance

Note: Financial values are reported in both ₹ Crore and ₹ Lakh Conversion: 1 Crore = 100 Lakh.

Revenue from Operations: Grew 6.35% YoY to ₹187.18 crore (₹18,717.73 lakh) in Q1 FY27, compared to ₹176.00 crore (₹17,600.27 lakh) in Q1 FY26. On a sequential basis, revenue fell 3.06% QoQ from ₹193.08 crore (₹19,307.83 lakh) in Q4 FY26 due to short-term supply chain disruptions in West Asia.

Other Income: Stood at ₹0.85 crore (₹85.10 lakh), compared to ₹0.95 crore in Q1 FY26 and ₹0.51 crore in Q4 FY26.

Total Revenue: Advanced 6.26% YoY to ₹188.03 crore (₹18,802.83 lakh), up from ₹176.95 crore in Q1 FY26.

Operating Profitability & Margin Overview

Gross Profit: Came in at ₹68.90 crore, up 2.53% YoY from ₹67.20 crore in Q1 FY26 (down 1.57% QoQ from ₹70.00 crore in Q4 FY26).

Operating EBITDA: Stood at ₹28.60 crore, compared to ₹29.00 crore in Q1 FY26 and ₹30.30 crore in Q4 FY26.

Operating EBITDA Margin: Contracted to 15.30% in Q1 FY27 from 16.50% in Q1 FY26 and 15.70% in Q4 FY26, impacted by higher Sulphur prices and rising fuel costs.

Profit Before Tax (PBT): Declared at ₹23.75 crore (₹2,375.49 lakh), down 3.63% YoY from ₹24.65 crore (₹2,464.84 lakh) in Q1 FY26 and down 4.97% QoQ from ₹25.00 crore (₹2,499.74 lakh) in Q4 FY26.

Tax Expenses: Totaled ₹6.91 crore (₹690.53 lakh, comprising current tax of ₹5.65 crore and deferred tax of ₹1.25 crore), compared to ₹6.20 crore in Q1 FY26.

Net Profit After Tax (PAT): Reached ₹16.85 crore (₹1,684.96 lakh), reflecting a 12.93% YoY decline compared to ₹19.35 crore (₹1,935.20 lakh) in Q1 FY26 and a 6.58% QoQ decrease from ₹18.04 crore (₹1,803.72 lakh) in Q4 FY26.

PAT Margin: Stood at 9.00% for Q1 FY27, compared to 11.00% in Q1 FY26 and 9.30% in Q4 FY26.

Earnings Per Share (EPS): Basic and Diluted EPS stood at ₹8.43 per equity share (face value ₹5/- each, not annualized), down from ₹9.70 in Q1 FY26 and ₹9.04 in Q4 FY26.

Breakdown of Consolidated Expenses

Total expenditure for Q1 FY27 increased 7.86% YoY to ₹164.27 crore (₹16,427.34 lakh), compared to ₹152.30 crore in Q1 FY26:

Cost of Raw Materials Consumed: Rose 13.26% YoY to ₹126.80 crore (₹12,679.65 lakh) due to higher international Sulphur prices.

Changes in Inventories: Stood at -₹8.52 crore (-₹852.39 lakh).

Employee Benefits Expense: Decreased to ₹7.12 crore (₹712.08 lakh) from ₹7.82 crore in Q1 FY26.

Power and Fuel: Surged 29.90% YoY to ₹16.65 crore (₹1,664.66 lakh), driven by elevated geopolitical fuel cost pressures.

Finance Costs: Reduced to ₹0.97 crore (₹96.93 lakh), down from ₹1.39 crore in Q1 FY26.

Depreciation & Amortization: Stood at ₹4.70 crore (₹469.98 lakh).

Other Expenses: Came in at ₹16.56 crore (₹1,656.43 lakh), compared to ₹17.58 crore in Q1 FY26.

Capital Structure & Shareholding

Paid-Up Equity Share Capital: Expanded to ₹10.60 crore (₹1,060.45 lakh) with a face value of ₹5/- per share, up from ₹9.98 crore (₹997.50 lakh) in previous quarters.

Other Equity: Stood at ₹363.19 crore (₹36,319.06 lakh) as of March 31, 2026.

Commenting on the performance, Mr. Afzal Malkani, Managing Director, said, "This quarter marks a defining milestone in TANFAC's growth journey, with the successful completion of our ₹250 crores Qualified Institutional Placement (QIP), followed by a proposed preferential issue of ~₹100 crore led by our promoter, Anupam Rasayan India Limited. The strong support from institutional investors and our promoter underscores their confidence in TANFAC's long-term strategy and growth potential.

The proceeds will primarily fund our 20,000 MTPA HFC-32 refrigerant gas project, with a total investment of approximately ₹390 crores. The project is progressing as planned and remains on track for commissioning by the end of Q3 FY27. This strategic expansion will strengthen our downstream integration and establish TANFAC as a meaningful player in the high-growth refrigerant gas market.

The capital raise has also transformed our balance sheet, making TANFAC net debt-free and providing the financial flexibility to pursue our next phase of growth. Alongside HFC-32, we continue to evaluate opportunities to expand downstream fluorinated chemicals, enter next-generation fluorochemicals, and strengthen our backward integration.

During the quarter, revenue increased to ~₹187 crore from ~₹176 crore in the corresponding period last year, supported by healthy demand for Solar Grade DHF. Profitability was impacted by elevated sulphur prices, with the benefit of cost pass-through expected to reflect over the normal 30-45-day pricing cycle. The quarter also witnessed temporary demand disruptions arising from geopolitical situation in West Asia, affecting parts of the fluorochemical value chain.

While near-term external headwinds persist, our long-term growth outlook remains robust. Backed by a stronger balance sheet, disciplined execution, and strategic capacity expansion, we are well-positioned to deliver sustainable growth and create long-term value for our stakeholders."

Source : Equity Bulls

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