Tanfac Industries Ltd

BSE: 506854

₹ 3,285.5-0.89%refreshed 23 Oct, 03:50 pm ISTMarket cap: ₹ 7,108 crWebsite: www.tanfac.comUpdated: 24 Oct 2026

About

Tanfac Industries Ltd is a fluorine-based specialty chemicals manufacturer operating since 1985 at SIPCOT Industrial Estate, Cuddalore, Tamil Nadu, producing anhydrous hydrofluoric acid, aluminium fluoride, sulphuric acid, and a range of fluoride derivatives across ~135,000 MT annual capacity. A joint venture between Anupam Rasayan India Limited and TIDCO, it is among the largest producers of Anhydrous Hydrofluoric Acid and Aluminium Fluoride in India, and commissioned the country's first solar-grade DHF plant. Revenue from operations reached ₹711 crores in FY26, up 27% year-on-year.^[1][2][3]

Business segments

HF and its derivatives contribute 70% of revenues in FY25; sulphuric acid and other HF-based chemicals contribute the remaining 30%.^[1]

Products

Product portfolio includes Anhydrous Hydrofluoric Acid, Aluminium Fluoride, Dilute Hydrofluoric Acid, Potassium Fluoride, Potassium Bifluoride, Boron Trifluoride Complexes, Sulphuric Acid, Oleum, and Sodium Silico Fluoride.^[1]
The company offers 12+ special products including differentiated grades of Hydrofluoric Acid and Specialty Fluorides.^[1]
Tanfac is the first and only domestic supplier of Solar Grade Dilute Hydrofluoric Acid in India, with product certified by a leading Indian solar wafer manufacturer.^[4][1]

Operations and capacity

Integrated facility spans 60 acres at SIPCOT Industrial Estate, Cuddalore, Tamil Nadu, with total annual manufacturing capacity of ~135,000 MT as of Q3 FY26.^[1][4]
Hydrofluoric Acid capacity was doubled from 15,000 MTPA to ~30,000 MTPA in October 2024 with a total investment of ~₹100 crores, described as the lowest per-ton investment in the industry.^[2]
Both phases (10,000 MTPA each) of the Solar Grade DHF plant were commissioned in June 2025 and October 2025, bringing total solar-grade DHF capacity to 20,000 MTPA.^[2][4]
Key raw materials are Fluorspar, Sulphur, and Potassium Carbonate, all imported and priced in US dollars, creating foreign-exchange exposure.^[1]

Key operating numbers

Sulphuric acid capacity utilisation was 101% in FY26; hydrofluoric acid utilisation was ~95% in FY26; specialty fluorides utilisation was ~41% in FY26.^[2]
Solar grade DHF commands ₹15 - 20/kg higher realisation than industrial grade HF, with only ₹3 - 5/kg incremental cost, yielding ₹10 - 15/kg margin improvement.^[2]
Sulphur input cost rose from ~₹30/kg in FY25 to ₹38 - 40/kg in FY26, compressing operating EBITDA from ₹129 crores (23.1% margin) in FY25 to ₹112 crores (15.8%) in FY26.^[2]
An unplanned maintenance shutdown of the HF-1 distillation column in FY26 resulted in an estimated ₹70 crores of lost production.^[2]
Working capital cycle improved to 91 days in FY26, down 8 days year-on-year.^[2]

Customers and distribution

Cumulative customer base of 105 as of FY25, of which 15 are overseas customers.^[1]
Long-term supply agreements aggregating ~₹3,612 crores over 5 - 7 years were secured during FY26 with global customers, plus an additional indefinite-duration agreement with Blue Star (~₹61 crores per annum).^[2]
Solar grade DHF agreements include Kredence Electronics Materials (₹732 crores, up to FY29) and Krishna PV Resources (₹336 crores, up to FY29).^[4]
A Japanese customer has signed an LOI for 7,500 MTPA of HFC-32 refrigerant gas for 7 years (~₹2,362 crores); 65% of the planned 20,000 MTPA HFC-32 capacity (13,500 MTPA) is already tied up under long-term contracts.^[4][2]
Of the contracted HFC-32 volume, 75 - 80% is destined for export markets and 15 - 20% for domestic markets.^[2]

Expansion and capex

₹495 crore capex announced for a 20,000 MTPA HFC-32 refrigerant gas plant (₹405 crores) and other value-added fluorinated products (₹90 crores) at the existing Cuddalore site, targeted for commissioning by Q3 FY27.^[2][4]
The HFC-32 plant is expected to generate ₹900 - 1,000 crores in annual revenue once operational, with a payback period of less than four years.^[2]
To fund the HFC-32 capex, ~₹400 crores is planned to be raised: ₹100 crores via promoter preferential allotment and ₹300 crores via QIP and term debt.^[2]
An additional 30,000 MTPA anhydrous HF capacity expansion was planned to be announced within two to three months of the Q4 FY26 call, to support HFC-32 production.^[2]
A second 20,000 MTPA solar grade DHF plant is planned alongside the new HF unit, expected to be commissioned around June 2027.^[2]
Further capex of ₹500 - 700 crores is planned beyond the HFC-32 project for future products including fluoropolymers, electronic chemicals, battery chemicals, and inorganic fluorides.^[2]

Recent developments

FY26 revenue from operations reached a record ₹711 crores, up 27% year-on-year from ₹557 crores in FY25, with Q4 FY26 revenue of ₹193 crores up 11% quarter-on-quarter.^[2]
Anupam Rasayan India Limited acquired a significant stake in Tanfac in May 2022, strengthening technical expertise and widening the product portfolio.^[1]

Market Cap

₹7,108 Cr

High / Low

₹3,648 / 1,633

Stock P/E

98.4

Price / Book

17.6

Book Value

₹187

EPS

₹35.2

No. of Shares

2 Cr

ROCE

23.7%

ROE

20.5%

OPM

13.6%

Debt / Equity

0.25

Sales

₹711 Cr

Net Profit

₹70 Cr

Promoter holding

49.0%

Loading chart…

Signal history

AI Deep Dive

The analysis Screener can't give you

Our models read the latest earnings call, annual report, and financials end-to-end - then grade management, value the business, and flag the risks. Unlock all of it for this company:

Verdict
The headline call - descriptive label, conviction, and the synthesis behind it.
Valuation
Guidance-anchored P&L bridge - worst / average / best multiple cases.
Walk the talk
Did management deliver on past guidance? A commitment-by-commitment scorecard.
Red flags
Forensic and governance risk pointers, severity-ranked.
Balance sheet
Solvency and earnings-quality score.
Concall briefs
Quarter-by-quarter earnings-call briefs - what changed and why.

₹49 unlocks this company for 90 days, ₹299 for a full year - bundles bring it lower. Built on public disclosures - educational, not investment advice.

AI Deep Dive

Verdict

Locked

The headline call - descriptive label, conviction, and the synthesis behind it.

Company data

Financials