TANFAC Industries Ltd-$ — Q1 FY27 earnings call
Summary generated by AI from the official transcript TANFAC Industries Ltd-$ filed with BSE on 03 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
TANFAC reported Q1 FY27 revenue of approximately Rs 187 crore, up 6.3% year-on-year, driven by continued ramp-up of the solar grade DHF business, while EBITDA margin was 15.3% due to elevated sulphur prices and higher power and fuel costs. The company completed a Rs 250 crore Qualified Institutional Placement and approved a proposed preferential issue of approximately Rs 100 crore, becoming net debt-free. Management also discussed progress on the HFC-32 refrigerant gas project, which is on schedule for commissioning by the end of Q3 FY27, and outlined plans for further expansion into solar grade DHF, AHF, and electronic grade chemicals.
Numbers mentioned
Revenue: INR187 crores (Q1 FY27)
p. 5
“Revenue from operations increased by 6.3% year-on-year to INR187 crores compared to INR176 crores in Q1 FY26.”
N.R. Ravichandran, page 5 of the filed PDF · View the filing
Operating EBITDA: INR28.6 crores (Q1 FY27)
p. 5
“Operating EBITDA for the quarter stood at INR28.6 crores compared with INR29 crores in the corresponding quarter last year, with EBITDA margins at 15.3%.”
N.R. Ravichandran, page 5 of the filed PDF · View the filing
Profit after tax: INR16.8 crores (Q1 FY27)
p. 6
“Profit after tax for the quarter was INR16.8 crores compared with INR19.4 crores in Q1 of FY26.”
N.R. Ravichandran, page 6 of the filed PDF · View the filing
QIP size: INR250 crores
p. 3
“The biggest milestone during the quarter was the successful completion of our INR250 crores Qualified Institutional Placement, which received strong participation from several reputed institutional investors.”
Afzal Malkani, page 3 of the filed PDF · View the filing
HFC-32 project cost committed: INR315 crores (Q1 FY27)
p. 5
“Till Q1 FY27, we have committed INR315 crores against the project cost of INR395 crores.”
Afzal Malkani, page 5 of the filed PDF · View the filing
HF plant capacity utilization: 73% (Q1 FY27)
p. 10
“So, if we see in Q1 FY27, HF plant capacity utilization was 73% and sulfuric acid plant was around 85% to 88% and specialty fluoride is 50%.”
Afzal Malkani, page 10 of the filed PDF · View the filing
AHF realization: INR275 to INR280 (Q1 FY27)
p. 9
“On the AHF basis our on an average realization of around INR275 to INR280.”
Afzal Malkani, page 9 of the filed PDF · View the filing
Sulphur price: INR30 to INR105
p. 7
“Current sulphur price increased from about INR30 to INR105 as of now, but the availability of sulphur is not an issue.”
Afzal Malkani, page 7 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth FY27 — at least 30% · FY27
stated firmly by Afzal Malkani
p. 6
“So yes, so if you see, the company plans to achieve in the current year, at least we are planning to achieve the growth of at least 30% on account of launch of our new project in Q4 FY27 and ramp-up of capacity utilization of existing products.”
Afzal Malkani, page 6 of the filed PDF · View the filing
Revenue growth FY28 — over 60% · FY28
stated as an aspiration by Afzal Malkani
p. 6
“For FY28, we are targeting to achieve over 60% growth on account of ramp-up of the new project and other inorganic fluoride products currently which we are working on.”
Afzal Malkani, page 6 of the filed PDF · View the filing
EBITDA margin — 16% to 19% · next quarters
stated conditionally by Afzal Malkani
p. 6
“On the margin side, yes, in the next quarter onwards our if we talk about the EBITDA margins, then it will improve in the range of 16% to 19% and next year margin will be even much, much better, about 25% once this new project HFC-32 will be operational.”
Afzal Malkani, page 6 of the filed PDF · View the filing
HFC-32 commissioning — commissioning by end of Q3 FY27 · Q3 FY27
stated firmly by Hemango Gupta
p. 5
“Execution continues to progress well and remains on schedule for commissioning by the end of Q3 financial year 2027.”
Hemango Gupta, page 5 of the filed PDF · View the filing
HFC-32 project EBITDA margin — around 30%
stated firmly by Afzal Malkani
p. 7
“Yes, so for this particularly for this HFC-32 project as we mentioned in our earlier call that margin will be around 30% for the new project and overall business EBITDA margin would be around 25%.”
Afzal Malkani, page 7 of the filed PDF · View the filing
Blended EBITDA margin FY27 — 21% to 22% · FY27
stated conditionally by Afzal Malkani
p. 9
“So for the entire year, because in the Q4 this new project will be commissioned and for our existing business the margin is in the range of 16% to 18%, but considering the Q4 higher margin, on an average EBITDA margin would be around 21% to 22% for the whole year.”
Afzal Malkani, page 9 of the filed PDF · View the filing
Capex for solar grade, AHF, electronic grade expansion — around INR300 crores · next 3 to 4 months
stated as an aspiration by Afzal Malkani
p. 8
“Solar grade about INR30 crores to INR40 crores, AHF around INR120 crores, and electronic grade is around INR150 crores. So, it will be around INR300 crores capex in all the three segments.”
Afzal Malkani, page 8 of the filed PDF · View the filing
R-32 volume utilization FY28 — 80% to 85% · FY28
stated conditionally by Afzal Malkani
p. 9
“Volume guidance for 'FY2027-28 currently on a conservative basis we are considering as a 80% to 85%.”
Afzal Malkani, page 9 of the filed PDF · View the filing
R-32 volume utilization Q4 FY27 — 65% to 70% · Q4 FY27
stated conditionally by Afzal Malkani
p. 10
“'FY27 for the -- we are calculating 65% to 70% for the Q4.”
Afzal Malkani, page 10 of the filed PDF · View the filing
R-32 utilization coming year — 90% plus · coming year
stated as an aspiration by Hemango Gupta
p. 15
“I'm confident of getting 90% plus utilization in the coming year.”
Hemango Gupta, page 15 of the filed PDF · View the filing
Overall capex next 4 years — INR1,500 crores to INR1,700 crores · next 4 years
stated as an aspiration by Hemango Gupta
p. 19
“See, this number will be close to about INR1,500 crores to INR1,700 crores it will be the capex number.”
Hemango Gupta, page 19 of the filed PDF · View the filing
AHF capacity expansion — 20,000 to 30,000 tons · FY28
stated as an aspiration by Hemango Gupta
p. 15
“We are planning anything between 20,000 to 30,000 tons because we have a long-term plan of HFOs and high-performing fluoropolymers and electronic grade.”
Hemango Gupta, page 15 of the filed PDF · View the filing
AHF plant commissioning — FY28
stated conditionally by Hemango Gupta
p. 15
“No, I think in '28. '27 we'll start, '28 beginning or mid I think it should be commissioned.”
Hemango Gupta, page 15 of the filed PDF · View the filing
R-32 revenue mix post commissioning — 50%-50% domestic-export · post commissioning
stated conditionally by Hemango Gupta
p. 8
“And currently the 90% of revenue is domestic and balance 10% is exports, but post commissioning of RG, we expect this ratio to be 50%-50%.”
Hemango Gupta, page 8 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management guided 30% revenue growth in FY27 and over 60% in FY28, with margins improving to 16-19% next quarter and around 25% once HFC-32 is operational.
Answered by Afzal Malkani
Asked by Meet Gada: What is the revenue outlook for FY27 and FY28, and the expected margin range given R-32 commissioning?
p. 6
“So, in a nutshell, 60% growth will be there compared to in FY27.”
Afzal Malkani, page 6 of the filed PDF · View the filing
Management said they executed fast with proprietary and licensed technology and customer approvals take time, and currently they are the only producer.
Answered by Hemango Gupta
Asked by Aakash: Is TANFAC's first-mover advantage in solar grade DHF durable, and does management expect competition?
p. 7
“I can't comment on the competition, but today we are the only ones who are producing solar grade and selling solar grade and we are approved in almost all the customers in solar grade now.”
Hemango Gupta, page 7 of the filed PDF · View the filing
Management confirmed the solar grade capacity is fully sold out.
Answered by Hemango Gupta
Asked by Rajesh Gupta: Is the solar grade DHF capacity fully sold out?
p. 8
“Yes, Mr. Gupta, yes.”
Hemango Gupta, page 8 of the filed PDF · View the filing
Management estimated INR900-1,000 crore revenue from R-32 based on contracted pricing and volumes, plus additional AHF revenue.
Answered by Hemango Gupta
Asked by Rajesh Gupta: What revenue can be expected from R-32 post commissioning?
p. 8
“See, on an average we are at $5.5 per kg with our 65% of the contracts which we have done. So multiplied by 20,000 tons if I even take the next 35% at the same rate, so we should be getting in a revenue of almost INR900 to INR1,000 crores only from R-32”
Hemango Gupta, page 8 of the filed PDF · View the filing
Management explained the rationale as prioritizing speed-to-market and fixed margin certainty over spot pricing volatility.
Answered by Hemango Gupta
Asked by Dhruv Bajaj: Why did the company choose long-term contracts at lower pricing versus spot market for R-32?
p. 13
“So, looking at our speed-to-market, go-to-market where we are placing our 65% of the product right from day 1, instead of working on it, spending overheads, travel, hiring manpower and all, I've already placed our 65% of the product in the market at a decent price margin wherein it is also formula-based.”
Hemango Gupta, page 13 of the filed PDF · View the filing
Management confirmed AHF revenue will decline due to captive consumption for R-32 and solar grade.
Answered by Hemango Gupta
Asked by Sanjesh Jain: Will AHF revenue decline as more AHF is consumed captively for R-32?
p. 15
“AHF revenue will come down, yes.”
Hemango Gupta, page 15 of the filed PDF · View the filing
Management said the plant is about 60% complete, on track for commissioning around November end with no expected cost overruns.
Answered by Hemango Gupta
Asked by Preet Jain: What is the current completion status of the R-32 facility and timeline?
p. 17
“See, the plant is on track. We have completed almost 60% of the work and remaining 30%-35% will be finished by November.”
Hemango Gupta, page 17 of the filed PDF · View the filing
Management cited strict quality requirements (impurities under 10 parts per billion) and a multi-month learning curve as barriers.
Answered by Hemango Gupta
Asked by Nirvana Laha: What is preventing other AHF producers from entering the solar grade DHF market?
p. 21
“I know that there is a strict quality requirement of impurities cannot be more than 10 parts per billion.”
Hemango Gupta, page 21 of the filed PDF · View the filing
Risks flagged
Elevated sulphur prices and higher power and fuel costs impacted margins during the quarter
p. 5
“Margins during the quarter were impacted primarily by elevated sulphur prices and higher power and fuel costs, largely driven by the geopolitical situation in West Asia.”
N.R. Ravichandran, page 5 of the filed PDF · View the filing
Deferred tax adjustment impacted profit after tax
p. 6
“Apart from the moderation in operating profitability, PAT was also impacted by deferred tax adjustment during the quarter.”
N.R. Ravichandran, page 6 of the filed PDF · View the filing
Pricing pass-through has a lag of 30-45 days causing temporary margin pressure
p. 4
“However, we expect the benefit of cost pass-through to flow through over the normal pricing cycle which is 30 to 45 days.”
Afzal Malkani, page 4 of the filed PDF · View the filing
AHF revenue will decline in the interim due to captive consumption for R-32 and solar grade
p. 15
“AHF revenue will come down, yes.”
Hemango Gupta, page 15 of the filed PDF · View the filing
Volatility in sulphur prices, the key raw material, affects AHF realization outlook
p. 9
“Currently we see next 4 to 6 month it would be stable, but it still again depends on the sulphur price which is the key raw material.”
Afzal Malkani, page 9 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.