TANFAC Industries Ltd-$ — Q4 FY26 earnings call
Summary generated by AI from the official transcript TANFAC Industries Ltd-$ filed with BSE on 16 May 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 its highest ever quarterly and full year revenue of Rs 193 crore and Rs 711 crore respectively for Q4 and FY26, with revenue growing 27% year-on-year, while operating EBITDA margin declined to 16% from 23% in FY25 due to higher sulphur costs and one-off factors. Management detailed a Rs 495 crore capex plan for a 20,000 tonne HFC-32 and downstream fluorinated products facility at Cuddalore, targeted for commissioning by Q3 FY27, alongside existing long-term contracts worth over Rs 3,600 crore and solar grade DHF orders of about Rs 1,068 crore. Management also discussed capacity utilization levels across its Sulphuric acid, HF and specialty fluoride segments, and fielded extended questions on HFC-32 quota allocation under the government's phase-down framework.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Quarterly revenue from operations: INR193 crores (Q4 FY26)
p. 5
“I am pleased to share that we achieved our highest ever quarterly and full year revenue from the operations of INR193 crores and INR711 crores, respectively.”
Hemango Gupta, page 5 of the filed PDF · View the filing
Full year revenue from operations: INR711 crores (FY26)
p. 6
“Our revenue from operations had grown up by 27% year-on-year from INR557 crores in FY25 to INR711 crores in FY26.”
N.R. Ravichandran, page 6 of the filed PDF · View the filing
Operating EBITDA: INR112 crores (FY26)
p. 6
“Our operating EBITDA had decreased by INR17 crores year-on-year from INR129 crores in FY25 to INR112 crores in FY26.”
N.R. Ravichandran, page 6 of the filed PDF · View the filing
Operating EBITDA margin: 16% (FY26)
p. 7
“In percentage terms, our operating EBITDA is 16% of the revenue when compared to 23% in FY25.”
N.R. Ravichandran, page 7 of the filed PDF · View the filing
Profit After Tax: INR70 crores (FY26)
p. 7
“Our Profit After Tax decreased by INR18 crores from INR88 crores in FY25 to INR70 crores in FY26.”
N.R. Ravichandran, page 7 of the filed PDF · View the filing
PAT margin: 10% (FY26)
p. 7
“In percentage terms, our PAT is 10% of the revenue when compared to 16% in FY25.”
N.R. Ravichandran, page 7 of the filed PDF · View the filing
Sulphuric acid plant capacity utilization: 101% (FY26)
p. 7
“The Sulphuric acid plant operated at 101% capacity utilization, while the hydrofluoric plant operated at around 95% utilization levels, reflecting strong demand and efficient operations.”
N.R. Ravichandran, page 7 of the filed PDF · View the filing
Specialty fluoride segment utilization: 41% (FY26)
p. 7
“In the specialty fluoride segment, utilization stood at around 41% and we expect utilization levels in this segment to improve progressively as demand for value-added products scale up over the coming quarters.”
N.R. Ravichandran, page 7 of the filed PDF · View the filing
Working capital cycle: 91 days (FY26)
p. 7
“I would like to highlight that we improved our working capital cycle by 8 days to 91 days in FY26, reflecting our continued emphasis on operational efficiency and disciplined working capital management.”
N.R. Ravichandran, page 7 of the filed PDF · View the filing
Return on equity: 19% (FY26)
p. 7
“Our balance sheet and return ratios continue to remain healthy, with return on equity at 19% and return on capital employed at 20%.”
N.R. Ravichandran, page 7 of the filed PDF · View the filing
Solar grade DHF orders secured: approximately INR1,068 crores (next 3.5 years)
p. 4
“Further, for this business, we have already secured orders worth approximately INR1,068 crores expected to be executed over the next 3.5 years.”
Afzal Malkani, page 4 of the filed PDF · View the filing
Long-term supplier contracts value: approximately INR3,612 crores (5 to 7 years)
p. 5
“These include contracts aggregating to approximately INR3,612 crores over a period of 5 to 7 years, along with an additional agreement with Blue Star for an indefinite duration.”
Hemango Gupta, page 5 of the filed PDF · View the filing
Announced capex plan: approximately INR495 crores
p. 5
“As a part of this strategy, we have already announced a capital expenditure plan of approximately INR495 crores.”
Hemango Gupta, page 5 of the filed PDF · View the filing
Revenue from Anupam (related party): around INR9 crores (FY26)
p. 10
“Yes, it is in FY25-26 it was around INR9 crores. It is the 1.2% of the total revenue and it is at the arm's length price only.”
Afzal Malkani, page 10 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.
Operating EBITDA margin — 15% to 18%
stated as an aspiration by N.R. Ravichandran
p. 7
“Going forward, we expect operating EBITDA margins to remain range-bound around 15% to 18% from existing line of business.”
N.R. Ravichandran, page 7 of the filed PDF · View the filing
HFC-32 / downstream project commissioning — Q3 FY27
stated firmly by Hemango Gupta
p. 5
“The project is progressing well and remains on track for the commissioning by Q3 in the year FY27.”
Hemango Gupta, page 5 of the filed PDF · View the filing
Additional 30,000 tons AHF capacity announcement — 30,000 tons · next two-three months
stated firmly by Hemango Gupta
p. 11
“we are going to announce it in next few months, that 30,000 tons of capacity.”
Hemango Gupta, page 11 of the filed PDF · View the filing
Additional solar grade DHF plant commissioning — 20,000 metric tons per annum · June 27
stated as an aspiration by Afzal Malkani
p. 14
“So within 11 to 12 months, the HF and new solar grade plant will come together. So we can consider June ‘27.”
Afzal Malkani, page 14 of the filed PDF · View the filing
R-32 capacity commissioning — October end or early November, Q3 FY27
stated firmly by Hemango Gupta
p. 18
“We are going ahead with our plant of 20,000 metric tons and we are halfway through it and our capacity will be commissioned probably in October end or November, early November, Q3 of FY27.”
Hemango Gupta, page 18 of the filed PDF · View the filing
Revenue from R-32 capex — around INR900 to INR1,000 crores revenue every year
stated as an aspiration by Afzal Malkani
p. 18
“And this gives us a revenue of around INR900 to INR1,000 crores revenue every year.”
Afzal Malkani, page 18 of the filed PDF · View the filing
Revenue target — close to around INR2,000 crores · FY28
stated as an aspiration by Hemango Gupta
p. 19
“Yes. FY28 I think we should be close to around INR2,000 crores, INR1,600 to INR2,000 crores because the new HF plant would also be operational at that time.”
Hemango Gupta, page 19 of the filed PDF · View the filing
Revenue target — INR3,000 to INR3,500 crores · next five years
stated as an aspiration by Hemango Gupta
p. 19
“So our aim is to get to almost INR3,000 to INR3,500 crores in next five years.”
Hemango Gupta, page 19 of the filed PDF · View the filing
Future capex — another INR500 to INR700 crores · next three to five years
stated as an aspiration by Hemango Gupta
p. 18
“But to answer your question, yes, next three to five years we will invest another INR500 to INR700 crores.”
Hemango Gupta, page 18 of the filed PDF · View the filing
HFC-32 payback period — less than four years
stated conditionally by N.R. Ravichandran
p. 15
“See, payback period for the proposed HFC project, we expect it will be less than four years. Given the current scenario and current high demand for the product and very good realizations, we expect payback will be less than four years.”
N.R. Ravichandran, page 15 of the filed PDF · View the filing
Margin uplift from R-32 revenue — margins may increase by 3% to 4% · last quarter of the year
stated conditionally by Hemango Gupta
p. 13
“But with the last quarter of getting R-32 revenue, I think the margins may increase by 3% to 4%.”
Hemango Gupta, page 13 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 explained the quota will be decided by the government under the April 2026 office memorandum, with a freeze applicable from January 2028 and CY2027 as a free production year.
Answered by Hemango Gupta
Asked by Harsh Shah: What is the status of the quota for R-32 given the capex being undertaken?
p. 8
“The quota, Harsh, will be decided in 2027 and it rests with the government.”
Hemango Gupta, page 8 of the filed PDF · View the filing
Management reiterated reliance on the government memorandum for quota clarity, confirmed fluorspar and sulphur availability via annual contracts, and gave export/domestic split and contracted tonnage for the new capacity.
Answered by Hemango Gupta
Asked by Rohit Nagraj: How confident is the company of securing an HFC-32 quota given incumbents' existing baselines, and how is fluorspar/sulphur sourcing and contract mix structured?
p. 10
“The third is out of this 20,000 tons, 13,500 tons we have tied up with contracts. So broad level if you ask me, about 75% to 80% is exports, 15% to 20% will be domestic.”
Hemango Gupta, page 10 of the filed PDF · View the filing
CFO attributed it to an unusually strong Q3 FY25, higher sulphur prices during FY26, and other one-off items including forex M2M loss and lost HF production due to maintenance.
Answered by N.R. Ravichandran
Asked by Akash Dobhada: Why did gross margins decline in FY26 versus FY25?
p. 12
“So we had a very good Q3, that is the reason. But apart from that, the prices of sulphur has increased in FY26, used to be around INR30 per kg in FY25, increased up to INR38 to INR40 per kg as an average consumption rate I am saying.”
N.R. Ravichandran, page 12 of the filed PDF · View the filing
Management outlined a funding mix for the R-32 capex involving promoter preferential allotment, QIP and term debt.
Answered by Afzal Malkani
Asked by Meeth Gada: How is the planned capex going to be funded?
p. 15
“So for that, particularly for this total capex, INR405 crores is for the R-32. So we are planning to raise around INR400 crores, out of which INR100 crores will be from the promoters by way of the preferential allotment and remaining INR300 crores by way of QIP and term debt.”
Afzal Malkani, page 15 of the filed PDF · View the filing
Management said there is no penalty tied to quota non-allocation, but mutual penalty clauses apply once production begins if either party fails to meet contracted volumes.
Answered by Hemango Gupta
Asked by Nitesh Dhoot: Are the R-32 supply contracts contingent on securing production quota, and what penalty exposure exists if TANFAC cannot supply?
p. 16
“No, no, see, there are two things. We are not able to supply because of quota. So that penalty is not there in the clause.”
Hemango Gupta, page 16 of the filed PDF · View the filing
Risks flagged
Rising sulphur prices due to the West Asian crisis increasing raw material costs
p. 10
“Sulphur, due to West Asian crisis, the price is going up, but the availability is there.”
Hemango Gupta, page 10 of the filed PDF · View the filing
Lost HF production due to unplanned maintenance and a bottleneck in the distillation column
p. 12
“during FY2025-26, we lost the production of around INR70 crores with HF due to unplanned maintenance and bottleneck due to distillation column in our old HF-1 plant.”
Afzal Malkani, page 12 of the filed PDF · View the filing
Mark-to-market forex loss from rupee depreciation against the USD
p. 12
“there was the also this M2M loss of around INR2.5 crores to INR3 crores due to the depreciation of rupee against the USD on 31st March ‘26.”
Afzal Malkani, page 12 of the filed PDF · View the filing
Evolving geopolitical environment in the Western Asian region affecting business outlook
p. 6
“Despite the evolving geopolitical environment, particularly in the Western Asian region, we remain confident about the overall business outlook”
Hemango Gupta, page 6 of the filed PDF · View the filing
Lag in passing on raw material cost increases to customers
p. 15
“We have been able to pass on but definitely there is a lag of around 30 to 40 days.”
Afzal Malkani, page 15 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.