TANFAC Industries has reported a steady performance for the first quarter of FY27, with operational revenue rising 6.35% year-on-year to Rs. 187.18 crore, supported by stronger capacity utilization and increased contribution from Solar Grade Dilute Hydrofluoric Acid (DHF).
The fluorine chemicals manufacturer posted a consolidated net profit of Rs. 16.85 crore for Q1 FY27, although profitability declined 12.93% compared with Rs. 19.35 crore recorded in the same quarter last year. The company attributed the pressure on margins to higher raw material prices, particularly sulphur, along with elevated fuel costs triggered by geopolitical tensions in West Asia.
Revenue from operations increased from Rs. 176 crore in Q1 FY26 to Rs. 187.18 crore in Q1 FY27. Total revenue also grew 6.26% year-on-year to Rs. 188.03 crore.
However, the company witnessed a sequential decline of 3.06% compared with Q4 FY26 revenue of Rs. 193.08 crore, impacted by temporary supply chain disruptions linked to West Asian geopolitical developments.
Operating EBITDA stood at Rs. 28.60 crore, compared with Rs. 29 crore in Q1 FY26 and Rs. 30.30 crore in the previous quarter. EBITDA margin narrowed to 15.30% from 16.50% a year ago, reflecting higher input and energy costs.
TANFAC’s total expenditure increased 7.86% year-on-year to Rs. 164.27 crore during the quarter.
Raw material consumption rose 13.26% to Rs. 126.80 crore due to increased international sulphur prices, while power and fuel expenses surged nearly 30% to Rs. 16.65 crore amid higher energy costs.
Profit before tax declined 3.63% year-on-year to Rs. 23.75 crore, while PAT margin moderated to 9% from 11% in Q1 FY26.
Basic and diluted earnings per share stood at Rs. 8.43 per share, compared with Rs. 9.70 in the corresponding quarter last year.
Highlighting the company’s strategic expansion plans, TANFAC Managing Director Afzal Malkani said the successful completion of the Rs. 250 crore Qualified Institutional Placement (QIP), followed by a proposed preferential issue of around Rs. 100 crore led by promoter Anupam Rasayan India Limited, marks a major milestone for the company.
"This quarter marks a defining milestone in TANFAC's growth journey, with the successful completion of our Rs. 250 crores Qualified Institutional Placement (QIP), followed by a proposed preferential issue of ~Rs. 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."
He added that the funds will support the company’s ambitious HFC-32 refrigerant gas project.
"The proceeds will primarily fund our 20,000 MTPA HFC-32 refrigerant gas project, with a total investment of approximately Rs. 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."
