HF Plant Capacity Utilization
95%
Flat YoY
HF plant operated at 95% utilization in FY26, reflecting strong demand.
TANFAC
Diversified
28 Apr 2026
Tanfac Industries Ltd — Q4 FY26
Tanfac Industries delivered record full-year revenue of ₹711 crore, up 27% YoY, driven by improved realizations and volume growth.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Tanfac Industries delivered record full-year revenue of ₹711 crore, up 27% YoY, driven by improved realizations and volume growth. However, EBITDA margin contracted to 15.7% (from 23% in FY25) due to normalization from an exceptional prior year, higher sulfur costs, unplanned HF plant maintenance, and increased depreciation from new solar-grade DHF capacity. PAT fell to ₹70 crore (10% margin). The company secured long-term contracts covering ~65% of its upcoming 20,000 MT HFC-32 capacity, with a ₹495 crore capex on track for Q3 FY27 commissioning. Solar-grade DHF orders worth ₹168 crore provide 3.5-year visibility. Key risk: quota allocation uncertainty under the Kigali Amendment could delay HFC-32 revenue ramp-up.
Key Numbers
Sulfuric Acid Plant Capacity Utilization
101%
+1pp YoY
Sulfuric acid plant exceeded nameplate capacity at 101% utilization.
Solar DHF Capacity Utilization
41%
New capacity
Solar-grade DHF utilization at 41% in FY26, expected to improve as demand scales.
Working Capital Cycle
91 days
-8 days YoY
Working capital cycle improved by 8 days to 91 days in FY26.
Management Guidance
HFC-32 plant commissioning by Q3 FY27
The 20,000 MT HFC-32 facility is on track for commissioning in Q3 of FY27 (Oct-Dec 2026).
Management guidance expansionEBITDA margin guidance of 15-18% for existing business
Management expects EBITDA margins from existing lines of business to remain in the 15-18% range.
Management guidance marginsRevenue target of ₹1,600-2,000 crore by FY28
Management guided for revenue of ₹1,600-2,000 crore in FY28, driven by new capacities.
Management guidance revenueAdditional capex of ₹500-700 crore over next 3-5 years
Beyond the current ₹495 crore capex, the company plans further investments of ₹500-700 crore for new products.
Management guidance capexKey Risks
HFC quota allocation uncertainty
The Kigali Amendment quota allocation for HFC-32 production is uncertain; incumbents may consume the national quota, potentially limiting Tanfac's production.
high · analyst_questionRaw material cost inflation
Sulfur prices have increased due to the West Asia crisis, and while costs are passed through with a lag, margin pressure persists.
medium · management_commentaryExecution risk on large capex
The ₹495 crore capex is the largest in company history; any delays or cost overruns could impact returns.
medium · data_observationCustomer concentration in solar DHF contracts
Solar DHF orders of ₹168 crore over 3.5 years book ~85% of capacity, but reliance on a few customers poses concentration risk.
low · data_observationNotable Quotes
We are the first and the sole solar grade DHF manufacturer in the country and this positions us strongly in high purity applications linked to the photovoltaic and semiconductor industries.
Collectively these contracts account for nearly 65% of the proposed capacity providing strong demand visibility even before the commissioning of the plant.
The clause number three is clearly mentioning implementation of an appropriate framework permitting HFC production after taking into account the production capacity of the operational units as on 1st January 2028.
Frequently Asked Questions
What was Tanfac Industries's revenue in Q4 FY26?
Tanfac Industries reported revenue of ₹711 Cr in Q4 FY26, representing a +27% change compared to the same quarter last year.
What guidance did Tanfac Industries management give for FY27?
HFC-32 plant commissioning by Q3 FY27: The 20,000 MT HFC-32 facility is on track for commissioning in Q3 of FY27 (Oct-Dec 2026). EBITDA margin guidance of 15-18% for existing business: Management expects EBITDA margins from existing lines of business to remain in the 15-18% range. Revenue target of ₹1,600-2,000 crore by FY28: Management guided for revenue of ₹1,600-2,000 crore in FY28, driven by new capacities. Additional capex of ₹500-700 crore over next 3-5 years: Beyond the current ₹495 crore capex, the company plans further investments of ₹500-700 crore for new products.
What are the key risks for Tanfac Industries in FY27?
Key risks include HFC quota allocation uncertainty — The Kigali Amendment quota allocation for HFC-32 production is uncertain; incumbents may consume the national quota, potentially limiting Tanfac's production.; Raw material cost inflation — Sulfur prices have increased due to the West Asia crisis, and while costs are passed through with a lag, margin pressure persists.; Execution risk on large capex — The ₹495 crore capex is the largest in company history; any delays or cost overruns could impact returns.; Customer concentration in solar DHF contracts — Solar DHF orders of ₹168 crore over 3.5 years book ~85% of capacity, but reliance on a few customers poses concentration risk..
Did Tanfac Industries meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Tanfac Industries Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.