TANFAC Industries reported audited results for the quarter and financial year ended 31 March 2026, registering its highest ever revenue. Quarterly revenue was Rs 1,931 million (mn) and annual revenue was Rs 7,111 million (mn), representing year-on-year increases of 12.3 per cent and 27.7 per cent respectively. Management noted that raw material costs rose and that operating earnings were affected by higher operating costs.

Operating EBITDA for the year declined to Rs 1,121 mn while quarterly operating EBITDA was Rs 303 mn reflecting margin pressure; operating EBITDA margin for the year stood at 15.8 per cent compared with 23.1 per cent in the prior year. Profit after tax for the year was Rs 701 mn and quarterly profit after tax was Rs 180 mn. The company also recorded gross profit of Rs 700 mn for the quarter and Rs 2,663 mn for the year.

The board recommended a final dividend of Rs four and a half per equity share of face value Rs five each, subject to shareholder approval. Capital expenditure plans include an investment of Rs 4,950 mn to develop a downstream fluorinated product plant with 20,000 tonne (t) per annum capacity at the Cuddalore site targeted for commissioning in Q3 FY ’27. The company secured several long-term supply arrangements amounting to 12,500 t plus and contracts valued at about Rs 6,490 mn per annum, including a Rs 3,375 mn contract with a Japanese customer and a Rs 2,500 mn memorandum of understanding.

Management indicated that both phases of the Solar Grade DHF project were commissioned in mid and late 2025 with total annual capacity of 20,000 t and that orders worth Rs 10,680 mn have been booked for execution over the next three and a half years. Expectations were outlined that operating leverage will improve as Solar Grade DHF volumes ramp up and that research and development will be prioritised to support value added growth. Despite geopolitical uncertainty, management expressed confidence in long-term revenue and profitability improvement.