New Product Or Brand Launch
Expected: FY26-FY29HIGH confidence
What: Solar Grade DHF Capacity: 20,000 MTPA
Impact: ₹1,068 Cr contract value
“Successfully implemented both phases of Solar Grade DHF (capacity 10,000 MTPA each) in Jun-25 & Oct-25.”
Tanfac Industries Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +11.7%WeakRe-Entry
In , Tanfac Industries Ltd (Chemicals - Inorganic) is outperforming Nifty 500 with +11.7% relative strength. Fundamentals: Weak.
Tanfac Industries Ltd Key Facts
- PE Ratio
- 68.6x
- Market Cap
- ₹4,808 Cr
- PAT Growth YoY
- -22%
- Revenue Growth YoY
- +12%
- OPM
- 16.0%
- RS vs Nifty 500
- +11.7%
PE: At PeakDanger Bubble
What's Happening
⚠️PE rising despite falling earnings — price running ahead of reality
💪Debt reduced 67% YoY — balance sheet strengthening
💰Trading 78% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. New Product Or Brand Launch
FY26-FY29HIGH
2. Order Book Or Contract Wins
7 YearsHIGH
3. Operating Leverage Inflection
Oct-24MEDIUM
Key Risks
1. Spurt in key input material costs leading to EBITDA margin compression from 28
HIGHSector-Specific Signals
Capacity UtilisationHighest-ever
Hydrofluoric Acid Capacity29,700 MTPA+100%
Solar Grade DHF Capacity20,000 MTPANew Capacity
Refrigerant Gas Plant Investment₹495 Crores
Key Numbers
PAT Growth YoY
-22%
Inflection Down
Revenue YoY
+12%
Stable
Operating Margin
16.0%
-500 bps YoY
PE Ratio
68.6
Current Price
₹2,410
Dividend Yield
0.19%
Fundamental Score
37/100
Weak
3Y PAT CAGR
+8%
Market Cap
4.8K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Tanfac Industries Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Order Book Or Contract Wins
Expected: 7 YearsHIGH confidence
What: Refrigerant Gas Contract: ₹2,362 Cr
“Signed Long Term Agreement with Japanese Customer for supply of 7,500 MTPA Refrigerant Gas for 7 years (Value ~ Rs. 2,362 cr)”
Operating Leverage Inflection
Expected: Oct-24MEDIUM confidence
What: HF Capacity: 29,700 MTPA
“Capacity doubled from 14,850 MTPA to 29,700 MTPA, making it one of India's largest AHF facilities”
Value Added Product Mix Shift
Expected: OngoingMEDIUM confidence
What: Specialty vs Commodity: 30% revenue share
“Transitioning from Commodity Chemicals to Specialty Solutions through Forward Integration”
Geographical Expansion
Expected: FutureLOW confidence
What: Target Export Regions: Japan, Middle-East, Africa, Europe
“Target Export Regions include: Japan, Middle-East, Africa, Europe”
What Are the Key Risks for Tanfac Industries Ltd?
Earnings deceleration risks from management commentary
Spurt in key input material costs leading to EBITDA margin compression from 28
HIGHTrigger: Spurt in key input materials.
Impact: PAT impact: ₹15.57 Cr PAT vs ₹34.80 Cr YoY
Management view: Maintained revenue levels despite margin pressure.
Monitor: commodity
What Is Tanfac Industries Ltd's Management Saying?
Key quotes from recent conference calls
“Signed Long Term Agreement with Japanese Customer for supply of 7,500 MTPA Refrigerant Gas for 7 years (Value ~ Rs. 2,362 cr) [Initiative: Entry into Refrigerant Gas Segment (HFC-32)]”
“Signed long term agreement with Kredence Electronics Materials & Krishna PV Resources Pvt Ltd for supply of Solar Grade DHF upto FY’29 [Initiative: Solar Grade DHF Expansion]”
“EBITDA maintained at healthy level despite pressure on margin due to spurt in key input materials [Risk (commodity): HIGH]”
“Successfully implemented both phases of Solar Grade DHF (capacity 10,000 MTPA each) in Jun-25 & Oct-25. [Catalyst (new_product_or_brand_launch): ACTIVE]”
What Did Tanfac Industries Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹173.30 Crores
YoY -2.7%QoQ +2.7%
Why: Revenue maintained at healthy level on the back of high volume of HF following successful completion of Expansion project in Oct-24.
Revenue was slightly down YoY from ₹178.18 Cr but showed sequential improvement from Q2FY26.
EBITDA
₹25.88 Crores
YoY -48.6%Margin 14.9%
Why: EBITDA maintained at healthy level despite pressure on margin due to spurt in key input materials.
Margins contracted significantly from 28.24% in Q3FY25 due to raw material cost spikes.
PAT
₹15.57 Crores
YoY -55.3%QoQ -9.4%
Why: Maintained at healthy level despite pressure on margin due to increase in input material costs.
PAT followed the EBITDA trend, impacted by higher operating expenses of ₹147.42 Cr.
Other Highlights
• 9M FY26 Revenue reached ₹518.00 Crores, a 35% YoY growth.
• Successfully implemented both phases of Solar Grade DHF (10,000 MTPA each) in Jun-25 & Oct-25.
• Announced investment of Rs. 495 Crores in 20,000 MTPA Refrigerant Gas Plant.
What Sector Metrics Matter for Tanfac Industries Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Capacity Utilisation
Highest-ever
Why: Achieved highest-ever production & capacity utilization in 2024.
Hydrofluoric Acid Capacity
29,700 MTPA
YoY +100%QoQ 0%
Why: Commissioned a new state-of-the-art Hydrofluoric Acid (HF) unit in October 2024.
Solar Grade DHF Capacity
20,000 MTPA
YoY New CapacityQoQ +10,000 MTPA
Why: Commissioned two phases (10,000 MTPA each) in Jun & Oct-2025.
Refrigerant Gas Plant Investment
₹495 Crores
Why: Strategic entry into the refrigerant gas segment.
Specialty Chemicals Revenue Share
30%
Why: SAP & HF based chemicals contribute 30% of revenues.
Hydrofluoric Acid Revenue Share
70%
Why: Hydrofluoric Acid (HF) remains the core revenue driver.
Total Clients
105+
Manufacturing Facility Area
60 acres
YoY 0QoQ 0
What Is Tanfac Industries Ltd's Management Guidance?
Forward-looking targets from management
Capex Plan
₹495 Cr
Capex Plan
₹495 Crores
20,000 MTPA downstream fluorinated chemicals manufacturing facility (Refrigerant Gas)
Management Tone: BULLISH
How Fast Is Tanfac Industries Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +12% | +24% | Stable |
| PAT (Net Profit) | -22% | +8% | Inflection Down |
| OPM | 16.0% | -500 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Top Chemicals - Inorganic Stocks Beating Nifty 500
Frequently Asked Questions: Tanfac Industries Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Tanfac Industries Ltd's latest quarterly results?
Tanfac Industries Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: -21.7% (inflecting downward)
- Revenue Growth YoY: +12.2%
- Operating Margin: 16.0% (volatile)
Is Tanfac Industries Ltd's profit growing or declining?
Tanfac Industries Ltd's profit is declining with an inflecting downward trend.
- PAT Growth YoY: -21.7% (latest quarter)
- PAT Growth QoQ: +12.5% (sequential)
- 3-Year PAT CAGR: +7.7%
- Trend: Inflecting downward — consistent growth pattern
What is Tanfac Industries Ltd's revenue growth trend?
Tanfac Industries Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +12.2%
- Revenue Growth QoQ: +11.6% (sequential)
- 3-Year Revenue CAGR: +23.8%
How is Tanfac Industries Ltd's operating margin trending?
Tanfac Industries Ltd's operating margin is volatile.
- Current OPM: 16.0%
- OPM Change YoY: -5.0% basis points
- OPM Change QoQ: +1.0% basis points
What is Tanfac Industries Ltd's 3-year profit and revenue CAGR?
Tanfac Industries Ltd's long-term compounding rates
- 3-Year Profit CAGR: +7.7%
- 3-Year Revenue CAGR: +23.8%
Is Tanfac Industries Ltd's growth accelerating or decelerating?
Tanfac Industries Ltd's earnings growth is inflecting downward with improving on a sequential basis.
- YoY Acceleration: +32.6% bps
- Sequential Acceleration: +18.4% bps
- Margin Warning: Operating margins are under pressure
What is Tanfac Industries Ltd's trailing twelve month (TTM) performance?
Tanfac Industries Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹70 Cr
- TTM PAT Growth: -20.4% YoY
- TTM Revenue: ₹711 Cr
- TTM Revenue Growth: +27.6% YoY
- TTM Operating Margin: 15.8%
Is Tanfac Industries Ltd overvalued or undervalued?
Tanfac Industries Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 68.6x
- Price-to-Book: 12.9x
What is Tanfac Industries Ltd's current PE ratio?
Tanfac Industries Ltd's current PE ratio is 68.6x.
- Current PE: 68.6x
- Market Cap: 4.8K Cr
- Dividend Yield: 0.19%
How does Tanfac Industries Ltd's valuation compare to its history?
Tanfac Industries Ltd's current PE is 68.6x.
- Current PE: 68.6x
- Valuation Assessment: Significantly Overvalued
What is Tanfac Industries Ltd's price-to-book ratio?
Tanfac Industries Ltd's price-to-book ratio is 12.9x.
- Price-to-Book (P/B): 12.9x
- Book Value per Share: ₹187
- Current Price: ₹2410
Is Tanfac Industries Ltd a fundamentally strong company?
Tanfac Industries Ltd is rated Weak with a fundamental score of 36.51/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +12.2% (10% weight)
- PAT Growth YoY: -21.7% (10% weight)
- PAT Growth QoQ: +12.5% (10% weight)
- Margins stable (10% weight)
Is Tanfac Industries Ltd debt free?
Tanfac Industries Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹93 Cr
What is Tanfac Industries Ltd's return on equity (ROE) and ROCE?
Tanfac Industries Ltd's return ratios over recent years
- FY2024: ROCE 33.0%
- FY2025: ROCE 42.0%
- FY2026: ROCE 24.0%
Is Tanfac Industries Ltd's cash flow positive?
Tanfac Industries Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹43 Cr
- Free Cash Flow (FCF): ₹-48 Cr
- CFO/PAT Ratio: 61% (adequate)
What is Tanfac Industries Ltd's dividend yield?
Tanfac Industries Ltd's current dividend yield is 0.19%.
- Dividend Yield: 0.19%
- Current Price: ₹2410
Who holds Tanfac Industries Ltd shares — promoters, FII, DII?
Tanfac Industries Ltd's shareholding pattern (Mar 2026)
- Promoters: 51.8%
- FII (Foreign): 0.0%
- DII (Domestic): 0.3%
- Public: 47.8%
Is promoter holding increasing or decreasing in Tanfac Industries Ltd?
Tanfac Industries Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 51.8% (Mar 2026)
- Previous Quarter: 51.8% (Dec 2025)
- Change: 0.00% (stable)
How long has Tanfac Industries Ltd been outperforming Nifty 500?
Tanfac Industries Ltd has been outperforming Nifty 500 for 1 consecutive week, indicating early-stage outperformance.
Is Tanfac Industries Ltd a new momentum entry or an established outperformer?
Tanfac Industries Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for Tanfac Industries Ltd?
Tanfac Industries Ltd has 5 key growth catalysts identified from recent earnings analysis
- New Product Or Brand Launch — Successful implementation of both phases of Solar Grade DHF in 2025 positions them as a key supplier.
- Order Book Or Contract Wins — Long-term supply agreement with a Japanese customer ensures revenue visibility for the new HFC-32 plant.
- Operating Leverage Inflection — Doubling of HF capacity supports production of high-value fluorine derivatives and improves cost efficiency.
- Value Added Product Mix Shift — Transitioning from commodity chemicals to specialty solutions through forward integration into Solar DHF and Refrigerant gases.
What are the key risks in Tanfac Industries Ltd?
Tanfac Industries Ltd has 1 key risk worth monitoring
- [HIGH] Spurt in key input material costs leading to EBITDA margin compression from 28 — Spurt in key input materials.
What did Tanfac Industries Ltd's management say in the latest earnings call?
In Q3 FY26, Tanfac Industries Ltd's management highlighted
- "Signed Long Term Agreement with Japanese Customer for supply of 7,500 MTPA Refrigerant Gas for 7 years (Value ~ Rs. 2,362 cr) [Initiative: Entry into..."
- "Signed long term agreement with Kredence Electronics Materials & Krishna PV Resources Pvt Ltd for supply of Solar Grade DHF upto FY’29 [Initiative: S..."
- "EBITDA maintained at healthy level despite pressure on margin due to spurt in key input materials [Risk (commodity): HIGH]"
What is Tanfac Industries Ltd's management guidance for growth?
Tanfac Industries Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
- Capex plan: ₹495 Cr for 20,000 MTPA downstream fluorinated chemicals manufacturing facility (Refrigerant Gas)
- Management tone: bullish
What sector-specific metrics matter most for Tanfac Industries Ltd?
Tanfac Industries Ltd's most important sub-sector-specific KPIs from the latest concall
- Capacity Utilisation: Highest-ever — Achieved highest-ever production & capacity utilization in 2024.
- Hydrofluoric Acid Capacity: 29,700 MTPA (YoY +100%) (QoQ 0%) — Commissioned a new state-of-the-art Hydrofluoric Acid (HF) unit in October 2024.
- Solar Grade DHF Capacity: 20,000 MTPA (YoY New Capacity) (QoQ +10,000 MTPA) — Commissioned two phases (10,000 MTPA each) in Jun & Oct-2025.
- Refrigerant Gas Plant Investment: ₹495 Crores — Strategic entry into the refrigerant gas segment.
- Specialty Chemicals Revenue Share: 30% — SAP & HF based chemicals contribute 30% of revenues.
- Hydrofluoric Acid Revenue Share: 70% — Hydrofluoric Acid (HF) remains the core revenue driver.
Is Tanfac Industries Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Tanfac Industries Ltd may be worth studying
- Cash flow is positive — CFO ₹43 Cr
What is the investment thesis for Tanfac Industries Ltd?
Tanfac Industries Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +12.2% YoY
- Growth catalyst: New Product Or Brand Launch
Risk Factors (Bear Case)
- Margins under pressure
- Appears significantly overvalued
- Key risk: Spurt in key input material costs leading to EBITDA margin compression from 28
What is the future outlook for Tanfac Industries Ltd?
Tanfac Industries Ltd's forward outlook based on current data signals
- Earnings Trend: inflecting downward
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: New Product Or Brand Launch
- Key Risk: Spurt in key input material costs leading to EBITDA margin compression from 28
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.