Intimation of Credit Rating

SECY/S.E./2026-27 Date: October 17, 2026 BSE Limited Department of Corporate Services Phiroze Jeejeebhoy Towers, 25th Floor, Dalal Street, Mumbai – 400 001 Scrip code: 506854 Dear Sir/Madam, Sub: Intimation regarding Credit Rating under Regulation 30 of SEBI Listing Regulations. Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), we wish to inform you that ICRA has assigned the below ratings on October 16, 2026 as follows: Current rated Rating action Instrument amount (Rs. Crore) Fund-based limits – Working 50.0 [ICRA]A+(Stable ); reaffirmed capital facilities Non-fund-based facilities – 105.0 [ICRA]A1+; reaff irmed Working capital facilities [ICRA]A+(Stable); reaffirmed Long-term – Term Loans 70.00 and assigned for enhanced amount Total 225.0 The rating letter received from ICRA is attached herewith. This is for your kind information and records. Thanking you, Sincerely yours, For TANFAC Industries Limited Vinod Kumar S Company Secretary and Compliance Officer Encl: As above TANFAC INDUSTRIES LIMITED (Joint Sector Company with TIDCO and Anupam Rasayan India Ltd.) Registered Office & Factory: 14, SIPCOT Industrial Complex, Cuddalore – 607 005, Tamil Nadu, India Tel: + 91 4142 239001 – 05| Fax: + 91 4142 239008 | Website: www.tanfac.com Chennai Office: Oxford Centre, 1st Floor, 66, Sir C.P. Ramaswamy Road, Alwarpet, Chennai 600 018, TN, India Tel.: +91-44-2499 0451/0561/0464 Fax: +91-44-2499 3583 GST: 33AAACT2591A1ZU | CIN: L24117TN1972PLC006271 October 16, 2026 Tanfac Industries Limited: Ratings reaffirmed; rated amount enhanced Summary of rating action Previous rated Current rated Financial sector Instrument* amount amount Rating action regulator# (Rs. crore) (Rs. crore) Fund based limits – Working capital 50.0 50.0 [ICRA]A+(Stable); reaffirmed RBI facilities Non-fund based facilities – Working 105.0 105.0 [ICRA]A1+; reaffirmed RBI capital facilities Short term – Unallocated limits 40.0 - - RBI [ICRA]A+(Stable); reaffirmed and Long Term – Term Loans - 70.0 RBI assigned for enhanced amount Total 195.0 225.0 *Instrument details are provided in Annexure I #SEBI’s grievance redressal/dispute resolution and SEBI investor protection mechanisms such as SCORES and ODR shall not be available for activities and instruments, which fall under the regulatory purview of financial sector regulators other than SEBI. Rationale The ratings factors in Tanfac Industries Limited’s (TIL) established track record in the fluorochemicals business, along with its healthy financial risk profile and improved operating performance. Favourable demand prospects for hydrofluoric acid (HF) and downstream products such as solar-grade DHF have driven the company’s profitability. TIL reported strong earnings in FY2026, supported by robust volume growth, improved realisations and ramp-up in the sales of DHF. Further, the capital structure remains strong, supported by its net debt-free status and healthy debt coverage indicators. The ratings also factor in the strong operational linkages with Anupam Rasayan India Limited (ARIL). TIL, being in the fluorination business, is strategically important to ARIL and offers increased opportunities for forward integration. Going forward, the company’s revenue growth and profitability are expected to remain healthy, backed by its focus on expanding capacities in the high-margin segments and the favourable demand for fluorochemicals. ICRA notes the company’s large ongoing capital expenditure programme. TIL is setting up a 20,000-metric-tonnes-per-annum (MTPA) R-32 refrigerant gas facility, with approximately 65% of the proposed capacity already contracted. The project is expected to be commissioned in Q3 FY2027, with a gradual ramp-up envisaged till February 2028. ICRA also takes note of the company’s successful qualified institutional placement (QIP) concluded in June 2026 through which it raised around Rs. 250 crore of equity capital, as well as the recent preferential issue of Rs. 99.41 crore. While these fund raises are expected to support the planned expansion, the company’s ability to commission the project within the estimated cost and timeline, stabilise the operations and achieve a timely ramp-up in sales post commissioning will remain the key monitorables. The ratings are, however, constrained by the vulnerability of revenues and profitability to market disruptions, cyclicality in the end-user industries and the resultant price volatility. The volatility in forex rate and adverse changes in custom duties and environmental policies also remain credit concerns. ICRA also notes the hazardous nature of the company’s primary product, HF, which could result in stringent transport norms, going forward. However, the company has the necessary transport permits from the Petroleum and Explosives Safety Organisation (PESO). Moreover, TIL is present in the specialty fluorides segment, which enables the captive use of a certain quantity of HF produced, mitigating the risk to a certain extent. As on September 30, 2026, ICRA also notes that ARIL has created a non-disposal undertaking of its entire holdings (24.99%) of Tanfac Industries Limited. www.icra.in Sensitivity Label : Public Page The Stable outlook on the rating reflects ICRA’s expectations that TIL is likely to sustain its operating metrics. The outlook underlines expectations that the entity’s ongoing capex to expand the capacity and product portfolio will be funded in a manner that it is able to durably maintain its debt protection metrics commensurate with the existing rating. Key rating drivers and their description Credit strengths Healthy financial risk profile – The company’s financial profile has strengthened over the years with healthy profitability, steady annual cash accruals from business operations and limited dependence on debt. The revenues improved significantly in FY2026 over the previous fiscals, driven by higher volumes of HF following the capacity expansion and increased sales of solar grade DHF. Going forward, the ramp up of new products, including HF downstream derivatives and refrigerant gas, is expected to further boost the revenues and maintain healthy margins for the company. TIL’s capital structure is strong owing to its net-debt-free status and healthy debt coverage. The operating profitability remained healthy at 15.3% in Q1 FY2027, though moderated from the levels of 23.7% in FY2026 and 16.6% in FY2026, owing to a surge in sulphur and fluorspar prices which the company is passing on to the customers with a lag of 30-45 days. Going forward, the revenue and profitability are expected to remain strong, supported by high HF capacity utilisation, healthy offtake of refrigerant gas and steady demand for other downstream products. The company’s strong financial flexibility is further reflected in the successful completion of the QIP of ~Rs. 250 crore in June 2026 and the Rs. 99.41-crore preferential issue. These fund raises are expected to aid TIL’s liquidity. Long track record in fluorochemical manufacturing with presence in diversified product segments – TIL has an extensive track record of more than three decades in manufacturing fluorochemical products. The company is present in diversified product segments manufacturing HF, DHF, solar grade DHF, sulphuric acid and speciality fluorides and is now venturing into refrigerant gases. Part of Anupam Rasayan India Limited Group – TIL is a joint sector company between ARIL and Tamil Nadu Industrial Development Corporation (TIDCO). Despite having a lesser stake of ~24.99% in TIL, as per the Government of India guideline for joint sector undertakings, ARIL has management control in the company. TIL, being in the fluorination business, would continue to be strategically important to ARIL, offering opportunities for forward integration. Credit challenges Revenue and profitability remain susceptible to market disruptions, end-user cyclicality and pr [Showing first 8,000 characters — download PDF for full document]