Earnings Call Transcript

SECY/S.E./2026-27 August 03, 2026 BSE Limited Department of Corporate Services Phiroze Jeejeebhoy Towers, 25th Floor, Dalal Street, Mumbai – 400 001 Scrip code: 506854 Dear Sir/Madam, Sub: Earnings Call Transcripts Pursuant to Regulations 30 and 46(2)(oa) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform the Exchange that the transcript of the Company’s Analyst/Investor Conference Call held on July 27, 2026, to discuss the Unaudited Financial Results for the quarter ended June 30, 2026, is attached herewith. The transcript is also available on the website of the Company: https://tanfac.com/investors/investor-information/calls-conferences-and-transcripts Kindly take the same on record. Thanking you, Sincerely yours, For TANFAC Industries Limited Vinod Kumar S Company Secretary & Compliance Officer Enclosure: 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 “TANFAC Industries Limited Q1 FY27 Earnings Conference Call” July 27, 2026 E&OE - This transcript is edited for factual errors. In case of discrepancy, the audio recordings uploaded on the stock exchanges on 27th July 2026 will prevail. MANAGEMENT: MR. AFZAL MALKANI – MANAGING DIRECTOR MR. HEMANGO GUPTA – CHIEF EXECUTIVE OFFICER MR. N.R. RAVICHANDRAN – PRESIDENT & CHIEF FINANCIAL OFFICER Page 1 of 21 TANFAC Industries Limited July 27, 2026 Moderator: Ladies and gentlemen, good day and welcome to the TANFAC Industries Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. This conference call may contain forward-looking statements about the company which are based on beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and it may involve risk and uncertainties that are difficult to predict. I would now like to hand the conference over to Mr. Afzal Malkani, Managing Director of TANFAC Industries Limited. Thank you and over to you, sir. Afzal Malkani: Thank you. Good afternoon everyone and thank you for joining us for TANFAC Industries Q1 FY27 earnings conference call. Joining me today are Mr. Gupta, our Chief Executive Officer; Mr. Ravichandran, our President and Chief Financial Officer; and SGA, our investor relations advisors. The last few months have been one of the most significant periods in TANFAC’s history. We believe the company has now entered a new phase of growth supported by a stronger balance sheet, an expanding leadership team, strategic investment, and clear roadmap to build a differentiated fluorochemicals platform. The biggest milestone during the quarter was the successful completion of our INR250 crores Qualified Institutional Placement, which received strong participation from several reputed institutional investors. We are grateful for the confidence these investors have placed in our long-term vision. Their participation reinforces our belief that investors recognize TANFAC's transformation from a traditional fluorochemical manufacturer into a company with multiple high-growth value-added opportunities. Further strengthening this confidence, our board has also approved a proposed preferential issue of approximately INR100 crores subject to the necessary approvals, including an investment of around INR61 crores by our promoters, Anupam Rasayan. Collectively, these initiatives have transformed our capital structure. TANFAC today is net debt-free, providing us with significant financial flexibility to pursue our next phase of expansion while maintaining a prudent balance sheet. As we prepare for the next stage of growth, building the right leadership team is equally important. I am delighted to welcome Mr. Yogesh Mittal as President - Technical and Operations. Mr. Mittal brings over three decades of extensive experience in project execution, plant commissioning, manufacturing excellence, and technical operations. With multiple strategic projects under execution, his experience will further strengthen our execution capabilities and help us scale our operation efficiently. Additionally, he will help us to maintain the highest standard of safety and operational excellence. Another important development is our board's approval to seek listing of the company's equity shares on the National Stock Exchange subject to regulatory approvals. We believe this is a Page 2 of 21 TANFAC Industries Limited July 27, 2026 natural progression for TANFAC and NSE listing will improve liquidity, broaden our institutional and retail investor participation, enhance market visibility, and strengthen our engagement with the investor community. Now coming on to the quarterly performance, we delivered another resilient performance despite a challenging external environment. Revenue grew 6% year-on-year to approximately INR187 crores driven by continued ramp-up of our solar grade DHF business. During the quarter, profitability was slightly impacted by higher fuel and power costs, higher tax outflows, and elevated sulphur prices. These factors affected margin during the quarter. However, we expect the benefit of cost pass-through to flow through over the normal pricing cycle which is 30 to 45 days. Importantly, none of these near-term factors change the structural growth opportunities that lie ahead for the company. Our balance sheet is stronger than ever and our capital allocation priorities are well-defined. We are executing multiple strategic initiatives that will meaningfully expand our scale, product portfolio, and value-added offerings over the coming years. As we look ahead, our focus remains on disciplined execution, commissioning new capacities on schedule, strengthening customer partnerships, expanding into higher value fluorochemical products, and creating sustainable long-term value for all our stakeholders. While near-term external headwinds persist, our long-term growth outlook remains robust. With that, I would now like to invite our Chief Executive Officer, Mr. Gupta, to take you through the company's growth strategy, the progress we are making across our strategic initiatives, and the significant opportunities we see for TANFAC in the years ahead. Thank you and over to you, Mr. Gupta. Hemango Gupta: Thank you, Mr. Malkani. Good afternoon, everyone. I will now take you through the growth strategy of the company. Our strategy remains focused on moving steadily up the fluorochemical value chain from commodity chemicals towards higher value technology-driven and higher margin fluorinated products. In addition, we are actively focusing on electronic grade chemicals, HFOs, high-performing fluoropolymers, and inorganic fluorides to cater to emerging high- growth sectors. Today, we operate one of India's largest hydrofluoric acid manufacturing facilities with a capacity of nearly 30,000 metric tons per annum. This expanded HF platform is far more than a capacity addition. It provides captive raw material security, improves value chain integration, and creates the foundation for a diversified portfolio of downstream fluorochemicals. As we continue to expand into higher value products, this integrated HF platform will remain one of our strongest competitive advantage. Our solar grade DHF business continues to [Showing first 8,000 characters — download PDF for full document]