TANFAC Industries Q2 FY27 results: net profit up 10.8% to ₹19.03 crore, revenue up 36.6%

How did TANFAC Industries perform in Q2 FY27?

TANFAC Industries reported standalone revenue of ₹230.48 crore in Q2 FY27, up ₹61.79 crore or 36.6% from ₹168.69 crore in Q2 FY26 and up ₹43.30 crore or 23.1% from ₹187.18 crore in Q1 FY27. Total income was ₹234.29 crore, up 38.4% year on year and 24.6% sequentially. The investor presentation described this as the company's highest-ever quarterly revenue, driven by realisation growth and new value-added products.

EBITDA was ₹27.28 crore, up ₹0.40 crore or 1.5% from Q2 FY26 but down ₹1.29 crore or 4.5% from Q1 FY27. The EBITDA margin was 11.8%, down 4.1 percentage points from 15.9% a year earlier and 3.5 percentage points from 15.3% in the previous quarter. Profit before tax was ₹24.36 crore, while net profit was ₹19.03 crore and basic EPS was ₹8.93. No consolidated figures were given.

What changed in TANFAC Industries' costs and profit?

Total expenses were ₹209.93 crore in Q2 FY27, up ₹63.29 crore or 43.2% from Q2 FY26. Cost of materials was ₹154.42 crore, up ₹51.09 crore or 49.4%; employee cost was ₹8.04 crore, up ₹1.10 crore or 15.9%; finance costs were ₹1.68 crore, up ₹0.90 crore or 115.4%; and depreciation was ₹5.05 crore, up ₹1 crore or 24.7%. Other expenses were ₹39.50 crore, up ₹7.36 crore or 22.9%.

Other income increased to ₹3.81 crore from ₹0.62 crore, a rise of ₹3.19 crore or 514.5%. There was no exceptional item. Tax was ₹5.33 crore, down ₹0.16 crore or 2.9% from ₹5.49 crore in Q2 FY26. Management said higher realisations, power and fuel costs, freight, elevated sulphur prices and the ramp-up of new products weighed on gross and EBITDA margins, while gross profit per tonne remained largely stable.

How did the first half of FY27 go?

For H1 FY27, standalone revenue was ₹417.66 crore, up ₹72.97 crore or 21.2% from ₹344.69 crore in H1 FY26. Total income was ₹422.32 crore, up ₹76.06 crore or 22.0%, while profit before tax was ₹48.12 crore, down ₹0.09 crore or 0.2%.

Net profit for the first half was ₹35.88 crore, down ₹0.65 crore or 1.8% from ₹36.53 crore in H1 FY26. EPS was ₹17.35, compared with ₹36.62 in H1 FY26, a decline of 52.6%. The investor presentation said the increase in revenue came mainly from realisation growth and new value-added products, while higher input prices and logistics costs created a challenging operating environment.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹1,006.01 crore, compared with ₹527.74 crore at 31 March 2026. Total equity was ₹736.77 crore, up from ₹373.17 crore, while borrowings were ₹135.63 crore compared with ₹92.81 crore. Cash and cash equivalents were ₹99.12 crore, up from ₹21.07 crore.

Inventories increased to ₹147.27 crore from ₹92.84 crore, trade receivables to ₹165.82 crore from ₹110.46 crore and trade payables to ₹75.89 crore from ₹25.12 crore. In H1 FY27, operating cash flow was negative ₹30.93 crore, compared with ₹43.26 crore in H1 FY26; investing cash flow was negative ₹267.6 crore against negative ₹55.8 crore, and financing cash flow was ₹376.58 crore against ₹7.1 crore. Capital expenditure was ₹221.63 crore, compared with ₹48.57 crore.

How has TANFAC Industries done over the last 8 quarters?

Revenue reached ₹230.48 crore in Q2 FY27, the highest level in the eight-quarter trend, after falling from ₹178.18 crore in Q3 FY25 to ₹168.69 crore in Q2 FY26. Revenue then moved to ₹173.3 crore and ₹193.08 crore before easing to ₹187.18 crore in Q1 FY27 and rising again in Q2 FY27. The trend shows revenue rising year on year in each of the last three quarters.

Net profit reached ₹19.03 crore in Q2 FY27, above ₹17.18 crore in Q2 FY26 and ₹16.85 crore in Q1 FY27, but below ₹34.8 crore in Q3 FY25. The EBITDA margin peaked at 28.2% in Q3 FY25, fell to 14.9% in Q3 FY26 and ended the latest period at 11.8%. The margin has declined from its earlier peak even as revenue moved higher.

What else did the company announce?

The board approved the unaudited financial results for the quarter and half year ended 30 September 2026, along with the statutory auditor's limited review report. The results were reviewed by the audit committee before board approval, according to the filing.

In separate same-day filings, TANFAC reported no deviation or variation in the use of funds raised through its QIP or preferential allotment. The QIP raised ₹250.00 crore, of which ₹18,219.06 lakh had been utilised and ₹6,780.91 lakh remained unutilised as of 30 September 2026. The preferential issue raised ₹99.40 crore, of which ₹2,385.84 lakh had been utilised and ₹7,555.15 lakh remained unutilised. No dividend or appointment was reported.

What did TANFAC Industries' management say?

Management said, “we expect H2 FY27 to deliver a stronger performance than H1 FY27,” citing improved operating leverage from moderating raw-material prices and the scale-up of newly introduced products. It also said, “sulphur prices are showing signs of moderation which will start reflecting in the margins from upcoming quarters.”

Management said, “Expected Commissioning Q3FY27” for the HFC-32 project, with “20,000 MTPA planned HFC-32 refrigerant gas capacity.” It also said, “Orders to be executed within 3.5 years” for ₹1,068 crores of signed Solar Grade DHF orders, providing revenue visibility until FY29.

Management identified higher power and fuel, freight, elevated sulphur prices and new-product ramp-up as margin pressures. It also noted working-capital deployment from strategic bulk fluorspar procurement, with trade payables rising to ₹75.9 crore in September 2026 from ₹25.1 crore in March 2026. The presentation did not provide analyst questions or confirm that HFC-32 commissioning had occurred after 30 September 2026.

How did TANFAC Industries shares react?

The filing appeared after market hours. From the price when the results appeared, the stock fell 0.7% after five minutes, rose 1.0% after 15 minutes and was up 0.4% after 30 minutes. The stock closed 1.9% above its pre-results close on the reaction day, and by the next day's close it was up 1.4% from that pre-results close.

On the reaction day, the Commodity Chemicals industry median was unchanged, so TANFAC outperformed the sector by 1.9 percentage points. By the next day's close, the stock was up 0.9 percentage points more than the industry median. Earlier reaction-day moves were negative on six of the seven listed occasions, including falls of 3.8% on 24 July 2026, 5.1% on 6 May 2026 and 9.1% on 28 April 2025.

How did other Commodity Chemicals companies do?

Fourteen other Commodity Chemicals companies had filed for the quarter by 4 November 2026. Their median revenue growth was 18.2%, compared with TANFAC's 36.6% growth. Nine peers grew more slowly than TANFAC, while five grew faster than the company.

Twelve of the 17 peers for which profit was compared reported higher profit. These peers cover other Commodity Chemicals companies and exclude TANFAC Industries.