Tanfac targets 60%+ revenue growth in FY28 on HFC-32 plant
Tanfac's Q1 revenue rose 6.3% to ₹187 cr, but the real news is its FY28 revenue target of over 60% growth, backed by a ₹1,500-1,700 cr capex plan and a 20,000 MTPA HFC-32 plant 60% complete.
— 2 earlier stories on Tanfac Industries Ltd. →What's new
- Q1 revenue ₹187 cr, up 6.3% YoY; EBITDA margin 15.3%
- FY27 revenue growth guided at ≥30%; FY28 at ≥60%
- ₹1,500-1,700 cr capex plan for HF, e-grade chemicals, fluoropolymers
- HFC-32 plant 60% complete, on track for Q3 FY27 commissioning
Why this matters
Tanfac's guidance implies a step-change in growth for a company that grew revenue 12.3% over the trailing twelve months. The 20,000 MTPA HFC-32 plant and long-term take-or-pay contracts covering 65% of capacity give the targets some ballast. But execution risk is real: the capex plan alone is 31-35% of market cap, and near-term margin pressure from input costs remains a drag.
What we're watching
- HFC-32 plant commissioning by end-Q3 FY27
- Margin trend amid rising sulfur and energy costs
- Tanfac's ability to fund the capex plan without taking on debt
The full read
Tanfac Industries' Q1 FY27 revenue of ₹187 crore (+6.3% YoY) and EBITDA margin of 15.3% are fine but not the story. The story is management's explicit guidance: ≥30% revenue growth for FY27 and ≥60% for FY28. That is a step-change for a company whose trailing revenue growth was 12.3%. The driver is the 20,000 MTPA HFC-32 refrigerant gas plant, now 60% complete and on track for commissioning by end-Q3 FY27. Tanfac has already locked in take-or-pay contracts for 65% of planned capacity. To back the ambition, it laid out a ₹1,500-1,700 crore multi-year capex plan spanning HF, electronic-grade chemicals, and fluoropolymers. That's 31-35% of its current market cap of ₹4,788 crore, but the company is net debt-free after a ₹250 crore QIP and a proposed ₹100 crore preferential issue. The risk: near-term margin pressure from sulfur and energy costs, and a stock that already trades at 68x trailing earnings. If Tanfac executes, the P/E compresses; if it stumbles, there's little cushion.
Questions answered
- What is driving Tanfac's ambitious FY28 revenue growth target of over 60%?
- The target is primarily driven by the commissioning of the 20,000 MTPA HFC-32 refrigerant gas plant, new product launches, and multi-year capacity expansion across HF, electronic-grade chemicals, and fluoropolymers. Management has secured long-term take-or-pay contracts for 65% of the HFC-32 plant's planned capacity.
- How does the capex plan compare to Tanfac's size?
- The ₹1,500-1,700 crore capex plan is significant relative to Tanfac's market cap of ₹4,788 crore, representing about 31-35% of its current valuation. However, the company is net debt-free after a ₹250 crore QIP and a proposed ₹100 crore preferential issue, giving it room to fund the expansion.
- How did Tanfac perform in Q1 FY27?
- Revenue was ₹187 crore, up 6.3% year-on-year, with an EBITDA margin of 15.3%. This is slightly lower than the previous quarter's revenue of ₹193 crore (March 2026 quarter), indicating some sequential softness, but the guidance suggests a strong ramp-up ahead.
- What are the key risks to Tanfac's guidance?
- Near-term margin pressure from sulfur and energy costs, execution delays in the capex program, and demand uncertainty for solar-grade difluoroethane and HFC-32 are the main risks. Additionally, the stock trades at a high P/E of 68.3, leaving little room for error.
- Did Tanfac raise equity recently?
- Yes, Tanfac completed a ₹250 crore QIP during the quarter and proposed a ₹100 crore preferential issue. After these raises, the company is net debt-free.
Tanfac Industries Ltd.
Latest quarter · Jun 2026
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All notes on TANFACIND →- 27 Jul 2026 · 4:22 PM IST Tanfac targets 60%+ revenue growth in FY28 on HFC-32 plant
- 20d ago Tanfac slashes preferential issue by 42% as promoter pulls back
- 22d ago Tanfac Industries raises ₹173 cr via preferential issue, promoter ups stake