Synopsis:
A small-cap chemical company has secured a long-term contract for supplying high purity diluted hydrofluoric acid, making the stock jump by 7.2 percent.
On Friday morning, a small-cap chemical company engaged in producing hydrofluoric acid and its derivatives saw its stock surge soon after the company announced a long-term order for diluted hydrofluoric acid. The update placed the company in the spotlight as investors reacted positively to the new contract win.
With a market cap of Rs 4,076 Cr, Tanfac Industries Ltd saw its stock hit an intra day high of Rs 4184, which is 7.2 percent higher than the previous close of Rs 3901.75.
What’s the News?
On Friday ,Tanfac Industries Ltd announced that it has signed a long-term contract with Krishna Organics, a Vadodara-based company, for the supply of high-purity diluted hydrofluoric acid. The agreement estimates the value at Rs 336 crore and also states that this order will span across 3.5 years, until FY 2028-29, and has been executed in the normal course of business. According to the company’s disclosure, the order has been awarded by a domestic entity, with mutually agreed specifications outlined in the contract.
Previously in this month, the company had also secured a Rs 732 crore order from Kredence Electronics Materials India Private Limited,India Private Limited, for the supply of Solar Grade Diluted Hydrofluoric Acid. This long term contract is expected to be executed over 3.5 years, which could extend up to FY 2028-29, and also stated no additional requirement of capex. The order was finalized with mutually agreed specifications which underscored strong demand from the solar and electronics sectors.
Management also stated that these significant wins reinforces the company’s leadership in hydrofluoric acid and its derivatives, while reflecting continued trust from key industry partners and support in its commitment to deliver high-quality and safety-driven chemical solutions.
Financial Overview
Tanfac Industries Ltd saw a YoY revenue growth of 50 percent as the sales went from Rs 112 Cr in Q2FY25 to Rs 169 Cr in Q2FY26. While the QoQ revenue saw a dip of 3.9 percent from Rs 176 Cr in Q1FY26.
The company’s net profit declined by 10 percent for both year-on-year and quarter-on-quarter basis, as the value was at Rs 19 crore in Q2FY25 and Q1FY26, and fell to Rs 17 crore in Q2FY26.
The company saw a 5 year profit CAGR of 39 percent, and the stocks gave a compounded 5 year return of 85 percent. The 5 year ROE is at 32 percent, and its PE stands at 43.4x while the industry PE is at 21.6x.
Incorporated in 1972, Tanfac Industries Ltd is one of India’s leading producers of Hydrofluoric Acid (HF) and its derivatives. A joint sector company, Tanfac is promoted by Anupam Rasayan India Limited and the Tamil Nadu Industrial Development Corporation (TIDCO). The company’s state-of-the-art manufacturing facilities span 60 acres within the chemical complex of SIPCOT Industrial Estate, Cuddalore.
Another point to highlight is that, Ace investor Ashish Kacholia has been holding Tanfac Industries Ltd since December 2023 started with 1.19 percent, which as of september 2025 is at 1.65 percent.
Written by Adithya Menon
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