TANFAC Industries lifts solar-grade DHF capacity to 25,000 MTPA

TANFAC Industries has raised solar-grade dilute hydrofluoric acid, or DHF, capacity to 25,000 metric tonnes per annum (MTPA) and signed two long-term supply agreements worth Rs 1,068 crore for execution within 3.5 years through FY29. TANFAC achieved the increase from 20,000 MTPA through debottlenecking with nominal capital expenditure.

How much solar-grade DHF capacity does TANFAC have?

TANFAC has 25,000 MTPA of solar-grade DHF capacity, after increasing capacity from 20,000 MTPA through debottlenecking. The company says the additional 5,000 MTPA required nominal capital expenditure, while Rs 47 crore of investment in the platform was funded through internal accruals.

The original 20,000-MTPA build-out was completed in two phases during 2025. TANFAC completed the first 10,000-MTPA phase in June 2025 and the second 10,000-MTPA phase in October 2025, before subsequently raising capacity to 25,000 MTPA. Solar-grade DHF is derived from high-purity anhydrous hydrofluoric acid, or AHF.

TANFAC's AHF production base supports the downstream DHF platform. Hydrofluoric acid capacity doubled to 30,000 MTPA from 15,000 MTPA when TANFAC commissioned a brownfield unit at Cuddalore in October 2024, with capital expenditure of about Rs 100 crore. That hydrofluoric acid capacity recorded 95% utilisation in FY26.

What are TANFAC's solar-grade DHF supply agreements worth?

TANFAC has signed two long-term solar-grade DHF supply agreements with an aggregate value of Rs 1,068 crore, to be executed within 3.5 years through FY29. The presentation describes this value as revenue visibility until FY29, while not disclosing the counterparties, annual delivery schedules, quantities or pricing.

The agreements connect the 25,000-MTPA platform to identified contracted demand rather than a stated market opportunity alone. TANFAC also says its product was certified by an Indian solar wafer manufacturer after successful quality trials, but it does not state whether that manufacturer is a counterparty to either agreement or disclose certification volumes.

Solar-grade DHF is used in high-purity etching and cleaning processes, according to TANFAC. The company lists solar cells and solar wafers, flat-panel displays, advanced electronics and semiconductors as applications, and characterises the platform as supporting domestic solar-cell manufacturing.

How does solar-grade DHF fit TANFAC's revenue mix?

Solar-grade DHF is part of TANFAC's stated move toward value-added fluorochemical products, although hydrofluoric acid remained the larger contributor in H1FY27. Hydrofluoric acid accounted for 75% of H1FY27 revenue, while sulphuric acid and other value-added products accounted for the remaining 25%.

TANFAC's integrated chain uses fluorspar and concentrated sulphuric acid to produce AHF. It identifies solar-grade DHF, dilute hydrofluoric acid, electronic-grade DHF, specialty inorganic fluorides and planned HFC-32 refrigerant gas as products linked to its fluorochemical platform, with the 30,000-MTPA AHF unit providing the core input material.

Revenue from operations rose to Rs 711.1 crore in FY26 from Rs 557 crore in FY25, an increase of Rs 154.1 crore. However, earnings before interest, tax, depreciation and amortisation, or EBITDA, declined to Rs 114.5 crore from Rs 132 crore, and EBITDA margin decreased to 16.1% from 23.6%. TANFAC presents the Rs 1,068 crore DHF agreements as future execution visibility rather than FY26 revenue.

What production and customer milestones support TANFAC's DHF expansion?

TANFAC says an Indian solar wafer manufacturer certified its solar-grade DHF following successful quality trials, providing a disclosed qualification milestone for the product. The presentation does not give the certification date, customer name or certified annual volumes, and it does not link the customer to the two Rs 1,068 crore agreements.

The Cuddalore manufacturing facility spans 60 acres and, as of 30 September 2026, TANFAC reported total manufacturing capacity of about 135,000 MTPA. The company also reported more than 15 niche product variants, more than 108 clients across over 10 countries and 725-plus employees, all of which cover the wider business rather than solar-grade DHF alone.

TANFAC lists Tata Power Solar, Reliance Industries, Premier Energies and other companies among selected top clients, without identifying any of them as DHF contract customers. Its disclosed end markets include solar cells, refrigerants, glass etching, agrochemicals, fluoropolymers, lithium batteries and pharmaceuticals.

What should readers watch after TANFAC's DHF capacity increase?

The key disclosed DHF milestone is execution of the two Rs 1,068 crore agreements through FY29, because TANFAC has not disclosed the annual volumes or revenue schedule. The company also states that the 25,000-MTPA capacity expansion was aligned with its strategy to increase the contribution of value-added products.

TANFAC's separate HFC-32 refrigerant-gas project is planned at 20,000 MTPA and targeted for commissioning in Q3FY27, with investment of Rs 495 crore. The company disclosed customer arrangements covering more than 12,500 MTPA and about Rs 649 crore a year excluding goods and services tax, beginning in January 2027 for the 7,500-MTPA and 5,000-MTPA arrangements.

TANFAC raised Rs 350 crore in equity during 2026, comprising Rs 250 crore through a qualified institutional placement in June 2026 and Rs 100 crore through a preferential allotment in September 2026. As of 30 September 2026, it had spent Rs 231 crore against Rs 360 crore committed for the HFC-32 project, which is distinct from the solar-grade DHF platform funded through internal accruals.

Conclusion

TANFAC's solar-grade DHF disclosure combines a 25,000-MTPA production platform with Rs 1,068 crore of contracted supply agreements for execution through FY29. The platform uses high-purity AHF from TANFAC's 30,000-MTPA hydrofluoric acid base and sits alongside a business in which hydrofluoric acid represented 75% of H1FY27 revenue.

Next, readers can monitor delivery under the two DHF agreements, for which TANFAC has not provided customer names, pricing or annual volumes. Management's separate Q3FY27 commissioning target for the 20,000-MTPA HFC-32 project, following Rs 231 crore of spending as of 30 September 2026, is the other scheduled operating milestone disclosed by TANFAC.