13,000% Returns: Can This Ashish Kacholia Stock Deliver 400% Revenue Growth With ₹500 Cr Capex?

Synopsis: Ashish Kacholia-backed fluorochemical stock that turned every ₹1 lakh into ₹1.3 crore over a decade is now betting ₹495 crore on refrigerant gases and solar chemicals to push revenue past ₹3,000 crore. 

One of the most remarkable wealth creators in the Indian chemical space over the past decade has delivered roughly 13,000% returns over ten years – yet it has remained largely under the radar for most retail investors. One name that has clearly taken notice is ace investor Ashish Kacholia, who holds a 1.71% stake in this Cuddalore-based fluorochemical company. 

Kacholia, who publicly holds 51 stocks with a net worth of over ₹3,229 crore, has a well-documented track record of identifying high-growth small and mid-cap companies before the broader market catches on. His presence on the shareholder list is a signal worth paying attention to.

Now, with its maiden earnings call behind it and a ₹495 crore capital expenditure plan firmly on the table, this Tamil Nadu-based specialty chemicals manufacturer is laying out an ambition to nearly quadruple its revenue over the next few years. The numbers it presented for Q4 and full-year FY26 told a compelling story of transformation – and the road ahead looks even more striking.

From ₹148 Crore to ₹711 Crore in Five Years

TANFAC Industries is a joint venture between Anupam Rasayan India Limited and Tamil Nadu Industrial Development Corporation (TIDCO). Based at a 60-acre integrated facility in Cuddalore, the company has spent the last four years – since Anupam’s acquisition in March 2022 – shifting gears from a stable but modest fluorochemical manufacturer to a growth-oriented specialty chemicals platform.

The numbers reflect that shift sharply. Revenue from operations grew from around ₹148 crore in FY21 to ₹711 crore in FY26, a compounded annual growth rate of approximately 37% over five years. FY26 also marked the company’s highest-ever quarterly revenue of ₹193 crore and full-year revenue of ₹711 crore, up 27% from ₹557 crore in FY25.

Operating EBITDA stood at ₹112 crore for the year, with margins at 16%, down from 23% in FY25. Management attributed the compression to elevated sulphur prices, forex losses, and higher depreciation from recent capital expenditure. Profit after tax came in at ₹70 crore versus ₹88 crore in FY25. The company guided for EBITDA margins to stabilise in the 15% to 18% range from existing business lines.

The Solar Grade Edge Nobody Else Has

One of TANFAC’s most differentiated strengths is one that very few Indian investors have focused on. The company is currently the first and only manufacturer of solar-grade dilute hydrofluoric acid, or DHF, in India. Solar-grade DHF requires metal impurity levels below 10 parts per billion – a pharmaceutical-grade standard of purity that took TANFAC two years and a dedicated capex of ₹50–70 crore to achieve.

The timing is fortuitous. India’s installed solar capacity, currently around 36 gigawatt, is expected to scale up to roughly 216 gigawatt over the next five years. Management estimates that domestic DHF demand will grow from around 24-25 KT today to nearly 150 KT in that period – a six-to-seven times jump. TANFAC has already locked in orders worth approximately ₹1,068 crore for solar grade DHF, covering around 85% of its 20,000 metric ton annual capacity through FY29.

The ₹495 Crore Capex Plan Targeting 400% Growth in Five Years

The company’s next phase of growth rests on a ₹495 crore capital expenditure plan directed at the refrigerant gas segment – specifically HFC-32, a next-generation refrigerant widely used in residential air conditioning. India’s HFC-32 demand of 22-23 KT per annum is projected to nearly double to 45-50 KT over the next four to five years, driven by the country’s fast-expanding room air conditioner market, which is growing at a 16-17% CAGR.

Of the ₹495 crore planned capex, ₹405 crore targets a 20,000 metric ton per annum HFC-32 manufacturing facility at the existing Cuddalore site, with the balance ₹90 crore going toward other value-added fluorinated products. The plant is on track for commissioning by Q3 FY27. Funding will come through a ₹100 crore preferential allotment by promoters and ₹300 crore via a Qualified Institutional Placement combined with term debt.

What gives this expansion unusual confidence is the demand visibility already in place. Around 65% of the planned HFC-32 capacity – roughly 13,000 metric tons – is already tied to long-term customer contracts, with 75-80% of volumes directed at export markets. Management expects the HFC-32 plant alone to generate annual revenue of ₹900 crore to ₹1,000 crore, which would nearly double TANFAC’s current top line.

Looking further ahead, management set an ambitious longer-term revenue target of ₹3,000–3,500 crore over the next five years – a roughly 400% jump from current levels – factoring in additional HF capacity expansion, a second solar grade DHF plant, and a pipeline of high-margin fluorine chemistries including fluoropolymers, electronic grade chemicals, and battery material applications.

TANFAC Industries Limited is a joint sector fluorochemical manufacturer based in Cuddalore, Tamil Nadu, promoted by Anupam Rasayan India Limited and TIDCO. With over four decades of expertise in hydrofluoric acid and fluorine chemistry, the company operates an integrated 60-acre facility with total installed production capacity of approximately 1,35,000 metric tons per annum.

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