Clean Science & Technology

Clean Science and Technology reported standalone revenue of INR 206 crores in Q2 FY26, declining 5% sequentially and 8% year-on-year. The revenue decline was primarily driven by lower sales in established products, with top four products contributing 80% to standalone revenue versus 84% in the previous quarter. EBITDA margins remained resilient at 44% despite the revenue moderation. Standalone EBITDA was INR 90 crores (down 10% quarter-on-quarter) and PAT was INR 65 crores (down 15% quarter-on-quarter). The company attributed lower sales to customers experiencing sharp price declines in their end products due to competitive pressure from Chinese suppliers, leading to slower procurement. Additionally, demand uncertainty in end markets prompted some customers to defer procurement plans. The HALS segment showed positive momentum with monthly run-rate volumes averaging 260 tons per month, representing over 25% growth compared to the previous quarter. Material margins for HALS portfolio improved to 35% from 31%. The company commercialized HALS 2020 and barbituric acid during the quarter. Performance Chemical 1 is undergoing chemical trials with satisfactory results, and commercialization is expected this month. The facility has an installed capacity of about 10,000 tons with potential revenue of INR 300 crores at current prices over a 3-year period by FY28.

Clean Science and Technology Limited has granted 29,447 stock options to eligible employees under its Employee Stock Option Scheme 2021. The options have an exercise price of Rs. 500 per option, with each option convertible into one equity share having a face value of Re. 1. The vesting schedule spans four years: 20% each in November 2026, 2027, and 2028, with the remaining 40% vesting in November 2029. Employees will have one year from each vesting date to exercise their respective options. The grant was approved by the Nomination and Remuneration Committee and complies with SEBI regulations for share-based employee benefits.

Clean Science and Technology Limited released its investor presentation for Q2 and H1 FY2026. The company reported consolidated revenue of INR 238 crore for Q2 FY2026, up 3% year-over-year, with EBITDA margins at 38.2%. For H1 FY2026, consolidated revenue reached INR 488 crore, up 6% year-over-year, with EBITDA margins of 38.9%. The performance segment's share in revenue mix increased to 36% in H1 FY2026 from 30% in the previous year, driven by higher sales of HALS series products. Raw material costs as percentage of revenue stood at 37.5% for H1 FY2026. The company maintains a debt-free balance sheet and has commercialized the largest HALS facility in India through its subsidiary Clean Fino Chem Ltd. Chemical trials for performance chemical 1 are underway, while construction for performance chemical 2 remains on track.