Clean Science & Technology Limited filed its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, with the Bombay Stock Exchange and the National Stock Exchange of India Limited on August 17, 2026. The submission, made pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, details the company’s environmental, social, and governance performance alongside its strategic sustainability targets.

The company reported progress against its medium-term ESG goals, which extend to FY28. While specific greenhouse gas emissions, water consumption, and energy consumption increased compared to the 2022-23 baseline, management attributed this rise primarily to a change in product mix during the reporting period. Conversely, the share of renewable electricity consumption saw a marginal increase, rising from approximately 51% in 2022-23 to approximately 52% in FY26.

Key ESG Metrics and Targets

Clean Science & Technology has set specific targets to be achieved by FY28, focusing on environmental sustainability, social responsibility, and corporate governance. The following table highlights the key environmental targets and their current status relative to the 2022-23 baseline:

Despite the increase in specific emission intensities, the company stated that various positive actions have been initiated to control and improve performance in these areas. All manufacturing facilities maintain Zero Liquid Discharge (ZLD) status.

Social and Governance Highlights

In the social domain, the company reported a 28% increase in total training man-hours, rising to 27,930 hours in FY26 from 21,802 hours in 2022-23. This training covered safety, technical, and HR topics for both staff and contractual manpower. The company maintained a record of zero casualties and zero reportable injury incidents during the year.

Regarding governance, Clean Science & Technology confirmed it maintained a robust framework focused on compliance and transparency. The company reported no auditor qualifications or restatements and achieved 100% compliance with all statutory requirements. The Board of Directors retains oversight of the business responsibility policies, with quarterly reviews conducted by the Managing Director, Executive Directors, and functional heads.

What the Numbers Show

The divergence between the company’s absolute renewable energy consumption and its specific emission intensities highlights the impact of operational scale and product mix. While renewable electricity generation increased in absolute terms (from ~54,798 GJ to ~57,690 GJ), specific GHG emissions rose by 12.19%. This suggests that the shift in product mix towards more energy-intensive or chemically complex products outpaced the efficiency gains from increased renewable energy adoption during the period.

Clean Science & Technology reported its highest-ever consolidated sales of approximately ₹264 crore in the first quarter of fiscal year 2027 (Q1 FY27), driven by a strategic collaboration with Swiss partner Geneus Chem and a long-term supply agreement with Kemin. Despite geopolitical headwinds impacting raw material supply and shipping availability, the company achieved sequential revenue growth of 7% and year-on-year revenue growth of 10%. The earnings call transcript, released on August 6, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, highlights significant progress in diversifying its product portfolio through advanced HALS chemistry.

The company’s standalone revenue improved by 5% sequentially to ₹203 crore, primarily due to better realizations across all products. Consolidated EBITDA stood at ₹96 crore with a margin of 37%, while net profit (PAT) was ₹73 crore, reflecting a margin of 28%. Managing Director Siddharth Sikchi noted that while volumes were moderated by supply-side challenges, including a two-week production shutdown due to raw material unavailability in India, demand remained steady. The company successfully mitigated these disruptions by securing safety stocks and optimizing supply chain logistics.

Strategic Partnerships and Product Diversification

A key development during the quarter was the entry into a strategic collaboration with Geneus Chem, a Swiss entity specializing in advanced HALS technologies. This partnership involves technology transfer for patented NOR HALS products, which are higher-grade stabilizers used in harsh agricultural film environments. Clean Science will manufacture these products at its Clean Fino-Chem facility, with commercialization expected by Q3 FY27. The company projects additional revenue of ₹300–350 crore over the next three to four years from this collaboration alone. The arrangement includes co-branding and defined geographical marketing rights to avoid conflict.

Additionally, Clean Science signed a definitive five-year supply contract with Kemin, a global leader in food and feed ingredients. This agreement secures offtake for BHA, BHT, TBHQ, and AP products, increasing Kemin’s procurement from the company by 20% to 40%. Siddharth Sikchi emphasized that this deal provides supply security for both parties and leverages their decade-long relationship. The company is initiating capacity expansion to meet this increased demand.

Operational Updates and Financial Metrics

The HALS segment continues to be a major growth driver, now constituting 22% of total sales. Exports accounted for nearly 50% of HALS sales in Q1 FY27, up from purely domestic sales in the previous year. Volumes for HALS were approximately 1,000 tons, with an improved mix towards higher grades, reducing the reliance on legacy products like HALS 770 from 50% to 35%. The company’s subsidiary, Clean Fino-Chem Limited (CFCL), reached operational self-sustainability, having fully recovered its operating expenses. Total investment in CFCL now stands at approximately ₹850 crore, following a capital infusion of ₹100 crore in the quarter.

Note: Comparative figures derived from management commentary on growth rates.

What the Numbers Show

The divergence between standalone and consolidated performance highlights the impact of the HALS scale-up. While standalone revenue grew modestly due to pricing improvements offsetting volume declines from supply chain issues, consolidated results benefited significantly from the higher-margin HALS business. The reduction in reliance on top four legacy products—from 85% in Q4 FY23 to 60% in Q1 FY27—demonstrates successful portfolio diversification. Furthermore, the stabilization of the hydroquinone and catechol plant positions the company to add incremental revenue streams in the coming quarters, although Performance Chemical 2 is expected to commence commercial operations only in Q3 FY27.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE227W01023/acef25fa-9887-432d-8c62-66641878869e.pdf