Clean Science & Technology Q1 Results: Net profit rises 4.7% QoQ to ₹733.50 million
Clean Science and Technology Limited reported a consolidated net profit of ₹733.50 million for Q1FY26, up 4.7% sequentially and 4.7% year-on-year. Revenue rose 10.5% YoY to ₹2,684.32 million. The Board appointed Krishnakumar Satyanarain Saboo as Whole-time Director and approved a final dividend.
*this image is generated using AI for illustrative purposes only.
Clean Science and Technology Limited reported a consolidated net profit of ₹733.50 million for the quarter ended June 30, 2026, driven by a 10.5% year-on-year rise in revenue to ₹2,684.32 million. The result represents a 4.7% sequential growth from the preceding quarter’s profit of ₹582.72 million, signaling improved operational momentum despite higher material costs. Shareholders are set to receive a final dividend, with payments scheduled for September 30, 2026.
The Board of Directors approved the unaudited standalone and consolidated financial results at its meeting held on August 1, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors Price Waterhouse Chartered Accountants LLP issued a limited review report on the results, confirming compliance with Ind AS 34 and other generally accepted accounting principles in India.
Financial Performance
Consolidated revenue from operations stood at ₹2,684.32 million in Q1FY26, compared to ₹2,492.53 million in the immediately preceding quarter and ₹2,428.69 million in the same quarter last year. Other income contributed ₹222.18 million, significantly higher than the ₹27.95 million recorded in the prior quarter.
Total expenses rose to ₹1,930.99 million from ₹1,743.61 million in the previous quarter, primarily due to an increase in cost of materials consumed, which jumped to ₹1,268.48 million from ₹991.34 million. Employee benefits expense also increased to ₹166.28 million, up from ₹38.26 million in the prior quarter. The company noted that executive directors had voluntarily forgone a substantial portion of their performance bonus entitlement in the previous quarter, leading to lower employee benefits expense then.
| Particulars | Q1FY26 (₹ million) | Q4FY26 (₹ million) | Q1FY25 (₹ million) |
|---|---|---|---|
| Revenue from operations | 2,684.32 | 2,492.53 | 2,428.69 |
| Total income | 2,906.50 | 2,520.48 | 2,562.95 |
| Total expenses | 1,930.99 | 1,743.61 | 1,617.46 |
| Profit before tax | 975.51 | 776.87 | 945.49 |
| Net profit | 733.50 | 582.72 | 700.63 |
| Basic EPS (₹) | 6.90 | 5.48 | 6.59 |
Standalone net profit was reported at ₹732.91 million, with standalone revenue reaching ₹2,071.04 million. Basic earnings per share (EPS) remained constant at ₹6.90 for both consolidated and standalone results.
Strategic Developments and Governance
The Board co-opted Mr. Krishnakumar Satyanarain Saboo as an Additional Director and recommended his appointment as Whole-time Director for a five-year term from August 1, 2026, to July 31, 2031. He will also serve as Factory Occupier effective August 1, 2026. Mr. Saboo, who has over 37 years of experience and has been associated with the company for more than 11 years, currently serves as Group President (Operations).
Additionally, the Board approved the incorporation of a wholly-owned foreign subsidiary in the Netherlands by Clean Fino-Chem Limited, a step-down subsidiary of Clean Science and Technology Limited. The entity, proposed to be named Clean Science BV or similar, will engage in the trading and distribution of specialty chemicals. It is proposed to be incorporated with an initial capital equivalent to EUR 50,000.
The company also highlighted a long-term strategic collaboration entered into by its subsidiary, Clean-Fino Chem Limited, with Geneus Chem AG on July 16, 2026. The agreement involves the exclusive worldwide manufacturing and supply of advanced grades of HALS products. In return, Geneus Chem AG has agreed to issue warrants exercisable within four years, enabling the subsidiary to acquire a 25% stake in Geneus Chem AG on a fully diluted basis upon exercise.
What the Numbers Show
The divergence between revenue growth and expense inflation warrants attention. While consolidated revenue grew 10.5% year-on-year, total expenses surged 19.3% over the same period. This pressure is largely attributable to raw material costs, which rose 36.3% year-on-year to ₹1,268.48 million. However, the company managed to expand profit before tax by 3.2% year-on-year, suggesting that pricing power or mix improvements partially offset input cost inflation. The significant jump in other income, from ₹134.26 million in Q1FY25 to ₹222.18 million in Q1FY26, also provided a tailwind to the bottom line.
The 23rd Annual General Meeting (AGM) is scheduled for September 12, 2026, via Video Conferencing. The record date for determining dividend entitlement is September 5, 2026, with the register of members closing from September 6 to September 12, 2026.
Historical Stock Returns for Clean Science & Technology
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.69% | +0.71% | -3.48% | -14.74% | -41.11% | -56.36% |
How sustainable is the current pricing power given that raw material costs surged 36.3% year-on-year, significantly outpacing revenue growth?
What is the strategic rationale behind establishing a wholly-owned subsidiary in the Netherlands, and how might it impact Clean Science's European market penetration?
What are the potential risks and financial implications for Clean Fino-Chem if Geneus Chem AG fails to meet performance milestones required to exercise the warrants for a 25% stake?
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