Clean Science & Technology Limited (CSTL) has announced another significant capital infusion of ₹50 crore into its wholly owned subsidiary, Clean Fino-Chem Limited (CFCL). This latest investment, disclosed in a regulatory filing, follows previous investments and demonstrates the company's continued commitment to strengthening its speciality chemicals operations.

Latest Investment Details

The recent investment was executed through a rights issue on January 8, 2026, where CSTL subscribed to an additional 8,36,121 equity shares of Clean Fino-Chem. The transaction details are presented below:

Cumulative Investment Pattern

This marks the latest in a series of investments by CSTL in its subsidiary, with previous capital infusions documented in March 2022, October 2022, February 2024, and January 2025. The company has now invested a total of ₹120 crore across multiple tranches, including the previous ₹70 crore investment.

Clean Fino-Chem's Performance Trajectory

Clean Fino-Chem, incorporated on March 22, 2022, has demonstrated remarkable growth in the speciality chemicals sector:

Strategic Rationale

According to the regulatory disclosure, the additional capital will be primarily utilized for funding CFCL's ongoing projects. This investment strategy aligns with CSTL's objective to expand its presence in the speciality chemicals market through its subsidiary operations.

Transaction Framework

The investment maintains the established transaction structure:

• Related Party Transaction: CFCL remains a wholly owned subsidiary of CSTL
• Arm's Length Basis: The transaction was conducted at fair market terms
• Ownership Structure: CSTL continues to hold 100% ownership of CFCL
• Industry Focus: Speciality chemicals manufacturing and sales
• Consideration: 100% cash subscription to equity share capital

This continued investment underscores Clean Science & Technology Limited's strategic focus on building its speciality chemicals capabilities through Clean Fino-Chem, which has shown substantial revenue growth since its incorporation.

Clean Science & Technology , a leading manufacturer of specialty chemicals, has reported its Q1 results and revised its growth projections, leading to a significant impact on its stock price.

Q1 Financial Performance

The company's Q1 financial results show mixed performance:

Revised Growth Projections

Clean Science & Technology has adjusted its full-year EBITDA growth expectations from the previously anticipated 18-20% to a more conservative range of 15-18%. This revision reflects both challenges and opportunities in its business landscape.

Stock Performance

Following the Q1 results announcement and management's commentary on a potential stake sale, the company's shares fell by 7.00%.

Potential Stake Sale

The company's promoters are evaluating a minority stake sale for family estate planning purposes. This news has contributed to the stock's volatility.

Product Portfolio and Expansion

Clean Science & Technology continues to diversify its product mix, with over 25% of revenue now coming from newer launches. The company has successfully commercialized its entire HALS (Hindered Amine Light Stabilizers) capacity planned under phase 1, with sales volumes accelerating across multiple HALS grades.

Future Outlook

Despite the revised near-term growth projections, Clean Science & Technology remains committed to its long-term expansion plans. The company is focusing on developing a wider range of products, including an expanded HALS series, DHDT, BHT, and new offerings in the performance chemical segment.

Quarterly Expectations

Management expects the second quarter (Q2) growth to mirror the slower pace observed in Q1. However, they anticipate an uptick in performance during Q3, with Q4 projected to show particularly strong growth.

Investors and analysts will be keenly awaiting more details after the Q2 results to gain further insights into the company's performance and strategic direction in light of these adjusted projections and potential stake sale.

Clean Science & Technology continues to navigate the challenges of the specialty chemicals market while leveraging its R&D capabilities and diversified product portfolio to drive sustainable growth.