Clean Science & Technology Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showing a decline in both revenue and profitability compared to the previous year. The specialty chemicals manufacturer also declared an interim dividend for shareholders during its board meeting held on January 31, 2026.

Financial Performance Overview

The company's financial performance for Q3FY26 reflected challenging market conditions with significant year-on-year declines across key metrics:

The company's total income for the quarter decreased to ₹1,943.29 million from ₹2,361.53 million in Q3FY25, representing a decline of 17.7%. Other income increased to ₹88.39 million from ₹45.96 million, providing some offset to the operational revenue decline.

EBITDA Performance Analysis

The company's EBITDA performance showed significant pressure during Q3FY26, reflecting the challenging operating environment:

The EBITDA decline of 26.6% to ₹722 million from ₹984 million in Q3FY25 indicates operational challenges beyond just revenue contraction. The EBITDA margin compression to 33% from 40.80% suggests increased cost pressures and reduced operational efficiency during the quarter.

Consolidated Performance Results

On a consolidated basis, Clean Science & Technology reported revenue from operations of ₹2,196.70 million for Q3FY26, compared to ₹2,408.16 million in Q3FY25. The consolidated performance showed similar trends to standalone results:

The consolidated net profit of ₹459.00 million represented a 30% decline from ₹656.00 million in the corresponding quarter of the previous year, reflecting the challenging operating environment across the group.

Management Commentary on Market Challenges

During the earnings conference call held on January 31, 2026, Executive Director and Promoter Siddharth Sikchi outlined the challenging business environment that continued from Q2 into Q3. The company faced muted customer offtake, pricing pressure, and tariff-related uncertainties, along with incremental capacities from competitors, especially in China.

The management emphasized that the revenue decline was primarily volume-driven, with 19% attributed to volume decline and only 2% to price realization issues on a year-on-year basis.

HALS Business Shows Strong Growth

Despite overall challenges, the Hindered Amine Light Stabilizers (HALS) business delivered robust performance with 55% year-on-year growth, driven by favorable product mix and higher contribution from cost-efficient, higher-derivatized HALS polymers:

The subsidiary Clean Fino Chem Limited achieved EBITDA breakeven during the quarter, marking a significant milestone for the HALS business segment.

Capex Updates and New Product Commercialization

The company successfully commercialized its hydroquinone and catechol plant in December, with customer trials currently ongoing. This development is expected to provide immediate margin benefits across downstream products:

The management indicated that Performance Chemical 1 is expected to generate revenue of ₹260 crores at 80% capacity utilization, revised down from earlier estimates of ₹320 crores due to current market pricing conditions.

Board Meeting Outcomes and Dividend Declaration

The board of directors, in their meeting held on January 31, 2026, approved the unaudited standalone and consolidated financial results and declared an interim dividend of ₹2.00 per equity share (200%) for the financial year 2025-26:

The dividend will be paid to shareholders whose names appear in the company's register of members as on February 6, 2026. The board also welcomed two new independent directors, Mr. Raj Kamal and Mrs. Pallavi Gokhale, as successors to retiring independent directors.

Earnings Call Recording and Regulatory Compliance

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has submitted the complete transcript of the Q3 FY26 Earnings Conference Call held on January 31, 2026. The detailed transcript provides comprehensive insights into management's perspective on current market conditions and future outlook:

The earnings call transcript has been made available to stakeholders and investors for comprehensive understanding of the company's financial performance, operational challenges, and strategic initiatives during these challenging market conditions.

Clean Science & Technology Limited has scheduled a board meeting for January 31, 2026, to review its quarterly financial performance and consider shareholder returns. The meeting will focus on approving unaudited financial results and evaluating an interim dividend proposal for the current fiscal year.

Board Meeting Agenda

The board meeting will address two primary matters as outlined in the company's regulatory filing dated January 15, 2026. The directors will consider and approve unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. Additionally, the board will deliberate on declaring an interim dividend for FY 2025-26 to equity shareholders.

Dividend Payment Framework

The company has established a clear framework for potential dividend distribution. If the board declares an interim dividend, payments will be made to equity shareholders whose names appear in the company's register of members or in depositories' records as beneficial owners. The record date for determining eligible shareholders has been fixed as Friday, February 6, 2026.

Trading Window Restrictions

In compliance with insider trading regulations, Clean Science and Technology Limited has implemented trading window restrictions. The trading window closed on Thursday, January 1, 2026, affecting designated persons, their immediate relatives, connected persons, and other company insiders. The window will reopen 48 hours after the company announces its financial results.

Regulatory Compliance

The board meeting notification has been issued pursuant to Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has filed the intimation with both BSE Limited and National Stock Exchange of India Limited, maintaining transparency with stock exchanges and shareholders. The notification has also been uploaded on the company's official website at www.cleanscience.co.in for public access.