Clean Science revenue dips on headwinds, new products show promise

Clean Science and Technology Limited experienced a 5% sequential and 8% year-on-year decrease in standalone revenues to INR206 crores for Q2 FY26, primarily due to lower sales of established products. Despite this, EBITDA margins remained resilient at 44%, improving 2% year-on-year due to a favorable product mix. Standalone EBITDA was INR90 crores and PAT INR65 crores, with PAT steeper due to forex loss. The company attributed lower sales to price declines amidst Chinese competition and demand uncertainty in end markets, impacting customer procurement.

On a consolidated basis, revenues were steady at INR240 crores, with EBITDA at INR87 crores and PAT at INR55 crores. The HALS segment showed positive momentum, with monthly run-rate volumes growing over 25% sequentially to an average of 260 tons per month, and material margins improving to 35% from 31% due to reduced raw material costs.

Clean Science invested approximately INR150 crores in its CFCL subsidiary during H1 FY26 and is on track to commercialize "Performance Chemical 1" this month, projecting INR300 crores in revenue at full capacity. The company also expanded capacities for some food-grade antioxidants and commercialized barbituric acid. The export share of HALS is increasing, with global approvals for higher-grade HALS picking up.