Clean Science and Technology Limited has announced its highest ever consolidated sales, reaching approximately ₹264 crore for the first quarter of FY27. The company highlighted steady performance amidst geopolitical headwinds and supply chain challenges. Key developments include the strategic collaboration with Geneus Chem for advanced HALS chemistry and the upcoming commercialization of Performance Chemical 2.
Record Financial Performance
Clean Science and Technology Limited has reported a robust performance for the first quarter of FY27, achieving its highest ever consolidated sales in the company’s history, amounting to approximately ₹264 crore. This achievement was underscored by steady standalone business performance, with revenue improving by 5% sequentially to ₹203 crore, driven by enhanced realization across all product segments. The company maintained strong profitability with EBITDA and PAT margins at 43% and 36% respectively.
Strategic Growth Drivers
The company is actively pursuing strategic growth initiatives to enhance its product portfolio and market reach. A significant development is the entry into a strategic collaboration with Swiss partner Geneus Chem. This partnership aims to provide Clean Science with entry into differentiated, advanced-grade HALS chemistry, positioning the company for future growth in value-added products. The HALS business now constitutes 22% of sales and is projected to contribute significantly to revenue in the coming years, with a target of INR250-300 crores in annualized revenue.
Operational Milestones and Outlook
Another key milestone achieved is the operational self-sustainability of the CFCL plant, shifting focus from investment to monetization. The company is also seeing diversification in its HALS geographical sales mix, with exports contributing nearly 50%. The stabilization of hydroquinone and catechol plants is complete, and commercial supplies are expected to ramp up, contributing to revenue growth. Furthermore, Performance Chemical 2 is slated for commercialization by Q3 FY27.
Addressing Challenges
Despite facing geopolitical headwinds and supply side challenges, including non-availability of shipping vessels and raw material cost impacts, Clean Science demonstrated resilience. The company has focused on improving revenue realization and operational stability. For the legacy business, supply chain disruptions impacted volumes due to the non-availability of propylene, but demand remains steady, and the company anticipates a recovery in Q2.
Key Financials and Projections
On a sequential basis, consolidated revenues grew by 7% to INR 264 crore, with EBITDA and PAT at 37% and 28% respectively. Year-on-year, revenue increased by 10%, primarily driven by the HALS business scale-up. The company anticipates continued improvement in EBITDA margins as it moves towards higher-grade products and operational efficiencies. The partnership with Geneus Chem is expected to generate an additional revenue of INR300-350 crore over a 3 to 4-year period.
Source: BSE
