Clean Science and Technology Limited announced its Q2 FY26 results, with revenues reaching INR206 crores on a standalone basis. EBITDA margins remained resilient at 44%. The company commercialized HALS 2020, improving the HALS portfolio’s material margin to 35%. Approximately INR150 crores was invested in CFCL during the first half year. Monthly run rate volumes for the HALS segment in Q2 FY26 averaged approximately 260 tons, representing a 25% growth.
Financial Performance Overview
Clean Science and Technology Limited reported a revenue of INR206 crores on a standalone basis for Q2 FY26, a decrease of 5% sequentially and 8% year-on-year, primarily due to lower sales in certain established products. The company’s EBITDA margins remained strong at 44% for the quarter. Standalone EBITDA was reported at INR90 crores, a 10% decrease Q-o-Q and 5% decrease Y-o-Y. The company’s standalone PAT stood at INR65 crores, 15% lower Q-o-Q and 4% lower Y-o-Y, impacted primarily by forex losses.
Segmental Highlights
The company successfully commercialized HALS 2020, enriching its product portfolio, and improved the material margin for the HALS portfolio to 35% from 31% due to improved raw material costs. The HALS segment saw its monthly run rate volumes average to approximately 260 tons per month in Q2, reflecting a growth of over 25% compared to the previous quarter.
Capex and New Products
Clean Science invested approximately INR150 crores in its subsidiary, CFCL, during the first half of the year. Performance Chemical 1 is undergoing chemical trials with satisfactory results, with commercialization expected this month. The company also successfully commercialized barbituric acid by repurposing an existing facility and expanded capacities for some food-grade antioxidants.
Market Dynamics and Outlook
Lower sales during the quarter were attributed to price declines in end products due to competition from Chinese suppliers and demand uncertainty in end markets. The company believes these trends represent a mix of tariff impacts and demand slowdown in some end industries, influencing customer purchasing behavior. Looking ahead, the company aims to work closely with customers, addressing price reductions where needed to maintain competitiveness and market share.
Source: BSE
