Clean Science and Technology Limited announced its Q2 FY27 earnings, reporting a record high revenue for the quarter and the first half of the fiscal year. The company achieved an EBITDA margin of 12% in H1 FY27 and reached PAT positive during the quarter. Growth was driven by strong volume increases in the base business and a 2x revenue increase in the HALS segment year-on-year.
Record Financial Performance in Q2 FY27
Clean Science and Technology Limited has announced its financial results for the second quarter of the financial year 2026-27 (Q2 FY27), highlighting a quarter marked by record revenue, continuing the company’s growth trajectory. This performance underscores the ongoing transition from an investment phase to asset monetization, particularly in the new HALS segment, while the base business demonstrates robust cost competitiveness and increasing volumes in flagship products.
Key Segmental Growth Drivers
The company’s base business experienced resilient volume-led growth across its Performance and Pharma segments. Notably, export sales increased to 73% of the stand-alone business, up from 64% in the previous quarter. The HALS segment saw a significant year-on-year revenue expansion, growing two-fold, driven by robust volume growth. The company reported achieving 67% of the total volumes recorded in the entire previous financial year within the first half of FY27 (H1 FY27), reflecting a fundamental shift in customer perception and trust.
Cost Efficiencies and Margin Improvement
Clean Science is implementing strategies to improve gross margins by initiating the production of key starting materials for some HALS products. This, combined with healthy volumes and continuous process improvements, resulted in an EBITDA margin of 12% for the first half of FY27. The company also achieved a PAT positive status during the second quarter.
Product Development and Capex
The company is progressing with its advanced grade HALS product, with commercial launch expected in H2 FY27. While input costs for key raw materials like phenol, acetone, and methanol remained high, the company managed to maintain resilient customer demand. For the Performance Chemical 2 project, commercialization is targeted for Q3 to Q4 FY27, with commercial production expected by January-February 2027.
Outlook and Capacity Expansion
Clean Science expressed bullishness on the light stabilizer segment, planning to de-bottleneck and expand capacities, as well as pursue allied adjacencies. The company aims to increase total HALS capacity to approximately 12,500 tons. Capacity utilization is expected to increase from the current 30-40% to 55-60% in the coming quarters, primarily driven by higher-end grades.
Source: BSE
