Clean Science and Technology Limited reported a challenging Q3 FY26, marked by a 21% year-over-year sales decline, primarily due to lower sales volumes. Despite headwinds, the HALS business showed robust 55% year-over-year growth. The company commercialized its new hydroquinone and catechol plant, expecting margin benefits in downstream products. An interim dividend of ₹2 per share was approved. The company anticipates continued market volatility.
Financial Performance Overview
Clean Science and Technology Limited faced challenging market conditions in Q3 FY26, leading to a 21% year-over-year decrease in sales. This decline was primarily attributed to reduced sales volumes across several product lines, with price realization contributing a smaller portion. The company’s top four products contributed 75% to stand-alone revenue, down from 80% in the previous quarter. Despite these challenges, the HALS business demonstrated strong performance with a 55% year-over-year growth.
Segment Analysis
The Performance Chemicals segment was most impacted by volume declines in MEHQ and BHA. The FMCG segment experienced volume decline in a specific product, 4-MAP. In contrast, the HALS business showed steady volume improvement, driven by strong demand. Clean Fino Chem Limited, the subsidiary, achieved EBITDA breakeven during the quarter.
Strategic Initiatives and Capex
The company commercialized its hydroquinone and catechol plant in December 2025, with customer trials ongoing. This is expected to reduce raw material costs for TBHQ and Veratrole. Performance Chemical 2 commercialization is on track for Q1 FY27. Capital infusion in the subsidiary has reached ₹150 crores in the last nine months, bringing the total investment to around ₹700 crores.
Dividend and Governance
An interim dividend of ₹2 per share has been approved. Two new board members, Mr. Raj Kamal and Mrs. Pallavi Gokhale, have been appointed.
Outlook and Challenges
The company acknowledges ongoing market volatility and uncertainties, including pricing pressures, tariff-related concerns, and increased capacities in China. Focus remains on customer engagement, long-term growth, and operational discipline. A key customer loss in the cosmetics section and pricing pressures in the Agchem segment also contributed to the revenue decline. The company anticipates current market conditions and tariff impacts to persist for the next couple of quarters.
Source: BSE
