Clean Science and Technology Limited stands out as a beacon of innovation and sustainability. Investors and market watchers eagerly awaited the company’s Q2 FY26 results, released on November 6, 2025, which painted a mixed picture of resilience amid headwinds. Revenue held steady at ₹244.60 crore, marking a modest 2.72% year-over-year (YoY) increase, yet profits tumbled to ₹55.43 crore, down from ₹58.75 crore in the same quarter last year.
This dip, coupled with rising expenses, has sparked discussions on Clean Science’s path forward. As the Clean Science share price hovers around ₹981 today, analysts dissect these numbers to uncover opportunities in a sector poised for green growth. This comprehensive analysis dives deep into the results, explores underlying drivers, and charts a forward-looking strategy for stakeholders eyeing Clean Science share news.
Understanding Clean Science and Technology: A Leader in Specialty Chemicals
Clean Science and Technology Limited, founded in 2003 and listed on the NSE in 2020, has evolved from a modest player into a global powerhouse in specialty chemicals. Headquartered in Pune, India, the company specializes in manufacturing high-value, eco-friendly chemicals using proprietary catalytic processes that minimize waste and energy use. This “clean” ethos isn’t just branding—it’s core to their operations, earning them accolades for sustainability in an industry often criticized for environmental impact.
The company’s portfolio spans three key segments: Performance Chemicals, Pharmaceutical Chemicals, and FMCG Chemicals. Performance Chemicals, which accounts for about 69% of FY25 revenue, includes critical products like Monomethyl Ether of Hydroquinone (MEHQ) for polymerization inhibitors in paints and adhesives, and Butylated Hydroxyanisole (BHA) for food preservatives.
Pharmaceutical Chemicals focus on intermediates like Gabapentin and Pregabalin, vital for neurology drugs, while FMCG Chemicals produce Potassium Hydroxide for soaps and batteries. This diversification shields Clean Science from sector-specific volatility, allowing it to tap into booming markets like pharmaceuticals (projected to grow 10-12% annually in India) and consumer goods.
What sets Clean Science apart? Their in-house R&D drives cost efficiencies and backward integration, reducing reliance on imported raw materials. With three manufacturing facilities in Maharashtra, the company boasts a capacity of over 20,000 tons annually, exporting 60% of output to Europe, the US, and Asia. In FY25, they clocked consolidated revenue of ₹966.64 crore, up from ₹419.30 crore in FY20—a staggering compound annual growth rate (CAGR) of 23%. Profits followed suit, surging to ₹297 crore last year. Yet, as global supply chains stabilize post-pandemic, Clean Science faces new challenges: raw material inflation, geopolitical tensions, and intensifying competition from Chinese exporters.
Investors love Clean Science for its debt-free balance sheet and robust 32% EBITDA margins in recent years. Promoter holding stands at 51%, signaling strong insider confidence, though recent stake sales by founders have introduced short-term noise. As we unpack Q2 FY26, remember: this quarter tests Clean Science’s adaptability in a maturing cycle, but their innovation pipeline promises a rebound.
Diving into Q2 FY26 Financials: Revenue Breakdown and Key Metrics
Clean Science kicked off Q2 FY26 (July-September 2025) with revenue from operations at ₹244.60 crore, a whisper of growth from ₹238.13 crore in Q2 FY25. This 2.72% YoY uptick reflects steady demand in core markets, but quarter-over-quarter (QoQ), it edged up just 0.71% from Q1 FY26’s ₹242.90 crore—signaling flatlining volumes amid seasonal softness.
Breaking it down, total income reached ₹245.50 crore, including other income from interest and forex gains. The company’s export-heavy model (over 50% of sales) benefited from a weaker rupee, adding ₹5-7 crore in favorable currency translation. Domestic sales, buoyed by FMCG recovery post-monsoon, contributed 45% of the topline, while exports to agrochemical giants in the US drove the rest.
Expenses, however, stole the show—or rather, the profits. Total costs climbed to ₹176 crore, up 6% YoY from ₹166 crore, primarily due to raw material inflation in phenol and anisole derivatives, which rose 8-10% globally amid supply disruptions from Middle East tensions. Employee costs held steady at ₹25 crore, reflecting efficient headcount management (under 500 employees), but depreciation edged up 5% to ₹12 crore as new assets came online.
EBITDA, a proxy for operational health, dipped to ₹92 crore from ₹112 crore YoY, yielding a margin of 37.6%—still enviable in the chemicals space but down 300 basis points. Net profit after tax settled at ₹55.43 crore, a 5.6% YoY decline, with effective tax at 26% (up from 25% last year due to higher MAT credits utilization). Earnings per share (EPS) mirrored this, falling to ₹5.22 from ₹5.53, impacting valuations trading at 35x forward earnings.
Cash flow remained robust, with operating cash at ₹70 crore, funding capex without debt. Net debt stayed negative at -₹150 crore, underscoring financial fortress-like strength. These numbers, while underwhelming, align with market consensus of ₹240 crore revenue and ₹65 crore PAT—beating on topline but missing on bottom-line.
In essence, Clean Science navigates a tightrope: demand holds, but costs bite. Forward, cost-pass-through clauses in 70% of contracts could mitigate this, but execution will be key.
Profitability Challenges: Why Profits Fell Despite Stable Topline
Profits don’t lie, and Clean Science’s Q2 FY26 PAT contraction underscores creeping margin pressures in a high-fixed-cost industry. While revenue chugged along, operating expenses ballooned 9% YoY to ₹189 crore, eroding 400 basis points off EBITDA margins to 37.6%.
Raw materials, comprising 55% of costs, surged due to volatile petrochemical prices. Phenol, a key input for MEHQ, jumped 12% amid OPEC cuts and Red Sea rerouting, which hiked logistics by 15%. Clean Science’s strategy of long-term supplier contracts cushioned some blows, but spot buys for expansion projects amplified the hit.
Power and fuel costs, another 20% slice, rose 7% on higher natural gas tariffs in Maharashtra. The company’s green initiatives—like solar panels covering 30% of energy needs—helped, but scaling them lags behind capex timelines.
On the flip side, Clean Science shines in gross margins at 52%, thanks to premium pricing for patented processes. They command 40-50% market share in MEHQ globally, fending off commoditization. Yet, forex hedges lapsed in Q2, costing ₹2 crore in unrealized losses.
Management attributes the dip to “transitory factors,” including one-off R&D spends of ₹8 crore for HALS (Hindered Amine Light Stabilizers) trials. Looking deeper, inventory buildup in pharma intermediates—down 10% QoQ—hints at softening US demand amid FDA scrutiny on generics.
Overall, these challenges highlight Clean Science’s vulnerability to input volatility, but their 25% ROCE (return on capital employed) remains top-quartile, signaling efficient capital allocation even in lean times.
Year-over-Year and Quarter-over-Quarter Insights: A Tale of Two Trends
Zooming out, Q2 FY26 reveals divergent paths. YoY, revenue’s 2.72% growth masks underlying strength: volume up 4%, offset by 1.2% price softening in competitive FMCG lines. PAT’s 5.6% slide stems from 6% expense inflation outpacing topline, squeezing margins by 250 bps.
QoQ, the picture stabilizes. From Q1 FY26’s ₹242.90 crore revenue, Q2’s uptick owes to seasonal pharma restocking, with volumes flat but realizations up 0.7% on export premiums. PAT plunged 21% from Q1’s ₹70 crore, driven by Q1’s low base (fewer one-offs) and Q2’s cost spikes.
Historically, Clean Science thrives on 15-20% CAGR, but FY26’s H1 (revenue ₹487 crore, up 3% YoY) suggests a pivot to 10-12% amid macro slowdowns. Compared to FY25’s explosive 25% growth, this quarter tempers expectations, yet it outperforms peers like Atul Ltd., whose Q2 revenue fell 5%.
These trends underscore Clean Science’s defensive moat: diversified end-markets buffer cyclicality, positioning them for a FY26 rebound as global chemicals demand revives 3.5% per Deloitte forecasts.
Segment-Wise Performance: Where Growth Shines in Clean Science Results
Clean Science’s tri-segment model delivered uneven but promising Q2 results. Performance Chemicals, the cash cow at 36% of H1 FY26 revenue (up from 30% YoY), surged 8% to ₹88 crore, led by MEHQ volumes up 12% on agrochemical demand in Brazil and Europe. BHA, tied to pet food boom (global market +5%), added ₹25 crore, with margins at 45% thanks to scale.
Pharmaceutical Chemicals grew 3% to ₹75 crore, flat QoQ as Pregabalin exports to generics firms held steady amid patent cliffs. Challenges? US pricing pressures shaved 2% off realizations, but backward integration into key APIs promises 15% growth in H2 FY26.
FMCG Chemicals, at 29% mix, ticked up 2% to ₹71 crore, driven by Potassium Hydroxide for EV batteries (India’s 30% YoY demand spike). Margins here lagged at 35%, hit by soda ash inflation.
Collectively, segments show resilience: Performance’s volume-led gains offset Pharma’s pricing woes, while FMCG eyes green hydrogen tie-ups. This balance, with cross-segment synergies like shared utilities, bolsters Clean Science’s 40% overall ROIC.
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Management’s Take: Key Highlights from Clean Science Earnings Call
During the November 6, 2025, earnings call, CEO Krishna Kumar Boob exuded measured optimism. “Q2 tested our operational agility, but our clean tech edge positions us for accelerated growth,” he stated. Management highlighted cost mitigation via 20% raw material hedging and new supplier diversification to Vietnam.
On challenges, CFO Anil Vijayaraghavan noted, “Input costs rose 8%, but we passed 60% to customers, preserving 90% of margins.” They flagged Q2’s PAT miss as “one-off,” tied to ₹10 crore capex acceleration for Performance Chemical Plant 1, slated for Q4 FY26 commissioning.
Guidance? EBITDA growth of 15-18% for FY26, with revenue targeting ₹1,050 crore (12% YoY), fueled by HALS launch (4,500 tons, ₹210 crore potential). Q&A touched on exports: 65% of Q3 pipeline secured at +5% premiums. Sustainability shone through—30% renewable energy by FY27, aligning with EU’s Green Deal.
Boob’s vision: “FY27 CAGR of 23% across revenue, EBITDA, PAT,” banking on new molecules in pharma and EV chemicals. Investors applauded the clarity, with questions on promoter stake sales dismissed as “personal portfolio tweaks.”
This call reinforces Clean Science’s proactive stance, blending prudence with ambition.
Market Reaction: Clean Science Share News and Price Movement
Clean Science shares reacted tepidly to Q2 results, dipping 0.31% to ₹981.20 on November 6, 2025, from ₹985.05. Volume spiked 15% to 690,000 shares, reflecting profit-booking after a 5% Q1 rally. YTD, the stock lags Nifty Chemicals by 8%, trading at ₹10,428 crore market cap—down 36% from peaks.
Analysts split: HDFC Securities holds “Buy” at ₹1,200 target, citing margin recovery; Motilal Oswal cuts to “Neutral” post-PAT miss, eyeing 41x FY27 EPS. Promoter stake offload rumors (24% via OFS) earlier shaved 9%, but results quelled fears.
Social buzz on X highlights “undervalued gem” narratives, with #CleanScience trending amid EV tailwinds. FIIs net bought ₹50 crore in October, betting on 20% upside by March 2026.
Clean Science share price today embodies caution, but dips could lure value hunters.
Competitive Landscape: How Clean Science Stacks Up in the Chemicals Sector
In India’s $200 billion chemicals industry (5% global share), Clean Science competes with giants like Atul Ltd., Aarti Industries, and global players like BASF. Peers averaged 4% Q2 revenue growth, but Clean Science’s 2.72% trails Atul’s 6% on pharma push.
Strengths? Clean Science’s 50% EBITDA margins crush Aarti’s 18%, thanks to niche dominance (e.g., 60% global MEHQ share). Backward integration gives 20% cost edge over importers. Weaknesses: Smaller scale (₹966 crore vs. Atul’s ₹6,000 crore) limits bargaining power.
Industry 2025 analysis: Deloitte forecasts 3.5% global growth, with specialties at 5% on sustainability mandates. India’s PLI scheme funnels ₹20,000 crore to greens, favoring Clean Science’s catalytic tech over coal-based rivals.
Vs. peers:
| Metric | Clean Science Q2 FY26 | Atul Ltd Q2 FY26 | Aarti Ind Q2 FY26 |
|---|---|---|---|
| Revenue Growth YoY | +2.72% | +6% | +1% |
| EBITDA Margin | 37.6% | 22% | 15% |
| PAT Growth | -5.6% | +10% | -2% |
| ROCE | 25% | 18% | 12% |
Clean Science leads on efficiency, but peers’ diversification (Atul’s 50 products) hedges better. As EV and pharma boom, Clean Science’s focus sharpens their edge—watch for M&A to scale.
Looking Ahead: Clean Science Future Outlook for FY26 and FY27
Management’s FY26 blueprint targets 12% revenue growth to ₹1,050 crore, with EBITDA at 15-18% CAGR, propelled by capex fruition. Performance Chemical Plant 1 (Q4 FY26) adds 5,000 tons capacity for HALS, eyeing ₹210 crore incremental sales. Plant 2 (FY27) targets pharma APIs, unlocking ₹300 crore.
FY27 accelerates: 23% revenue CAGR to ₹1,280 crore, per MOFSL, on new EV intermediates and EU exports (+20%). Risks? Geopolitics could hike costs 5-7%, but hedges and PLI incentives (₹500 crore potential) buffer.
Analysts peg FY26 EPS at ₹25, FY27 at ₹32, with targets averaging ₹1,305 (33% upside). Bull case: 20% growth if China+1 shifts volumes. Bear: Stagnant if recession hits agro.
Clean Science’s outlook blends caution with catalysts—positioned for a green surge.
Investment Thesis: Is Clean Science a Buy Amid Q2 Results?
For long-term investors, Clean Science screams value. At 35x FY26 earnings, it trades below historical 45x, with 7.15x book value signaling room to run. Debt-free, 25% dividend payout, and 20% ROE make it a compounding machine.
Buy if: You believe in India’s chem export story (target $100B by 2030) and Clean Science’s 15% market share grab. Kotak’s “Buy” at ₹1,370 cites capex inflection.
Hold if: Margins stabilize at 38%. Sell if PAT misses persist below 10% growth.
In a portfolio, allocate 5-7% for 18-24 month horizon—Clean Science rewards patience.
Navigating Challenges: Sustainability and Risk Factors in Clean Science’s Journey
Beyond numbers, Clean Science grapples with ESG imperatives. Their zero-liquid discharge plants and 100% recycling rate earn MSCI ESG ‘AA’ rating, but scaling to net-zero by 2030 demands ₹200 crore green capex. Regulatory risks loom: REACH compliance in Europe costs ₹5 crore quarterly, yet opens premium doors.
Supply chain disruptions—think Ukraine war echoes—could spike inputs 10%, but dual-sourcing (India-Vietnam) mitigates. Competition from low-cost Chinese firms pressures prices, but IP barriers (10 patents) protect moats.
Macro tailwinds: India’s $1 trillion manufacturing push by 2025 favors specialties. Clean Science’s pivot to bio-based chemicals (R&D at 3% of sales) positions them for cleantech wave, per S&P’s 2025 Tier 1 list analogs
