Clean Science and Technology (CLEAN) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 faced challenging conditions with muted customer offtake, pricing pressure, and tariff uncertainties, but HALS business delivered robust YoY growth and commercialization of new hydroquinone and catechol capacity is expected to accelerate sales growth.

• Capex of approximately Rs. 165 crore during 9M FY26, mainly for investment in Clean Fino Chem Ltd., with construction for Performance Chemical 2 on track.

• Board approved an interim dividend of Rs. 2 per share for FY 2025-26, with record date set as February 6, 2026.

• Approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

Financial highlights

• Q3 FY26 consolidated revenue was Rs. 219 crore (₹2,196.70 million), down 11% sequentially and 9% YoY; PAT was Rs. 46 crore (₹458.84 million), down 17% sequentially and 30% YoY.

• 9M FY26 consolidated revenue was Rs. 707 crore (₹7,072.94 million), up 1% YoY; PAT was Rs. 171 crore (₹1,713.83 million), down 10% YoY.

• Standalone Q3 revenue was INR 180 crore (₹1,854.90 million), with EBITDA and PAT margins at 40% and 29%, translating to EBITDA of INR 72 crore and PAT of INR 52 crore.

• Standalone revenue declined 21% YoY, mainly due to lower sales volume and loss of a key customer in the cosmetic segment.

• EBITDA margin for Q3 FY26 consolidated was 36.4%, and for 9M FY26 was 37.2%.

Outlook and guidance

• Performance Chemical 2 CapEx on track for commercialization in Q1 FY27; revenue from this facility expected to be staggered, with full ramp-up post customer approvals.

• Commercialization of new products and capacity expansions are expected to drive future sales growth.

• HALS business expected to see increasing export contribution as product approvals in Europe and the US are secured.

• Management refrained from providing EBITDA margin guidance due to ongoing market uncertainties and pricing pressures.

• Management does not expect significant financial impact from recent Labour Code changes and continues to monitor regulatory developments.