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View Claim Ledger →Clean Science and Technology Ltd — Q4 FY26
Clean Science reported a resilient Q4 FY26 with consolidated revenue of ₹246 crore (+14% QoQ) and EBITDA margin of 33%.
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Clean Science reported a resilient Q4 FY26 with consolidated revenue of ₹246 crore (+14% QoQ) and EBITDA margin of 33%. Standalone revenue grew 8% QoQ to ₹193 crore, driven by volume recovery in flagship products. The health subsidiary achieved its first positive EBITDA of ₹7 crore, with volumes exceeding 1,000 tons and blended realizations improving to ₹460/kg. Management highlighted persistent pricing pressure from Chinese competition in MEHQ and anisol, but noted improved gross margins due to product mix. FY27 guidance remains cautious due to geopolitical uncertainty and crude price volatility. Key risks include inability to fully pass on raw material cost increases and potential oversupply from new domestic entrants.
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Chinese pricing arbitrage in commodity chemicals
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Read Transcript →Quarter Snapshot
Health subsidiary EBITDA
₹7 crore
First positive quarter
Clean Pheninox reported positive EBITDA for the first time, following break-even in Q3.
Health sales volume
1,000+ tons
+185% vs 8 quarters ago
Health volumes grew from ~350 tons/quarter eight quarters ago to over 1,000 tons in Q4.
Health blended realization
₹460/kg
+8-10% QoQ
Blended realization improved from ₹420-430/kg in Q3 to ₹460/kg in Q4 due to favorable mix.
Health export share
50%
+30pp vs earlier
Export share of health business increased from 20% to 50%, driven by Europe, Middle East, and US.
What Changed vs Last Quarter
NEW
Performance Chemical 2 commercialization by September 2026
The new plant for water treatment chemicals is expected to be commercialized by September 2026, with validation in Q3 and revenue contribution from Q4 FY27.
NEW
Capex budget of ₹80-100 crore for FY27
Management guided a capex range of ₹80-100 crore for the upcoming fiscal year, primarily for debottlenecking and backward integration.
NEW
Health subsidiary margin improvement through backward integration
Backward integration into key intermediates for health products is expected to improve margins and reduce import dependence, though no specific target was given.
DROPPED
Performance Chemical 2 to commercialize in Q1 FY27
The PC2 plant is expected to start production by May-June 2026, with revenues beginning in Q4 FY27 after teething issues and customer approvals.
DROPPED
HALS 50% utilization target over 2 years
Management reiterated its guidance of achieving 50% utilization for the HALS plant over a 2-year period from commercialization.
DROPPED
No further promoter dilution in next couple of years
Management stated that the Bhoop family is unlikely to sell any further shares in the next couple of years, even after the lock-in period.
NEW RISK
Chinese pricing arbitrage in commodity chemicals
China's access to cheaper crude oil allows Chinese producers to offer lower prices for phenol and acetone, creating an arbitrage that pressures Clean Science's margins.
NEW RISK
Inability to fully pass on raw material cost increases
Long-term contracts prevent immediate pass-through of higher phenol and acetone costs, with renegotiation only possible upon contract expiry.
NEW RISK
New domestic entrants in anisol/MEHQ space
Companies like Vinati Organics and Gem Aromatics are entering with large capacities, potentially leading to oversupply and margin compression.
RISK GONE
Chinese overcapacity and pricing pressure
Chinese competitors have increased capacity in hydroquinone and MEHQ, driving prices to all-time lows and pressuring Clean Science's margins.
RISK GONE
Tariff impact on customer demand
US tariffs of 55% on Indian benzophenone have reduced offtake from Indian customers, and tariff uncertainty is causing destocking in North America and Europe.
RISK GONE
Permanent loss of key customer in 4-MAP
A Chinese customer for 4-MAP has backward integrated, resulting in permanent volume loss. Management confirmed the customer is 'dead' and will not return.
RISK GONE
HALS price hikes not materializing
Despite public announcements of price hikes by global HALS majors, these have not been implemented, keeping margins under pressure.
Fast read
Guidance and risk preview
The new plant for water treatment chemicals is expected to be commercialized by September 2026, with validation in Q3 and revenue contribution from...
China's access to cheaper crude oil allows Chinese producers to offer lower prices for phenol and acetone, creating an arbitrage that pressures Cle...
View Risks →