Health subsidiary EBITDA
₹7 crore
First positive quarter
Clean Pheninox reported positive EBITDA for the first time, following break-even in Q3.
CLEANSCIENCEANDTECHNOLOG
Information Technology
15 May 2026
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%.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
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.
Key Numbers
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.
Management Guidance
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.
Management guidance expansionCapex 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.
Management guidance capexHealth 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.
Management guidance marginsKey Risks
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.
high · management_commentaryInability 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.
medium · analyst_questionNew 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.
medium · analyst_questionNotable Quotes
We are waiting for this Chinese summit to end then this Russian Putin Chinese again summit to end to understand where the world stands in terms of crude oil.
We have maintained the market share by responding to the competition but still in percentage terms the gross margin has increased.
This is going to be a very tricky financial year for chemical industry in my view.
Frequently Asked Questions
What was Clean Science and's revenue in Q4 FY26?
Clean Science and reported revenue of ₹246 Cr in Q4 FY26, representing a — change compared to the same quarter last year.
What guidance did Clean Science and management give for FY27?
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. 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. 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.
What are the key risks for Clean Science and in FY27?
Key risks include 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.; 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 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..
Did Clean Science and meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Clean Science and Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.