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

Executive summary

• Q3 FY26 faced challenging business conditions with muted demand, pricing pressure, and tariff uncertainties, but HALS business delivered robust YoY growth and commercialization of Hydroquinone and Catechol capacity is expected to accelerate sales growth.

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

• Capex of approximately ₹1,650 million during 9M FY26, mainly for investment in Clean Fino Chem Ltd. and Performance Chemical 2 construction.

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

Financial highlights

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

• 9M FY26 consolidated revenue was ₹7,072.94 million, up 1% YoY; PAT was ₹1,713.83 million, down 10% YoY.

• Standalone Q3 revenue was ₹1,854.90 million, with EBITDA and PAT margins at 40% and 29%, translating to EBITDA of ₹720 million and PAT of ₹518.97 million.

• Standalone revenue declined 21% YoY, mainly due to lower sales volume and product mix changes.

• Maintained a debt-free balance sheet with strong export revenue contribution (63% of consolidated revenues).

Outlook and guidance

• Performance Chemical 2 CapEx on track for commercialization in Q1 FY27; revenue from Performance Chemical 2 expected to be staggered, starting Q4.

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

• No specific EBITDA margin guidance due to market fluidity, but current run rate expected to continue in near term.

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

• Exports in HALS expected to ramp up as product approvals are received, shifting mix from 70% domestic to higher international share.