Clean Science and Technology Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Clean Science and Technology Ltd filed with BSE on 06 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Clean Science reported its highest ever consolidated quarterly sales at approximately Rs 264 crores, with standalone revenue up 5% sequentially to Rs 203 crores on improved realizations. Management attributed the year-on-year revenue moderation to supply-side disruptions including raw material shortages and shipping vessel unavailability. The company also announced two new business developments during the quarter: a strategic collaboration with Swiss partner Geneus Chem for advanced HALS chemistry and a five-year supply agreement with Kemin.
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Numbers mentioned
Consolidated sales: approximately INR264 crores (Q1 FY27)
p. 3
“We are also pleased to report our highest ever consolidated sales in company's history, reaching approximately INR264 crores during the quarter.”
Siddharth Sikchi, page 3 of the filed PDF · View the filing
Standalone revenue: INR 203 crores (Q1 FY27)
p. 3
“On a sequential basis, the revenue improved by 5% to INR 203 crores, largely due to increase in realization in all the products.”
Siddharth Sikchi, page 3 of the filed PDF · View the filing
Standalone EBITDA margin: 43% (Q1 FY27)
p. 3
“The EBITDA and the PAT margins are at 43% and 36%, translating into an EBITDA of INR87 crores and PAT of INR 73 crores.”
Siddharth Sikchi, page 3 of the filed PDF · View the filing
Consolidated EBITDA margin: 37% (Q1 FY27)
p. 4
“EBITDA and PAT are 37% and 28%, respectively, which stands at INR 96 crores and INR 73 crores, respectively.”
Siddharth Sikchi, page 4 of the filed PDF · View the filing
HALS share of sales: 22% (Q1 FY27)
p. 3
“HALS is now 22% of our sales, and we have been able to Clean Science and Technology Limited August 01, 2026 Page 3 of 17 derisk our reliance on the top 4 legacy products by moderating their share from 85% in Q4 FY23 to 60% this quarter.”
Siddharth Sikchi, page 3 of the filed PDF · View the filing
HALS exports share of HALS sales: nearly 50% (Q1 FY27)
p. 4
“In contrast, the current quarter reflects a much more diversified geographical mix with exports contributing nearly 50% of the HALS sales.”
Siddharth Sikchi, page 4 of the filed PDF · View the filing
HALS volume: 1,000 tons (Q1 FY27)
p. 5
“Sanjesh, volumes are in the range of 1,000 tons, and the product mix has significantly improved to the higher grades of HALS, meaning, I mean, last quarter where almost 50% of contribution came in from HALS 770, this quarter it has come down to 35-odd percent.”
Pratik Bora, page 5 of the filed PDF · View the filing
Capital infusion in subsidiary: approximately INR100 crores (Q1 FY27)
p. 4
“And during the quarter, capital infusion in the subsidiary was approximately INR100 crores with this total investment in the subsidiary stands at approximately INR850 crores.”
Siddharth Sikchi, page 4 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
HALS annualized revenue — INR250 crores to INR300 crores · FY27
stated as an aspiration by Siddharth Sikchi
p. 12
“So basically, I told you in terms of revenue this year, the target is between INR250 crores to INR300 crores, okay?”
Siddharth Sikchi, page 12 of the filed PDF · View the filing
Performance Chemical 2 commercialization — commissioned · Q3 FY27
stated firmly by Siddharth Sikchi
p. 4
“On a capex update, the Performance Chemical 2 will get commercialized by quarter 3 FY27.”
Siddharth Sikchi, page 4 of the filed PDF · View the filing
Geneus Chem partnership revenue — INR300 crores to INR350 crores of additional revenue · 3 to 4 years
stated as an aspiration by Siddharth Sikchi
p. 6
“In overall 3 to 4-year period, we are looking at INR300 crores to INR350 crores of revenue -- additional revenue.”
Siddharth Sikchi, page 6 of the filed PDF · View the filing
Kemin offtake increase — 20% to 40%
stated conditionally by Siddharth Sikchi
p. 15
“So Kemin, probably our offtake will increase by 20% to 40%.”
Siddharth Sikchi, page 15 of the filed PDF · View the filing
Hydroquinone and catechol plant revenue ramp — starting August, September
stated firmly by Siddharth Sikchi
p. 11
“And now I think starting August, September, the revenue should also start coming in.”
Siddharth Sikchi, page 11 of the filed PDF · View the filing
Performance Chemical 2 plant start — November
stated conditionally by Siddharth Sikchi
p. 17
“I think there will be delay because of all these labor issues we had over the last couple of months. So yes, I think there would be a delay, and we expect the plant to start in November-ish.”
Siddharth Sikchi, page 17 of the filed PDF · View the filing
Performance Chemical 2 major revenue — Q1 FY28
stated conditionally by Siddharth Sikchi
p. 11
“So let's see. Quarter 3 and quarter 4 will majorly go into setting up the lines and getting the right product quality. So we expect the major revenue should only come from quarter 1 next year.”
Siddharth Sikchi, page 11 of the filed PDF · View the filing
EBITDA margins
stated as an aspiration by Siddharth Sikchi
p. 17
“We will see EBITDA margins will keep improving, because as we get into sales of more and more higher grade, the EBITDA margins will keep improving.”
Siddharth Sikchi, page 17 of the filed PDF · View the filing
Netherlands subsidiary start — operational · mid-September
stated firmly by Siddharth Sikchi
p. 18
“No, we will be starting the subsidiary in mid-September and it will be operational starting then.”
Siddharth Sikchi, page 18 of the filed PDF · View the filing
Geneus Chem plant capex — about INR25-odd crores
stated conditionally by Siddharth Sikchi
p. 14
“So where we are expecting for that particular product, we will be putting about INR25-odd crores.”
Siddharth Sikchi, page 14 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Volumes were around 1,000 tons and the product mix shifted to higher grades, improving margins.
Answered by Pratik Bora
Asked by Sanjesh: What was the volume and pricing mix in HALS this quarter?
p. 5
“Sanjesh, volumes are in the range of 1,000 tons, and the product mix has significantly improved to the higher grades of HALS, meaning, I mean, last quarter where almost 50% of contribution came in from HALS 770, this quarter it has come down to 35-odd percent.”
Pratik Bora, page 5 of the filed PDF · View the filing
Management said it should be sustainable, attributing it to higher grades and operational efficiency rather than cheap raw materials.
Answered by Siddharth Sikchi
Asked by Sanjesh: Is the 43-45% gross margin sustainable?
p. 5
“I think it should be sustainable, and we had no real advantage of cheap raw material.”
Siddharth Sikchi, page 5 of the filed PDF · View the filing
Management attributed it entirely to raw material unavailability, not demand.
Answered by Siddharth Sikchi
Asked by Sanjesh: What caused the legacy business decline?
p. 7
“Yes, yes. Because the primary supplier in India had to shut down the facility due to nonavailability of their key raw material, propylene.”
Siddharth Sikchi, page 7 of the filed PDF · View the filing
Management said long-term contracts limited pass-through and only a percentage of increases was passed on in some cases.
Answered by Siddharth Sikchi
Asked by Abhijit Akella: Were input cost increases fully passed on to customers?
p. 10
“No. Wherever we had long-term contracts, we are respecting most of them.”
Siddharth Sikchi, page 10 of the filed PDF · View the filing
Management said it was due to a one-off CSR expenditure and provisioning in the prior quarter, not a recurring item.
Answered by Pratik Bora
Asked by Saurab Banik: What caused the 13% rise in consolidated other expenses?
p. 12
“Sequentially, there is a CSR impact. In quarter 4, there was a high expenditure towards CSR compared to quarter 1.”
Pratik Bora, page 12 of the filed PDF · View the filing
Management explained NOR HALS are a higher, more expensive grade used in harsher environments like agricultural films, distinct from conventional alkoxy HALS.
Answered by Siddharth Sikchi
Asked by Nilesh Ghuge: How do the new NOR HALS differ from existing HALS products?
p. 13
“However, these advanced levels of HALS are also far more expensive compared to the traditional HALS.”
Siddharth Sikchi, page 13 of the filed PDF · View the filing
Management said supply issues have eased but raw material price volatility from geopolitical tensions persists.
Answered by Siddharth Sikchi
Asked by Rohit Nagraj: Have supply chain conditions improved in July compared to last quarter?
p. 17
“See, the supply issues have come down definitely, because now I'm sure all other companies have also started importing and keeping those safety stocks.”
Siddharth Sikchi, page 17 of the filed PDF · View the filing
Management said US exports have remained steady.
Answered by Siddharth Sikchi
Asked by Manish: Have exports to the US been affected by China competition or tariffs?
p. 18
“Our exports to U.S. have been very, very steady.”
Siddharth Sikchi, page 18 of the filed PDF · View the filing
Risks flagged
Geopolitical headwinds impacting raw material supply chain and cost
p. 3
“The quarter performance shall be viewed in backdrop of geopolitical headwinds impacting raw material supply chain and its cost.”
Siddharth Sikchi, page 3 of the filed PDF · View the filing
Non-availability of shipping vessels delaying exports
p. 3
“Non-availability of shipping vessels impacted timely export of goods, leading to supply side challenges.”
Siddharth Sikchi, page 3 of the filed PDF · View the filing
Raw material shortage from primary domestic propylene supplier shutdown
p. 7
“Yes, yes. Because the primary supplier in India had to shut down the facility due to nonavailability of their key raw material, propylene.”
Siddharth Sikchi, page 7 of the filed PDF · View the filing
Raw material price volatility from Middle East crisis
p. 9
“No, I think the major factor is the raw material pricing because of these Middle East crisis.”
Siddharth Sikchi, page 9 of the filed PDF · View the filing
Labor issues from gas-related disruptions delaying operations
p. 10
“And number 2 is also with these all labor issues we faced because of these gas issues and all, that was another challenging time.”
Siddharth Sikchi, page 10 of the filed PDF · View the filing
Delay to Performance Chemical 2 plant start due to labor issues
p. 17
“I think there will be delay because of all these labor issues we had over the last couple of months.”
Siddharth Sikchi, page 17 of the filed PDF · View the filing
Continued raw material price volatility impacting profitability
p. 17
“So there will be issues in profitability, but not with respect to supply position is what my understanding is.”
Siddharth Sikchi, page 17 of the filed PDF · View the filing
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