This article first appeared on GuruFocus .
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Standalone Revenue:Increased by 8% to INR193 crores quarter-on-quarter.
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Standalone EBITDA Margin:46%, translating to INR88 crores.
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Standalone PAT Margin:40%, translating to INR77 crores.
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Year-on-Year Revenue Decline:12% decrease from INR900 crores to INR796 crores.
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Consolidated Revenue:Increased by 14% to approximately INR246 crores.
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Consolidated EBITDA Margin:33%, amounting to INR96 crores.
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Consolidated PAT Margin:28%, amounting to INR58 crores.
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12-Month Consolidated Revenue:Flattish at about INR945 crores.
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Consolidated 12-Month EBITDA Margin:37%, amounting to INR355 crores.
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Consolidated 12-Month PAT Margin:24%, amounting to INR230 crores.
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Clean Fino-Chem Limited EBITDA:Positive INR7 crores in Q4.
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Dividend Declared:INR4 per equity share, 400% of face value.
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Warning! GuruFocus has detected 4 Warning Signs with BOM:543318.
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Is BOM:543318 fairly valued? Test your thesis with our free DCF calculator.
Release Date: May 14, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Clean Science and Technology Ltd ( BOM:543318 ) reported a sequential improvement in overall performance, driven by increased customer volume offtake.
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The HALS business segment achieved its highest-ever revenue in Q4 FY26, with a favorable product mix.
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The company successfully replaced Hydroquinone and Catechol imports with captive production, reducing raw material costs.
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The board declared a final dividend of INR4 per equity share, amounting to 400% of the face value.
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The company is expanding its HALS product portfolio and enhancing its presence in value-added specialty chemistries.
Negative Points
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The company faced a 19% year-on-year decline in sales during the quarter, primarily due to a loss of key accounts and pricing pressure.
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There is ongoing uncertainty in the global environment, including geopolitical tensions and tariff-related issues.
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The commercialization timeline for Performance Chemical Two has been delayed due to scarce manpower resources.
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The company is experiencing challenges in passing increased raw material costs to customers with long-term contracts.
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The chemical industry is facing a tricky financial year due to macroeconomic dependencies, particularly in crude oil supply.
Q & A Highlights
Q: Can you provide the segmental performance numbers for the full year? A: The Performance segment contributed 72%, Pharma grew 19%, and FMCG accounted for the remaining 9% for the full year. (Pratik Bora, Corporate Development Specialist)
Q: How has the increase in hydroquinone prices affected the MEHQ market, and are you able to pass on the increased costs? A: The rise in hydroquinone prices has strengthened our position in the MEHQ market. We are able to pass on some of the increased costs, but long-term contracts limit our ability to do so fully. (Siddhartha Sikchi, Managing Director)
Q: What led to the sharp increase in HALS revenue, and how sustainable is this growth? A: The increase is due to delayed customer responses and increased exports, with a shift from 80% domestic to 50% domestic and 50% export. We are also expanding our product portfolio and backward integration, which should sustain growth. (Siddhartha Sikchi, Managing Director)
Q: How do you view the competitive landscape for MEHQ, especially with excess HQ capacity in China? A: We are maintaining our market share by adjusting pricing and technology. The excess HQ capacity in China is not specifically for MEHQ, as HQ has multiple applications. (Siddhartha Sikchi, Managing Director)
Q: What are the expectations for HALS production and utilization in FY27? A: We expect to continue increasing HALS production, with a focus on higher-grade products and further backward integration to improve margins and reduce import dependence. (Siddhartha Sikchi, Managing Director)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
