CLEANNSEQ4 FY26May 14, 2026

Clean Science and Technology Limited

6,509words
167turns
9analyst exchanges
3executives
Management on call
Siddharth Sikchi
MANAGING DIRECTOR AND
Sanjay Parnerkar
CHIEF FINANCIAL
Pratik Bora
PRESIDENT, COMMERCIAL – CLEAN SCIENCE AND TECHNOLOGY LIMITED
Key numbers — 40 extracted
1%
particular financial year. Consequently, the performance bonus for FY26 is reduced to less than 1% of PBT as against entitled 4% PBT for this financial year. On stand-alone business performance, s
4%
onsequently, the performance bonus for FY26 is reduced to less than 1% of PBT as against entitled 4% PBT for this financial year. On stand-alone business performance, starting from Q-o-Q comparison,
8%
. On stand-alone business performance, starting from Q-o-Q comparison, the revenues improved by 8% to INR193 crores, largely due to increase in customer offtake. The EBITDA and PAT margins are at
INR193 crore
stand-alone business performance, starting from Q-o-Q comparison, the revenues improved by 8% to INR193 crores, largely due to increase in customer offtake. The EBITDA and PAT margins are at 46% and 40%, res
46%
to INR193 crores, largely due to increase in customer offtake. The EBITDA and PAT margins are at 46% and 40%, respectively, translating into an EBITDA of INR88 crores and a PAT of INR 77 crores. Thi
40%
93 crores, largely due to increase in customer offtake. The EBITDA and PAT margins are at 46% and 40%, respectively, translating into an EBITDA of INR88 crores and a PAT of INR 77 crores. This revenu
INR88 crore
ftake. The EBITDA and PAT margins are at 46% and 40%, respectively, translating into an EBITDA of INR88 crores and a PAT of INR 77 crores. This revenue increase is primarily led by increase in volumes. Com
INR 77 crore
margins are at 46% and 40%, respectively, translating into an EBITDA of INR88 crores and a PAT of INR 77 crores. This revenue increase is primarily led by increase in volumes. Coming to Y-o-Y, the sales decli
19%
his revenue increase is primarily led by increase in volumes. Coming to Y-o-Y, the sales declined 19% during the quarter, and this decline was primarily led by sales volume.
12%
rily led by sales volume. On 12-month Y-o-Y front, the revenue declined 12% from INR 900 crores to INR 796 crores i.e. roughly INR 800 crores. This is attributed to loss of
INR 900 crore
by sales volume. On 12-month Y-o-Y front, the revenue declined 12% from INR 900 crores to INR 796 crores i.e. roughly INR 800 crores. This is attributed to loss of key account or a pa
INR 796 crore
On 12-month Y-o-Y front, the revenue declined 12% from INR 900 crores to INR 796 crores i.e. roughly INR 800 crores. This is attributed to loss of key account or a particular customer
Guidance — 20 items
Siddharth Sikchi
opening
“The Q4 FY26 has been a resilient quarter for the company, marked by strong delivery despite challenging global environment and geopolitical uncertainties.”
Siddharth Sikchi
opening
“The challenging conditions that we had highlighted during the earlier part of the year continued for a large part of FY26 with muted customer offtake, pricing pressure in selected products and selected geographies and, of course, tariff-related uncertainty.”
Siddharth Sikchi
opening
“We continue to see scale in our HALS business segment, which saw the highest ever revenue in Q4 FY26 with continued improvement in favorable product mix.”
Siddharth Sikchi
opening
“Consequently, the performance bonus for FY26 is reduced to less than 1% of PBT as against entitled 4% PBT for this financial year.”
Siddharth Sikchi
opening
“The Hydroquinone/Catechol plant which was established in December '25 is under initial stabilization phase, and we expect the plant to achieve optimal operations with improved productivity and efficiency in the following 1 to 2 quarters.”
Siddharth Sikchi
opening
“Our capex timeline of Performance Chemical 2 is as per plan, and we expect to commercialize by September '26.”
Siddharth Sikchi
opening
“And these initiatives will be implemented with minimal capital expenditure and in-house developed processes.”
Sanjesh Jain
qa
“That will be really useful to make the analysis.”
Sanjesh Jain
qa
“And how should we see MEHQ market in FY27?”
Siddharth Sikchi
qa
“And we are very hopeful that HALS will be a good -- I mean, a good business decision for us.”
Risks & concerns — 5 flagged
The challenging conditions that we had highlighted during the earlier part of the year continued for a large part of FY26 with muted customer offtake, pricing pressure in selected products and selected geographies and, of course, tariff-related uncertainty.
— Siddharth Sikchi
Coming to Y-o-Y, the sales declined 19% during the quarter, and this decline was primarily led by sales volume.
— Siddharth Sikchi
This is attributed to loss of key account or a particular customer in an FMCG, which is 4-MAP product, lower offtake and pricing pressure in our key products.
— Siddharth Sikchi
We are so dependent on macro that it is very difficult to really tell you how do we see this financial year.
— Siddharth Sikchi
Second is, there is a more pressure in the European geography, which is leading to some gain in terms of volumes or the end product pricing as well.
— Pratik Bora
Q&A — 9 exchanges
Q
First, just can you help us with the segmental numbers, I think, that you used to give in the presentation. That will be really useful to make the analysis.
Siddharth Sikchi
So, basically, you want the Performance versus... Performance, Pharma, FMCG and others. So Sanjesh, Performance segment contributed 72%; the second segment i.e. Pharma-Agro contributed 19% and FMCG contributed balance 9% to standalone revenues. This is for the quarter or the full year, Pratik? This is for full year. Okay. For the quarter? Quarter, I can -- okay, I'll get back to you on quarter number. But effectively, in the presentation also we put for the full year. So basically, full year minus 9 months, you can get to a quarter number. I can do that. I got it. But that's super useful. Sidd
Q
First question, continuing with HALS there. So given that we have seen good traction in the export markets here, would it be fair to say that Q4 should be a base case revenue here for us and incrementally things should only improve? And second -- yes, and this will also -- is there a significant benefit that we are seeing from the distribution tie-up that we had done? Or is it the older ones wherein you were doing direct touch with the customers and those have sort of converted?
Siddharth Sikchi
Ankur, it's always a combination, right, in the sales, larger accounts, direct accounts, distribution channel. Even when distributions are now increasing, I mean, they started with small volumes. Now their confidence have picked up. They are now able to maintain more safety stocks, supply more to the customers. So it's a combination of both, right? But in totality, we are now known as a good supplier of HALS, both not just India, but also global player. And now we are also seeing a lot of inbound interest coming from customers. So it's a good thing for us, I think. Sure. And given the traction
Q
My question is on the MEHQ. So because of the excess HQ capacity last at least 3, 4 months, we were anticipating there will be -- we need to compete really hard in terms of pricing. So is that part behind us or we are still seeing too much of HQ being in China at least diverted towards MEHQ production and keeping us in toes?
Siddharth Sikchi
See, we are still trying to keep our market share. And if you see, that is still happening. So wherever needed, we are working on pricing, tech and whatever is needed to keep our market share. Okay. So these HQ capacities were originally put up for manufacturing MEHQ or something else? And that something else is not happening that's why this HQ is diverted towards MEHQ? How is this happening in general? Hydroquinone in itself is a very, very large product. It itself is used as multi-fold application. MEHQ is just the smallest item out of that. So hydroquinone is never made to -- I mean, hydroq
Q
So I have a few questions. Sir, first, with new players entering the anisole, MEHQ, BHA with large capacity and they have started filling up.
Siddharth Sikchi
Who? Companies like Vinati Organics and Gem Aromatics. How do you see the demand and supply scenario over there? And can there be an oversupply? And can prices come down and hit our margins? See, we cannot comment on the competition, but so far, we are very well secured. Okay, sir. And just wanted to know about the stand-alone market size of anisole in India and globally? Anisole market in India and globally, we are the largest producer and we are the largest consumer. Okay, sir. And I'm new to the company. So I have a question like why China is producing MEHQ from HQ? And why they are not dev
Q
My question is on the -- who are the players globally and India who has developed vapor phase technology currently. I think Gem Aromatics and Vinati also have this same technology. Any other players?
Siddharth Sikchi
I think you know better. These are the 2 we heard. I don't know any third one. In India, we don't have. Globally? Globally for which product? Anisole? Vapor phase technology. Vapor phase technology. Whom you said in India has developed? Gem Aromatics and Vinati Organics. Okay, okay. Omkar, we can't confirm for other companies. It's only in our case we can confirm that vapor phase route has been used for manufacturing anisole. For other companies, we are not the right ones to confirm. Okay. One more question I have. Do we face any competition from China in anisole? And how is the demand and sup
Q
Congratulations on significantly improved results. Just a few basic data point related questions for me. I'll keep it brief. That revenue salience of the top products, would it be possible to share how much it was this quarter? And second thing also the breakdown by geography. We used to give that in the presentation.
Pratik Bora
Abhijit, we have realized that these are fairly sensitive data points from competition perspective. And that's why we have taken a conscious call not to share that level details. Fair enough. Fair enough. The revenue -- sorry, the revenue breakdown in terms of volumes versus prices for this quarter gone by? So sequentially, whatever growth we have seen around 8%, that is largely volume led. And I'm talking only from a stand-alone perspective, at consol level, of course, because of HALS, the growth is more volume led. Okay. And the INR200 crores capex that you're investing in Clean Fino-Chem, a
Q
First, Siddharth, if we were to analyze the situation of our industry before this disruption that happened, the prices were trending at 20-year low and which was the case with the base chemical as well as the end products that we make. Now the position as we stand today, I'm sure the base chemical would have moved, would you be able to quantify in certain or any -- and in broad range that would have been the price hikes or the increase in the prices because of whatever the reason that we would have taken standing as on date, which should be reflected in the coming quarters? And to our position
Pratik Bora
Yes. Priyank, in base products, like at least in the commodity, we have seen the prices shoting up 2x in that range. But that's not again a fair benchmark because these are not transactional prices. Second is, there is a more pressure in the European geography, which is leading to some gain in terms of volumes or the end product pricing as well. However, as Siddharth mentioned earlier that China continues to be in a better position compared to the other geographies. And there is some arbitrage in terms of the price increases in China versus rest of world. Got it. But we would not be able to qu
Q
So thank you, everybody, for your time to understand the company and for our -- understanding our quarterly and '26 numbers. I appreciate your time. Thank you so much. Have a good one.
Management
Q
Thank you.
Management
Speaking time
Siddharth Sikchi
61
Sanjesh Jain
22
Arun Prasath
22
Pratik Bora
20
Moderator
10
Ankur
9
Omkar Dandekar
7
Abhijit
7
Priyank Chheda
5
Shreyans Jain
4
Opening remarks
Siddharth Sikchi
Thank you so much. Good evening, everyone. Thank you for attending our quarter 4 and 12 months FY26 earnings call. I sincerely appreciate your continued trust and engagement, and it is our pleasure to connect with you once again. Let me speak briefly on the business environment. The Q4 FY26 has been a resilient quarter for the company, marked by strong delivery despite challenging global environment and geopolitical uncertainties. The challenging conditions that we had highlighted during the earlier part of the year continued for a large part of FY26 with muted customer offtake, pricing pressure in selected products and selected geographies and, of course, tariff-related uncertainty. At the same time, we remain focused on customer engagement, process efficiency, backward integration and protecting our market position in our key product categories. On other side, the quarter reflected sequential improvement in overall performance, largely driven by increase in customer’s volume offtake
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