Clean Science and Technology (CLEAN IN) – Q4FY26 Result Update – HALS volume to pick going ahead – HOLD
Published on 14 May 2026
Clean Science and Technology reported revenue of Rs2.5bn in Q4FY26, declining 5.5% YoY but increasing 13.5% QoQ. Sequential performance was driven by higher customer offtake and recovery in volumes. The HALS business achieved its highest ever quarterly revenue, with volumes crossing ~1,000mt in Q4FY26 and exit utilisation reaching 40% in March, supported by an improving product mix and rising exports. The segment also turned EBITDA positive for the first time, reporting a profit of Rs70–80mn during the quarter.
The company expects the growth momentum in HALS to continue, led by higher-grade products. It is also undertaking backward integration into key HALS intermediates by repurposing the DHTT (pharma intermediate) facility. For the Hydroquinone (HQ) and Catechol plant commissioned in Dec’25, management expects a gradual ramp-up over the coming quarters. On the capex front, commercialization of Performance Chemical 2 is now expected by Sep’26, delayed due to manpower shortages. Upcoming capacity additions are likely to support growth; however, we remain cautious given macroeconomic volatility and lower realizations in certain legacy products. At the current valuation of 24x FY28E EPS, we maintain a ‘HOLD’ rating on CLEAN, with a TP of Rs846, based on 25x FY28 EPS.
