Clean Science Q1 Results Review: PL Capital Maintains 'Hold' On The Stock — Check Target Price

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

PL Capital Report

Clean Science and Technology Ltd. reported revenue of Rs 2.4 billion in Q1 FY26, marking an 8.4% YoY increase but a 7.9% QoQ decline. The sequential dip in topline was due to lower sales of newer products such as DCC and TBHQ. The pharma and agro Intermediates segment witnessed the sharpest decline, with revenue down 32% QoQ. Volume for the company’s established products remained strong, supporting a robust standalone Ebitdam of 46%, driven by lower raw material costs.

HALS volume stood at 540 tonne. The management reiterated its guidance of 4,500tn for HALS volume in FY26, with new HALS grades priced at $11–35/kg expected to be launched over the coming quarters. HALS is likely to break even at the Ebitda level by Q2 FY26, with monthly sales expected to reach Rs 100 million. The HALS subsidiary reported Ebitda loss of Rs 80 million in Q1 FY26.

On the capex front, water trials at performance chemicals 1 are scheduled for August 2025, with commercialization of the facility targeted for Sep. Performance Chemicals 2 is on track for commercialization in Q4 FY26.

Looking ahead, these new capacity additions are expected to be key growth drivers. However, the company’s margin profile may face some pressure, as certain new products such as HALS are expected to yield lower profitability compared to the legacy portfolio.

At its current valuation of 41x FY27 EPS, we maintain ‘Hold’ rating on Clean Science, with target price of Rs 1,425 valuing it at 40 times FY27 EPS.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.