Clean Science revenue rises 22.4% in fiscal second quarter to 2,993.90 million rupees
Key Facts
Clean Science and Technology reported consolidated revenue from operations of 2,993.90 million rupees in the second quarter of fiscal 2027, up 22.4% from 2,446 million in the corresponding quarter of the previous fiscal year. The company’s board approved the unaudited financial results for the quarter and half-year ended September 30, 2026, at its meeting on October 31. The figures put revenue growth against a much slower performance in earnings, with consolidated net profit rising only about 0.5% year on year. Profit margins also declined, highlighting the gap between sales expansion and the resulting net earnings. Revenue and profit data are based on a results summary drawing on a Bombay Stock Exchange filing, while margin details were reported in the company’s investor presentation summary.
Consolidated profit after tax was 557.25 million rupees in the quarter ended September 30, compared with 554.34 million a year earlier, according to the results summary. That represents year-on-year growth of about 0.5%, despite a 22.4% rise in revenue from operations over the same period. Product sales were 295 crore rupees in the second quarter of fiscal 2027, up 23% from 240 crore in the second quarter of fiscal 2026, according to the investor presentation summary. Consolidated earnings before interest, taxes, depreciation and amortization were 92 crore rupees, up 5% year on year. Sales growth thus outpaced operating profit growth, while net profit remained close to its year-earlier level.
Consolidated EBITDA margin fell to 31.2% in the second quarter of fiscal 2027 from 36.4% in the corresponding period, according to the company’s presentation summary, while the net profit after tax margin declined to 18.9% from 23.2%. Net profit after tax was about 56 crore rupees, close to the 557.25 million rupees reported in the results summary, with the figures presented in different units. The declines in both margins mean a smaller share of revenue was converted into profit than a year earlier. The comparison shows that growth in revenue and products was not accompanied by a similar increase in net profit. The presentation summary gave no specific numerical explanation for the margin declines, leaving the comparison focused on expanding sales against slower earnings growth.
For the first half, consolidated revenue was about 568 crore rupees in fiscal 2027, up 16% from 488 crore in the first half of fiscal 2026, according to the investor presentation summary. First-half growth was below the 22.4% year-on-year increase in revenue from operations recorded in the second quarter alone, according to the results summary. The presentation summary also said the HALS segment doubled in size during the first half of fiscal 2027. This development forms part of the company’s backdrop for products it is preparing to launch or market in the following period. It does not change the current quarter’s result: revenue growth was clearly stronger than net profit growth.
The results include a tax item under review: Maharashtra’s tax department indicated a liability of 99.85 million rupees under the reverse charge mechanism, according to the results summary. The company recorded a consolidated provision of 20.20 million rupees for interest and non-deductible tax liabilities. The summary said discussions with the Goods and Services Tax authorities over the final liability and related interest are ongoing. The final obligation remains subject to those discussions, while the provision is included in the results for the quarter ended September 30, 2026. The tax matter adds another item to consider alongside sales growth and declining margins when assessing the results.
The available share-price movement relates to the October 30 session, before the board approved the results the following day. The stock closed at 715.60 rupees, down 3.32% during the session, according to Choice India data. The move therefore does not reflect a subsequent reaction to the October 31 results approval, and the available data do not establish a causal link between the share-price decline and the reported figures. Looking ahead, the company’s presentation summary forecast the commercial launch of an advanced HALS product in the second half of fiscal 2026-27 and the marketing of Performance Chemical 2 during the same period. These are the upcoming operational developments cited in the presentation, alongside continued discussions with authorities over the tax liability.