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StocksMediumUpdated×2•Originally published 2 November 2026•Updated 2 November 2026•
3 min read

Raw Material Costs Squeeze Clean Science Margins Despite 22.4% Revenue Growth in Q2

Key Facts

1Consolidated raw material expenses were 128 crore rupees, up 33%, and accounted for 43.3% of revenue, compared with 39.7% a year earlier.
2First-half revenue rose to 568 crore rupees, up 16%, while earnings before interest, taxes, depreciation and amortization increased 1% to 188 crore rupees.
3HALS activity doubled in the first half, accounting for 22% of total sales.
4Capital expenditure was about 150 crore rupees in the first half, directed mainly to Clean Fino Chem Ltd.
5Shares fell as much as 8.27% to 656.45 rupees in morning trading on November 2, 2026.

Clean Science and Technology reported a 22.4% year-on-year increase in consolidated revenue in the second quarter of fiscal 2027, while raw material expenses rose 33% to 128 crore rupees, according to the company's investor presentation. These expenses accounted for 43.3% of revenue, compared with 39.7% in the same quarter of the previous fiscal year. The figures show a divergence between sales growth and the increase in input costs during the period.

Profit growth slowed in the first half of fiscal 2027, with consolidated revenue at 568 crore rupees, up 16% from 488 crore rupees in the same period. Earnings before interest, taxes, depreciation and amortization rose 1% to 188 crore rupees, with a margin of 33.7%. Net profit also increased 3% to 129 crore rupees, with a margin of 23.1%. Growth in both profitability measures was slower than revenue growth over the six months. The comparison reflects continued business expansion alongside relatively limited growth in operating and net profit.

The product mix shifted as HALS activity expanded, doubling in the first half on higher volumes. HALS accounted for about 22% of total sales in the second quarter of fiscal 2027. The share of the four largest legacy products fell to 58%, from about 85% in the fourth quarter of fiscal 2023. The shift points to lower sales reliance on the older product group alongside growth in HALS activity. This places the changing revenue mix alongside cost pressures among the key features of the company's results.

The company recorded capital expenditure of about 150 crore rupees in the first half of fiscal 2027, directing most of it toward investment in its subsidiary, Clean Fino Chem Ltd. The spending came as HALS activity doubled, while the company announced plans to launch new products through the subsidiary. Clean Fino Chem completed trials of an advanced HALS product with Geneus Chem AG and met quality standards and regulatory requirements, the company said. It expects the product's commercial launch in the second half of fiscal 2026-27. The company also expects to market Performance Chemical 2 in the second half of fiscal 2027.

In morning trading on November 2, 2026, Clean Science shares fell as much as 8.27% to 656.45 rupees, compared with Friday's close of 715.60 rupees, according to a report published the same day. The company said in its presentation that quarterly margins were affected by what it called "geopolitical headwinds." The share movement during the session places the revenue growth and cost pressure in the context of the market's reaction, but does not represent the closing price. The first-half results combine revenue growth and capital spending with slower profit growth. The commercial launches announced by the company are scheduled for the second half of the fiscal year.