Clean Science & Technology Shares Gain 13.40% in a Month Despite FY26 PAT Falling 14% to ₹2,512 Million

Clean Science & Technology reported a weaker FY26 financial performance as lower revenue and softer profitability impacted annual earnings. Profit After Tax (PAT) declined 14% year-on-year to ₹2,512 million, while Revenue from Operations fell to ₹8,153 million.

Despite the earnings pressure, the stock has gained 13.40% over the past month as investors continue focusing on the company’s long-term position in the specialty chemicals sector, strong balance sheet profile, and future expansion plans. The Board also approved a ₹200 crore investment in subsidiary Clean Fino-Chem and recommended a final dividend of ₹4 per share.

FY26 Financial Performance Reflects Revenue Pressure

Clean Science & Technology announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The company reported a decline in annual earnings as lower revenue and weaker operating performance affected profitability during the financial year.

Standalone Revenue from Operations for FY26 stood at ₹8,153.35 million compared to ₹9,223.16 million in FY25. Profit Before Tax (PBT) declined to ₹3,356.11 million, while PAT fell to ₹2,512.17 million from ₹2,923.02 million in the previous year.

For the March quarter, standalone PAT came in at ₹581.21 million compared to ₹786.08 million in Q4 FY25. Quarterly revenue also declined to ₹1,971.30 million from ₹2,453.86 million a year earlier.

Although near-term earnings remained under pressure, investors appear to be focusing on the company’s long-term manufacturing capabilities, niche product portfolio, and expansion opportunities within the specialty chemicals industry.

Standalone Financial Performance

Particulars	FY26	FY25	YoY Change
Revenue from Operations	₹8,153.35 Mn	₹9,223.16 Mn	-12%
Total Income	₹8,428.39 Mn	₹9,584.99 Mn	-12%
Total Expenses	₹5,072.28 Mn	₹5,679.49 Mn	-11%
Profit Before Tax	₹3,356.11 Mn	₹3,905.50 Mn	-14%
Profit After Tax	₹2,512.17 Mn	₹2,923.02 Mn	-14%
EPS (Basic)	₹23.64	₹27.51	-14%

The decline in earnings mainly reflects lower revenue generation and reduced operating leverage during the year. However, cost control measures helped limit the impact on overall profitability.

Consolidated Earnings Also Decline During FY26

On a consolidated basis, the company reported FY26 Revenue from Operations of ₹9,565.47 million compared to ₹9,666.44 million in FY25. Consolidated PAT declined to ₹2,296.55 million from ₹2,644.05 million in the previous financial year.

Quarterly consolidated revenue for Q4 FY26 stood at ₹2,492.53 million, while quarterly PAT came in at ₹582.72 million.

Consolidated Financial Performance

Particulars	FY26	FY25	YoY Change
Revenue from Operations	₹9,565.47 Mn	₹9,666.44 Mn	-1%
Total Income	₹9,891.02 Mn	₹10,052.31 Mn	-2%
Total Expenses	₹6,794.32 Mn	₹6,485.00 Mn	+5%
Profit Before Tax	₹3,096.70 Mn	₹3,567.31 Mn	-13%
Profit After Tax	₹2,296.55 Mn	₹2,644.05 Mn	-13%
EPS (Basic)	₹21.61	₹24.88	-13%

The consolidated performance indicates that although revenue remained relatively stable, profitability was impacted by higher costs and softer margin performance during FY26.

Specialty Chemicals Industry Continues Long-Term Structural Expansion

The broader specialty chemicals industry continues witnessing strong long-term opportunities despite short-term earnings pressure across the sector. Indian chemical manufacturers are gradually benefiting from rising global diversification of supply chains, increasing demand for niche chemicals, and stronger focus on high-value manufacturing.

Clean Science remains one of the well-recognised players within the high-margin specialty chemicals segment due to its process innovation capabilities and differentiated product portfolio.

₹200 Crore Investment Highlights Expansion Strategy

One of the key strategic developments during the quarter was the Board’s approval for an additional ₹200 crore investment in wholly owned subsidiary Clean Fino-Chem Limited.

The investment will be made in one or more tranches and reflects management’s continued focus on long-term expansion despite temporary earnings weakness.

Within the chemicals industry, future growth is often linked to:

capacity additions new product development specialty chemical expansion manufacturing scale-up technology-driven process improvements

Investors generally monitor such investments closely because they can improve long-term revenue visibility and strengthen future profitability potential.

Dividend Announcement Reflects Financial Stability

The Board recommended a final dividend of ₹4 per equity share for FY26, subject to shareholder approval at the upcoming Annual General Meeting.

Despite lower annual profitability, the dividend recommendation indicates continued confidence in the company’s balance sheet position and cash flow generation capability.

Companies with healthy financial structures and disciplined capital allocation often continue shareholder payouts even during cyclical slowdowns, helping maintain long-term investor confidence.

Balance Sheet and Audit Position Remain Stable

The company stated that statutory auditors Price Waterhouse Chartered Accountants LLP issued an unmodified audit opinion on both standalone and consolidated financial statements.

An unmodified audit report is generally viewed positively because it reflects compliance with accounting standards and clean financial reporting practices.

Stock Performance Reflects Improving Market Sentiment

Period	Return
1 Day	+0.11%
5 Days	-4.79%
1 Month	+13.40%
6 Months	-13.12%
1 Year	-34.47%
5 Years	-48.4%

Although the stock remains under pressure on a longer-term basis, the recent monthly recovery suggests improving investor confidence around future growth potential and industry recovery expectations.

Long-Term Growth Drivers

Specialty Chemicals Expansion

The company continues strengthening its position in high-margin specialty and performance chemicals, which remain important growth areas within India’s manufacturing sector.

Capacity Expansion Opportunities

The additional investment into Clean Fino-Chem highlights management’s continued focus on scaling manufacturing capabilities and expanding product offerings.

Process Innovation and Manufacturing Strength

Clean Science’s process chemistry expertise and differentiated production capabilities remain important competitive advantages over the long term.

Export and Global Supply Chain Opportunities

Indian specialty chemical manufacturers continue benefiting from rising global diversification of chemical sourcing and increasing international demand for specialty products.

Final Take

Clean Science & Technology reported a weaker FY26 financial performance as lower revenue and softer operating conditions affected annual profitability. However, recent stock recovery indicates that investors continue focusing on the company’s long-term specialty chemicals positioning, manufacturing strengths, and expansion strategy.

The ₹200 crore subsidiary investment, continued dividend payout, and focus on specialty products suggest management remains confident about future growth opportunities. If industry conditions improve and demand stabilises, Clean Science could benefit from stronger operating leverage and margin recovery over the medium term.

What was Clean Science FY26 PAT?

The company reported standalone FY26 PAT of ₹2,512.17 million.

How much dividend did Clean Science announce?

The Board recommended a final dividend of ₹4 per equity share.

What investment did the company approve?

The Board approved an additional ₹200 crore investment in Clean Fino-Chem Limited.

Why has the stock gained recently despite lower earnings?

Investors are focusing on long-term growth opportunities, specialty chemicals expansion, and future capacity development.

Which sector does Clean Science operate in?

The company operates in the specialty chemicals and performance chemicals industry.