1. Opening Hook
Apparently, “Clean” science isn’t immune to dirty market realities. Revenues dipped, tariffs tangled trade, and China did what China does best—ruin everyone’s pricing model. The management insists it’s just a temporary headwind, but analysts smelled more than just lab chemicals in those numbers.
Still, a 44% margin in this environment? Not bad for a company that just took a forex slap and a tariff punch. Read on—things getchemicallyinteresting from here.
2. At a Glance
- Revenue down 8% YoY:China sneezed, Clean caught the flu.
- EBITDA ₹90 cr, down 10% QoQ:Margins refused to fall, though gravity tried.
- EBITDA margin 44%:Still flexing those process efficiencies.
- PAT ₹65 cr, down 15% QoQ:Forex gremlins stole the last slice of profit.
- HALS segment up 25% QoQ:The new favourite child of the lab.
- Capex ₹150 cr in H1:Because chemistry isn’t cheap.
3. Management’s Key Commentary
“Revenue declined 8% YoY due to lower sales in established products.”(Translation: The usual moneymakers are on a coffee break.☕)
“EBITDA margins at 44% remained resilient despite revenue moderation.”(Margins held firm—probably because accountants refused to blink.)
“HALS monthly run rate grew 25% QoQ; we commercialized HALS 2020.”(New molecule, new hope, same optimism.)
“Performance Chemical 1 is undergoing chemical trials; results satisfactory.”(Translation: It hasn’t exploded yet, so we’re calling it a win.😏)
“Our FMCG client in China backward integrated—volumes may not come back.”(In plain English: the customer ghosted us to DIY their chemistry.)
“Tariff uncertainty in the U.S. causing deferred orders.”(Because nothing says ‘stable business’ like global trade drama.)
“Domestic HALS market share ~50%; expanding to Europe and the U.S.”(Exporting optimism along with stabilizers.)
4. Numbers Decoded
| Metric | Q2FY26 | Q1FY26 | YoY | Commentary |
|---|---|---|---|---|
| Standalone Revenue | ₹206 cr | ₹217 cr | -8% | Old products lost steam |
| Consolidated Revenue | ₹240 cr | ₹239 cr | Flat | Subsidiary cushioned blow |
| EBITDA | ₹90 cr | ₹100 cr | -5% | Margins saved the day |
| EBITDA Margin | 44% | 45% | +2 bps YoY | Product mix magic |
| PAT | ₹65 cr | ₹77 cr | -4% | Forex chaos trimmed profits |
| HALS Volume | +25% QoQ | — | +>100% YoY | Clean’s shiny toy |
| Capex | ₹150 cr (H1) | — | — | CFCL, Performance Chemicals |
Margins up, profits down—classic case of “chemistry works, customers don’t.”
5. Analyst Questions
ICICI Securities:“Volumes dropped, now what?”Mgmt:“We’re negotiating and praying customers stop sulking.”
Avendus Spark:“Subsidiary margins fell—problem?”Mgmt:“Just inventory optics; math issue, not chemistry issue.”
Kotak Securities:“Any EBITDA guidance?”Mgmt:“We’d rather not jinx it. Ask again next quarter.”
Axis Capital:“HALS approvals globally?”Mgmt:“Coming soon—regulators take their own sweet time.”
HDFC AMC:“Raw material disruptions?”Mgmt:“Just a two-week tantrum. Prices chilled again.”
6. Guidance & Outlook
Management’s playbook: hold margins, wait for demand revival, pray to tariff gods.
- Q3 may stay muted (“Not Q3 for sure,” said Siddharth,
