Transcript of the earnings call held on 22nd May, 2025.
Awaiting price reaction for this filing.
Clean Science reported Q4 FY25 standalone revenue of Rs. 238 crore (up 4.5% QoQ), with EBITDA of Rs. 105 crore and PAT of Rs. 79 crore, implying a strong EBITDA margin of 43.8%. Consolidated Q4 sales were Rs. 256 crore (up 14% YoY) with a 41% EBITDA margin. FY25 was a milestone year with the highest-ever sales volumes and the launch of new products like HALS, BHT, and DHDT, expanding the addressable market by $1.5 billion. HALS volumes scaled sharply from 600 tons in FY24 to ~2,000 tons in FY25, with management targeting 4,500 tons (~Rs. 210 crore revenue) in FY26 and full capacity utilization of 10,000 tons (peak revenue ~Rs. 565-570 crore) by FY28. Management guided for ~40% consolidated EBITDA margin in FY26-FY27 and an overall revenue potential of Rs. 2,500-3,000 crore from the new product portfolio. Two performance chemical products (each ~10,000-ton capacity) are set to start in August 2025 and February 2026. CAPEX for FY26 is pegged at Rs. 300 crore, with cash balance healthy at Rs. 400 crore. Final dividend of Rs. 4 per share declared, with payout ratio at 22%.
Strong execution on HALS ramp-up and new product pipeline is the key positive. The guided 40% margin maintenance and Rs. 2,500-3,000 crore revenue potential indicate a multi-year growth runway, though near-term margin pressure from product mix (higher pharma contribution) is visible. Watch HALS volume trajectory and commercial start of new performance chemicals in August 2025 as the next catalysts.