Clean Science (CLEAN) reported a muted operating performance for the first quarter of FY27. The company’s EBITDA was INR964 million, a 3 % drop year‑over‑year.
Gross margin fell to 60.9 %, down from 65.5 % in 1QFY26. EBITDA margin contracted to 35.9 %, compared with about 41.1 % in the same period last year.
The weaker results were driven by a tough operating environment. Global macroeconomic headwinds, geopolitical uncertainties and pricing pressure weighed on the business.
Shipping constraints also played a role. Limited availability of vessels delayed exports, creating temporary supply‑side constraints for the company.
Looking ahead, Clean Science expects its earnings trajectory to improve. The firm is focusing on process efficiency and backward integration.
Key initiatives include scaling up Hindered Amine Light Stabilizers (HALs) and ramping up a performance‑chemical plant. A second performance‑chemical plant is slated for commercialization in 3QFY27.
Motilal Oswal maintains its earnings estimates for FY27 and FY28. The brokerage values the stock at 25 × FY28E EPS, setting a target price of INR790.
The research team reiterates a Neutral rating for the shares, citing the company’s solid fundamentals and growth plans.