Clean Science reaffirms ratings of Clean Science and Technology at 'AA-/A1+'

Crisil Ratings stated that the ratings continue to reflect the strong business and financial risk profile of the Clean Science group.

The company reported its highest-ever consolidated quarterly revenue of around Rs 264 crore in Q1 FY27, with growth driven by the continued scale-up of the HALS business, which contributed 22% of sales during the quarter.

The business profile has strengthened with reduced dependence on legacy products, increasing export penetration in HALS, strategic collaboration with Geneus Chem for advanced NOR-HALS technology and a long-term supply agreement with Kemin.

Operating performance remained healthy, with consolidated EBITDA margin of 37% despite supply-chain disruptions and raw material volatility.

The ongoing ramp-up of the Hydroquinone and Catechol facility, expected commercialization of Performance Chemicals 2, and continued investments in Clean Fino-Chem Limited are expected to support revenue growth, diversification and profitability over the medium term.

The ratings continue to reflect the company?s strong market position in the specialty chemicals industry, large product portfolio and clientele, and experienced management.

The ratings also factor in the healthy operating margin and strong financial risk profile of the company, supported by low leverage, adequate debt protection metrics and strong liquidity.

These strengths are partially offset by susceptibility to volatility in raw material prices and working capital-intensive operations.

Clean Science and Technology manufactures specialty chemicals, which find application in diverse industries such as stabiliser (acrylic acids), pharmaceuticals, agricultural chemicals, polymer, plastic, food and animal feed, fragrances, and water treatment.

The scrip had declined 2.32% to end at Rs 816 on the BSE today.

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