Breaking Down Clean Science and Technology Limited Financial Health: Key Insights for Investors

Dive into a data-driven look at Clean Science & Technology Ltd: with FY25 revenue of ₹9,666.44 million (up 22.1% YoY) and Q4FY25 total income of ₹2,760.57 million (+5.3% YoY), the company shows top-line momentum even as Q1FY26 revenue came in at ₹2.4 billion (+8.4% YoY, -7.9% QoQ) and the Pharma & Agro Intermediates segment slumped 32% QoQ; profitability remains robust with Q4FY25 net income of ₹740.92 million (+5.43% YoY), a TTM EPS of ₹27.5, FY25 net margin of 27.3% and gross margin of 67.7%, while ROE/ROCE sit at 20.38% and 27.26% (ROCE easing to 25.18% in Q1FY26); balance sheet strength is evident with total assets of ₹16.08 billion, stockholders' equity of ₹14.16 billion, cash & equivalents of ₹3.64 billion and a negligible debt-to-equity of 0.0015, supported by operating cash flow of ₹2.794 billion (up 17.8% YoY) and free cash flow metrics, yet valuation and market risk loom large-at the current price of ₹1,209.7 the stock trades at a P/E of 47.9, P/S of 13.9 and elevated P/CF of 44.1, has hit a 52-week low of ₹884.75 (3 Dec 2025), and has underperformed the Sensex by -31.41% over the past year-read on for a detailed breakdown of liquidity, leverage, valuation, segment headwinds and upside avenues that investors need to weigh

Clean Science and Technology Limited (CLEAN.NS) - Revenue Analysis

Key headline numbers:

• Q4FY25 total income: ₹2,760.57 million (up 5.3% YoY from ₹2,415.86 million in Q4FY24)
• FY25 revenue from operations: ₹9,666.44 million (up 22.1% YoY from ₹7,914.85 million in FY24)
• Q1FY25 net sales: ₹217.31 million (up 15.3% YoY from ₹188.11 million in Q1FY24)
• Q1FY26 revenue: ₹2.4 billion (up 8.4% YoY but down 7.9% QoQ)
• Pharma & Agro Intermediates: 32% QoQ revenue decline in Q1FY26
• 52-week stock low: ₹884.75 on 3 December 2025

Drivers and short-term risks:

• Strong FY25 operational expansion drove a 22.1% annual uplift to ₹9,666.44 million, reflecting increased volumes and product mix gains.
• Quarterly volatility: Q1FY26 showed YoY growth but a QoQ revenue decline (-7.9%), amplified by a 32% QoQ drop in the Pharma & Agro Intermediates segment, signaling near-term demand or order timing issues.
• Smaller product lines (e.g., Q1FY25 net sales at ₹217.31 million) can still show double-digit YoY improvement, but their absolute contribution is limited relative to consolidated revenue.
• Market sentiment has been under pressure, with the stock hitting a 52-week low of ₹884.75 on 3 Dec 2025, which may reflect investor concerns about near-term margins or demand visibility.

For further context on shareholder composition and investor activity that can influence revenue outlook and market re-rating, see: Exploring Clean Science and Technology Limited Investor Profile: Who's Buying and Why?

Clean Science and Technology Limited (CLEAN.NS) - Profitability Metrics

• Q4FY25 net income: ₹740.92 million (up 5.43% YoY).
• Trailing twelve months (TTM) EPS: ₹27.5, up from ₹23.0 a year earlier.
• ROE (FY25): 20.38% - indicates effective shareholder capital returns.
• ROCE (FY25): 27.26% - strong capital efficiency.
• Net profit margin (FY25): 27.3% - robust bottom-line conversion.
• Gross profit margin (FY25): 67.7% - reflects strong pricing power and cost management.
• Q1FY25 net profit margin: 33.2% (vs 31.1% in Q1FY24) - margin expansion quarter-over-quarter and year-over-year.

Clean Science and Technology Limited (CLEAN.NS) - Debt vs. Equity Structure

• Total assets: ₹16.08 billion
• Cash and cash equivalents: ₹3.64 billion
• Total debt: ₹21.28 million
• Total liabilities: ₹1.91 billion
• Stockholders' equity: ₹14.16 billion
• Cash flow from operating activities (FY25): ₹2.794 billion (up 17.8% YoY)

• Low leverage supports dividend capacity and reinvestment without dependency on external debt.
• High equity ratio (88.1%) provides a cushion against cyclical downturns or one-off writedowns.
• Robust operating cash flow (₹2.794 billion in FY25) enhances internal funding for growth initiatives.

Clean Science and Technology Limited (CLEAN.NS) - Liquidity and Solvency

Clean Science and Technology Limited demonstrates solid liquidity and solvency metrics underpinned by strong operational cash generation and disciplined capital spending. The company's cash balance remains healthy, supported by a robust cash conversion cycle that helps convert sales into liquid resources efficiently.

• Operating cash flow to net income ratio: 0.81 - indicates good cash conversion of reported earnings.
• Free cash flow to net income ratio: 0.27 - reflects effective CapEx management while maintaining growth investments.
• FY25 cash flow from operating activities: ₹2,794 million (up 17.8% YoY).
• FY25 cash flow from investing activities: ₹-2,212 million (improved 19.0% YoY - lower outflow versus FY24).
• FY25 net cash flow: ₹58 million - a turnaround from ₹-20 million in FY24, signaling improved overall cash generation and liquidity management.

• Implication for creditors and investors: persistent positive operating cash flow and a positive net cash flow in FY25 reduce refinancing risk and enhance solvency headroom.
• Capital allocation: the improved (less negative) investing cash flow suggests more disciplined CapEx or timing effects, complementing the healthy free cash flow ratio.
• Key watch items: maintain scrutiny on working capital dynamics and any large project-related outflows that could alter the cash conversion cycle.

Mission Statement, Vision, & Core Values (2026) of Clean Science and Technology Limited.

Clean Science and Technology Limited (CLEAN.NS) - Valuation Analysis

Key valuation metrics for Clean Science and Technology Limited reflect premium pricing relative to earnings, book value, sales and cash flow.

• Trailing twelve months (TTM) EPS: ₹27.5 (previous year: ₹23.0)
• Current share price used: ₹1,209.7
• Price-to-Earnings (P/E) ratio (TTM): 47.9×
• Price-to-Book Value (P/BV) - reported values at current price levels: 8.8× and an alternative/reference figure of 6.4×
• Price-to-Sales (P/S): 13.9×
• Price-to-Cash Flow (P/CF): 44.1× (based on end-of-year operating cash flow)

Investors weighing valuation should consider growth expectations implicit in these multiples, potential margin sustainability, and capital allocation. For contextual investor behavior and ownership trends related to Clean Science, see: Exploring Clean Science and Technology Limited Investor Profile: Who's Buying and Why?

Clean Science and Technology Limited (CLEAN.NS) - Risk Factors

• Share price weakness: CLEAN.NS hit a 52-week low of ₹884.75 on December 3, 2025, highlighting recent market pressure.
• Relative underperformance: Over the last year the stock returned -31.41% versus Sensex's +4.89%, and underperformed its Specialty Chemicals sector by 1.25% on December 3, 2025.
• Technical indicators: The stock is trading below all key moving averages (short-, medium- and long-term), indicating sustained downward momentum and limited near-term technical support.
• Segmental demand shock: The Pharma & Agro Intermediates segment registered a 32% quarter-on-quarter decline in revenue in Q1FY26, increasing concentration risk and pressuring near-term cash flows.
• Profitability pressure: Return on Capital Employed (ROCE) declined to 25.18% in Q1FY26, the lowest level seen in the first half of the fiscal year, suggesting eroding capital efficiency.
• Market sentiment and liquidity risks: Persistent underperformance and technical weakness may reduce investor confidence and widen bid-ask spreads during market stress.

• Operational concentration: A meaningful revenue fall in a key segment (Pharma & Agro Intermediates) raises execution and demand-recovery risk; sequential rebounds may be uneven.
• Valuation and funding risk: Continued margin and ROCE pressure could constrain reinvestment or raise the cost of capital if external financing is required.
• Industry cyclicality: Specialty chemicals are sensitive to end-market cyclicality (pharma, agro); prolonged weakness in these end markets may extend revenue and margin headwinds.
• Investor perception risk: Extended underperformance relative to benchmark and sector peers can accelerate sell-side downgrades and limit new institutional inflows.

Clean Science and Technology Limited (CLEAN.NS) - Growth Opportunities

• Strong equity base: Stockholders' equity of ₹14.16 billion provides a solid capital cushion for organic growth and strategic investments.
• High liquidity: Total assets of ₹16.08 billion with cash & cash equivalents of ₹3.64 billion support near-term funding needs and opportunity capture.
• Improving operating cash flow: Cash flow from operating activities in FY25 was ₹2.794 billion, up 17.8% year-over-year, indicating enhanced core cash generation.
• Disciplined capex: Free cash flow to net income ratio of 0.27 signals efficient conversion of earnings into free cash, allowing reinvestment without excessive dilution or leverage.

• Capacity expansion: Available cash and operating cash generation can accelerate brownfield/greenfield capacities to meet specialty chemical demand.
• R&D and product diversification: Strong equity and free cash conversion support continued investment into higher-margin, differentiated chemistries.
• M&A and strategic partnerships: Cash reserves and equity strength enable selective acquisitions or joint ventures to enter adjacent markets.
• Balance-sheet resilience: Low reliance on external funding given equity and cash positions reduces financial risk during cyclical downturns.