Accumulate Clean Science and Technology; target of Rs 827: Prabhudas Lilladher

Key Investment Pillars

• HALS scale-up: CLEAN's HALS sales volume increased from ~575t in FY24 to ~1,900t in FY25 and 3,300t in FY26, with exports contributing nearly 50% of sales, and the management targets FY27 revenue of INR2.5–3bn.
• Geneus Chem partnership: CLEAN has entered a 10-year exclusive global manufacturing partnership with Geneus Chem for patented NOR-HALS 378, with initial capacity of 400mtpa and ~INR250mn incremental capex, expected to contribute INR100–130mn in revenue in FY27.
• Kemin agreement: CLEAN has signed a minimum-5-year supply agreement with Kemin Industries, covering BHA, BHT, TBHQ, and AP, expected to increase offtake by 20–40%.
• HQ and catechol: CLEAN commissioned its 10,000mtpa HQ-catechol facility in Dec'25, with peak revenue potential of ~INR2.6bn at 80% utilization, and revenue expected to ramp up gradually over the subsequent quarters.

Thesis Validation Checklist

To validate the thesis, investors should watch for:

• Successful HALS scale-up, with revenue growth in line with management's guidance of INR2.5–3bn in FY27.
• Progress in the Geneus Chem partnership, with revenue contribution from NOR-HALS 378 in line with expectations.
• Increased offtake from Kemin Industries, with a 20–40% increase in demand for covered products.
• Gradual ramp-up of HQ and catechol, with revenue growth and utilization rates improving over the next 2-3 years. These signals will indicate whether CLEAN's growth strategy is on track and if the company can achieve its revenue and earnings targets.