Clean Science Q2: Consolidated PAT flat YoY at ₹55.7 Cr as margins compress to 30.8%

Clean Science and Technology's consolidated PAT was effectively flat year-on-year at ₹55.7 Cr (+0.5% reported, ~+3.3% adjusted for a ₹2.02 Cr one-off GST provision), even as consolidated revenue grew a strong 22.4% YoY to ₹299.4 Cr. The gap between topline and bottom-line growth is the quarter's story: EBITDA margin compressed to ~30.8% from 35.6% a year ago and from 35.9% in Q1 FY27, while net margin (PAT/total income) fell to 18.3% from 22.1% YoY. Sequentially the slide is sharper still — PAT dropped 24.0% QoQ against 11.5% QoQ revenue growth, confirming Q1's elevated margin was not the new normal.

Cost of materials consumed plus the swing in finished-goods inventory rose roughly 33% YoY, outpacing 22% revenue growth, and other expenses grew 33.7% YoY — both ahead of topline, which is the direct margin bridge. Layered on top is the ₹2.02 Cr consolidated GST provision booked this quarter after the Maharashtra GST department's search-and-seizure action (initiated Sep 24, concluded Sep 29) indicated a ₹9.99 Cr reverse-charge liability that remains formally unresolved — a modest but real drag, not the main driver.

The stock went into the print at ₹715.6, down 7.8% over the past month of trading.

For context: revenue is at a 6-quarter high.

The consolidated picture also masks a weaker standalone (core manufacturing) print: standalone PBT fell 14.0% YoY to ₹73.9 Cr on revenue growth of just 10.2%, meaningfully worse than the group numbers. Group PBT (₹74.4 Cr) is barely above standalone PBT despite ~₹66 Cr of added subsidiary revenue, meaning that revenue is thin-margin and dilutes rather than lifts group profitability for now. No company press release was available for this filing to benchmark against management's own framing. Against our pre-result preview — a Street range of ₹275-285 Cr revenue, ₹67-73 Cr PAT and 34-36% EBITDA margin (14-analyst consensus, 64% Buy-rated, median target ₹975) — the print beat on revenue but missed on both PAT and margin. Management's FY27 guidance (HALS revenue ₹250-300 Cr, PC2 commercialization in November with major revenue only from Q1 FY28, Kemin volumes +20-40% starting the next 2-3 months) isn't directly testable against this quarter's results since the Group reports as a single operating segment with no HALS-specific disclosure; none of it can be marked met or missed yet.