Shares of Clean Science and Technology Ltd. witnessed a sharp decline of 7% on July 18, 2025, after the company announced its Q1FY26 results. Added to this was uncertainty around a potential promoter stake sale, stirring investor sentiment despite healthy revenue growth and market share gains.
Clean Science reported an 8% increase in revenue, reaching ₹240 crore in Q1FY25 compared to the same quarter last year. EBITDA grew by 5%, although margins slipped by 100 basis points to 41.7% from 42.8%. Net profit rose by 6% year-on-year, supported by contributions from newly launched products, which accounted for more than 25% of topline. Despite these enhancements, the stock dropped to ₹1,350.
Management disclosed that promoters holding 74.97% of Clean Science are considering a minority stake sale as part of family estate planning. Though no immediate transaction has been confirmed, the update stirred caution in the market amid fears of dilution or valuation pressure.
The company revised its EBITDA growth guidance for FY25 from a prior estimate of 18% to 20% down to a more cautious 15% to 18%, citing evolving market dynamics. However, management remained optimistic about the second half of the fiscal year, especially the fourth quarter, hinting at potential demand recovery and operational stabilisation.
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On July 18, 2025, Clean Science and Technology share price opened at ₹1,399.00 on NSE, below the previous close of ₹1,445.20. During the day, it surged to ₹1,402.60 and dipped to ₹1,332.40. The stock is trading at ₹1,337.00 as of 10:49 AM. The stock registered a significant decline of 7.49%.
Over the past week, it has declined by 8.15%, over the past month, it has declined by 4.96%, and over the past 3 months, it has moved up by 11.38%.
Clean Science and Technology Ltd.'s Q1 performance reflects resilient demand and product innovation. However, the dip in margins and anxiety around promoter stake sale has overshadowed growth prospects, dragging shares by 7%. Clarity in the upcoming quarters may play a key role in restoring investor confidence.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Jul 18, 2025, 11:38 AM IST
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