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    Clean Max Enviro Energy Solutions Limited

    CLEANMAX
    Power·18 Mar 2026
    Management Summary

    CleanMax reported strong Q3 FY26 results with a 40% increase in EBITDA for the quarter and 33% for the nine months ended December 2025, driven by 26% power sales revenue growth and improved EBITDA margins. The company significantly expanded its contracted RE power sales capacity by 3x to 5.7 GW in two years and commissioned 1.3 GW in the first 11 months of the fiscal. Key growth drivers include Data & AI customers and conventional C&I clients, alongside a reduction in the weighted average cost of debt to 8.7%.

    Highlights

    13

    • EBITDA for Q3 FY26 increased 40% from INR 220 crores to INR 307 crores.

    • EBITDA for the nine months ended Dec 25 grew 33% YoY to INR 944.8 crores.

    • Power sales revenue growth of 26% for the nine months ended Dec 25.

    • Power sales EBITDA margins improved from 81% to 83% due to operating leverage.

    • Weighted average interest rates fell from 9.2% at the start of the fiscal to 8.7% as of Dec 25.

    • PAT increased from INR 2 crores for the first nine months in the prior fiscal to INR 40.2 crores for the first nine months in this fiscal.

    • Contracted RE power sales capacity grown 3x (300%) in the last two years to 5.7 GW.

    • Operational capacity increased 76% YoY to 3 GW.

    • Commissioned 1.3 GW of capacity in the first 11 months of the fiscal.

    • Data and AI now constitutes 42% of contracted volume, having grown 10x in less than two financial years.

    • Conventional C&I customers' contracted volumes doubled in less than two financial years.

    • Projects built at 96.5% of Board approved capex expense, demonstrating strong execution efficiency.

    • Grid uptime remains very high at above 99%.

    Concerns

    3

    • Potential 7-10% increase in tariffs due to ALCM pricing for brownfield solar expansion.

    • Transmission bottleneck challenges for CTU-connected plants, with Bikaner 2 resolution expected Oct-Dec 2026.

    • Regulatory risks like cross-subsidy surcharge removal and changes in banking norms, though analyzed to have limited EBITDA impact (max 1.5% on 3 GW contracted capacity).

    What Changed2

    vs Q4 FY26

    Guidance items2 → 6 (+4)Risks discussed3 → 4 (+1)
    Key financials

    Metrics

    6

    Periods

    3

    Headline

    3
    • Revenue
      ₹1,355.4 Cr
      YoY+29.0%
    • Power Sales EBITDA Margin
      83%
    • Weighted Average Interest Rate
      8.7%

    Q3 FY26

    1
    • EBITDA
      ₹307 Cr
      YoY+40%

    9M FY26

    2
    • EBITDA
      ₹944.8 Cr
      YoY+33%
    • PAT
      ₹40.2 Cr

    Segment breakdown

    EBITDA ContributionRevenue GrowthEBITDA Margin
    RE Power Sales93%26%83%
    RE Services5%40%22%
    Heatmap· 3 shared metrics

    Order Book

    high confidence

    Total Value

    5.7 GW

    as of 2026-03-01

    quantified

    Execution

    under execution

    Composition

    Mix3 client types
    • Data and AI42.0%
    • AA, AAA, or multinationals83.0%
    • A rated14.0%

    Share of order book by client type · partial disclosure (139.0% of book)

    Pipeline

    other

    Firm evacuation capacity yet to be contracted

    "Contracted RE power sales capacity grew 3x (300%) in the last two years from 1.75 GW as of March 31, 2024, to 5.7 GW as of March 1, 2026. An additional 1.3 GW of RE power sales capacity was contracted in the first 11 months of this fiscal."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Net ₹9,698 crores · 4.8x EBITDA

    Cost 8.7% · Maturity: 23-year long-term cash flows

    M&A

    Osaka Gas Joint Venture

    joint venture · Other · Consideration ₹NaN (cash)

    Guidance & targets

    6
    CategoryTargetPriority
    Capacity
    RE Power Sales Capacity Addition
    upwards of 1.5 GW
    		High
    Capacity
    Osaka Gas JV Capacity Build
    400 MW or more
    		High
    Capacity
    CTU Connected Wind Project (Karnataka)
    0.5 GW
    		High
    Capacity
    Non-CTU RE Power Sales Capacity
    1 GW
    		High
    Profitability
    RE Power Sales EBITDA Margin
    85-86%
    		Medium
    Operations
    Bikaner 2 Connectivity Resolution
    resolved
    		Medium

    What to watch in Q4 FY26

    5

    RE Power Sales Capacity Addition

    FY27
    Current1.3 GW commissioned in trailing 12 months (as of March 1, 2026)
    TargetUpwards of 1.5 GW

    Why it matters

    Key indicator of growth and execution capability, demonstrating the company's ability to meet its expansion targets.

    However, if we stand on 1st March 2026 and look back trailing 12 months, capacity added is 1.3 GW. So from 500 MW trailing 12-month capacity addition to 1.3 GW that's a huge jump and we are forecasting or guiding to a capacity addition north of 1.5 GW for next financial year.

    Risks & concerns

    4
    RiskSeverity

    ALCM pricing impact on tariffs

    Tariffs are expected to increase by 7-10% due to module price increases, but customer savings remain compelling. — Analyst acknowledged

    medium

    Transmission bottlenecks for CTU-connected plants

    Challenges exist for CTU-connected plants like Bikaner 2, with resolution expected Oct-Dec 2026, but risk is diversified across projects. — Analyst acknowledged

    medium

    Regulatory changes (cross-subsidy surcharge removal, banking norms)

    Analysis shows a maximum EBITDA risk of 1.5% on 3 GW contracted capacity even if all proposed regulatory changes occur. — Analyst acknowledged

    low

    Competition in the industry

    The industry is very competitive, but CleanMax maintains its leadership position with a 12% market share and competitive advantages. — Management acknowledged

    low

    Q&A highlights

    8

    “I think the numbers vary a little bit by state but 7% to 10%. But we have seen continued traction with customers because the savings remains very compelling.”

    Addresses the impact of new pricing regulations on project costs and customer demand, indicating tariffs will rise but demand remains strong.

    asked by Puneet from HSBC

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Financial Performance in Q3 FY26 and Nine Months

    CleanMax reported a robust Q3 FY26 with EBITDA increasing 40% to INR 307 crores compared to INR 220 crores in the prior year's same quarter. For the nine months ended December 2025, EBITDA grew 33% YoY to INR 944.8 crores, driven by a 26% increase in power sales revenue. The company also saw its PAT rise significantly from INR 2.2 crores for the first nine months in the prior fiscal to INR 40.2 crores for the first nine months in this fiscal.

    02

    Significant Capacity Expansion and Pipeline Growth

    The company's contracted RE power sales capacity has grown threefold (300%) in the last two years, reaching 5.7 GW as of March 1, 2026, from 1.75 GW on March 31, 2024. Operational capacity increased 76% YoY to 3 GW, with an additional 1.3 GW commissioned in the first 11 months of the fiscal. CleanMax aims to add 'upwards of 1.5 GW' of RE power sales capacity in the next fiscal year, with 2.7 GW currently under execution.

    03

    Strategic Focus on Data & AI and C&I Segments

    Data and AI customers now account for 42% of the contracted volume (5.7 GW), demonstrating a 10x growth in less than two financial years. The company has also doubled its contracted volumes with conventional C&I customers in less than two financial years. This diversified client base, with 97% of volumes from A-rated or above customers, underpins the company's stable and high-quality revenue profile.

    04

    Improved Operational Efficiency and Cost of Debt

    CleanMax improved its power sales EBITDA margins from 81% to 83% and RE services EBITDA margins from 15% to 22%, reflecting strong operating leverage. The weighted average interest rate has fallen from 9.2% at the start of the fiscal to 8.7% as of December 2025, with the overall cost of borrowing decreasing from 9.5% in March 2024 to 8.7% in December 2025. Projects are built efficiently at 96.5% of Board-approved capex expense, and grid uptime remains above 99%.

    05

    Osaka Gas Joint Venture for Equity Efficiency

    CleanMax has operationalized a partnership with Osaka Gas, with Osaka Gas investing INR 176 crores for a 49% stake in the joint venture. This JV aims to build 400 MW or more over three years, enhancing equity efficiency and expanding access to global capital and development finance. This strategic partnership is expected to contribute to the company's continued high growth.

    06

    Managing Regulatory and Execution Risks

    Management addressed concerns regarding ALCM pricing, noting a 7-10% tariff increase but continued customer traction due to compelling savings. For transmission bottlenecks, the company diversifies risk across projects and states, with Bikaner 2 resolution expected by Oct-Dec 2026. Analysis indicates a maximum EBITDA risk of 1.5% on 3 GW contracted capacity from potential regulatory changes like cross-subsidy surcharge removal, suggesting limited financial impact.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.