Clean Max Enviro Energy Solutions Limited — Q3 FY26 earnings call

Call held 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

  • 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

  • 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).

Key financials

3 periods

Headline

  • Revenue
    ₹1,355.4 Cr
    YoY +29%
  • Power Sales EBITDA Margin
    83%
  • Weighted Average Interest Rate
    8.7%

Q3 FY26

  • EBITDA
    ₹307 Cr
    YoY +40%

9M FY26

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

What they filed

Q1 FY27: revenue up 107.0%, net profit up 423.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue374 446 402 531 422 +13%557 +25%832 +107%
EBITDA184 257 266 335 263 +43%268 +4%421 +58%
Net profit-4 17 -17 36 21 +625%45 +165%55 +424%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentEBITDA ContributionRevenue GrowthEBITDA Margin
RE Power Sales93%26%83%
RE Services5%40%22%

Order book

high confidence

Total value

5.7 GW

as of 2026-03-01 quantified

Execution

under execution

Composition

Mix 3 client types
  • Data and AI 42%
  • AA, AAA, or multinationals 83%
  • A rated 14%

Share of order book by client type· categories overlap, and sum to 139%

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

high confidence
  • Capex Capex disclosed
    And the first nine months of the current fiscal, which is the number on the extreme right-hand side here, we have built projects at 96.5% of the Board approved capex expense.
  • Debt Net ₹9,698 Cr · 4.8× EBITDA Cost 8.7% · Maturity: 23-year long-term cash flows
    • Rate reset Weighted average interest rates fallen from 9.2% at the start of the fiscal to about 8.7% as of Dec 25.
    The cost of borrowing for us has gone down from 9.5% in March 24 to now 8.7% in December 25. ... The other leverage metric is debt to adjusted EBITDA which remains healthy and reasonable at 4.8x. The DSCR for stabilized asset at 1.4x, which reflects that assets are performing better than what it was underwritten by the lender. Even the range is very healthy and the long-term debt profile is also backed by the 23-year long-term cash flows, so the debt is stable and self-sustaining and self-liquidating and it's not dependent on any other levers but the project cash flows.
  • M&A Osaka Gas Joint Venture Joint venture · Operationalized · Consideration ₹[object Object] (cash)

    Enhances equity efficiency, expands reach with global capital, and provides access to JBIC development finance.

    Osaka Gas invested INR 176 crores for a 49% stake in the joint venture, with an intention to build about 400 MW or more over three years.

    And lastly, we have also operationalized a majority, i.e., 51% CleanMax owned partnership with Osaka Gas, which has seen during the financial year an investment, an equity investment of INR 176 crores from Osaka Gas for a 49% stake in our joint venture together.

Guidance & targets

Capacity

  • RE Power Sales Capacity Addition Capacity · next fiscal · High confidence upwards of 1.5 GW
    And the last point is a guidance that we are issuing as a management that we believe we will put up about 1.5 GW of RE power sales capacity in the next fiscal.

    — Kuldeep Jain

  • Osaka Gas JV Capacity Build Capacity · over three years · High confidence 400 MW or more
    Our intention is to build about 400 MW or more in this joint venture over three years

    — Kuldeep Jain

  • CTU Connected Wind Project (Karnataka) Capacity · by December 2026 · High confidence 0.5 GW
    And yes out of that maybe 0.5 GW is CTU connected wind project which we are building in the state of Karnataka. ... The second plant that we the CTU connected plant we are intending to commission in this fiscal is about 450 MW of wind coupled with, I think about 110 or 100 odd MWp of solar in Karnataka and there the grid expects I think a CTU connectivity is - I think we should think about it as December 2026 is our estimate.

    — Kuldeep Jain

  • Non-CTU RE Power Sales Capacity Capacity · next fiscal · High confidence 1 GW
    Then the remainder is 1 GW of RE power sales capacity which is really for non-CTU and the four biggest states for us, Puneet, are really Gujarat, Karnataka, Maharashtra, and Tamil Nadu.

    — Kuldeep Jain

Profitability

  • RE Power Sales EBITDA Margin Profitability · in 2 to 3 years · Medium confidence 85-86%
    So, we currently have on RE Power Sales an EBITDA margin of about 83%, right. And I think this will the operating leverage benefit we should see it continue to improve or rise as a margin percentage. And I could be slightly wrong, but I think it goes up to 85%, 86% in 2 to 3 years from today.

    — Kuldeep Jain

Operations

  • Bikaner 2 Connectivity Resolution Operations · Oct-Dec 2026 · Medium confidence resolved
    They estimate that somewhere in the quarter between October to December 2026 is by when they expect to resolve the same, but this is a matter outside our sphere of control.

    — Kuldeep Jain

What to watch in Q4 FY26

RE Power Sales Capacity Addition

FY27
Current 1.3 GW commissioned in trailing 12 months (as of March 1, 2026)
Target Upwards 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

  • ALCM pricing impact on tariffs

    medium

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

    Analyst acknowledged

  • Transmission bottlenecks for CTU-connected plants

    medium

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

    Analyst acknowledged

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

    low

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

    Analyst acknowledged

  • Competition in the industry

    low

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

    Management acknowledged

Q&A highlights

6 direct, 1 evasive
Impact of ALCM pricing on tariffs and commissioning intensity Direct
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

Capex breakdown for 1.5 GW guidance and mix of wind/solar Evasive
We haven't given that project-wise and technology-wise guidance right now. Let's examine if we provide that.

Management declined to provide specific capex details for future capacity additions, leaving investors without a clear financial outlay for growth.

Asked by Puneet from HSBC

SG&A trend and future trajectory for RE Power Sales EBITDA margin Direct
So, we currently have on RE Power Sales an EBITDA margin of about 83%, right. And I think this will the operating leverage benefit we should see it continue to improve or rise as a margin percentage. And I could be slightly wrong, but I think it goes up to 85%, 86% in 2 to 3 years from today.

Provides specific guidance on future margin expansion driven by operating leverage, indicating improved profitability.

Asked by Puneet from HSBC

Debt breakup and future debt requirement for upcoming capacity additions Partial
We are not giving debt forecast by financial year and so on, but I would point us again to Page 18 of the presentation to answer the first part of your question, Sagar, which is - what we have shown in this page is the breakup of both EBITDA and corresponding debt.

Management provided a detailed breakdown of current debt but refrained from giving future debt forecasts, which is crucial for assessing funding strategy for planned growth.

Asked by Sagar Sanghvi from ADD Capital

CleanMax's superior capex to EBITDA ratio compared to the industry Direct
So our tariffs tend to be higher in my analogy of being a retail direct to customer model. And tariff for assets commissioned in the first nine months of the fiscal was about INR 3.6 and tariff for 2.7 GW contracted under execution as of 1st March is about INR 3.8. So our tariffs are higher than industry average which is really the primary determinant of this, but of course it's not just tariffs, you have to couple it with extremely efficient project execution and implementation in a very, very granular business.

Explains the company's competitive advantage in achieving better financial ratios through its direct-to-customer model, higher tariffs, and efficient execution.

Asked by Bharath Devara (Retail Investor)

Confidence in 1.5 GW execution target given industry challenges (transmission, land, wind) Direct
Firstly, this is disaggregated across 9 to 10 different projects across 8 to 9 states. So there's a diversification of that risk and in that 1.5 GW about I would think 500 MW is CTU connected where some of these transmission bottleneck challenges have been more acute and the remainder 1 GW is STU connected or onsite solar where these challenges are typically not there because STUs give you evacuation capacity only once their plant is already ready.

Management provided detailed reasons for high confidence in meeting future capacity targets, addressing key execution risks like land acquisition and transmission bottlenecks.

Asked by Dhruv Muchhal from HDFC Mutual Fund

Risk of transmission evacuation capacity not available and cross-subsidy surcharge removal Direct
So in most of our see we have 1,300 contracts, so you have to appreciate that every contract might be slightly different. But for almost all our contracts, right, if the grid does not connect, we would be able to declare that as a force majeure and not be subject to Liquidated Damages (LDs). ... We've run all of those analysis Mihir and estimated that even if all of those events were to occur, then the maximum EBITDA risk to CleanMax on the 3 GW of contracted capacity is about 1.5% of our EBITDA, right.

Management clarified its risk mitigation strategies for grid connection issues (force majeure) and quantified the limited financial impact of potential regulatory changes.

Asked by Mihir Manohar from Trust Mutual Fund

Equity contribution plans for upcoming projects given IPO proceeds use Direct
We have no intention of a QIB to answer that very specific question and we believe that we should be well funded for continued high growth for the next three years. Right, so that's, I wouldn't say no QIB forever, but certainly I think we would like to assure everyone that at current or even slightly higher rates of growth, we are well equity funded on an overall balance sheet level along with all the strategic partnerships that we have for continued high growth over the next three financial years at a minimum

Management assured investors of sufficient equity funding for continued high growth over the next three years, leveraging strategic partnerships and a strong balance sheet.

Asked by A Pradeep from Vedanta

2 min read 6 chapters

Detailed narrative

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.

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.

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.

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%.

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.

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.

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