Clean Max Enviro Energy Solutions Limited — Q4 FY26 earnings call

Call held 13 May 2026

Management summary

CleanMax reported strong financial performance for FY26, with significant growth in EBITDA and PAT, driven by a 1,400 MW capacity addition and robust demand from Data and AI customers. The company successfully reduced its cost of debt and maintained a high repeat business rate. While facing some grid curtailment challenges for newly commissioned CTU projects and regulatory uncertainties like DSM, management expressed confidence in its diversified growth strategy and execution capabilities, targeting at least 1,500 MW of new capacity addition in FY27.

Highlights

  • FY26 EBITDA grew 28% to INR 1,295 crores from INR 1,015 crores in FY25.

  • FY26 PAT surged to INR 86 crores from INR 19 crores in FY25, representing a 352.6% increase.

  • CleanMax added 1,400 MW of new capacity in FY26, bringing total operational capacity to 3.1 GW.

  • Contracted capacity with Data and AI customers increased tenfold in two years, from 260 MW to 2,400 MW, now comprising 42% of the total contracted capacity.

  • The company successfully reduced its average leverage cost from 9.2% to 8.5%.

Concerns

  • A 525 MW CTU project in Rajasthan, representing 13% of run-rate EBITDA, is currently experiencing approximately 30% curtailment due to grid backdown.

  • Uncertainty surrounds the ALMM transition, with management not actively contracting for solar modules post-June 2026 until clarity emerges.

  • The impact of new Deviation Settlement Mechanism (DSM) rules is still being evaluated, with internal calculations not yet mature, and mitigation plans (energy storage) under development.

Key financials

3 periods

Headline

  • Leverage Cost
    8.5%
  • Receivable Days
    25 days
  • Run-rate EBITDA (as of Mar 31, 2026)
    ₹1,870 Cr
  • SG&A as % of Total Income
    9%
  • Cost of Financing
    8.5%
  • DSCR (Stabilized Projects)
    1.3×

Q4 FY26

  • EBITDA
    ₹350 Cr
  • PAT
    ₹45 Cr
    YoY +164.7%

FY26

  • EBITDA
    ₹1,295 Cr
    YoY +28%
  • PAT
    ₹86 Cr
    YoY +352.6%
  • RE Power Sales EBITDA Margin
    83.5%
  • RE Services EBITDA Margin
    19.6%
  • Cash ROIC
    13%
  • Cash ROE
    17.4%

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

  • RE Power Sales
    83.5% EBITDA Margin92% Gross Margin
  • RE Services
    19.6% EBITDA Margin

Order book

high confidence

Total value

5,700 MW

as of 2026-04-01 quantified

Execution

2.6 GW is contracted, but in the process of being executed.

Composition

Mix 2 contract types
  • CTU connected projects 17%
  • Onsite solar 13%

Share of order book by contract type· partial disclosure (30% of the book)

Pipeline

deal pipeline tcv

2,600 MW contracted yet to be executed at the start of the fiscal.

Cancellations & deferrals

  • curtailment: 525 MW CTU project in Rajasthan experiencing ~30% curtailment.
CleanMax is India's largest C&I renewable energy provider with a diversified portfolio and strong execution, with 5.7 GW of contracted capacity.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • New capacity addition (FY26) 1,400 MW
    • Total new capacity added (RE Power Sales + RE Services) in FY26 1,471 MW
    in the last fiscal, which is financial year 25-26, we have added new capacity of about 1,400 MW.
  • Debt Net ₹9,600 Cr · 4.3× EBITDA Cost 8.5% · Maturity: Weighted average loan profile of 19 years, compared to average PPA tenor of 23 years.
    • Refinance Leverage cost reduced from 9.2% to 8.5% due to refinancing efforts.
    • Rate reset Strategy of moving debt to fixed rate to reduce interest rate risk.
    Our average PPA tenor is about 23 years... weighted average loan is less than that. So as on date the weighted average loan profile is 19 years
  • M&A 150 MW projects (Apple JV) Joint venture · Announced · Consideration ₹104 Cr (cash)

    Second joint venture with Apple, building upon a 2024 agreement, to develop 150 MW of projects.

    Apple India Private Limited is investing INR 104 crores for a 49% equity stake in 150 MW of projects, with CleanMax owning 51%.

    There was a press announcement last week which we put out, these are some snippets from that, of our joint venture with Apple. Under that joint venture, CleanMax owns 51% and Apple India Private Limited owns 49%. Apple is investing INR104 crores of equity for a 49% equity stake in 150 MW of projects.

Guidance & targets

Capacity

  • New RE Power Sales Capacity Addition Capacity · financial year 26-27 · High confidence at least 1,500 MW
    our guidance on new capacity addition is that we would have at least 1,500 MW or 1.5 GW of RE Power Sales capacity addition in financial year 26-27

    — Kuldeep Jain

Profitability

  • RE Power Sales EBITDA Margin Profitability · 3 to 4 years out · Medium confidence nearly 86%
    I would think that our EBITDA margin would be slightly lower. We believe and I can even say we would be confident in saying that 3 to 4 years out, this EBITDA margin goes from about 83% today on RE power sales to nearly 86%, give or take a little bit.

    — Kuldeep Jain

What to watch in Q1 FY27

Progress on DSM impact assessment and energy storage plans

next quarter
Current Internal calculations not mature; plans to announce in 3-4 months.
Target Specific announcement on storage strategy and DSM impact.

Why it matters

DSM rules could impact CTU project revenues, and energy storage is a key mitigation strategy for grid curtailment and tariff optimization.

we expect that in three or four months' time we will be able to make a proper announcement to investors in terms of what we are doing in storage and what that impact is on both DSM, curtailment, and revenue side.

Risks & concerns

  • Grid backdown/curtailment for CTU projects

    medium

    A 525 MW CTU project in Rajasthan (13% of run-rate EBITDA) is currently experiencing ~30% curtailment in the Bikaner 2 substation. Management estimates a 2.5% EBITDA impact for 40% backdown over 6 months, or 6.5% for 50% backdown over a full year.

    Management acknowledged

  • Regulatory uncertainty around new Deviation Settlement Mechanism (DSM) rules

    medium

    The DSM rules are sub-judice and an industry-wide issue. Internal impact calculations are not yet mature, but energy storage is being explored as a mitigation strategy, with an announcement expected in 3-4 months.

    Management acknowledged

  • Volatility in solar module costs and supply chain due to geopolitical events and ALMM transition

    low

    No material adverse movements have been seen yet from geopolitical events. However, uncertainty around the ALMM transition means management is not actively contracting for solar modules post-June 2026, as costs are expected to rise and are passed through to customers.

    Analyst acknowledged

Q&A highlights

7 direct
Impact of Iran war, supply chain, interest rates, and module costs on business. Direct
We have not yet seen any material adverse movements in terms of either availability of equipment or in terms of material movement in capital costs. This is what I would say. We are not yet seen any material movements which could be attributed to the war in Iran and so on.

Addresses macro risks on supply chain and costs, indicating no immediate material impact but acknowledges the volatile situation.

Asked by Vinit Jain

Curtailment risk for under-construction CTU capacity and PPA protection. Direct
530 MW is the size of one CTU project we are adding... this is in Karnataka state. It is a predominantly wind capacity being added this year, and I think in generating profile of wind hours in South India I think curtailment has been relatively minimal... PPA provide protection for that? As in no, not in the way that if the grid is curtailed, I'll still pay you, which is I think where your question is going.

Clarifies the extent of CTU exposure, regional differences in curtailment, and the lack of PPA protection for non-generation, highlighting a key risk for renewable developers.

Asked by Mohit Kumar

Impact of new Deviation Settlement Mechanism (DSM) rules on CTU projects and mitigation strategies. Partial
It is not a settled issue in itself, right It is both sub-judice as well as the government has openly said that we are trying to resolve it and it's a industry-wide issue... our own internal calculations of impact are not mature enough to share with an external investing audience yet.

Reveals an ongoing regulatory uncertainty that could impact the entire power industry, with CleanMax still assessing the financial implications and potential mitigation strategies like energy storage.

Asked by Mohit Kumar

Explanation of negative minority interest and cash flow hedge accounting. Direct
minority interest are typically at the SPV level where the power generating assets are there... Given that our average age of our asset is very young, it's less than two years, at a asset-co level, the profitability which is profit after tax only comes after fourth or fifth year... cash flow hedge is nothing but a accounting entry... it just offset each other on the balance sheet.

Provides crucial accounting clarification for complex financial items, explaining why minority interest can be negative in early years of project life and that cash flow hedges are balance sheet items with no P&L impact.

Asked by Gaurav Birmiwal

Impact of domestic module prices (ALCM) on C&I project IRRs and customer behavior. Direct
tariffs adjust upwards or downwards to reflect changes in module prices... if the module cost goes up because of making cells in India, then that passes on to a customer as higher tariff... Accelerated buying because even customers say, if we are on the fence on a decision, which is if managerially they are sort of could do it now.

Explains how cost increases are passed through to customers, maintaining IRRs, and highlights a positive customer response (accelerated buying) in anticipation of rising costs due to policy changes.

Asked by Abhi Sehgal

Data centers/AI as a dominant growth driver and CleanMax's strategic positioning. Direct
42% share of Data and AI is fairly massive and of customer segments we see that as a big dominant segment... AI chips consumes 10x the amount of power of the next building... we're quite well-positioned to continue a strong performance from our side in the data and AI space.

Reinforces the significant growth opportunity in the Data Center/AI segment and CleanMax's strategic advantage and strong positioning with key clients in this high-growth area.

Asked by Atharva

Reasons for CleanMax's EBITDA margin being lower than utility-scale players. Direct
EBITDA margin would be slightly lower... due to scale and higher operating cost for selling/building... 2% to 3% of EBITDA margin that you sacrifice... is more than made up in a fantastic tariff you get in this business model.

Provides a detailed explanation for margin differences, attributing it to scale and operational overheads, but emphasizes that higher tariffs compensate for this, leading to superior ROI/ROE.

Asked by Nupa

PPA tenor, lock-in period, and compensation for early termination. Direct
PPA tenor is 23 years, lock-in duration 18 years... every contract has certain different types of contract performance dimensions linked to that compensation... we don't have a single ongoing client dispute.

Confirms the long-term nature and stability of PPAs, the significant lock-in period, and the effectiveness of compensation clauses, indicating low counterparty risk.

Asked by Mahesh Patil

3 min read 8 chapters

Detailed narrative

Strong FY26 Financial Performance

CleanMax reported a robust FY26, with EBITDA growing 28% to INR 1,295 crores from INR 1,015 crores in FY25. Net Profit After Tax (PAT) saw a significant increase, reaching INR 86 crores compared to INR 19 crores in the previous fiscal year, marking a 352.6% growth. The company also successfully reduced its average leverage cost from 9.2% to 8.5% and maintained receivable days at approximately 25.

Record Capacity Addition and Operational Growth

In FY26, CleanMax added approximately 1,400 MW of new capacity, bringing its total operational capacity to 3.1 GW. This represents a 3x increase in commissioned capacity during its IPO year compared to the previous year. The total contracted renewable energy sales capacity now stands at 5.7 GW, with 2.6 GW currently under execution, and 100% of the capacity targeted for FY27 is already contracted.

Data Center & AI as Key Growth Driver

The company highlighted the exponential growth in its Data Center and AI customer segment, which now accounts for 42% of its total contracted capacity, up from 14% two years ago. In MW terms, this segment has grown nearly tenfold from 260 MW to 2,400 MW. This growth is driven by strategic partnerships and the increasing power demands of AI workloads, with CleanMax well-positioned in key states like Maharashtra and Tamil Nadu.

Diversified Portfolio and Execution Discipline

CleanMax emphasized its diversified portfolio across STU and CTU projects, with 87% of its operational capacity in STU or rooftop solar as of April 1, 2026, mitigating curtailment risks. The company reported a grid uptime exceeding 99% for FY26, indicating minimal curtailment. Management also noted consistent execution of projects within budget over the last four years, reflecting robust project development and supply chain management.

Margin Expansion and Cost Efficiency

The EBITDA margin for the RE Power Sales segment improved from 82% to 83.5% in FY26, while the RE Services segment saw its EBITDA margin rise from 14.4% to 19.6%. This margin expansion was primarily attributed to operating leverage, with Selling, General & Administrative (SG&A) expenses compressing from 18% to 9% of total income as the company reached critical mass. Management expects RE Power Sales EBITDA margins to further improve to nearly 86% in the next 3-4 years.

Regulatory and Market Headwinds

A 525 MW CTU project in Rajasthan, representing 13% of run-rate EBITDA, is currently experiencing about 30% curtailment due to grid backdown in the Bikaner 2 substation. The company is also evaluating the impact of new Deviation Settlement Mechanism (DSM) rules, which are currently sub-judice. Management plans to announce its strategy for energy storage as a mitigation measure within the next 3-4 months to address these challenges.

Long-Term Contract Stability and Customer Focus

CleanMax maintains a high repeat business rate of 74% with existing clients, serving 588 customers. The average PPA tenor is robust at 23 years, with an average lock-in period of 18 years, providing long-term revenue visibility. The company's client base is highly credit-rated, with 96% being A-rated or above, including 82% AA/AAA or multinationals, ensuring strong counterparty risk management.

Future Outlook and Capacity Targets

The company has set a guidance to add at least 1,500 MW of new RE Power Sales capacity in FY27. Management is confident in achieving this target, building on the 2,600 MW of contracted capacity already under execution at the start of the fiscal year. The average tariff for the 2,600 MW under execution is INR 3.85 per unit, with a mix of 70% solar and 30% wind.

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