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.