Clean Max Enviro Energy Solutions Ltd (CLEANMAX) Q1 FY27 Earnings Call: Guides FY27-28 EBITDA of Rs.3,000 Cr, Contracted Capacity Triples to 6,000 MW

Clean Max Enviro Energy Solutions Ltd held its Q1 FY27 earnings call on July 31, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Revenue Doubles, EBITDA Jumps 68% YoY

• Revenue of Rs.832 Cr — up 107% YoY, driven by RE power sales (Rs.528 Cr, +47%) and RE services (Rs.300 Cr, 6x growth).
• Reported EBITDA of Rs.462 Cr — up 68% YoY; cash EBITDA up 74%.
• PAT of Rs.55 Cr — benefiting from margin expansion and 100 bps lower interest cost (weighted average rate 8.4%).
• RE power sales EBITDA margin expanded to 84% (from 83% in FY25-26) and RE services margin improved to 11.2% (from 8.7%).
• Net debt at Rs.11,809 Cr as of 30 Jun 2026, with 44% against operational projects and 38% under construction.
• Credit rating upgraded to AA (from A+), enabling first domestic corporate bond issuance; cost of financing improved to 8.4% from 9%+.
• Weighted average PPA tenor of 23 years covers 18-19 year loan profile, providing strong asset-liability matching.

Contracted Capacity Triples to 6,000 MW; Execution Pace Accelerates

• Contracted capacity grew 3x to 6,000 MW over FY24-25 to FY25-26, adding ~4,000 MW.
• Q1 FY26-27 added ~500 MW (400 MW opex sales + 100 MW services); management reiterated FY26-27 guidance of minimum 1.5 GW.
• Trailing 12-month capacity addition reached ~1,750 MW as of Q1 FY26-27, up from 500 MW/year two years ago (FY24-25).
• Renewable energy services order book at 147 MW (contracted but unexecuted), with execution cycle of within 12 months.
• Blended tariff for 2,500 MW under construction (ex-BESS) is ~Rs.4.00/unit; only ~150 MW (6-7%) in Rajasthan, of which 5-7% includes BESS.
• Management guided annual additions of 2,000-3,000 MW going forward (FY26-27 onwards), based on demonstrated scalability and customer base of 600+.
• Market share in C&I renewable segment at 14% (up from 12%), highly fragmented; 80% of new volumes repeat business from existing clients.

Data & AI Segment Now 42% of Contracted Capacity; 35% Hyperscaler Market Share

• Data & AI segment represents 42% of contracted capacity, having grown 10x in two years; management cited deals with Meta, Apple, Google, Amazon.
• Clean Max holds an estimated 35% market share of hyperscaler clean energy deals in India; management expects share may decline but absolute volumes to grow.
• Hyperscaler EAPA/BPPA contracts provide assured revenue of ~Rs.3.7/unit, independent of merchant solar price fluctuations, with option to take power directly or use energy attribute offsets.
• Every 1 GW data center requires ~1.5 GW round-the-clock power → ~6 GW renewable energy; management expects "5–10 GW data center capacity addition over the next five years (by ~2031)", driving 30–60 GW new renewables.
• BESS as a natural evolution — first investment greenlit in Rajasthan (SDU), MOUs signed with three clients; BESS tariff expected at Rs.3.5+ per unit as a service.
• Customer proposition: 25% savings on power bills plus ESG; pipeline driven by Data & AI (42%) and Make in India (58%).
• Total addressable C&I RE generation EBITDA pool estimated at Rs.3 lakh crore at Rs.3.6/unit, with only 7-8% penetration (as of Q1 FY26-27).

Margin Expansion, Lower Interest Costs, and ALMM Deferral Tailwind

• RE power sales EBITDA margin improved to 84% (Q1 FY26-27) from 83% in FY25-26, driven by operating leverage; RE services margin at 11.2% (from 8.7%).
• Weighted average interest cost down 100 bps to 8.4% as of 30 Jun 2026; credit rating upgraded to AA enabling bond market access.
• Net debt at Rs.11,809 Cr; 38% classified as C-WIP (under construction). For FY27-28 steady state corresponding to Rs.3,000 Cr EBITDA, net debt expected at Rs.16,000 Cr.
• Government's ALMM 2 deferral — "allows projects commissioning before 31 March 2027 to use domestic modules with imported cells", creating a cost advantage of Rs.60 lakh per MW. Management plans to pull forward builds to 31 Dec 2026.
• Unallocated EBITDA of Rs.31 Cr in Q1 FY26-27 reflects accounting standards applied with auditor KPMG for segment reporting.
• Run rate EBITDA at end-FY25-26 was Rs.1,870 Cr; management stated FY26-27 reported EBITDA typically 1-1.1x that level, though they do not publish quarterly run-rate figure.

FY27-28 EBITDA Guidance of Rs.3,000 Cr; Near-Term Curtailment Risk Highlighted

• FY27-28 minimum reported EBITDA guidance of Rs.3,000 Cr (~2.4x FY25-26 EBITDA of Rs.1,290 Cr), based on achieving 4.6 GW operational opex sales capacity by 1 Apr 2027.
• FY26-27 capacity addition guidance of minimum 1.5 GW; 543 MW expected from CTO project at Koppal (two bays by Oct 2026 and Mar 2027).
• CTU project in Bikaner experiencing 70% backdown; management advised assuming heavy curtailment for remainder of FY26-27, as PGCIL's transmission timeline remains uncertain.
• If curtailment persists, full-year EBITDA impact of ~Rs.170 Cr (13% of run-rate EBITDA of Rs.1,870 Cr) for FY26-27.
• Under construction book tariff increased to Rs.4/unit in Q1 FY26-27 from Rs.3.87 in Q4 FY25-26; operating assets tariff at Rs.3.93.
• Management confident of adding 2,000-3,000 MW annually from FY26-27 onwards, maintaining similar run rate.

Tamil Nadu Approvals Temporarily in Flux; Organizational Gaps Acknowledged

• Temporary 1-2 month flux in C&I project approvals in Tamil Nadu following the new government's formation during Q1 FY26-27; management confirmed approvals are moving and issues being resolved as of late July 2026, no structural delay.
• Organizational gaps discussed in board's NRC subcommittee (five to six areas); company does not plan to win every contract given fragmented market.
• Bikaner transmission line — PGCIL's timeline remains uncertain; heavy curtailment assumed for remainder of FY26-27.
• Competitive landscape — large players (Adani, Reliance, NTPC) have announced plans, but management cites proven execution and client base as advantages; market share at 14% in fragmented C&I segment.
• ALCM extension benefit not large, applies to contracted volumes over next 3-4 months (within FY26-27), will not lead to tariff renegotiation; capex benefit accrues to company.