CleanMax ends FY26 with scale, steadier margins, and a bigger runway

Clean Max Enviro Energy Solutions Limited closed FY26 with a sharper financial profile and a portfolio that is getting meaningfully larger every year. For the year ended 31 March 2026, revenue from operations rose to INR 19,129 million, up 28 percent from INR 14,957 million in FY25. EBITDA increased in step to INR 12,946 million, also up 28 percent. Reported profit after tax rose to INR 856 million from INR 194 million, supported by a bigger stabilised asset base and operating leverage.

The fourth quarter added its own momentum. Q4 FY26 revenue from operations grew 25 percent year on year to INR 5,575 million, while EBITDA grew 14 percent to INR 3,497 million. PAT for the quarter rose to INR 454 million from INR 172 million. These numbers matter because CleanMax is in a build-and-ramp phase, where new capacity can take time to stabilise. The company’s narrative for FY26 is simple: commissioning has accelerated, contracted capacity has widened the next-year funnel, and margins improved as SG&A intensity fell.

Capacity growth is now the main driver of the income statement

CleanMax positions itself as India’s largest C&I renewable energy provider, and the operational metrics underline why. During FY26, the company commissioned 1.4 GW of RE power sales capacity, taking operational RE power sales capacity to 3.1 GW as of 31 March 2026. Contracted RE power sales capacity reached 5.7 GW, with 2.6 GW contracted yet to be executed. Management commentary points to a minimum of 1,500 MW commissioning expected in FY27.

The operational build-out is broad-based. RE power sales capacity additions in FY26 were spread across seven states, with sizable additions in Rajasthan (CTU) at 525 MWp, Gujarat at 297 MW, Karnataka at 200 MW, and Maharashtra at 113 MW. Onsite solar also expanded, with onsite solar capacity reported at 399 MWp as of 31 March 2026, comprising 275 MWp in India and 123 MWp overseas (UAE, Bahrain, Thailand).

Financially, the mix is showing up in segment revenue. In FY26, RE power sales revenue rose 26 percent year on year to INR 13,995 million, while RE services revenue rose 32 percent to INR 4,973 million. In Q4 FY26, RE power sales revenue increased 29 percent to INR 3,694 million and RE services revenue increased 20 percent to INR 1,852 million. Gross margin remained stable in power sales at about 92.5 percent, while EBITDA margin improved to 83.5 percent in FY26 from 81.9 percent in FY25, reflecting lower SG&A as a share of income.

Run-rate economics explain why EBITDA can step up from here

A useful way to read CleanMax’s results is through run-rate EBITDA. The company reported run-rate EBITDA for RE power sales rising to INR 1,870 crore as of 31 March 2026, up from INR 1,140 crore as of 1 April 2025. This is linked directly to the operational RE power sales capacity increase from 1,712 MW to 3,088 MW over the same period.

But the company also explains why reported EBITDA will lag run-rate in a high-build year. Post COD, STU projects can take 3 to 6 months to stabilise due to plant stabilisation and open access documentation and approvals. For the 525 MW CTU project in Rajasthan, management flagged expected grid backdowns over the next 6 to 12 months due to transmission system upgrades. In other words, FY26 includes partial-year contributions and ramp-up effects, so the run-rate is a better indicator of what the commissioned base can earn once stabilised.

This matters because the pipeline is large. As of 31 March 2026, contracted yet to be executed RE power sales capacity stood at 2,597 MW, and management guided for commissioning of at least 1,500 MW in FY27. The weighted average tariff for the 2.6 GW contracted (under execution) capacity was reported at INR 3.85 per kWh, and the weighted average PPA tenor for FY26 contracting was 23.17 years. Those are long-duration, contracted cashflows, which is the core of the business model.

The unit economics that CleanMax shares also give investors a clean framework. Solar capex is shown at INR 3.5 crore per MWp with EBITDA of INR 50 to 55 lakhs per MWp. Wind capex is shown at INR 7.8 crore per MW with EBITDA of INR 100 to 110 lakhs per MW. Portfolio EBITDA margin is shown at 83 to 84 percent, and net debt to run-rate EBITDA is shown at 5.0x to 5.5x.

Customer quality and repeat contracting are doing quiet work

CleanMax’s growth is not only about adding megawatts. It is also about who is signing the PPAs and how repeatable the engine is. In FY26, the company reported 588 C&I customers and 1,280 PPAs and contracts. Receivable days for RE power sales improved to 25 days from 26 days in FY25, while overall DSO days were reported at 42 days in FY26 versus 54 days in FY25. The contracted base appears to be weighted toward higher-credit customers, with 82.22 percent of customers by contracted capacity rated AA and above (or MNC subsidiaries or others), and 95.30 percent rated A- and above.

Repeat business is a key quality signal. Management reported that 74 percent of new contracted volumes in FY26 came from existing customers, slightly lower than 77 percent in FY25 but still indicative of stickiness. This is consistent with a model where corporates expand their renewable procurement over time as they scale operations and move toward net zero goals.

The portfolio is also becoming more diversified. As of 1 April 2026, run-rate EBITDA was spread across Karnataka STU, Gujarat STU, onsite rooftop, Rajasthan CTU, and other STU states such as Tamil Nadu, Maharashtra, Haryana, and Chhattisgarh. CleanMax’s Rajasthan CTU exposure was shown as 1 site and 3 customers with 100 percent solar. Onsite is spread across 4 countries and 1,600+ sites.

A notable strategic thread in the presentation is the role of Data and AI customers. The company reported that 42 percent of contracted RE power sales capacity as of 31 March 2026 is with Data and AI customers, and that this is a major growth driver. FY26 included 517 MW contracted with names such as Princeton Digital Group and Iron Mountain India Data Centers, and a repeat contract expansion with STT Global Data Center. Alongside this, 962 MW was contracted including repeat customers such as Ultratech Cements, Apar Industries, and BASF, as well as a new customer Gujarat Alkalies and Chemicals Ltd. and CEAT.

Margins improved because the organisation scaled more efficiently

The most durable positive change in FY26 is not a one-quarter profit jump. It is the steady improvement in EBITDA margin tied to SG&A discipline. CleanMax reported that in the RE power sales segment, gross margin stayed broadly stable around 93 percent, but EBITDA margin rose to 83.52 percent in FY26 from 81.94 percent in FY25 and 75.32 percent in FY23. Over the same period, SG&A as a share of total income fell to 9.36 percent in FY26 from 10.41 percent in FY25 and 18.16 percent in FY23.

This is a common pattern in asset-heavy contracted infrastructure. Once the platform for contracting, execution, and operations is built, incremental megawatts can come with lower overhead intensity. CleanMax’s operational metrics show execution consistency that supports this thesis. Grid availability for offsite assets improved to 99.24 percent in FY26 from 99.10 percent in FY25. Project delivery was described as on-time and under-budget, with actual costs versus budget in the mid-90s to high-90s percentages across FY23 to FY26.

A segment view also shows improving profitability in RE services. In FY26, RE services gross margin rose to 23.6 percent from 16.2 percent in FY25, and EBITDA margin rose to 19.6 percent from 14.4 percent. This supports the idea that services can contribute more meaningfully as scale grows, even though power sales remains the core earnings engine.

Leverage is rising with build-out, but the cost of debt is falling

The balance sheet expanded materially in FY26, which is expected in a year where 1.4 GW was commissioned and a large pipeline remains under construction. Gross block increased to INR 128,236 million from INR 88,002 million, and capital work in progress rose to INR 53,392 million from INR 19,125 million. Net debt rose to INR 96,841 million from INR 63,220 million.

The more important question is whether the cost and structure of borrowing is improving. Here, the presentation shows steady progress. The weighted average cost of project borrowing declined to 8.50 percent in FY26 from 9.19 percent in FY25 and 9.47 percent in FY24. The company also reported a CARE A+ Stable credit rating. Leverage was described as conservative, with debt (net of liquid assets) to adjusted EBITDA at 4.75x, and DSCR for operational assets at 1.3x for FY26.

CleanMax also highlighted the currency alignment benefit for foreign currency loans, stating that such loans are measured against PPA revenues in the respective foreign currencies, reducing the need for hedging. This is relevant given onsite solar capacity overseas and the potential for future cross-border contracting.

One additional lever for equity efficiency is strategic partnership capital. CleanMax highlighted a partnership with Apple Inc through Clean Max Taurus Private Limited, structured as 51 percent CleanMax and 49 percent Apple India Private Limited. Apple invested INR 104 crore of equity for a 49 percent stake tied to 150 MW across Karnataka and Rajasthan. The strategic value was framed as investment into renewable energy projects, building on Apple’s earlier investment into CleanMax rooftop projects.

What to watch from here

CleanMax ends FY26 with three signals that matter for investors following contracted renewable platforms.

First, the operational base is now large enough that stabilisation can drive earnings even without heroic assumptions. The company’s run-rate EBITDA for RE power sales rose to INR 1,870 crore as of 31 March 2026, while reported EBITDA was INR 1,295 crore for FY26. Management’s own explanation of ramp-up timelines implies that a part of this gap can close as new assets mature.

Second, the pipeline is visible. With 2.6 GW contracted yet to be executed and guidance of at least 1,500 MW commissioning in FY27, the company’s near-term growth remains anchored in signed PPAs. The long tenor of PPAs at 23.17 years adds to cashflow visibility.

Third, discipline is showing up in the parts of the model investors often worry about. Receivable days for power sales remain low at 25 days. Customer quality is weighted to investment-grade counterparties. And operating leverage is real, with SG&A intensity down to 9.36 percent of total income in FY26.

The FY26 theme is disciplined execution at scale. CleanMax is building a larger portfolio while keeping margins resilient, lowering borrowing costs, and leaning into customer segments that are expanding their renewable demand. If the company delivers the indicated FY27 commissioning while the FY26 additions stabilise, the financial picture can keep shifting from ramp-up to harvest.