Clean Max Enviro Energy Solutions Ltd Q4 FY26 Earnings Analysis

- Clean Max Enviro Energy Solutions expects to add about 1.5 GW of renewable energy (RE) power sales capacity in the fiscal year 2026-27, up from 1.3 GW added in the current fiscal year. - Long-term contracted capacity has grown 3x in under two years, from 1.7 GW in March 2024 to 5.7 GW as of March 2026, indicating strong volume growth. - Revenue grew 29% year-over-year to INR 13,554 million in the first nine months and EBITDA grew 33%, reflecting strong financial growth. - EBITDA margins improved from 75% to 83% in RE power sales, showing operating leverage benefits. - RE services segment saw 40% revenue growth with margin expansion from 15% to 22%. - The company has 2.7 GW contracted and under execution pipeline, with firm evacuation capacity of 3.1 GW plus 1.6 GW pending, totaling 4.7 GW evacuation pipeline. - Diversified across several states and customer segments, including 42% of contracted capacity from Data & AI clients, supporting sustained growth.

- Clean Max Enviro Energy Solutions Limited expects strong growth in earnings driven by capacity additions and efficient operations. - Run-rate EBITDA increased by 57% to INR 1,790 crores as of March 1, 2026, reflecting growing operational scale. - EBITDA margins improved to about 83% in RE power sales, projected to rise to 85-86% in 2-3 years due to operating leverage. - Reported PAT grew from INR 22 million to INR 402 million in nine months YoY, indicating profitability gains. - Capacity addition guidance: over 1.5 GW commissioned in FY27, growing trailing 12 months capacity additions from 500 MW to 1.3 GW. - Stable and improving unit economics: equity payback improved to ~2.5 years versus earlier 3.4 years. - No near-term plans for QIB equity; confident in being well-capitalized for growth for at least three years. - Operating efficiencies, tariff premiums due to direct customer sales, and strong credit profile support earnings expansion.

- Clean Max Enviro Energy Solutions Limited plans to build about 400 MW or more through a joint venture with Osaka Gas over three years. - In Q3 FY26, they received an equity contribution of INR 176 crores from Osaka Gas for their 49% stake in this JV. - There is a significant ongoing capacity addition with 2.7 GW contracted and under execution as of March 1, 2026. - For FY 26-27, management guides capacity addition of upwards of 1.5 GW of RE power sales. - Land acquisition for next fiscal’s capacity addition is 70%-80% complete, with construction underway. - They aim to be well equity funded for high growth over the next three years without plans for Qualified Institutional Placement (QIP). - Continued strategic partnerships and access to global capital (e.g., via Osaka Gas and JBIC) support equity efficiency and capital investments.

- No intention of a Qualified Institutional Buyer (QIB) equity fundraising in the near term. - Company believes it is well-funded for continued high growth over the next three years. - Strategic partnerships and overall balance sheet equity are expected to support growth. - Equity requirements will be assessed annually and investors will be advised accordingly. - No specific debt forecast provided for upcoming years, but refinancing and cost of debt reduction opportunities exist. - IPO proceeds are mainly used for repayment of borrowings, exit of current investors, and general corporate purposes. - Debt as of 31st December includes INR 4,688 crores for operational projects, INR 1,781 crores for recently commissioned projects, INR 1,739 crores for under-construction assets, and INR 1,490 crores of corporate loans.

- CleanMax has about 2.7 GW of contracted capacity with signed Power Purchase Agreements (PPAs) under execution as of March 1, 2026. - Firm transmission evacuation capacity available but not yet contracted with customers stands at 3.1 GW. - An additional 1.6 GW of evacuation capacity has been applied for but is not yet confirmed, totaling approximately 4.7 GW potential evacuation pipeline. - CleanMax does not typically disclose a sales pipeline due to the large and granular nature of their sales efforts with 570 clients and over 50 business development executives. - They sign about 100 new deals annually, resulting in 200-400 ongoing discussions, but only count contracted capacities once PPAs are signed. - Guidance for FY’26-FY’27 includes 1.5 GW additional renewable energy power sales capacity (1 GW non-CTU connected and 0.5 GW CTU connected wind projects).