Company Overview
Clean Max Enviro Energy Solutions Ltd is India’s largest commercial & industrial (C&I) renewable energy service provider with an operational capacity of ~2.8 GW and contracted (yet to be executed) capacity of ~3.2 GW as of October 2025.
The company specialises in delivering decarbonisation and ‘Net Zero’ solutions to corporate customers through long-term renewable power arrangements and energy transition services.
Clean Max operates through two primary verticals:
Renewable Energy Power Sales: Sale of power through long-term Power Purchase Agreements (PPAs) and Energy Attribute Purchase Agreements (EAPAs).
Renewable Energy Services: EPC, capex services, and carbon credit solutions.
Unlike utility-scale renewable players that compete in tariff-based bidding with state discoms, Clean Max follows a customer-specific contracting model focused on commercial & industrial clients. This enables relatively premium tariffs (₹3.66 per unit in 1HFY26 vs ~₹2.44–₹2.46 for utility-scale players) and long contract tenures (average PPA tenure ~22.8 years, average lock-in ~16.9 years).
As of September 2025, the company serves 555 customers with 1,198 PPAs, with repeat orders rising to ~71.7%.
Operational & Capacity Positioning:
Operational Capacity (1HFY26): ~2,796 MW
Total Capacity (Operational + Contracted): ~5,334 MW
The portfolio includes Solar (Onsite & Offsite), STU Group Captive, STU Open Access, and CTU projects.
Plant load factors demonstrate operational stability:
- Solar Offsite (AC): ~23–25% range
- Wind: ~31–36%
- Hybrid: improving to ~46.6% (1HFY26 TTM basis)
Revenue mix has increasingly shifted toward Renewable Energy Power Sales:
- FY23: 51.1%
- FY25: 74.0%
- 1HFY26: 77.1%
This transition supports margin expansion and recurring revenue visibility.
Promoters & Shareholding
| Shareholding | Pre-Issue | Post-Issue (Upper Band) |
| Promoter & Promoter Group | 65.4% | 49.4% |
| Public | 34.6% | 50.6% |
| Total | 100% | 100% |
Promoters include BGTF One Holdings (DIFC) Ltd and Kuldeep Jain, among others.
Public Issue Details
- Issue Size: ₹3,100 crore
- Fresh Issue: ₹1,200 crore
- Offer for Sale: ₹1,900 crore
- Price Band: ₹1,000 – ₹1,053 per share
- Face Value: ₹1 per share
- Post-Issue Market Capitalisation: ₹11,765 – ₹12,325 crore
- Offer Period: 23rd – 25th February 2026
- Allocation: QIB 50%, Retail 35%, NII 15%
- Lot Size: 14 shares and multiples thereof
Objects of the Offer
The company plans to utilise the net proceeds primarily towards:
Debt Repayment:
₹1,122.7 crore will be used for prepayment or repayment of certain outstanding borrowings of the company and its subsidiaries.
This is expected to improve leverage metrics and reduce finance cost burden over the medium term.
General Corporate Purposes
₹77.3 crore for working capital and operational flexibility.
Pros
- India’s largest C&I renewable energy service provider (~8% market share).
- Long-term contracted portfolio with ~22.8-year average PPA tenure.
- Premium tariff realisations vs utility-scale peers.
- Strong EBITDA growth with improving operating leverage.
- Lower Net Debt/Adj. EBITDA (~4.8x) compared to broader industry (>6x).
- Structural tailwinds from rising green penetration in corporate India (expected to rise meaningfully by FY30).
Risks
- Thin profitability: FY25 PAT margin ~1.9%; RoE ~1.3%.
- High customer concentration: Top 10 customers contribute ~35–45% of revenue.
- Elevated interest costs impacting net earnings.
- Land acquisition and regulatory approval risks.
- Promoter share pledge (post-issue ~18.6%).
Industry Outlook
India’s power demand is expected to increase meaningfully over the next few years, rising from around 1,695 billion units in FY25 to nearly 2,250 billion units by FY30. This steady growth is being driven by industrial expansion, increasing electrification, data centre growth, and rising consumption across sectors. Such structural demand creates a strong foundation for renewable capacity addition, especially in the commercial and industrial segment.
Corporate adoption of green power is still at a relatively early stage. Green energy penetration among corporates was around 7.5 percent as of March 2023 and is expected to move closer to 20 percent by FY30. Considering that the commercial and industrial segment accounts for nearly half of India’s total power consumption, the long term opportunity remains significant, with the addressable market estimated at around ₹3 trillion.
Policy support, increasing ESG commitments, and long term decarbonisation targets are encouraging corporates to shift towards renewable energy. Many large companies, including technology firms, manufacturing players, and infrastructure companies, are actively working towards Net Zero goals. At the same time, rising conventional power tariffs are making renewable solutions more attractive from a cost perspective.
The commercial and industrial renewable model also allows for customised contracts and relatively better tariff realisations compared to utility scale projects. For instance, recently commissioned capacity has seen average tariffs of ₹3.66 per unit compared to around ₹2.44 to ₹2.46 per unit for utility scale renewable players. This difference reflects the value of tailored solutions and long term partnerships in the C&I segment.
Operational metrics across the industry remain stable, with plant load factors for solar, wind, and hybrid projects showing healthy utilisation levels. Increasing adoption of hybrid solutions and battery storage systems is expected to further improve reliability and enhance project economics over time.
That said, the sector continues to depend on regulatory clarity, open access policies, transmission infrastructure readiness, and stable financing conditions. Counterparty credit quality and state level regulations also remain important factors to monitor.
Overall, the commercial and industrial renewable energy space in India is well positioned for sustained growth over the coming years. With rising corporate demand for clean energy and supportive policy direction, the industry offers long term structural opportunities for focused renewable service providers.
Financial Snapshot (₹ Crores)
| Particulars | FY23 | FY24 | FY25 |
| Revenue | 930 | 1,390 | 1,496 |
| EBITDA | 375 | 706 | 900 |
| EBITDA Margin | 40.3% | 50.8% | 60.2% |
| Adj. PAT | 24 | (20) | 28 |
| Adj. PAT Margin | 2.6% | (1.5%) | 1.9% |
Valuation
At the upper price band of ₹1,053, Clean Max Enviro Energy Solutions Ltd is valued at around 21.7 times FY25 EV to EBITDA and about 16.3 times annualised 1HFY26 EV to EBITDA on a post issue basis. On a Price to Book basis, the IPO is valued at approximately 2.95 times, which is at a meaningful discount compared to listed renewable peers such as Adani Green Energy Ltd and NTPC Green Energy Ltd.
While the pre issue FY25 P E stands at around 399.6 times, P E may not be the most appropriate metric at this stage. The renewable power sector is characterised by stable and predictable EBITDA and operating cash flows due to long term contracted PPAs. However, accounting profits typically scale up as assets mature, since depreciation and financing costs are higher in the initial years.
The company’s portfolio has an average age of less than 2.5 years. Therefore, current PAT does not fully reflect the normalised earnings potential of the business. This trend is already visible in FY25 and 1HFY26, where the company has reported positive PAT, indicating improving profitability as assets stabilise.
On an EV to EBITDA basis as of September 2025, the valuation works out to around 15 times, which is comparatively lower than several listed renewable energy companies that trade at higher multiples.
Our View
Clean Max Enviro Energy Solutions Ltd offers investors exposure to India’s growing commercial and industrial renewable energy segment through a differentiated, long term contracted platform. The company has demonstrated strong capacity growth, improving revenue mix towards recurring power sales, premium tariff realisations and stable operating cash flows.
Although reported profitability remains modest due to the relatively young asset base and high initial financing costs, the earnings trajectory is showing improvement as projects mature. The long average PPA tenure of nearly 23 years provides strong revenue visibility, and structural tailwinds from increasing corporate decarbonisation commitments, rising power demand, AI driven digital infrastructure expansion and supportive budget allocations strengthen the long term outlook.
While valuations appear demanding on headline P E, they look more reasonable when viewed through the lens of asset maturity, EV to EBITDA and Price to Book comparisons within the sector. The company represents a differentiated opportunity to participate in India’s energy transition theme.
The issue may be suitable for investors with a medium to long term perspective who are comfortable with the renewable infrastructure growth cycle and evolving return profile. Conservative investors may prefer to monitor continued improvement in profitability and leverage reduction post listing before taking exposure.
Investors are advised to consult their financial advisors before making any investment decisions. This view does not constitute investment advice.
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