Clean Max Enviro IPO

It’s the biggest player in India’s commercial and industrial renewable energy space. As of October 2025, it was running a large operating portfolio of 2.80 GW (gigawatt, a unit that shows power capacity at scale), and it also had another 3.17 GW already contracted and lined up to be built. In FY25, it held about 8% of all new open-access capacity added (open access means companies buy power directly from producers, instead of only through the local utility).

Unlike utility-scale competitors who usually fight for government tenders (auction-style bids that push prices down), this company deals directly with corporate customers and negotiates pricing. That gives it room to charge better rates. For projects commissioned in FY25, the weighted average tariff (average selling price per unit) was ₹3.76 per unit, well above the industry average of around ₹2.44-₹2.46 per unit.

The revenue is fairly “sticky” because customers tend to come back. In the first half of FY26, 71.72% of the newly contracted capacity came from repeat orders. It serves 555 customers through long-term agreements (long contracts that lock in supply), and these run for an average of almost 23 years, which helps make future cash flows more predictable.

The company has grown quickly: revenue from selling renewable power increased at a compound annual growth rate (CAGR) of 52.71% from FY23 to FY25. It also shows strong profitability in this segment, with an adjusted EBITDA margin of about 82.57% in H1 FY26.

One nice financial angle is that its services segment creates negative working capital (meaning it often gets paid before it has to pay its own bills), which can support growth without needing as much fresh equity. In the first half of FY26, the services segment delivered a net working capital benefit of ₹40.28 crore, which helped improve overall returns on capital.

Selling renewable power is the main engine, but it’s not the only one. It also earns from helping clients with carbon credits (tradable certificates linked to emissions reduction) and from building and maintaining plants for customers who want to own the assets themselves.

It’s carrying a pretty heavy debt load, with total borrowings at ₹10,121.46 crore as of September 2025. What really stands out is the finance cost (interest and related borrowing costs), which ate up 42.92% of total income in the same period. If interest rates move up, or if growth slows even a bit, that can squeeze cash flows and make things tighter.

A big chunk of its business is coming from just two states, Karnataka and Gujarat. Together, they contributed 77.16% of power sales revenue in the first half of FY26. So if there’s an unfriendly regulatory change (new rules, charges, permissions) or even a natural disruption in either of these regions, it could hit the company’s overall performance more than you’d want.

Revenue is also somewhat concentrated among a handful of big customers. The top 10 clients contributed roughly 34.95% of total revenue in the first half of FY26. If one or two major clients leave, cut usage, or don’t renew contracts, that could make a noticeable dent in income.

Even if the main company is growing, several smaller subsidiaries are still under pressure. As of September 2025, 16 subsidiaries reported losses adding up to ₹20.88 crore. Also, some of these units have previously missed loan covenants (the “promises” you make to lenders, like maintaining certain ratios), which then required waivers, basically, lenders agreeing not to penalize them that time.

The company is stepping into some new territory by building its first Central Transmission Utility (CTU) projects (grid-connected projects that tie into the central transmission network) and using new 5 MW wind turbines for the first time. First-time execution usually comes with learning curves, so delays, cost overruns, or technical issues here could slow expansion and push costs higher.