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India’s energy story is quietly changing.
For decades, the conversation was simple. We need power. We burn coal. End of story.
Coal still dominates. India is the world’s second largest consumer of coal with roughly 14% of global consumption, second only to China. Thermal plants keep the lights on. Steel plants keep infrastructure rising. And every time demand spikes, we fall back on fossil fuels.
But here’s what’s shifting.
The biggest consumers of electricity in India today are not just households. They are factories, data centres, cement plants, pharmaceutical units, steel manufacturers, tech campuses and global capability centres. This segment is called commercial and industrial, or C&I. And it consumes a massive share of the country’s electricity.
Consumer segment-wise share of electricity sales in India | Image Credit: Company RHP
Now here’s the surprising part.
As of FY23, renewable energy penetration in the C&I segment stood at just 7.4% to 7.5%. That means more than 92% of corporate India was still largely dependent on conventional grid power. But projections suggest that renewable penetration in this segment could rise to 20% by FY30.
Think about what that implies.
To move from 7.5% to 20% penetration, India would need an estimated 15 to 18 gigawatts of new renewable capacity additions every single year in the C&I space. Installed capacity in this segment is expected to grow at a 22% to 24% CAGR through the decade.
And this is the space Clean Max Enviro Energy Solutions operates in.
Clean Max is not a typical renewable energy company selling power into state grids. It focuses almost entirely on corporate customers. It develops, owns and operates solar, wind and hybrid power assets. It signs long term power purchase agreements directly with companies. It builds onsite solar plants at factories. It develops offsite projects and supplies power through open access routes. It offers energy advisory and even carbon credit solutions.
As of July 31, 2025, Clean Max had 2.54 GW of operational renewable energy capacity. Another 2.53 GW was under construction or secured through agreements. In effect, it has visibility over more than 5 GW of capacity.
To put that in context, that is a meaningful scale within the C&I segment.
The company claims to be India’s largest provider of renewable energy solutions to commercial and industrial consumers as of March 31, 2025. It serves clients across AI and technology, data centres, cement, steel, pharmaceuticals, FMCG, real estate and global capability centres. These are high energy consuming sectors. Data centres in particular require reliable, round the clock power, increasingly from green sources.
Why is demand rising so sharply?
Because corporates are under pressure from multiple directions. Global supply chains are demanding lower carbon footprints. Investors are pushing ESG metrics. Energy costs are volatile. And regulatory changes, such as the phasing out of certain transmission charges, are improving the economics of renewable sourcing.
In short, going green is no longer a branding exercise. It is becoming a financial decision.
Now let’s look at the numbers.
For FY25, Clean Max reported revenue of approximately ₹1,610 crore, up from around ₹1,425 crore in FY24. That is steady growth. But profit after tax stood at about ₹19.4 crore in FY25.
That is where the debate begins.
A revenue base of over ₹1,600 crore generating less than ₹20 crore in profit suggests thin margins. Renewable infrastructure is capital intensive. Projects require large upfront investment. Cash flows are long term. Debt plays a significant role.
At the upper end of the valuation, the company is expected to command a post listing market capitalization of around ₹12,325 crore. To understand the valuation, you have to understand the capital structure.
The IPO size is ₹3,100 crore. Of this, ₹1,200 crore is fresh issue and ₹1,900 crore is offer for sale. From the fresh proceeds, about ₹1,122 to ₹1,123 crore will be used for repayment or prepayment of borrowings. The remainder will go toward general corporate purposes.
So a substantial portion of the new capital is earmarked for debt reduction.
The company’s net debt to adjusted EBITDA ratio is reported at around 4.8 times. That is lower than the industry average of above 6 times, but it is still meaningful leverage. If debt reduces and capacity continues to scale, operating leverage could improve margins over time. But that improvement is not visible yet in current PAT numbers.
It is also important to note that the overall issue size was earlier planned at ₹5,200 crore as per draft papers filed in August 2025. It was later reduced to ₹3,100 crore. That scaling down reflects either valuation sensitivity, market feedback or capital planning adjustments.
Clean Max competes with listed peers such as ACME Solar Holdings, NTPC Green Energy, Adani Green Energy and ReNew Energy Global. Many of these companies trade at rich price to earnings multiples, some above 40 times and even crossing 100 times in certain cases. But those companies operate at larger scales or with stronger earnings visibility. Clean Max is smaller in revenue and significantly thinner in net profit.
However, Clean Max is focused on a niche. The C&I segment is different from large utility scale projects that feed into state grids. Corporate PPAs are often structured to offer tariff savings and long term stability. Customers range across industries, reducing exposure to any single sector. Projects include onsite installations and offsite open access supply, creating flexibility.
There is also the macro tailwind.
Green sourcing penetration among corporates stood at around 7.5% in March 2023. If that rises to 20% by FY30, demand for renewable capacity could more than double in this segment. Sectors such as AI, technology and data centres are expected to expand rapidly. These facilities require high and stable electricity supply. Many global companies have net zero commitments. Renewable sourcing becomes part of their core operating model.
But risks remain.
First, profitability risk. The current PAT of ₹19.4 crore on ₹1,610 crore revenue indicates limited margin buffer. Any execution delays, cost overruns or counterparty payment issues could affect earnings.
Second, capital intensity. Renewable assets require continuous funding for expansion. Even with debt repayment from IPO proceeds, future growth may require fresh borrowing or equity.
Third, regulatory risk. Open access rules, transmission charges and state level power policies influence project viability. Policy shifts can alter returns.
Fourth, competitive intensity. Larger integrated players have deeper balance sheets and potentially lower cost of capital. They can bid aggressively for corporate contracts.
Fifth, valuation risk. Investors pay a premium for expected growth rather than demonstrated profitability. If growth slows or margins fail to expand, valuation multiples can compress.
And yet, dismissing the story entirely would ignore the structural energy shift underway.
The real question is simple.
Will the C&I renewable opportunity scale fast enough to justify today’s valuation? Will debt reduction and operating leverage improve margins meaningfully over the next few years? Or will competitive pricing and capital intensity keep returns moderate?
This IPO carries long term growth potential. It carries balance sheet and execution risks. It is priced for the future more than the present.
On one hand, India’s renewable penetration in C&I is low, demand projections are strong and Clean Max already has scale and pipeline visibility. On the other hand, profitability is thin, leverage is real and valuation is not cheap.
So whether this makes sense depends on how comfortable you are betting on India’s corporate energy transition over the next decade.
Because if C&I renewable penetration truly moves from 7.5% to 20% by FY30, companies like Clean Max could sit at the centre of that shift.
If it does not, the numbers will speak for themselves.
Until then, this IPO is less about short term listing gains and more about whether you believe India’s factories, data centres and boardrooms are serious about going green.
