Clean Max Q1 operating margin recovers as revenue outpaces costs
Revenue rose 49.28% QoQ, but higher interest and other income equal to 45.13% of PBT complicate the profit read.
Filed 31 Jul 2026, 19:30 IST · after market close · Clean Max Enviro Energy Solutions Ltd (CLEANMAX)
Key takeaways
- Revenue grew 49.28% QoQ, faster than expenses at 41.88%, lifting operating margin by 2.57 percentage points to 50.58%.
- Net profit rose 21.52% QoQ despite a 41.36% increase in interest, while other income contributed 45.13% of pre-tax profit.
- The company added 403 MW of operational RE Power Sales capacity and commissioned 127 MW of RE Services capacity in Q1FY27.
Price around the results
Revenue growth outpaced costs, but financing limited profit conversion
Clean Max reported consolidated revenue growth of 49.28% QoQ, while operating profit grew faster at 57.28%, showing operating leverage in the quarter. Pre-tax profit increased only 24.92% and net profit 21.52%, as interest rose 41.36% and depreciation increased 18.57%. The gap between operating and net-profit growth points to financing and non-operating charges absorbing much of the operating improvement.
Margin recovered, with a notable contribution from other income
Expenses grew 41.88% QoQ, slower than revenue, which expanded operating margin by 2.57 percentage points. However, other income accounted for 45.13% of pre-tax profit, making reported earnings less dependent on operating profit alone. The tax rate also increased by 1.62 percentage points, further limiting the conversion of pre-tax profit into net profit.
Margin is above peers but remains below the Q3FY26 level
Operating margin recovered from 48.01% in Q4FY26 to 50.58% in Q1FY27, after standing at 62.29% in Q3FY26; the latest quarter therefore marks a recovery, not a return to the earlier level. Clean Max's margin was 8.53 percentage points above the 42.05% median for the 13 Utilities peers that had reported the same quarter.
Capacity additions support the expansion narrative, with ramp-up constraints flagged
The company reported 403 MW of additional operational RE Power Sales capacity and 127 MW of commissioned RE Services capacity in Q1FY27, with a further 147 MW under construction. Management said repeat customers represented 79% of new contracted capacity and that it plans to commission at least 1,500 MW in FY27. Management also said STU projects can take three to six months after COD to stabilise revenue, while grid backdowns are expected over the next six to twelve months for the 525 MW CTU Rajasthan project; it guided to a minimum 4.6 GW capacity basis for FY28 targets and projected steady-state net debt of Rs 16,000 cr as of 1 April 2027.
Results were filed after market close
Clean Max filed these consolidated results after market close on 31 July 2026. There is no same-session market reaction to interpret for this quarter.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹832 cr | ₹557 cr | +49.28% |
| Other income | ₹42 cr | ₹85 cr | -49.80% |
| Expenses | ₹411 cr | ₹290 cr | +41.88% |
| Operating profit | ₹421 cr | ₹268 cr | +57.28% |
| Operating margin (%) | 50.58% | 48.01% | — |
| Interest | ₹255 cr | ₹180 cr | +41.36% |
| Depreciation | ₹115 cr | ₹97 cr | +18.57% |
| Profit before tax | ₹94 cr | ₹75 cr | +24.92% |
| Tax | ₹39 cr | ₹30 cr | +30.01% |
| Net profit | ₹55 cr | ₹45 cr | +21.52% |
| EPS (₹) | ₹4.14 | ₹5.31 | -22.03% |
Operating margin of 50.58% compares with a Utilities sector median of 42.05% across 13 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Generation exported in the three months ended June 30, 2026 was 1,302.36 million kWh.
- The company had 593 C&I customers as of June 30, 2026.
Guidance & outlook
- FY28 steady-state net debt as of April 1, 2027 is projected at INR 16,000 crore.
- The company guides for a minimum 4.6 GW capacity underpinning its FY28 targets.
Expansion
- The company added 403 MW of operational RE Power Sales capacity in Q1 FY27.
- The company commissioned 127 MW of RE Services capacity in Q1 FY27.
- A further 147 MW of RE Services capacity is under construction.
- The company plans to commission at least 1,500 MW in FY27.
New orders
- Repeat business represented 79% of new contracted capacity in the current period.
Problems & risks
- STU projects take three to six months after COD to stabilize revenue because of technical and regulatory factors.
- Grid backdowns are expected for the 525 MW CTU Rajasthan project over the next six to twelve months.
- Initial grid evacuation availability for CTU projects such as Bikaner-II will limit ramp-up.
What to watch
- Whether operating margin holds above 50.58% after its Q4FY26 recovery.
- Progress against management's stated minimum 1,500 MW FY27 commissioning plan and 4.6 GW capacity basis for FY28 targets.
- Whether grid constraints affect ramp-up at the 525 MW CTU Rajasthan project and Bikaner-II.