CleanMax Enviro Energy is building a sizeable exposure to India's data centre and artificial intelligence expansion, with 2.5 GW of renewable energy capacity already contracted by data centre players — 10 times the level two years ago.
The company's customer base shows how that opportunity is taking shape. Bloomberg supply-chain data lists Alphabet, Amazon, Apple, Digital Realty Trust, Equinix and Cisco Systems among CleanMax's customers. Its customer network also extends beyond technology and data centres to companies including UPL, BASF India, Bajaj Auto, Grasim Industries, Apar Industries and Welspun Living.
That mix matters for CleanMax's growth. Data centre and AI customers now account for 42% of its 6,003 MW contracted capacity, while traditional commercial and industrial customers contribute the remaining 58%. It gives the company two routes to expand as corporate India shifts towards renewable electricity.
The growth is already showing up in the numbers. CleanMax's consolidated revenue more than doubled in Q1FY27, while adjusted EBITDA rose 74% and the company swung to a profit. But the expansion requires capital. Net debt has reached Rs 11,809 crore and management expects it to rise further by FY28.
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AI Demand
CleanMax has emerged as a supplier of renewable electricity to companies at the centre of the data centre and AI buildout.
Data centre players have contracted 2.5 GW of renewable energy capacity from the company, a 10-fold increase over the past two years. CleanMax has also closed more than 40 deals with colocation data centre providers, including STT Global and NTT Data.
JP Morgan estimates CleanMax has secured more than 35% of clean energy deals signed by global hyperscalers in India since 2024.
Management expects data centres and AI to remain key growth drivers.
The potential power requirement explains why. Management estimates every 1 GW of data centre IT load requires about 6 GW of renewable energy capacity and storage. Setting up that capacity could require investment of around Rs 40,000 crore.
CleanMax already has relationships with companies participating in that expansion. Apart from Alphabet, Amazon and Apple, Bloomberg's customer data includes data centre operators Digital Realty Trust and Equinix.
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Second Engine
CleanMax is not relying entirely on technology companies.
Traditional commercial and industrial customers account for 58% of its contracted capacity. Contracted volumes from these businesses have doubled over the past two years.
Bloomberg's customer list includes UPL, BASF India, Bajaj Auto, Grasim Industries, Apar Industries, Sansera Engineering and Welspun Living, among others. CleanMax's disclosed customer base also includes Sun Pharma and UltraTech.
The company says only 7% of India's industrial electricity consumption currently comes through bilateral green power sources. That leaves 92-93% of industrial power consumption outside such arrangements.
Cost is another factor. Management says corporate customers can save "25% or more" on their electricity bills compared with government electricity rates. JP Morgan estimates potential savings of 25-40%.
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Two Businesses
CleanMax captures corporate renewable-energy spending through two businesses.
Under Renewable Energy Power Sales, it builds, owns and operates wind and solar projects and sells electricity to corporate customers. Its contracts have an average tenure of 23 years.
Renewable Energy Services takes a different approach. Customers invest their own capital, while CleanMax develops the renewable energy facilities and handles their operations and maintenance.
Both businesses expanded in Q1FY27.
Renewable Energy Power Sales revenue rose 47% to Rs 528 crore, while Renewable Energy Services revenue increased 7.3 times to Rs 300 crore.
Power sales contributed 63.5% of revenue and services accounted for 36%. Consolidated revenue rose 107% year-on-year to Rs 832 crore, while adjusted EBITDA increased 74% to Rs 494 crore.
Margins also improved. The Renewable Energy Power Sales margin rose to 83.7% from 76.4% in Q1FY26, while the services margin increased to 11.2% from 8.7%.
CleanMax reported a net profit of Rs 55 crore compared with a loss of Rs 17 crore a year earlier.
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Execution Ramps
Capturing the opportunity will depend on how quickly CleanMax can bring contracted projects online.
The company added 530 MW of capacity in Q1FY27, including 403 MW in Renewable Energy Power Sales and 127 MW in Renewable Energy Services.
Its commissioning rate reached 1,958 MW over the past 12 months, up from 449 MW in the previous period.
As of June 30, CleanMax had 2,510 MW of contracted Renewable Energy Power Sales capacity under execution, providing visibility over commissioning for the next two years.
Management expects to add more than 1,500 MW of operational sales capacity in FY27.
The pipeline matters because contracted capacity starts contributing to revenue once projects become operational.
Tariffs Rise
The projects under construction have also been contracted at higher tariffs than CleanMax's existing portfolio.
The weighted average tariff for the under-construction pipeline stands at Rs 4 per kilowatt-hour, compared with Rs 3.9 per kilowatt-hour for its existing 3.5 GW operational portfolio.
Customer quality could also help as the business expands. More than 81.2% of CleanMax's customers by contracted capacity carry ratings of AA or above.
Days sales outstanding fell to 35 days in Q1FY27 from 42 days in FY26 and 55 days in FY24.
Storage Push
Battery storage could open another revenue stream.
CleanMax is expanding into battery energy storage systems, or BESS, which allow it to store solar electricity generated during the day and supply it later.
The company is installing its first BESS facility in Rajasthan and has signed memorandums of understanding with three major customers in recent months.
Management expects BESS-as-a-Service, excluding generation costs, to command Rs 3-4 per unit for shifting electricity from daytime to evening using around two hours of storage.
That could allow CleanMax to supply renewable power beyond periods when solar projects are generating electricity.
Debt Rises
The expansion, however, comes with higher leverage.
CleanMax has guided for minimum reported EBITDA of Rs 3,000 crore by FY28, more than twice its FY26 EBITDA of Rs 1,295 crore.
Net debt currently stands at Rs 11,809 crore, while annualised net debt-to-EBITDA is 4.7 times.
Management expects steady-state net debt to reach Rs 16,000 crore by FY28, with net debt-to-EBITDA at 5-5.5 times.
That makes earnings growth important to the expansion plan. CleanMax will need its new capacity to come online and contribute EBITDA as debt increases.
The company currently trades at 17 times EV/EBITDA. JP Morgan values CleanMax at 13 times estimated FY28 adjusted EBITDA, citing its exposure to AI and data centre infrastructure and its execution capabilities.
The 2.5 GW of contracted data centre capacity gives CleanMax a foothold in the AI infrastructure buildout. Its 58% exposure to traditional commercial and industrial customers provides another route to growth. The next test is whether commissioning and earnings can keep pace as the company adds capacity and takes on more debt.
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