Clean Max Enviro Energy Solutions Ltd | Mainboard IPO | Shariah Status | Overview

Understanding Shariah Compliance in IPOs and Stocks:

Investing wisely is essential for both financial growth and ethical alignment. For those interested in making investments that comply with Islamic law, understanding the Shariah status of Initial Public Offerings (IPOs) and stocks is crucial. This article aims to provide insights into the Shariah compliance of Clean Max Enviro Energy Solutions Ltd, a modern choice for ensuring that your investment choices are not only profitable but also ethical.

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Analyzing The Company

Company Name: Clean Max Enviro Energy Solutions Ltd
Listing At: NSE & BSE (Mainboard)

Overview

Clean Max Enviro has established itself as India’s largest commercial and industrial (C&I) renewable energy provider, a distinction affirmed by the CRISIL Report as of March 31, 2025. As of July 31, 2025, the company operates an impressive portfolio comprising 2.54 GW of operational, owned, and managed capacity, complemented by an additional 2.53 GW of contracted capacity currently under execution. This substantial operational footprint demonstrates Clean Max Enviro’s significant position in India’s rapidly expanding renewable energy sector. The company delivers a comprehensive suite of offerings, including renewable power supply, energy services, and carbon credit solutions, catering to a diverse customer base encompassing technology companies and conventional commercial and industrial clients. Clean Max Enviro’s technical expertise spans critical domains including energy contracting, Engineering Procurement and Construction (EPC), and Operation and Maintenance (O&M) of diverse renewable energy installations—solar, wind, and hybrid systems—enabling end-to-end project management capabilities.

Clean Max Enviro operates through two primary business segments that drive its market leadership. The Renewable Energy Power Sales Segment focuses on supplying renewable energy to customers via long-term Power Purchase Agreements (PPAs) and Energy Attribute Purchase Agreements (EAPAs), ensuring stable, predictable revenue streams. The Renewable Energy Services Segment provides turnkey development services encompassing land acquisition, evacuation infrastructure development, comprehensive EPC services, power evacuation solutions, lifetime O&M services, and innovative carbon services offerings. These integrated capabilities position the company as a holistic renewable energy solution provider. Clean Max Enviro’s competitive strengths rest on three foundational pillars: a comprehensive suite of customer-centric capabilities that address diverse project requirements; timely and cost-effective project development, execution, and management capabilities that deliver superior outcomes; and efficient capital allocation combined with sophisticated risk management practices. This strategic positioning enables Clean Max Enviro to maintain operational excellence while scaling its renewable energy portfolio, solidifying its status as India’s premier C&I renewable energy provider.

Shariah Status

The IPO is Shariah Non-Compliant, please see the below image.

IPO Timeline (Tentative Schedule)

Financials

Clean Max Enviro Energy Solutions Ltd. Financial Overview

Clean Max Enviro Energy Solutions Ltd., India’s leading C&I renewable energy provider with 2.80 GW operational capacity, exhibits strong revenue growth but faces profitability volatility and high leverage concerns.

Profit & Loss Trends (₹ Crore, Restated Consolidated):

• Total Income: Robust expansion from ₹960.98 (FY23) to ₹1,425.31 (FY24) and ₹1,610.34 (FY25); H1 FY26 at ₹969.35 (annualized ~₹1,938).
• EBITDA: Improved significantly to ₹405.92 (FY23), ₹741.57 (FY24), and ₹1,015.07 (FY25); H1 FY26: ₹637.85.
• Profit After Tax: Losses of ₹59.47 (FY23) and ₹37.64 (FY24), turning to ₹19.43 profit (FY25) and ₹19.00 (H1 FY26). Subsidiaries reported losses in recent years, raising sustainability risks.

Balance Sheet (₹ Crore):

• Total Assets: Grew from ₹7,000.14 (FY23) to ₹13,279.25 (FY25) and ₹16,945.65 (H1 FY26).
• Net Worth: Steady rise to ₹2,563.48 (FY25) and ₹2,598.34 (H1 FY26).
• Total Debt: Elevated at ₹3,843.42 (FY23), ₹5,514.56 (FY24), ₹7,973.70 (FY25), and ₹10,121.46 (H1 FY26), with debt-to-equity ~3.9x recently—potentially straining cash flows amid loan repayment pressures.

Renewable energy power sales dominate revenue (51–77% of operations), exposing the firm to segment disruptions. While FY25 profitability recovery signals operational leverage, persistent subsidiary losses, high interest expenses, and aggressive capex (negative investing cash flows) highlight risks of inadequate cash profits for debt servicing, which could undermine long-term stability.

SEBI Disclaimer

Investing in IPOs involves risks. Please read the offer document carefully before investing. This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.