Clean Max Enviro Energy Solutions Ltd Management Discussions

<dhhead>Management Discussion & Analysis</dhhead>

Global Economic Overview

In 2025, the global economy remained resilient, sustaining growth of 3.4% despite elevated geopolitical tensions and policy uncertainty. This resilience was largely driven by a significant tech investment boom, particularly in artificial intelligence, and robust global trade flows. Key tailwinds included accommodative financial conditions, a depreciated US dollar, and proactive fiscal support in major economies like Germany and the United States.

Global headline inflation eased to 4.1% in 2025, although regional differences persisted, with core inflation remaining elevated in the United States while moderating in Japan. Trade continued to support growth, driven by record exports from China and strong technology-related shipments across Asia.

	2024	2025	2026 (P)
World Output (Global)	3.4%	3.4%	3.1%
Advanced Economies	1.8%	1.9%	1.8%
Emerging Market and	4.5%	4.4%	3.9%
Developing Economies

Outlook

The global outlook has become more cautious amid rising geopolitical tensions, with growth projected to moderate to 3.1% in 2026. As economies navigate uncertainty, renewable energy is expected to play an increasingly important role in strengthening energy security, enhancing resilience and supporting longterm climate goals.

(Source: IMF)

Indian Economic Overview

India remained one of the world’s fastest-growing major economies in FY 2026, with GDP expanding by 7.7%, up from 7.1% in FY 2025. This growth was underpinned by an impressive 7.9% GVA increase, driven by robust manufacturing and services sectors. At the same time, headline inflation moderated significantly, averaging 1.7% between April and December 2025, largely due to a sharp decline in food and fuel prices.

The Union Budget 2026-27 reinforced macro stability with a 4.3% fiscal deficit target, while maintaining a strong push on public investment. Policy momentum also remained high, with over 350 structural reforms implemented, including GST 2.0 and four streamlined Labour Codes. Frontier sectors such as semiconductors, infrastructure and digital connectivity continued to gain traction, supported by a 60% expansion in the National Highway network since 2014.

Outlook

India is expected to remain among the world’s fastest- growing major economies in FY27, with growth projected at 6.8% to 7.2%. Despite near-term risks from oil prices and geopolitics, strong domestic demand, infrastructure investment and the clean energy transition should support continued resilience.

(Sources: Economic Times, PIB, Economic Survey 2025-26, India Budget 2026-27)

Global Energy Sector Overview

Global energy markets reached a defining inflection point in 2025. Total energy demand grew by 1.3%, yet for the first time, modern renewables, led by solar PV, accounted for the largest share of incremental demand growth. While demand for oil, gas and coal continued to rise, low-emissions sources including solar, wind, hydro and nuclear met nearly 60% of the increase in global energy needs. This shift occurred alongside a 3.1% expansion in global GDP, demonstrating a continued decoupling between economic growth and carbon emissions.

The Rise of Renewable Energy

Renewable energy continued its record-breaking expansion in 2025. Global renewable capacity reached 5,149 GW, representing 49.4% of total installed power capacity. During the year, the world added an unprecedented 692 GW of renewable capacity, led by solar and supported by continued growth in wind and hydropower. Global cumulative capacities at year- end reached:

• Solar: 2,392 GW

• Wind: 1,291 GW

• Hydropower: 1,296 GW.

• Bioenergy: 154 GW.

• Geothermal: 16 GW.

• Marine Energy: 0.5 GW.

The Middle East has emerged as one of the fastest- growing renewable markets in 2025, with capacity expanding by 28.9% in 2025. Saudi Arabia led the growth, quadrupling solar PV additions to nearly 7 GW. The region’s renewable expansion is part of a broader shift to reduce domestic oil consumption and increase the role of natural gas and renewables in the power mix.

The world has firmly entered the Age of Electricity, with electricity demand growing more than twice as fast as overall energy demand. Solar PV generation rose by a record 600 TWh, the largest annual increase ever recorded for a single source. Battery storage also

emerged as the fastest-growing power technology, with global additions increasing 40% to 108 GW.

Outlook

To align with the COP28 goal of tripling renewable capacity to 11 TW by 2030, the global community must bridge a remaining gap of approximately 6 TW. Faster deployment, stronger investment, enhanced battery storage and greater grid flexibility will be critical, especially as data centres and electrification push electricity demand higher by 2.3x by 2030.

(Sources: IEA, IRENA, Earth.org)

Indian Energy Sector Overview

India’s energy sector continues to transition towards a cleaner and more diversified energy mix. In FY26, total electricity generation reached 1,845.92 BU, growing by 0.93% year-on-year. While fossil-fuel-based generation still accounted for 71% of total output, it declined by 4.12%, with coal-based generation falling by 3.69%.

In contrast, renewable energy generation (excluding large hydro) grew by a strong 21.1%, reflecting the accelerating pace of the country’s energy transition. A key milestone was achieved in June 2025, when India reached 50% installed power capacity from non-fossil fuel sources, achieving its Nationally Determined Contribution (NDC) target five years ahead of schedule.

Rising Demand for Renewable Energy

India’s renewable energy sector continues to gain global prominence, with the country now ranking third globally in installed renewable energy capacity.

In FY26, India added a record 55.3 GW of non-fossil capacity, the highest annual addition in its history, taking total non-fossil capacity to 283.46 GW as of March 31, 2026.

This momentum reflects a sustained build-out, with nearly 127 GW of non-fossil capacity added over the past five years. Non-fossil sources now contribute 29.2% of total electricity generation, while renewables (including large hydro) account for 26.2%. Solar and wind continue to lead the transition, together contributing 96.8% of net renewable capacity additions and reinforcing their role as the primary drivers of India’s clean energy growth.

• Solar Power: Solar capacity crossed 150.26 GW, with FY26 additions of 44.61 GW.

• Wind Power: Wind capacity reached 56.09 GW, supported by a record 6.05 GW addition during the year.

• Wind-Solar Hybrid and Generation: Solar and wind together generated 276.61 BU, or 15.14% of India’s total electricity generation in FY26.

Growth Drivers

Several targeted interventions and structural factors have propelled this record-breaking growth:

Policy and Fiscal Incentives: The GST rate on renewable energy devices was reduced from 12% to 5% in September 2025, lowering landed costs for developers and consumers.

Domestic Manufacturing Boost: Solar module manufacturing capacity skyrocketed to approximately 172 GW by March 2026, supported by Production Linked Incentive (PLI) schemes.

Decentralised Solar Schemes: Programs like PM- Surya Ghar: Muft Bijli Yojana (benefiting over 42 lakh households) and PM KUSUM (solarising 13.94 lakh pumps in FY 2026) have significantly increased distributed energy capacity.

Infrastructural Readiness: The Green Energy Corridor Phase-I was completed in seven states, facilitating the evacuation of clean power.

Ease of Business: Initiatives like the REEIMS portal for real-time import tracking and streamlined MOD/MHA clearances for wind projects have reduced project risks.

Key Trends

The industry is moving toward higher technological sophistication and price competitiveness. A landmark trend is the dramatic fall in solar module imports, which decreased threefold in FY 2026 as domestic manufacturing matured. In the wind sector, the Commercial and Industrial (C&I) segment has emerged as a dominant force, contributing 75% of new wind additions. Furthermore, the National Green Hydrogen Mission achieved breakthrough price discoveries, with Green Ammonia prices reaching as low as ^49.75 per kg in recent tenders, narrowing the gap with fossil-fuel- based alternatives.

Indias Commitment to Green Energy

India is pursuing one of the world’s most ambitious energy transitions, targeting 500 GW of non-fossil fuel capacity by 2030 and Net Zero emissions by 2070 under its Panchamrit commitments. Backed by large- scale renewable energy deployment and initiatives such as the LiFE Mission, the country continues to accelerate its shift towards a cleaner and more sustainable economy.

Outlook

India is on track to become a global hub for Green Hydrogen, with a target to produce 5 MMTPA by 2030. The transition will be further bolstered by a planned 20 GW of nuclear capacity by 2030 and the expansion of the Small Hydro Power Development Scheme. Emerging trends like Battery Energy Storage Systems (BESS), supported by new tax exemptions, and

geothermal exploration will ensure grid stability as the nation moves towards its ambitious 2030 milestones.

(Sources: PIB1, PIB2, Economic Times)

Business Overview

CleanMax is India’s market leader and largest C&I renewable energy company, built as the net-zero partner of choice for corporate India. FY 2026 was a year of record scale and momentum, with ~1.4 GW of renewable energy power sales capacity commissioned, nearly matching our entire historical accumulation in a single year. As of 31^st March 2026, our renewable energy power sales operational portfolio stood at 3.1 GW, with a total contracted capacity of 5.7 GW.

Our integrated platform delivers a comprehensive suite of clean energy offerings:

• Wind-Solar Hybrid & Solar: High-offset solutions saving customers 30-45% on power costs

• STU & CTU Connected Plants: Large-scale grid integration across multiple states

• Rooftop & RE Services: Onsite generation and professional asset management

• Energy Storage & Carbon Solutions: Advanced BESS and I-REC offsets to manage complex energy profiles

We power the economy’s fastest-growing sectors, with Data centres and AI ecosystems now accounting for 42% of our contracted capacity. This growth is anchored by deep customer trust, evidenced by 74% repeat business and a high-quality portfolio where over 95% of customers are rated A- and above.

Following our successful public listing, run-rate EBITDA grew 64% to ^1,870 Crore, supported by strategic partnerships, such as with Osaka Gas, and a reduced project debt cost of 8.5%. With a weighted average PPA tenor of ~23 years, we have built a durable platform for long-term value creation.

Outlook

In FY 2027, we target a minimum of 1.5 GW in new commissioned capacity, viewed as a floor, not a ceiling, supported by over 2.6 GW already contracted and under execution. As demand for future-ready power accelerates, we are expanding our CTU-connected portfolio, including the 529 MW Koppal hybrid plant, and pioneering Battery Energy Storage Systems (BESS) to address evolving regulatory landscapes. We remain execution-focused, convinced that our biggest opportunities in the global clean energy transition lie ahead.

Financial Performance

Revenue: Our Revenue from Operations surged 28% to ^19,129 Million, converting our record 1.4 GW capacity commissioning into high-octane top-line growth.

Expenses: On the expense front, our total increased to ^7,807 Million, supported by disciplined cost management and operating efficiency. We aggressively optimised SG&A from 18% to 9% of total income via massive operating leverage, proving we can scale without bloating our cost base.

Profitability: Our EBITDA grew 28% YoY to ^12,946 Million, while our reported PAT exploded 4.4x to ^856 Million. This comes on account of the transition of young assets into a stabilised, high-margin revenue phase.

Segment-Wise Performance: Our RE Power Sales segment generated ^13,995 Million with EBITDA margins sharpening to 83.5%. Our RE Services segment clocked ^4,973 Million, with margins jumping to 19.6% as carbon and capex solutions hit critical mass.

Significant Ratio Changes

Ratio	FY 2026	FY 2025	Variance (%)
Debt Equity Ratio	2.25	3.11	(27.6%)
Debtors Turnover	8.21	6.80	20.74%
Ratio
Inventory Turnover	10.90	9.17	18.87%
Ratio
Interest Coverage	1.87	1.68	11.31%
Ratio
Current Ratio	0.66	0.76	(13.16%)
Operating Profit	67.68%	67.87%	(0.28%)
Margin
Net Profit Margin (%)	7.06%	3.49%	102.3%

Return on Net Worth (ROE): Reported ROE (Average Equity) surged 127% to 2.95%. This is the starting line of a multi-year compounding curve as our young fleet ages and interest costs decline.

Other Key Developments

CleanMax transitioned into a publicly listed company, listing on the NSE and BSE on 2^nd March 2026. Major FY 2026 milestones included commissioning a record

1.4 GW of capacity, featuring our first 525 MWp CTU- connected project in Bikaner, Rajasthan.

Our ESG framework, assured by LRQA under GRI standards, reported zero Scope 1 emissions and 3,310 tCO₂e Scope 2 emissions, offset by 4,680 MWh of IREC credits. Our HR initiatives, on the other hand, continue to focus on an ownership mindset, recruiting elite talent with an average leadership tenure of eight years. The number of permanent employees on the rolls of the Company as on 31 March 2026 was 594.

Disclosure of Accounting Treatment

The consolidated and standalone financial results have been prepared in strict accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013. No alternative treatments different from these prescribed

standards were followed in the preparation of the financial statements.

Risks & Concerns

We are exposed to various business and operational risks, including fluctuations in raw material prices, labour costs, foreign exchange rates and interest rates, as well as supplier-related challenges, project execution risks and changes in the regulatory environment. These risks are actively monitored and managed through a robust Risk Management Framework, and no material risks are currently anticipated.

Opportunities

AI Revolution: Powering the AI and Data Centre explosion, now 42% of our portfolio, where clean energy has evolved into a mission-critical operational requirement.

Scalable Execution: Leveraging our 5.7 GW contracted platform to commission 1.5 GW+ annually, proving that massive growth and institutional discipline are hardwired together.

Future Assets: Integrating Battery Energy Storage (BESS) and next-gen CTU projects to capture peak-hour premiums and lead the market’s technological shift.

Execution Bottlenecks: Neutralising land-acquisition risks by securing over 90% of our FY 2027 construction pipeline well in advance.

Internal Control Systems

We have an effective internal control and risk mitigation system, which is constantly assessed and strengthened with new or revised standard operating procedures. Our internal control system is commensurate with its size, scale, and complexities of its operations. The internal audit is entrusted to a reputed audit firm. The main thrust of internal audit is to test and review controls, appraisal of risks and business processes, besides benchmarking controls with best practices in the industry. We have a robust Management Information System, which is an integral part of the control mechanism.

Cautionary Statement

The statements in the “Management Discussion and Analysis Report” describe our objectives, projections, expectations, estimates or forecasts which may be “forward-looking statements” within the meaning of the applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied therein due to risks and uncertainties.