CLN Energy Limited (formerly CLN Energy Private Limited & JLNPhenix Energy Private Limited) was incorporated in India on 1 October 2019 under the Companies Act, 2013, and is a wholly owned subsidiary of CLN Energy Pte. Limited, Singapore. The Company is primarily involved in the assembling and trading of Lithium-ion batteries and their ancillary products. The Company successfully completed its Initial Public Offer (IPO) of 28,92,000 equity shares of face value Rs. 10 each at a fixed price of Rs. 250 per equity share during FY 2024-25, raising net proceeds of Rs. 6,800.53 Lacs, which have been substantially utilised towards capacity addition, working capital and general corporate purposes as detailed in Note 38 to the financial statements.
The Companys revenue streams comprise (i) sale of manufacturing goods (assembled Li-ion battery packs and ancillary products), (ii) trading goods, (iii) sale of services including Research & Development (R&D) services (a portion of which is exported and realised in foreign exchange), and (iv) lease rental income.
The global economy continued its path of gradual stabilisation during FY 2025-26, supported by moderating inflation, easing monetary policy in several major economies and steady industrial activity, even as geopolitical uncertainties, supply-chain realignments and volatility in commodity and currency markets remained key watch-points. India continued to be among the fastest-growing major economies, aided by robust domestic consumption, sustained public capital expenditure, a resilient services sector and continued policy thrust on manufacturing self-reliance (Make in India / Aatmanirbhar Bharat) and clean energy transition.
The Government of Indias continued emphasis on electric mobility, renewable energy storage, telecom infrastructure expansion and PLI (Production Linked Incentive) schemes for advanced chemistry cell / battery manufacturing has created a supportive policy backdrop for companies engaged in the lithium-ion battery and energy storage value chain.
CLN Energy Limited (the Company / the Group) is primarily engaged in the assembling, manufacturing and trading of Lithium-ion batteries and its ancillary products, catering to sectors such as telecom infrastructure, power backup, e-mobility and industrial applications. The lithium-ion battery industry in India is at an inflexion point - demand is being driven by the expansion of telecom towers and data centres requiring uninterrupted back-up power, the rapid scale-up of electric vehicles, and the growing thrust towards renewable energy storage to firm up solar and wind capacity.
India continues to be significantly import-dependent for battery raw materials and cells, and companies with in-house assembly, R&D and value-added engineering capability - such as the Company - are well placed to benefit from import-substitution, localisation incentives and the growing preference of large institutional customers (telecom operators, PSUs and infrastructure companies) for domestic, dependable suppliers.
During the year, the Group structure was strengthened through the following developments:
CLN Green Private Limited (51% subsidiary) incorporated in India on 23 September 2025.
Electrovault Power Private Limited (50% associate) incorporated in India on 7 March 2025.
CLN General Trading LLC (100% subsidiary) incorporated in Dubai, UAE on 27 March 2026, marking the Companys first step towards overseas market access and diversification of its customer base.
These initiatives are aligned with the Companys stated strategy of backward/forward integration, geographic diversification and building an ecosystem around its core Lithium-ion battery business.
The Company operates in a single primary business segment (assembling and trading of Lithium-ion batteries and ancillary products) and hence there is no reportable segment as per AS 17 - Segment Reporting. However, the product/service-wise break-up of revenue from operations is set out below to provide better insight into the performance drivers:
| Revenue Stream (Rs. in Lacs) | FY 2025-26 | FY 2024-25 | % Growth |
| Sale of Manufacturing Goods | 29,899.51 | 15,605.01 | 91.6% |
| Sale of Trading Goods | 1,827.97 | 4,713.25 | -61.2% |
| Sale of Services | 2,903.23 | 1,565.89 | 85.4% |
| Lease Rent (Other Operating Revenue) | 20.52 | 33.81 | -39.3% |
| Total Revenue from Operations | 34,651.23 | 21,917.96 | 58.1% |
Sale of manufacturing goods grew by approximately 92% year-on-year and remains the primary growth driver, while trading goods revenue declined as the Company continues to shift its mix towards higher-value, in-house manufactured products. Sale of services (including R&D services, a part of which is exported) nearly doubled during the year, reflecting the Companys increasing focus on the value-added segment of the business (refer Note 30 - Earnings in Foreign Currency, which increased to Rs. 10,016.99 Lacs from Rs. 5,661.60 Lacs).
Chart 4: Segment / Product-wise Revenue Performance - FY26 vs FY25 (Rs. in Lacs)
| Product/Service | FY 2024-25 | FY 2025-26 |
| Sale of Manufacturing Goods | Rs. 15,605L | Rs. 29,900L |
| Sale of Trading Goods | Rs. 4,713L | Rs. 1,828L |
| Sale of Services | Rs. 1,566L | Rs. 2,903L |
| Lease Rent / Other Op. Revenue | Rs. 34L | Rs. 21L |
Going forward, the Company expects the growth momentum witnessed in FY 2025-26 to continue, supported by the continued expansion of telecom and data-centre infrastructure, the accelerating adoption of electric mobility and renewable energy storage in India, and sustained Government policy support under the PLI scheme for advanced chemistry cell / battery manufacturing and the Make in India initiative. The Company intends to consolidate its position as a dependable, in-house Lithium-ion battery assembly and engineering partner to large institutional and telecom customers, while continuing to scale its R&D capabilities and value-added product offerings.
The Company also intends to build on the initiatives undertaken during the year - including the commencement of operations of its subsidiary CLN Green Private Limited and its wholly owned overseas subsidiary CLN General Trading LLC (Dubai, UAE), and its associate Electrovault Power Private Limited - to diversify its revenue base geographically and across the battery value chain, and to strengthen backward/forward integration. The order from BSNL referred to elsewhere in this Report provides revenue visibility for the near term. The Company will continue to closely monitor working-capital intensity, raw-material price volatility and finance costs, and to calibrate its funding mix accordingly.
[This Outlook reflects the Companys current assessment of business conditions as at the date of this Report, is subject to the Cautionary Statement below, and should be reviewed and confirmed by Management / the Board before the Annual Report is finalised.]
The Company has an institutionalised risk management framework covering financial, operational, regulatory and market risks. Key risks identified and the Companys mitigation approach are summarised below:
The Company has an adequate system of internal financial controls commensurate with the size and nature of its business, covering the orderly and efficient conduct of operations, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information. The Company uses Tally Prime accounting software with an audit-trail (edit-log) feature, which has been operated throughout the year for all transactions, in compliance with the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014.
The Statutory Auditors, M/s. D G M S & Co., Chartered Accountants, have, in their report on internal financial controls over financial reporting (Annexure B to the Independent Auditors Report), expressed an opinion that the Company has, in all material respects, an adequate internal financial controls system over financial reporting, operating effectively as at 31 March 2026. The Company also has an internal audit system commensurate with the size and nature of its business, the reports of which are placed before the Audit Committee and the Board.
On a consolidated basis, the Group recorded Revenue from Operations of Rs. 34,651.23 Lacs for FY 2025-26, as against Rs. 21,917.96 Lacs in FY 2024-25, an increase of approximately 58%, driven primarily by higher sale of manufacturing goods and continued traction from telecom and infrastructure customers. Profit After Tax (after minority interest) grew to Rs. 2,054.90 Lacs from Rs. 1,292.19 Lacs in the previous year (previous year figure as per restated comparative in the consolidated statement), reflecting an improvement in operating leverage despite a sharp increase in finance costs on account of higher working-capital borrowings.
| Particulars (Rs. in Lacs) | FY 2025-26 (Consolidated) | FY 2024-25 (Consolidated) | Growth (%) |
| Revenue from Operations | 34,651.23 | 21,917.96 | 58.1% |
| Other Income | 481.99 | 120.55 | 299.8% |
| Total Income | 35,133.22 | 22,038.51 | 59.4% |
| Total Expenses | 32,380.52 | 20,154.04 | 60.7% |
| Profit before Tax | 2,752.70 | 1,884.47 | 46.1% |
| Total Tax Expense | 695.26 | 592.28 | 17.4% |
| Profit After Tax (after minority interest) | 2,054.90 | 1,292.19* | - |
| Basic & Diluted EPS (Rs.) | 19.50 | 14.98 | 30.2% |
*Previous year figure as reported in the consolidated Statement of Profit and Loss.
Chart 1: Revenue from Operations & Profit After Tax (Rs. in Lacs)
| Financial Year | Revenue from Operations | Profit After Tax |
| FY 2024-25 | Rs. 21,918L | Rs. 1,292L |
| FY 2025-26 | Rs. 34,651L | Rs. 2,055L |
Sale of manufacturing goods continued to be the dominant revenue stream, contributing approximately 86% of total revenue from operations in FY 2025-26, followed by sale of services (including R&D services), trading goods and lease rental income.
Revenue Mix - FY 2025-26 (Consolidated)
| Revenue Stream | Amount (Rs. in Lacs) | % of Total |
| Manufacturing Goods | Rs. 29,900L | 86.3% |
| Trading Goods | Rs. 1,828L | 5.3% |
| Sale of Services | Rs. 2,903L | 8.4% |
| Lease Rent | Rs. 21L | - |
Raw material consumption increased to Rs. 27,612.07 Lacs (FY25: Rs. 14,209.83 Lacs) in line with the growth in manufacturing volumes, while the raw-material-to-revenue ratio remained broadly stable, reflecting disciplined procurement and no significant margin erosion from input costs. Employee benefit expense rose to Rs. 1,298.09 Lacs (FY25: Rs. 1,136.16 Lacs) on account of team expansion to support growth, and Finance Costs increased sharply to Rs. 814.68 Lacs (FY25: Rs. 81.38 Lacs), primarily on account of higher utilisation of cash-credit / working-capital facilities availed from ICICI Bank, HDFC Bank, Kotak Bank, Axis Bank and IndusInd Bank to fund the higher scale of operations.
Total equity (Shareholders funds) increased to Rs. 11,504.29 Lacs as at 31 March 2026 from Rs. 9,449.34 Lacs as at 31 March 2025, aided by profit accretion during the year. Short-term borrowings increased significantly to Rs. 9,348.96 Lacs (previous year: Rs. 1,581.73 Lacs) to fund the higher working capital requirement arising from growth in trade receivables and inventories. Trade receivables stood at Rs. 9,763.00 Lacs (previous year: Rs. 7,520.88 Lacs) and inventories at Rs. 6,560.80 Lacs (previous year: Rs. 6,422.50 Lacs), both scaling in proportion with the growth in the topline.
Cash used in operating activities was Rs. 4,588.78 Lacs during FY 2025-26 (previous year: cash used of Rs. 6,681.89 Lacs), reflecting the working-capital investment required to support the growth in the business. This was funded through net cash generated from financing activities of Rs. 7,008.95 Lacs, predominantly from proceeds of short-term borrowings of Rs. 7,766.89 Lacs. Net cash used in investing activities was Rs. 164.92 Lacs, largely towards purchase of property, plant & equipment and intangible assets under development. Consequently, cash and cash equivalents (including fixed deposits) increased to Rs. 3,035.60 Lacs as at year-end from Rs. 780.35 Lacs in the previous year.
The Company believes that its people are central to its growth strategy. Employee benefit expense increased to Rs. 1,298.09 Lacs during FY 2025-26 from Rs. 1,136.16 Lacs in the previous year, reflecting continued investment in talent to support the scale-up in operations. The Company maintains a defined contribution plan (Employees Provident Fund and Employees State Insurance) as well as a defined benefit gratuity plan for its employees, and continues to invest in employee welfare, including a Board-approved Employee Stock Option Scheme, under which 1,60,046 stock options were granted during the year (refer Note 5). Industrial relations remained cordial throughout the year.
As at 31 March 2026, the Company had a total of [ ? ] permanent employees on its rolls (previous year: [ ? ]), reflecting the continued investment in talent to support the scale-up in operations referred to above.
[Note to preparer: employee headcount for FY 2025-26 and FY 2024-25 to be inserted from HR/payroll records as at the respective balance sheet dates before this Report is finalised, as required by Schedule V (Part B)(h) to the SEBI LODR Regulations, 2015.]
In terms of Schedule V (Part B) to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the requirements of the Companies (Accounts) Rules, the Company is required to explain any change of 25% or more in the key financial ratios as compared to the previous financial year. The details of key financial ratios (Consolidated) along with explanations for significant variations are set out below (refer Note 37 to the financial statements):
| Ratio | FY 2025-26 | FY 2024-25 | % Change | Reason for change (>25%) |
| Trade Receivables Turnover Ratio | 4.01 | 4.38 | -8% | Not applicable (below 25% threshold) |
| Inventory Turnover Ratio | 4.61 | 3.13 | 47% | Significant increase in revenue from operations |
| Interest Coverage Ratio | 4.38 | 24.16 | -82% | Decline mainly due to the sharp increase in finance costs on higher working-capital borrowings, partly offset by growth in absolute EBIT |
| Current Ratio | 1.65 | 1.65 | 0% | Not applicable |
| Debt-Equity Ratio | 0.81 | 0.17 | 378% | Increase in short-term borrowing taken from banks for working capital |
| Operating Profit Margin (%) | 8.90% | 8.42% | 6% | Not applicable (below 25% threshold) |
| Net Profit Margin (%) | 5.94% | 5.90% | 0.7% | Not applicable |
| Debt Service Coverage Ratio | 0.38 | 1.24 | -69% | Increase in short-term borrowing taken from banks for working capital |
| Return on Equity (%) | 18% | 14% | 28% | Increase in profitability in FY 2025-26 |
| Trade Payables Turnover Ratio | 8.28 | 3.89 | 113% | Significant increase in revenue from operations |
| Net Capital Turnover Ratio | 3.84 | 3.35 | 15% | Not applicable (below 25% threshold) |
| Return on Capital Employed (%) | 31% | 21% | 49% | Increase in profitability |
Chart 3: Key Financial Ratios - FY26 vs FY25 (Consolidated)
| Ratio | FY 2024-25 | FY 2025-26 |
| Current Ratio | 1.65 | 1.65 |
| Debt-Equity Ratio | 0.17 | 0.81 |
| ROE (%) | 14 | 18 |
| Inventory T/O | 3.13 | 4.61 |
| Net Profit Ratio (%) | 5.9 | 5.94 |
Note on debt-equity and debt service coverage ratio: The increase in debt levels was undertaken to finance the sharp increase in working capital (trade receivables and inventory) required to support the 58% growth in revenue from operations, and remains within the Companys sanctioned banking limits secured by hypothecation of stock, book debts and current assets, further backed by promoter guarantees and fixed-deposit collateral, as disclosed in Note 6 to the financial statements.
Chart 5: Interest Coverage Ratio & Operating Profit Margin - FY26 vs FY25 (Consolidated)
| Financial Year | Interest Coverage Ratio (x) | Operating Profit Margin (%) |
| FY 2024-25 | 24.16x | 8.42% |
| FY 2025-26 | 4.38x | 8.90% |
In terms of Schedule V (Part B) to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, details of any change in Return on Net Worth (Return on Equity) as compared to the immediately previous financial year, along with an explanation therefor, are set out below (refer also to the Key Financial Ratios table in Section 9 above and Note 37 to the financial statements):
Return on Net Worth (Return on Equity), on a consolidated basis, improved to 18% in FY 2025-26 from 14% in FY 2024-25, an increase of approximately 28%. This improvement was primarily on account of the increase in consolidated Profit After Tax to Rs. 2,054.90 Lacs (FY 2024-25: Rs. 1,292.19 Lacs), driven by the 58% growth in Revenue from Operations, which outpaced the increase in average shareholders funds (net worth) during the year.
In the preparation of the financial statements for FY 2025-26, the Company / Group has followed the recognition and measurement principles laid down in the applicable Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. No treatment different from that prescribed in the applicable Accounting Standards has been followed in the preparation of the financial statements for the year under review.
[To be confirmed by the CFO / Statutory Auditors before this Report is finalised, in case any alternative accounting treatment was in fact followed during the year, together with managements explanation therefor, as required by Schedule V (Part B) to the SEBI LODR Regulations, 2015.]
Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply, price conditions in the domestic and overseas markets in which the Company operates, changes in Government regulations, tax laws, and other statutes and other incidental factors. The Company assumes no obligation to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.
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