Nomura initiates coverage on Clean Max Enviro with Buy call. Check upside potential, key reasons

Japanese brokerage Nomura has given Clean Max Enviro Energy Solutions a Buy rating and set a target price of Rs 1,510, suggesting a potential 21% upside from the current stock price. The firm cites strong growth prospects for the company over the next few financial years.

Analysts at Nomura anticipate Clean Max will achieve revenue and EBITDA compound annual growth rates (CAGRs) of 39% and 50%, respectively, from FY26 to FY29. The firm highlights India's skewed tariff structure as a major factor driving the commercial and industrial (C&I) renewable energy sector. C&I consumers pay 60-120% more than subsidized segments, creating an opportunity for independent power producers like Clean Max to offer power at lower rates than the grid.

Clean Max's RE power can save customers 20-60% on energy costs while aiding their sustainability objectives, while developers benefit from higher tariffs and equity returns. The company's average tariff for FY26 is approximately Rs 4/kWh, compared to below Rs 3/kWh for standard solar and below Rs 3.5/kWh for wind energy in reverse auctions, giving Clean Max a competitive edge in tariff economics and capital efficiency.

In Q1 FY27, Clean Max reported a net profit of Rs 55 crore, marking a significant turnaround from a loss of Rs 17 crore in the same period the previous year. Revenue from operations surged 107% year-on-year to Rs 832 crore, driven by an expanded operational asset base and growth in the renewable energy services segment. The company's total contracted capacity, including the RE Services division, stood at 6.8 GW as of June 30, 2026, with plans to add over 500 MW of new capacity in the first quarter alone.