Clean Max Enviro Energy Solutions Ltd Forensic Report - SOIC x StockScans Report

as of Jul 2026

Clean Max Enviro Energy Solutions presents a record of rapid growth and heavy investment, with revenue rising 28% to ₹1,912.9 crore and no single customer exceeding 10% of sales. That growth, however, runs on a capital engine that has consumed cash: free cash flow was negative for two consecutive years while PAT was positive, and other income of ₹169 crore outstripped the entire ₹135 crore pre-tax profit. The group also carries substantial obligations beyond its reported gross debt, including ₹1,730.92 crore in supplier financing and put-option liabilities on subsidiary shares, and its consolidated audit relies on other auditors for 161 subsidiaries holding ₹12,645.81 crore of assets.

Key findings

  1. The group carries large obligations beyond its reported gross debt Major - Supplier finance arrangements with banks provided an additional credit period of 60-180 days, with bank payments to suppliers of ₹1,730.92 crore treated as non-cash transactions and presented as acceptances against capital and other creditors in FY26. Non-interest bearing perpetual debt is provided to SPVs with flexible servicing terms, under which SPVs service such debt only when adequate liquidity becomes available. The parent company also has put-option obligations on 26% shareholdings held by non-controlling interest shareholders of certain subsidiaries, exercisable at termination of contract, completion of PPA, or breach of performance obligation at fair market value, and current liabilities exceeded current assets by ₹1,724.1 crore as at 31 March 2026.
  2. The consolidated audit relies on other auditors for 161 subsidiaries holding ₹12,646 crore of assets Major - The statutory auditor issued an unqualified opinion on both standalone and consolidated financial statements for FY26, but did not audit the financial statements of 161 subsidiaries and 7 step-down subsidiaries whose total assets before consolidation adjustments were ₹12,645.81 crore. The auditor's opinion on the consolidated financial statements is not modified in respect of this reliance on the work of other auditors. The standalone CARO report flags loans to promoters and related parties granted without specifying repayment terms or period, an audit trail feature that was not enabled at the database level for the holding company and 32 subsidiaries from 1 April 2025 to 27 March 2026, and disputed statutory dues of 30 crore.
  3. Fourteen tax show-cause notices totalling ₹20.2 crore landed in FY26 alongside an income-tax demand of ₹6.8 crore Minor - The Secretarial Auditor reported 14 show-cause notices received during FY26 from GST, customs and state tax authorities, with individual amounts ranging from ₹1.02 crore to ₹14.05 crore and an aggregate of approximately ₹20.2 crore, all pending adjudication as of the report date. On 27 April 2026, the company received an income-tax assessment order for AY 2023-24 raising a demand of ₹6,77,99,430 due to certain additions and disallowances, which the company intends to appeal. An amount of ₹18.75 crore was paid under protest against an ongoing GST assessment as of the FY26 reporting date.
  4. Promoter share pledge surged from 0.02 crore to 1.16 crore shares in one year Minor - Promoters Kuldeep Jain and KEMPINC LLP pledged 11,597,866 equity shares as at 31 March 2026, up from 205,404 shares as at 31 March 2025, reaching 20.0% of outstanding shares. The special resolution to ratify the amended ESOP scheme with a pool of up to 44,35,872 options received 5.29% votes against, with public institutions voting 25.71% against. Mr. Arijit Basu resigned as Non-Executive Independent Director on 17 March 2026 because his appointment as Chairman of IndusInd Bank, a lender to CleanMax, created a regulatory conflict under RBI rules, and Mr. Dinesh Khara, former SBI Chairman, was appointed the same day.
  5. Auditor changed in FY26 after prior auditor gave an unmodified opinion Minor - The standalone financial statements for FY25 were audited by a firm other than B S R & Co. LLP, who expressed an unmodified opinion on 27 May 2025. For FY26, B S R & Co. LLP is the statutory auditor and signed the consolidated auditor's report on 15 May 2026. The company incurred ₹6.19 crore (excluding GST) in audit fees during FY26, of which ₹4.05 crore pertains to IPO-related work and is recoverable from selling shareholders.
  6. Revenue recognition is a Key Audit Matter, while customer concentration is rising but no single customer exceeds 10% of revenue Clean - The auditor identifies revenue recognition from projects using the percentage-of-completion method as a Key Audit Matter in the consolidated financial statements. Revenue from operations grew 28% to ₹1,912.9 crore in FY26, with data centres and AI ecosystems now accounting for 42% of contracted capacity, up from 14% two years prior. No single customer contributed more than 10% of total revenue, and receivable days were 53 in FY26.

What to watch

Bottom line: This is a disclosed and audited record of a company in full capital-deployment mode, where the business model itself explains much of the strain: heavy capex, capitalised costs, and SPV-level debt are features of the renewable-energy buildout, not anomalies. The risk sits in the gap between reported profit and cash reality, other income exceeds pre-tax profit, and obligations beyond reported debt run into thousands of crores. Watch whether the guided 1.5 GW capacity addition in FY27 begins to close that gap, and track the resolution of the tax notices and the put-option triggers named above.