Clean Max Enviro Q1 FY27 Results (NSE: CLEANMAX)
Signal: Steady quarter
The read
The quarter saw a sharp sequential revenue decline across both consolidated and standalone, with PAT also down but cushioned by margin expansion and high other income. Earnings quality is a concern: other income represents 44.9% of consolidated PBT, and 183 subsidiaries' financials were not auditor-reviewed. The standalone PAT of ₹350 Cr vs consolidated ₹48.5 Cr suggests significant inter-company profit elimination or subsidiary losses. The announced amalgamation of four wholly-owned subsidiaries aims to simplify structure and improve credit profile.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹832.16 Cr | N/A | -56.5% |
| EBIT | ₹348.23 Cr | N/A | |
| Net profit | ₹48.52 Cr | N/A | -48.5% |
| EPS | ₹4.14 | N/A | |
| EBIT margin | 55.6% |
P&L walk
Consolidated revenue fell sharply QoQ (-56.5%) to ₹832.16 Cr, but EBITDA margin expanded 760bps to 55.6%; PAT down 48.5% to ₹48.52 Cr, supported by other income (44.9% of PBT). Depreciation implied at ₹114.63 Cr, finance cost at ₹254.71 Cr. EPS at ₹4.14 (-54.5% QoQ) declined more than PAT, indicating dilution.
Key positives
- EBITDA margin expanded 760bps QoQ to 55.6% despite revenue decline.
Key concerns
- Revenue declined 56.5% QoQ to ₹832.16 Cr.
- PAT declined 48.5% QoQ; reliance on other income (44.9% of PBT).
- EPS decline of 54.5% QoQ indicates dilution.
- 183 subsidiaries' financials not reviewed by auditor.
- Standalone PAT 7x consolidated, implying significant subsidiary losses/eliminations.
Earnings quality: includes non-operating other income
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