clean max enviro energy solutions has received an assessment order from the Income Tax Department for Assessment Year 2023-24, raising a demand of INR 6,77,99,430. The order was passed under Section 143(3) read with Section 144C(3) and Section 144B of the Income-tax Act, 1961, and was received by the company on 27 April 2026.

Details of the Assessment Order

The Assessment Unit of the Income Tax Department issued the order following certain additions and disallowances of expenditures under various sections of the IT Act. The income-tax demand for AY 2023-24 aggregates to INR 6,77,99,430 as quantified in the notice under Section 156 of the IT Act. The company disclosed this information under Regulation 30 of the SEBI Listing Regulations.

Company's Response and Action Plan

The company stated that the order is appealable and it intends to file an appeal against the assessment order. Clean Max Enviro Energy Solutions is currently in the process of filing the appeal and expressed confidence in having a strong case on merits. The company believes it will succeed in getting these demands quashed at the appellate level.

Financial Impact Assessment

According to the disclosure, the company is of the opinion that there is no material impact on its financials, operations, or other activities. The company has declared that the information provided in compliance with Regulation 30(13) of the SEBI Listing Regulations is true, correct, and complete to the best of its knowledge and belief. The detailed disclosure has been made available on the company's website.

Clean Max Enviro Energy Solutions Limited has issued an addendum to its Q3 FY2026 shareholders' letter dated March 18, 2026, addressing investor queries regarding potential regulatory changes in Maharashtra and other states. The addendum specifically analyses the impact of proposed restrictions on solar energy banking norms and the introduction of Time-of-Day (ToD) tariffs. The company conducted a comprehensive analysis across its operational portfolio of over 570 customers and 1,200+ PPAs, concluding that the worst-case EBITDA impact remains approximately 1.5% under a conservative retrospective stress test scenario.

Maharashtra Regulatory Changes

Maharashtra's Multi Year Tariff order dated March 25, 2026, proposes two key changes. First, banking of renewable energy for Open Access consumers is now restricted to 9am-5pm solar hours, whereas previously power generated during solar hours could be used during the same calendar month during both solar hours and late night slots (12am-6am). Second, the order introduces ToD tariffs with varying charges and rebates across different time slots. Solar hours (09:00-17:00) carry a rebate of -15% to -25% of energy charge, normal hours (00:00-06:00 and 06:00-09:00) have 0% charge, and peak hours (17:00-24:00) carry a +25% charge.

Portfolio Impact Analysis

The company analysed three dimensions of potential impact: capacity impact due to banking restrictions, Minimum Savings Guarantee (MSG) impact with ToD tariff implementation, and a retrospective stress test assuming immediate adoption across all key states. The analysis covered the full operational portfolio of 2,986 MW comprising 2,356 MWp solar and 630 MW wind capacity, with run-rate revenue of INR 2,162 crore as of March 1, 2026.

Diversified Portfolio Segments

Three segments representing 48% of portfolio run-rate revenue (INR 1,031 crore) are unaffected by the proposed regulations. Onsite Solar (384 MWp, 12% of run-rate revenue) supplies power directly at customer premises without using the transmission network. CTU-connected EAPA deals (525 MWp, 12% of run-rate revenue) operate under the Central Transmission Utility framework governed by CERC regulations. STU Third Party Open Access (534 MW, 24% of run-rate revenue) includes contracts in Gujarat contributing 67% of run-rate revenue (INR 344 crore annually), which are primarily wind-solar hybrid with limited impact due to generation being split across time of day bands. Contracts in Karnataka contribute approximately 30% of run-rate revenue or INR 156 crore annually, benefiting from cross-subsidy surcharge waivers attached exclusively to the plant.

STU Group Captive Portfolio

The STU Group Captive portfolio, representing 52% of run-rate revenue, shows varying impacts across different categories. Solar-only capacity (467 MWp) faces a 12.1% capacity impact and 5.1% EBITDA impact, as surplus generation beyond solar-hour consumption lapses with no wind to offset it. Wind + Solar hybrid states (1,076 MW) show lower impact with 5.6% capacity impact and 1.9% EBITDA impact, demonstrating the advantage of hybrid solutions.

Hybrid Advantage and Competitive Positioning

Wind-solar hybrid plants ensure generation is spread across different timeslots during the day, reducing dependency on banking and mitigating the effects of stringent banking regulations. In Gujarat, approximately 65-70% of renewable energy power consumption is from wind generation, meaning solar is already primarily consumed within solar hours, resulting in low capacity impact. The company's hybrid offerings provide a competitive advantage in markets where wind potential exists, with limited developers able to provide credible hybrid solutions at scale.

For instance, under an 8-hour banking restriction scenario, a solar-only developer can deliver only INR 4 crore savings at 33% offset for a customer with 62 million units consumption, compared to INR 16 crore savings at 66% offset under the previous 20-hour banking regime—a 75% reduction in customer savings. Clean Max's hybrid solution (9.9 MW wind + 13.2 MWp solar) restores offset to 72% and savings to INR 15 crore, nearly matching the original solar-only outcome despite tighter banking rules.