Shares of could offer more than 20% upside, according to global brokerage Nomura, which has initiated coverage on the renewable energy company with a ‘Buy’ rating. The brokerage has set a target price of ₹1,510, compared with the stock’s closing price of ₹1,251 on 28 August 2026, implying a potential upside of around 20.7%.
Nomura believes Clean Max is well placed to benefit from the structural disparity in India’s electricity tariff system. Commercial and industrial (C&I) consumers often pay substantially higher tariffs than subsidised consumer segments, creating an opportunity for independent power producers (IPPs) to supply renewable energy directly to businesses at competitive rates.
According to the brokerage, the C&I renewable energy model can deliver 20-60% savings for customers compared with grid tariffs, while allowing developers to earn better returns. This creates a mutually beneficial proposition as companies seek to reduce power costs while meeting their sustainability and decarbonisation objectives.
Higher tariffs, lower equity requirement
Nomura highlighted Clean Max’s superior tariff economics compared with traditional utility-scale renewable energy projects. The company’s average FY26 tariff was around ₹4 per kWh, compared with below ₹3 per kWh for conventional solar projects and below ₹3.5 per kWh for conventional wind projects awarded through reverse auctions.
The brokerage also pointed to the capital efficiency of Clean Max’s group captive structure. Under the arrangement, consumers contribute a portion of the project equity, reducing the developer’s funding requirement. In addition, the company’s margins can help fund part of its equity contribution. Nomura believes this combination of higher tariffs and lower equity requirements can significantly improve equity returns.
AI, Data centres emerging as growth catalyst
Another key growth opportunity identified by Nomura is the rapidly increasing electricity demand from AI infrastructure and data centres. These facilities require reliable, round-the-clock power and are increasingly turning to renewable energy to meet their electricity and decarbonisation requirements.
Clean Max has already gained significant exposure to this trend. Of its 6GW of operational and contracted capacity, around 2.5GW is linked to data centres and AI customers, according to Nomura.
The company’s partnerships with major technology companies, including Google, Amazon, Apple and Meta, could further strengthen its position as these companies expand their renewable energy procurement.
Capacity expansion to drive earnings
Nomura expects Clean Max to add approximately 4.4GW of renewable energy capacity between FY27 and FY29. This expansion is projected to drive strong financial growth, with the brokerage forecasting a 39% revenue CAGR and a 50% CAGR over the period.
Overall, Nomura believes Clean Max’s attractive C&I tariff economics, capital-efficient business model, exposure to AI-driven power demand and aggressive capacity expansion provide a strong foundation for long-term growth. Based on these factors, the global brokerage has initiated coverage with a Buy rating and a target price of ₹1,510, implying around 21% potential upside from the 28 August closing price.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.