CLN Energy Ltd (544347)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, CLN Energy's revenue was ₹195 Cr (+35.4% year on year, +28.3% on the previous half-year), and net profit ₹12.0 Cr (+50.0% year on year); the operating margin was 10.8%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹195 | +35.4% | +28.3% |
| Operating profit | ₹21.0 | +40.0% | +31.2% |
| Net profit | ₹12.0 | +50.0% | +33.3% |
| EPS (₹) | 11.35 | +44.4% | +39.8% |
| Operating margin | 10.8% | — | — |
📢 Recent Corporate Announcements
CLN Energy has informed exchanges under Regulation 30 that legal proceedings have been initiated in Singapore against its Non-executive Director & Chairman, Mr. Rajiv Seth. The dispute is commercial in nature and involves Mr. Seth in his personal capacity. The company confirmed that CLN Energy is not a party to the proceedings and that no company assets or liabilities are involved. Consequently, the management expects no financial or operational impact on the business, which reported TTM revenue of ₹566 Cr and TTM PAT of ₹34 Cr.
- Legal proceedings initiated in Singapore against Non-executive Director & Chairman Rajiv Seth (DIN: 02156211).
- Proceedings are strictly in personal capacity regarding a commercial dispute, not against CLN Energy Limited.
- Company confirms zero involvement of its assets, liabilities, or business operations.
- Mr. Rajiv Seth is contesting the proceedings on merits and procedural grounds.
CLN Energy has allotted 2,50,000 equity shares on a preferential basis to promoter entity CLN Energy PTE Limited at ₹423 per share (face value ₹10 and premium ₹413). The company received subscription proceeds of ₹10.58 Cr, representing ~9.2% of its net worth (₹115 Cr). Following this allotment, the company's paid-up share capital expanded from ₹10.55 Cr to ₹10.80 Cr. The equity dilution is minimal at ~2.31% of the post-issue share capital, strengthening the equity base.
- Allotment of 2,50,000 equity shares at an issue price of ₹423 per share
- Total subscription money received is ₹10,57,50,000 (₹10.58 Cr)
- Issued entirely to promoter entity CLN Energy PTE Limited
- Paid-up equity capital increases to ₹10,80,32,500 across 1,08,03,250 equity shares
- Issue price includes ₹10 face value and ₹413 share premium
CLN Energy has allotted 2,50,000 equity shares on a preferential basis to promoter entity CLN Energy PTE Limited at ₹423 per share (face value ₹10 and premium ₹413). The company received subscription proceeds of ₹10.58 Cr, representing ~9.2% of its net worth (₹115 Cr). Following this allotment, the company's paid-up share capital expanded from ₹10.55 Cr to ₹10.80 Cr. The equity dilution is minimal at ~2.31% of the post-issue share capital, strengthening the equity base.
- Allotment of 2,50,000 equity shares at an issue price of ₹423 per share
- Total subscription money received is ₹10,57,50,000 (₹10.58 Cr)
- Issued entirely to promoter entity CLN Energy PTE Limited
- Paid-up equity capital increases to ₹10,80,32,500 across 1,08,03,250 equity shares
- Issue price includes ₹10 face value and ₹413 share premium
Craft Emerging Market Fund PCC (Citadel Capital Fund, Elite Capital Fund, and Arbitrage Strategy Fund) has disclosed an acquisition of 8,20,800 equity shares in CLN Energy Ltd, representing a 7.66% stake. The acquisition took place via open market transactions across 28 Feb 2025, 29 April 2025, and 16 Sep 2026. Prior to this, the acquirers held nil shares, crossing the 5% threshold requiring Reg 29(1) disclosure. The total paid-up equity voting capital stands at 10,713,296 shares.
- Acquisition of 8,20,800 shares representing 7.66% voting capital
- Holding prior to the transaction was Nil (0.0%)
- Acquisitions executed via open market across 28 Feb 2025, 29 April 2025, and 16 Sep 2026
- Total target company voting share capital is 10,713,296 equity shares
CLN Energy Ltd has incorporated a step-down subsidiary, 'CLN Energy Solutions', in the Arab Republic of Egypt on September 22, 2026. The new entity involves an investment of USD 2 million (or 100 million EGP/AED), funded via cash consideration through its wholly-owned Dubai subsidiary, C L N General Trading L.L.C. The entity is focused on the assembly and manufacturing of lithium-ion batteries to expand the company's presence in international energy storage markets. C L N General Trading holds a 99% stake, with the remaining 1% held by Mr. Rajiv Seth.
- Step-down subsidiary CLN Energy Solutions incorporated in Egypt on September 22, 2026
- Total investment of USD 2 million (stated as AED/Egyptian pound: 100 million)
- 99% equity held by wholly-owned subsidiary C L N General Trading L.L.C, Dubai, and 1% by Mr. Rajiv Seth
- Target business focuses on lithium battery assembly and chemical sector operations
CLN Energy's Board approved an investment of ₹10 Crores in its wholly owned subsidiary, C L N General Trading L.L.C., based in Dubai, representing ~8.7% of the company's net worth (₹115 Cr). The board also approved an increase in borrowing limits under Section 180(1)(c) of the Companies Act, subject to shareholder approval at the upcoming 7th AGM. Additionally, related-party transactions and the reconstitution of the Audit Committee with Mr. Rakesh Kakkar as Chairperson were approved.
- Approved ₹10 Crores investment into wholly owned subsidiary C L N General Trading L.L.C. in Dubai
- Approved increase in borrowing limits under Section 180(1)(c), subject to shareholder approval
- Reconstituted Audit Committee w.e.f. August 27, 2026, appointing Independent Director Mr. Rakesh Kakkar as Chairperson
- Approved FY25-26 Board Report, MD&A, related party transactions, and draft notice for the 7th AGM
CARE Ratings has upgraded CLN Energy's credit rating for its Rs 55 crore bank facilities following a review of its FY26 audited performance. The long-term rating was raised from CARE BBB-; Stable to CARE BBB; Stable, and the short-term rating from CARE A3 to CARE A3+. This upgrade reflects the company's improved financial profile, with FY26 revenue growing to Rs 347 crore from Rs 219 crore in FY25. The upgrade is significant as the company manages a debt of Rs 93 crore and scales its Battery Energy Storage Systems (BESS) operations.
- Long-term rating upgraded from CARE BBB-; Stable to CARE BBB; Stable
- Short-term rating upgraded from CARE A3 to CARE A3+
- Total bank facilities covered under the rating revision amount to Rs 55.00 crore
- Upgrade follows FY26 audited revenue of Rs 347.0 crore, a 58% increase over FY25
- Facilities include limits from HDFC Bank (Rs 40 Cr) and ICICI Bank (Rs 15 Cr)
CLN Energy has received shareholder approval to increase its authorised share capital from Rs 12.00 Cr to Rs 12.30 Cr. The resolution was passed via a postal ballot concluded on July 23, 2026, with the scrutinizer's report finalized on July 27, 2026. This represents a minor 2.5% increase in the authorized limit, expanding the total number of equity shares from 1.20 crore to 1.23 crore. While the increase is small, it adjusts the company's legal framework to allow for marginal future equity issuances.
- Authorised share capital increased from Rs 12,00,00,000 to Rs 12,30,00,000
- Total number of equity shares of Rs 10 each increased from 1,20,00,000 to 1,23,00,000
- Shareholder approval obtained through postal ballot held on July 23, 2026
- Amendment specifically alters Capital Clause V of the Memorandum of Association (MOA)
CLN Energy Ltd has announced a change in the composition of its Corporate Social Responsibility (CSR) Committee, effective from July 01, 2026. This reconstitution follows the resignation of Mr. Manish Shah. The committee now comprises three members, including one Independent Director and two Executive Directors. This is a procedural administrative update to comply with SEBI (LODR) Regulations.
- Reconstitution of the CSR Committee became effective on July 01, 2026
- The committee now consists of 3 members: Mr. Sunil Gandhi, Mr. Rakesh Kakkar, and Mr. Sanni Kumar
- The change was necessitated by the resignation of Mr. Manish Shah
- The committee maintains a mix of 1 Independent Director and 2 Executive Directors
Financial Performance
Revenue Growth by Segment
Total operating income grew by 65.16% YoY, reaching INR 219.18 Cr in FY25 compared to INR 132.71 Cr in FY24. While specific segment percentages aren't detailed, the growth is driven by the core EV battery pack business and the expansion into Battery Energy Storage Systems (BESS).
Geographic Revenue Split
Not disclosed in available documents; however, the company operates manufacturing facilities in Noida (42,000 sq. ft.) and Pune (20,000 sq. ft.).
Profitability Margins
Profitability showed a declining trend in FY25: PBILDT margin decreased to 11.53% (from 14.08% in FY24) and PAT margin fell to 5.90% (from 7.08% in FY24) due to higher input costs and adverse currency movements.
EBITDA Margin
PBILDT margin stood at 11.53% in FY25, representing a YoY contraction of 255 basis points from 14.08% in FY24, primarily due to volatile lithium prices and increased competitive intensity.
Capital Expenditure
The company raised INR 72.3 Cr through an IPO in January 2025, with funds allocated toward the purchase of machinery, working capital, and general corporate purposes to support its 93 MWH production capacity.
Credit Rating & Borrowing
Assigned CARE BBB-; Stable / CARE A3 ratings as of October 2025. Interest coverage ratio moderated significantly to 40.02x in FY25 from 1,907.87x in FY24 due to increased utilization of working capital lines.
Operational Drivers
Raw Materials
Key raw materials include lithium cells, battery modules, and allied electronic components. These represent a significant portion of the cost structure, though specific percentage breakdowns per material are not disclosed.
Import Sources
Highly dependent on imports from global suppliers, particularly from geographies where lithium mining and refining are concentrated (e.g., China and South America).
Key Suppliers
Not disclosed in available documents, but the company notes high dependence on imported components from global suppliers.
Capacity Expansion
Current total production capacity is 93 MWH across plants in Noida and Pune. The company aims to scale this capacity to capture a portion of India's projected 300 GWh annual battery market by 2030.
Raw Material Costs
Raw material costs are highly volatile; the company reported a net forex loss of INR 0.81 Cr in FY25 related to imports. Procurement strategies focus on vertical integration of components like BMS and DC-DC converters to manage costs.
Manufacturing Efficiency
The company operates a 42,000 sq. ft. plant in Noida and a 20,000 sq. ft. plant in Pune. Efficiency is monitored through an Audit Committee that follows up on corrective actions for internal control systems.
Strategic Growth
Expected Growth Rate
95%
Growth Strategy
Growth will be achieved through a robust historical CAGR of 95% in revenue, a secured INR 108 Cr BESS contract from BSNL for FY26, and expansion into the Commercial & Industrial (C&I) and Grid BESS markets. The company is also focusing on R&D for new chemistries like LFP and NMC.
Products & Services
Lithium-ion battery packs for EVs, Battery Energy Storage Systems (BESS) ranging from 100 kW to 5 MWh, motors, controllers, Battery Management Systems (BMS), and DC-DC converters.
Brand Portfolio
CLN Energy.
New Products/Services
Expansion into BESS for grid-scale applications and residential storage solutions, with a major BSNL contract expected to contribute significantly to FY26 revenue.
Market Expansion
Targeting the C&I and Grid BESS segments and exploring export markets to leverage its vertically integrated manufacturing capabilities.
Market Share & Ranking
Not disclosed, but the company identifies as a domestic manufacturer in a market projected to reach 300 GWh by 2030.
Strategic Alliances
Developing partnerships with automotive OEMs and energy solution providers; currently executing a major project for BSNL.
External Factors
Industry Trends
The industry is shifting toward clean mobility and renewable storage, supported by FAME-II and PLI schemes. India's battery market is expected to grow to 300 GWh by 2030, though it faces disruption from sodium-ion and solid-state technologies.
Competitive Landscape
Faces intense competition from larger domestic and global battery manufacturers who benefit from superior economies of scale and R&D budgets.
Competitive Moat
Moat is built on vertical integration (BMS, motors, controllers) and early entry into the BESS segment. Sustainability depends on the ability to innovate and keep pace with rapidly evolving battery chemistries.
Macro Economic Sensitivity
Highly sensitive to inflation and rising interest rates, which can reduce consumer spending on EVs and increase the cost of capital for capacity expansion.
Consumer Behavior
Increasing consumer awareness of EVs and government incentives are driving demand, though high upfront costs remain a barrier.
Geopolitical Risks
Vulnerable to geopolitical tensions and export restrictions in countries that control the lithium supply chain.
Regulatory & Governance
Industry Regulations
Operations are governed by FAME-II, PLI for Advanced Chemistry Cells (ACC), and stringent safety standards for lithium-ion batteries to prevent thermal runaway.
Environmental Compliance
Subject to Extended Producer Responsibility (EPR) norms for battery waste collection and recycling, which may increase future capital and operational costs.
Risk Analysis
Key Uncertainties
Technological obsolescence is a major risk; if the market shifts rapidly to solid-state or sodium-ion batteries, current lithium-ion production lines could become obsolete.
Geographic Concentration Risk
Manufacturing is concentrated in Uttar Pradesh (Noida) and Maharashtra (Pune).
Third Party Dependencies
High dependency on global lithium cell suppliers; any disruption in the concentrated supply chain would halt production.
Technology Obsolescence Risk
High risk due to emerging technologies like hydrogen fuel cells and sodium-ion batteries which may offer better cost or safety profiles.
Credit & Counterparty Risk
Receivable days increased to 82 in FY25 from 68 in FY24, indicating a slight stretch in credit terms with customers as the business scales.
