CLN Energy - CLN Energy

📊 BSE: 544347 🏢 Auto Components & Equipments 📅 Last Updated: 11/13/2025 15:25

💰 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.