Fujiyama Power Systems Ltd

Board Meeting Outcome

• Amendment to Articles of Association to rotate Joint Managing Directors.

Director Re-appointment

• Re-appoint Sunil Kumar as director liable to retire by rotation, 24 Aug 2026, subject to AGM.

Capacity expansion approvals

• Ratlam Plant add 1 GWh capacity; commissioned by Q2 FY 2026-27.
• Hathras Plant establish 1 GWh tubular batteries facility; commissioned by Q3 FY 2026-27.
• Ratlam investment approx ¥5 crore; financing via internal accruals.
• Hathras investment approx ¥20 crore; financing via internal accruals.
• Existing Greater Noida capacity 0.5 GWh; utilization ~70%.

Financial Performance

• Revenue from operations in Q1 FY27: Rs 13,457 million; up 125.3% YoY.
• EBITDA: Rs 2,548 million; up 140.6% YoY.
• EBITDA margin: 18.9% in Q1 FY27 vs 17.7% in Q1 FY26.
• PAT: Rs 578 million; margin 4.3%.
• Normalized PAT: Rs 1,652 million (post-tax) excluding Bawal fire; margin 12.3%.
• Fire at Bawal facility caused net carrying value loss of Rs 1,436 million; provisional.
• Insurance claims to recover full asset value; settlement expected by year-end.
• Ratlam facility: 2 GW solar panel capacity commissioned; total panel capacity 3.5 GW.
• Ratlam power electronics: 2 GW facility commissioned; total power electronics capacity 4 GW.
• Battery: 2 GW Li-ion capacity at Ratlam; commissioning targeted by Q2 FY27.
• Channel network: >10,100 partners as of Jun-26, 2026; 80 distributors, 1,000+ dealers, 30 exclusive Shops.

Capacity and Projects

• Ratlam solar panel capacity now 3.5 GW; 2 GW newly commissioned.
• Ratlam power electronics capacity now 4 GW; commissioning of 2 GW facility completed.
• 2 GW Li-ion battery capacity at Ratlam on track for FY27 Q2 commissioning.
• DCR in-house solar cell capacity: 1 GW; panels can be produced in-house using DCR/non-DCR lines.
• TOPCon facility: building completed; machine orders placed; install target by next year.
• Zayo Energy and Zayo Cables stakes increased to 50% each for backward integration.

Channel and Market Expansion

• Distributors crossed 10,100 in Jun-2026; added two new states: Odisha and Uttarakhand.
• Channel growth: ~80 new distributors; 1,000+ dealers; 30 exclusive Shops added in quarter.
• 90% of revenue from B2C channel; primary focus remains rooftop residential segment.

Capex and Backward Integration

• FY27 gross block guidance around Rs 1,300 crores; includes Ratlam expansions and solar cell plant.
• Debt component ~Rs 200 crores; internal cash ~Rs 300 crores; IPO proceeds ~Rs 100 crores.
• Zayo Energy and Zayo Cables capex to support supply chain; rollout expected next year.

Guidance and Outlook

• FY27 revenue growth guidance revised to 70% (up from 50% upside earlier).
• EBITDA margin guidance maintained at 18–19%; expected to sustain or improve with scale.
• PM Surya Ghar/2.0: government discussions; battery storage expected; timing and specifics not finalize.
• Surya Ghar run-rate near 1 GW/month; about 5 million of 10 million households covered; 50 lakh houses covered.
• Rooftop market potential: ~630 GW; govt target 300 GW by 2030; rooftop share ~90–100 GW.

Q&A Highlights

• Guidance raised to 70% for FY27; demand and Ratlam capacity cited.
• Margins: 18–19% EBITDA; in-house DCR cell supports improvement; pass-through of margin gains.
• Fire claim: settlement expected by year-end; full recovery anticipated; 0. equivalent impact on cash flow beyond quarter.
• TOPCon timeline: installation targeted by next year; hardware orders placed.
• Market and expansion: Odisha and Uttarakhand added to covered regions; distributor base expanding.
• Industrial growth mix: current growth skewed toward on-grid; off-grid remains steady but slower.

Risks and Watchpoints

• Policy execution risk for Surya Ghar 2.0; exact scheme details pending.
• Raw material price volatility; potential margin impact if costs rise.
• BIS compliance: 15 SKUs flagged; remediation costs minimal relative to total mix.
• Insurance claims for Bawal fire; settlement timeline may affect near-term earnings.

Credit rating status and dissemination

• Rating agency informed Fujiyama's ratings were removed from Watchlist and retained.
• Company disseminated the communication to stock exchanges on the same day, 18 August 2026.
• Internal process aligned to ensure timely dissemination per SEBI LODR requirements.

Rating Action

• Removed from Rating Watch with Developing Implications; reaffirmed long-term A/Stable and short-term A1.

Instruments & Ratings

• Bank loan facilities rated Rs 500 crore; Long-term Crisil A/Stable; Short-term Crisil A1.

Outlook

• Outlook: Stable.

Rationale – Key Drivers

• Fire at lead-acid battery facility caused an exceptional loss of Rs 143.58 crore.
• Insurance expected to cover losses; receipt in 6-9 months.
• Q1 FY27 revenue exceeded Rs 1,345.69 crore; EBITDA margins above 19%.
• FY2027 revenue expected over Rs 3,000 crore due to strong demand.
• Promoters' extensive solar storage experience; diversified customer base and wide distribution.
• Healthy financial risk profile; gearing 0.38x; TOL/ANW 0.47x as on Mar 31, 2026.
• GCAs high at 188 days; inventory 180 days; working capital cycle stable.
• Liquidity: current ratio 1.64x; bank limit utilisation ~39%.

Material Changes Since Last Rating

• Removed from Watch Developing; ratings reaffirmed.

Financial Highlights

• Operating income 2026: Rs 2,654.51 crore; PAT Rs 304.12 crore; PAT margin 11.45%.
• Adjusted debt/adjusted networth 0.38x; interest coverage 11.32x.
• Unencumbered cash ~ Rs 161 crore; current ratio 1.64x.

Issue Overview

• Type of issue: IPO of equity shares.
• Total issue size: gross proceeds; net proceeds not specified.
• No undersubscription reported.
• Main objectives: establish Ratlam facility; repay borrowings; general corporate purposes; issue-related expenses.

Utilisation of Proceeds

• Utilisation as per offer document; CA and Management certificates support end-use.
• No material deviation or change in allocation; no material deviations reported.
• Ratlam facility: fully utilised for plant, machinery, and civil works.
• Repayment of borrowings: fully utilised; no further utilisation in the quarter.
• General corporate purposes: fully utilised.
• Issue expenses: partially utilised; Rs 4.86 crore unutilised.
• Unutilised funds are held in the public offering account.

Governance and Compliance

• All required statutory approvals in place.
• Fire incident at manufacturing facility; insured; extent undetermined.
• CA certificate notes limited assurance on end-use; MA not audit.

GCP

• GCP utilised Rs 0.33 crore towards raw material procurement.
• Board approval for GCP allocation not explicitly stated.

Business overview

• Integrated solar energy solutions platform focusing on residential rooftop and power backup.
• Expanding backward integration; in-house solar panels, power electronics, and lithium-ion batteries.

Key operational highlights

• Commissioned Ratlam 2,000 MW solar panel facility in May 2026.
• Commissioned Ratlam 2,000 MW power electronics facility in Aug 2026.
• Ratlam to add 2,000 MW Li-ion battery capacity by Q2 FY27.
• Total solar panel capacity 3,568 MW; power electronics 4,180 MW.
• Acquired additional 31% stakes in Zayo Energy and Zayo Cables to 50%.
• Channel network: +80 distributors, +1,000 dealers, +30 exclusive shoppes; >10,100 partners.

Financial performance

• Q1 FY27 revenue from operations Rs 13,457 million; up 125.3% YoY.
• EBITDA Rs 2,548 million; margin 18.9%.
• PAT Rs 578 million; margin 4.3%.
• PBT Rs 777 million; margin 5.8%.
• Exceptional item: loss Rs 1,436 million from Bawal plant fire.

Strategic priorities & outlook

• Ramp up new capacities and expand market reach.
• Advance backward integration into cells, modules, and BMS to cut costs.
• Target 1.2 GW solar cell plant; strengthen end-to-end solar value chain.

Risks & governance

• Regulatory/policy changes pose ongoing risk; management cites evolving landscape.
• Fire incident at Bawal plant; mitigation includes diversification and in-house manufacturing.

Financial highlights

• Revenue from Operations for Q1 FY27: Rs 13,457 Mn, up 125.3% YoY.
• EBITDA: Rs 2,548 Mn, up 140.6% YoY; EBITDA margin 18.9%.
• Normalised PAT: Rs 1,652 Mn; excludes Rs 1,074 Mn exceptional item.

Capacity additions at Ratlam

• Commissioned 2,000 MW solar panel capacity at Ratlam in Q1 FY27.
• Commissioned 2,000 MW power electronics capacity at Ratlam in August 2026.
• Battery capacity of 2,000 MW at Ratlam on track for commissioning by Q2 FY27.
• Setting up a 1,200 MW solar cell facility at Ratlam; investment about Rs 350 crore.

Backward integration

• Acquired an additional 31% stake each in Zayo Energy and Zayo Cables to 50%.

Channel network expansion

• Added over 1,000 dealers, 80 distributors and 30+ exclusive Shoppes; total channel partners over 10,100 as of June 30, 2026.

Outlook

• Residential rooftop solar demand remains favorable; focus on ramping capacities and deeper integration.

Financial results

• Unaudited standalone and consolidated results for quarter ended 30 June 2026 approved, with Limited Review Report.

Auditors and internal controls

• Re-appointed Rohit Garg as Internal Auditor for FY 2026-27.
• Re-appointed M/s Chandrabhushan Kumar & Co. as Cost Auditor for FY 2026-27.

Secretarial and governance appointments

• Re-appointed M/s. Raghav Bansal & Associates as Secretarial Auditor for five years, 2026-31, subject to AGM.

Strategic investments and consolidation

• Acquired 31% stake in Zayo Energy and Zayo Cables; became associates from 25 Apr 2026.
• Consolidated results include associate losses from the date of acquisition.

Regulatory and compliance disclosures

• Major fire at Bawal Plant on 06 May 2026; Rs 1,435.81 million exceptional item recognised.
• BIS inspections resulted in seizures of Rs 24.50 million at Noida facility.
• BIS inspections resulted in seizures of Rs 19.0 million at Bawal facility.
• Company believes BIS compliance; legal advice sought; awaiting response.

Meeting Details

• Date: August 19, 2026 (Wednesday).
• Location: Mumbai.
• Type: One-on-One/Group investor meeting; Mode: Physical.
• Event/Host: Annual Financial Services Conference hosted by Motilal Oswal.
• Company participants: Management representatives (roles not disclosed).
• Purpose: Investor/analyst interaction scheduled.