Summary
Fujiyama Power Systems Limited - Q3 FY26 Earnings Call Summary Monday, February 02, 2026, 04:00 p.m. IST
Event Participants
Executives 3 Pawan Kumar Garg (Chairman and Joint Managing Director), Prashant Gupta (CFO), Yogesh Dua (CEO and Joint Managing Director)
Analysts 6 Aman (Augmenta), Ankit Madhwani (Steptrade Capital), Anuj Upadhyay (Investec), Himanshu Bisani (PinpointX Capital), Rajesh Pingle (ET Solutions), Udit Sehgal (PinPointX Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹588.5 crores | +73.8% YoY; driven by integrated business model and scaling of distribution network. |
| EBITDA | ₹109.9 crores | +100%+ YoY; margin expanded to 18.7% from 15.5% due to higher in-house manufacturing. |
| Profit After Tax (PAT) | ₹67.3 crores | +105% YoY; PAT margin improved to 11.4% from 8.9% on better gross margins. |
| Gross Margin | % Improved | +2.1% YoY; supported by captive manufacturing of panels, inverters, and batteries. |
| Solar Panel Sales | 460 MW (9M) | +80.4% YoY; compared to 255 MW in 9M FY25. |
| Inverter/UPS Sales | 900 MW (9M) | +77.2% YoY; compared to 508 MW in 9M FY25. |
| Total Debt | ₹470+ crores | Includes term loans, working capital, and vendor finance. |
| Channel Partners | 8,200+ count | Added 60+ distributors, 400+ dealers, and 20 Shoppes outlets during Q3. |
Geographic & Segment Commentary
- Solar Panels: Contributed ₹298 crores to Q3 revenue. Capacity expanded significantly from 439 MW to 1,639 MW YoY, with a new 1 GW cell line at Dadri focused on DCR (Domestic Content Requirement) for subsidy-based projects.
- Power Electronics (Inverters/UPS): Contributed ₹160 crores to Q3 revenue. Capacity increased from 1,143 MW to 1,743 MW to support the growing rooftop solar residential market.
- Batteries: Contributed ₹100 crores to Q3 revenue. Capacity reached 1,863 MWh; new lithium-ion pack lines (2 GW) are under development at the Ratlam facility.
Company-Specific & Strategic Commentary
- Backward Integration: Commissioned a 1 GW solar cell plant at Dadri for ₹300 crores (under the ₹400 crore budget). This allows captive production of Mono PERC DCR cells, essential for government subsidy-based rooftop projects (Pawan Kumar Garg).
- Ratlam Expansion: Investing ₹272 crores in a new facility for solar modules (2 GW), lithium-ion packs (2 GW), and inverters (2 GW). Management expects this to potentially double revenue capacity upon full utilization (Prashant Gupta).
- Distribution Strategy: Focused on the “Shoppes” format to provide local installation and financing support. Management noted that new distributors are onboarded based on bankability and previous market standing (Yogesh Dua).
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue/Volume | 1 GW per segment | Targeted minimum sales of 1 GW each for panels, inverters, and batteries in FY27 (Pawan Kumar Garg). |
| Cell Plant Utilization | 80% by Q4 FY26 | Current utilization is 40%; expected to ramp up fully as DCR demand from channel partners is high (Pawan Kumar Garg). |
| Ratlam Commissioning | Q1 FY27 | New lines at Ratlam expected to start contributing to revenue from the first quarter of next fiscal (Pawan Kumar Garg). |
| Capacity Utilization | 50% in Year 1 | Management targets 50% utilization for the new Ratlam facility in FY27, reaching 100% in subsequent years (Pawan Kumar Garg). |
Risks & Constraints
| Risk | Context |
|---|---|
| Technology Obsolescence | While industry moves to TOPCon, Fujiyama invested in Mono-PERC. Management believes Mono-PERC remains economically viable for 3 years and the line can be converted later (Yogesh Dua). |
| Input Cost Volatility | Rising silver and aluminum prices impact margins. Management uses a 0.25/watt weekly price adjustment to pass costs to consumers over an 8-week cycle (Pawan Kumar Garg). |
| Regulatory Timelines | The June 2026 mandate for DCR cells in all rooftop projects may be shifted. However, any delay or enforcement serves as a “stress test” for domestic capacity (Yogesh Dua). |
Q&A Highlights
Integration & Cost Benefits
- Question: What are the cost savings from the Dadri solar cell line? (Himanshu Bisani)
- Answer: The project was completed for ₹300 crores against a ₹400 crore budget. In-house DCR cell manufacturing provides a competitive edge in the high-demand subsidy market where supply is currently constrained (Pawan Kumar Garg).
Technology Rationale
- Question: Why choose Mono-PERC over TOPCon? (Aman)
- Answer: Speed of execution was key. The PERC line was commissioned in 6 months, whereas TOPCon would take 12 months, leading to significant revenue loss. The line is upgradable to TOPCon in the future (Pawan Kumar Garg/Yogesh Dua).
Market Dynamics
- Question: How are raw material price hikes handled? (Udit Sehgal)
- Answer: Increases are not immediate to avoid customer dissatisfaction. If cell prices rise by ₹2, the company implements a staggered increase of ₹0.25 per week to eventually pass through the total cost (Pawan Kumar Garg).
Financial Health
- Question: What is the current debt status? (Anuj Upadhyay)
- Answer: Total debt stands at approximately ₹470 crores, covering all working capital and term loan requirements (Prashant Gupta).
Key Takeaway
Fujiyama Power Systems delivered a robust Q3 FY26, with revenue growing 73.8% YoY to ₹588.5 crores and EBITDA margins expanding to 18.7% due to aggressive backward integration. The successful commissioning of the 1 GW solar cell plant at Dadri marks a critical shift toward self-sufficiency in DCR cells, positioning the company to capture the high-growth government subsidy market (PM Surya Ghar Yojana). Strategically, the company is doubling down on manufacturing with the upcoming ₹272 crore Ratlam facility, aiming for 1 GW sales across all product segments in FY27. While technology shifts and raw material volatility remain watch points, management’s staggered price-pass-through mechanism and focus on AI-driven operational efficiency provide a buffer. The company remains well-positioned to benefit from the projected 40-45% CAGR in the Indian rooftop solar market.
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