Revenue
Margin
Demand
Guidance
Tone
Metrics raised 1
- FY27 revenue growth guidance raised to ~70% YoY (from ~50% prior guidance)
Event Participants
Executives
3 Pawan Kumar Garg (Chairman and Joint Managing Director), Prashant Gupta (CFO), Yogesh Dua (CEO and Managing Director)
Analysts
13 Abhi Jain (AJ Capital), Abhi Sehgal (Singularity EMC), Amit Kumar (Determined Investments), Anuj Upadhyay (Investec Capital Services), Archit Agrawal (Steptrade Capital), Deepak Poddar (Sapphire Capital), Himanshu Bisani (PinPoint X Capital), Priti Raj (UniFi Capital), Sagar Shah (Spark Capital), Sanjay (Ampersand), Shweta Jain (Anand Rathi Share and Stock Brokers), Udit Sehgal (Pinpoint X Capital), Vinay Lakhera (RatnaTraya Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹1,345.7 crores | +125.3% YoY (₹597.3 crores in Q1 FY26); driven by scale from new DCR panel capacity, wider distribution, PM Surya scheme demand |
| EBITDA | ₹254.8 crores | +140.6% YoY; operating leverage from higher volumes and process improvements |
| EBITDA Margin | 18.9% | Improved from 17.7% YoY; efficiency gains partially passed to customers via competitive pricing |
| Reported PAT | ₹57.8 crores | 4.3% margin; hit by ₹143.6 crore pre-tax (₹107.4 crore post-tax) exceptional loss from Bawal fire |
| Normalized PAT (excl. fire) | ₹165.2 crores | +144.5% YoY; 12.3% margin vs 11.3% in Q1 FY26 |
| Exceptional Loss (Bawal Fire) | ₹143.6 crores | Net carrying value of damaged assets; adequately insured, claim expected by end of FY27 |
| Channel Partners | 10,100+ | Added 80+ distributors, 1,000+ dealers, 30+ exclusive shop-ins during quarter |
| Solar Panel Capacity | 3.5 GW | 2 GW commissioned at Ratlam in May 2026; existing 1.5 GW elsewhere |
| Power Electronics Capacity | 4 GW | 2 GW commissioned at Ratlam in August 2026 (inverters, UPS) |
| Lithium-ion Battery Capacity | 2 GW | Commissioning on track for Q2 FY27 at Ratlam |
Geographic & Segment Commentary
- Distribution Expansion: Added two new states (Odisha, Uttarakhand) to "covered" category — defined as one distributor and one service engineer in each district. Network grew from ~8,900 to 10,100+ channel partners; management targets 15,000 channel partners by FY28.
- Manufacturing (Ratlam Complex): 2 GW solar panel facility (capitalized May 14) and 2 GW power electronics facility (commissioned August 2026) now operational; 2 GW lithium-ion battery plant on track for Q2 FY27. Initial utilization of new lines at 40–50% (single shift), scaling with demand. DCR solar cell plant running at 80%+ utilization; existing non-Ratlam plants at 70–80%.
- Backward Integration (Jio Energy & Jio Cables): Stake increased from 19% to 50% each in both entities — Jio Energy (aluminum frames, PV ribbon wire, busbar, solder wire) and Jio Cables (PV junction box, solar cable, EVSE). Combined capex estimated at ₹180–200 crores; production targeted within one year. Primary objective is supply continuity, not near-term margin uplift.
- On-grid vs Off-grid Mix: Majority of current revenue now on-grid/hybrid, driven by PM Surya scheme uptake; prior-year revenue was predominantly off-grid. 90% of revenue flows through B2C channel network.
Company-Specific & Strategic Commentary
- PM Surya Ghar 2.0 Positioning: Government scheme 1.0 has covered ~50 lakh of 1 crore target households; installation run rate ~1 GW/month. Proposed 2.0 reforms (battery storage support, generation-linked incentives, community solar) could further expand TAM; policy not yet formally notified. Management expects announcement soon given 300 GW national solar target by FY30.
- Service-Led Competitive Moats: Company differentiates on integrated solar solutions (panel + inverter + battery as package) and dense service network vs. pure module players. Management believes nascent subsidy-focused entrants will exit if scheme phases down, leaving Fujiyama with superior rural/semi-urban reach built since 2008.
- Revenue Guidance Revision: Full-year FY27 revenue guidance raised from ~50% to ~70% growth, citing strong demand and readiness of Ratlam capacities; management flagged potential for further upward revision as the year progresses.
- Capex & Funding: FY27 gross block to reach
₹1,300 crores (from ~₹800 crore at start). Additional ~₹500 crore funded via ₹200 crore debt, ₹100 crore IPO proceeds, ₹200 crore internal accruals — no equity dilution. Jio Energy/Cables capex (₹50 crore this year) is separate.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth (FY27 full year) | ~70% YoY (revised up from ~50%) | Driven by DCR panel ramp-up, distribution expansion, distinctly strong PM Surya scheme demand; management may trail upward further |
| EBITDA Margin (FY27) | Sustainable to improve (~19%) | Efficiency gains from backward integration and scale, partially offset by competitive pricing pass-through and raw material volatility |
| Channel Network | 15,000 partners by FY28 | Continuing strategy of onboarding MNI-registered vendors and converting inverter/battery dealers |
| Insurance Claim (Bawal fire) | Settlement by end of FY27 | Survey completed; management expects full recovery of ₹143.6 crore carrying value; max impact taken in Q1 |
| Lithium-ion Battery Plant | Commissioning in Q2 FY27 | 2 GW at Ratlam; supports integrated solution package and storage-led demand under Surya Ghar 2.0 |
| Bawal Tubular Battery Facility | Restart within ~1 month | Either exclusive lease or acquisition opportunity being finalized; no quantification of cash impact |
| Topcon Solar Cell Line | Equipment ordered | Building completed; ~1.2 GW additional cell capacity (margin-focused, not revenue-led) |
Risks & Constraints
| Risk | Context |
|---|---|
| Bawal Fire Disruption | ₹143.6 crore exceptional loss taken; assets insured but claim recovery timeline extends to end of FY27. Tubular battery in-house capacity was temporarily lost, forcing external procurement — management estimates <0.5% gross margin impact (battery ~10% of revenue). Facility restart via lease/acquisition underway within a month. |
| Policy Dependency | ~50% of 1-crore household target in PM Surya Ghar 1.0 already covered; 2.0 framework unannounced. If scheme scales down or delays, on-grid demand could moderate. Management expects continuation (35 crore households addressable; 300 GW solar target by FY30) and cites off-grid/subsidy-independent roots since 2008 as buffer. |
| Raw Material Price Volatility | Solar module prices declining; management is passing efficiency gains to customers to drive volumes. Non-DCR panel margins are under pressure — DCR integration (in-house cells) is the counter. Margin guidance is "sustainable to improve," not aggressive expansion. |
| Insurance Claim Execution Risk | Survey done, but final settlement subject to insurer assessment. Management expects full recovery of net carrying value; any shortfall would hit P&L in later quarters. |
| Competitive Intensification | Large-format players (e.g., Tata Power, per analyst mention) targeting ₹30,000 crore rooftop opportunity by 2030; industry growing ~40%. Fujiyama's ~10% on-grid inverter market share could face pressure if pricing competition escalates. |
Q&A Highlights
FY27 Revenue Guidance Revised to 70%
- Question: Should Q1's strong start shape full-year expectations? (Priti Raj, UniFi Capital)
- Answer: Management originally guided ~50% growth for FY27 but has revised to ~70%, citing robust demand and readiness of Ratlam capacities. They flagged the possibility of further upward revision as the year progresses. (Prashant Gupta)
Margin Guidance & Pricing Pass-Through
- Question: With backward integration and new capacity, will margins expand or be capped and shared with customers? (Priti Raj; Archit Agrawal, Steptrade Capital)
- Answer: EBITDA margin guidance remains "sustainable to improve." The company will pass on a portion of efficiency gains via competitive pricing to drive volumes, especially in non-DCR segments where module prices are falling. DCR panel integration is the margin protector — 18.9% is expected to be the floor, not the ceiling. (Prashant Gupta)
Bawal Fire: Insurance Recovery & Asset Restart
- Question: How much is recoverable, and when will the claim settle? (Archit Agrawal; Sagar Shah, Spark Capital; Amit Kumar, Determined Investments)
- Answer: The ₹143.6 crore carrying value is fully insured; surveyor report is being finalized, expectation is settlement by end of FY27. Maximum impact was taken in Q1 — recovery will be recognized when the claim is settled. The tubular battery facility (battery ~10% of revenue) is planned for restart within a month via exclusive lease or acquisition. Gross margin hit from external procurement is estimated below 0.5% at company level. (Prashant Gupta, Pawan Kumar Garg)
DCR Cell Plant Utilization & Margins
- Question: What stabilization has the DCR cell plant reached, and can margins move higher from here? (Anuj Upadhyay, Investec Capital Services)
- Answer: DCR cell plant is operating at 80%+ utilization; benefiting margins already. Management hedged on further expansion, noting raw material price variables and intent to share gains with customers. (Prashant Gupta)
Distribution Expansion Details
- Question: Where are the new channel partners being added? (Anuj Upadhyay; Sagar Shah)
- Answer: Odisha and Uttarakhand moved from "growing" to "covered" status (one distributor + one service engineer per district). Strategy: on-board MNI-portal registered vendors, convert inverter/battery dealers. Target is 15,000 channel partners by FY28 (current: 10,100+). (Prashant Gupta, Pawan Kumar Garg)
Rooftop Solar Industry Size & Potential
- Question: What is the addressable industry size and growth runway? (Deepak Poddar, Sapphire Capital; Udit Sehgal, Pinpoint X Capital)
- Answer: Council of Energy pegs rooftop potential at 630+ GW; government's FY30 solar target is 300 GW with 90–100 GW expected from rooftop; ~30 GW installed to date (15 GW via PM Surya Ghar). System realization (distributor BOM) is ₹26–₹30 per watt including panel, inverter, and battery. Management acknowledged a ₹4,000 crore → ₹30,000 crore rooftops opportunity referenced by peers by 2030 as plausible. (Prashant Gupta)
Backward Integration — Jio Energy/Jio Cables
- Question: What's the deal structure and intended impact? (Vinay Lakhera, RatnaTraya Capital; Sagar Shah)
- Answer: Stake raised from 19% to 50% in each; primary goal is supply continuity and de-bottlenecking raw materials, not immediate margin uplift. Combined capex ₹180–200 crores; land acquisition and construction in progress, production targeted next financial year. (Prashant Gupta)
Capex Funding & Asset Turnover
- Question: How will the ~₹500 crore incremental FY27 capex be funded? (Shweta Jain; Abhi Jain, AJ Capital)
- Answer: ₹200 crore from debt, ₹100 crore from IPO proceeds, ₹200 crore from internal accruals — no equity dilution. Gross block (including CB) to reach ~₹1,300 crores by year end. Solar cell capacity is margin-focused, not revenue-led, so fixed asset turnover guidance based on historical 4x is not directly applicable. (Prashant Gupta)
Long-Term Sustainability Beyond Subsidies
- Question: How will the business sustain growth once PM Surya scheme matures? (Abhi Jain)
- Answer: Company has operated in solar since 2008 with a rural/semi-urban off-grid network; subsidy-followers will fade if incentives reduce, leaving Fujiyama with superior installation/service reach. Management sees 35 crore households as addressable versus 1 crore current scheme target, and expects 2.0 to bridge any slowdown. Growth beyond rooftop includes 2 GW lithium-ion batteries and potential large-scale BESS — plans to be shared in future guidance. (Pawan Kumar Garg, Prashant Gupta)
Battery Segment Mix
- Question: What is the on-grid vs off-grid revenue split? (Amit Kumar)
- Answer: Management did not provide a precise split but confirmed the majority of current-quarter revenue is on-grid (driven by PM Surya scheme uptake), a structural shift from prior years when off-grid dominated. Package sales (panel + inverter + battery) make exact product attribution difficult. (Pawan Kumar Garg)
Key Takeaway
Fujiyama Power Systems delivered a strong Q1 FY27 with revenue of ₹1,345.7 crores (+125.3% YoY), EBITDA of ₹254.8 crores (+140.6% YoY, 18.9% margin), and normalized PAT of ₹165.2 crores (+144.5% YoY, 12.3% margin), with reported results hit by a ₹143.6 crore insured fire provision. Growth was driven by DCR panel ramping (80%+ utilization), 80+ new distributors and 1,000+ dealers (network now 10,100+), and PM Surya scheme demand running at ~1 GW/month industry-wide. Strategically, the company commissioned 2 GW solar panel and 2 GW power electronics capacity at Ratlam, raised stakes to 50% in Jio Energy and Jio Cables for backward integration, and plans 2 GW lithium-ion battery commissioning in Q2 FY27. Management revised FY27 revenue guidance upward to ~70% (from ~50%), maintained "sustainable to improve" EBITDA margin guidance, and is targeting 15,000 channel partners by FY28. Key watch points: PM Surya Ghar 2.0 policy finalization, Bawal fire insurance settlement (expected by year-end), and margin trajectory in falling module-price environment.