Fujiyama Power Systems Ltd (UTLSOLAR) Q1 FY27 Earnings Call: Guides ~70% Revenue Growth, 2 GW Ratlam Plant Commissioned

Fujiyama Power Systems Ltd held its Q1 FY27 earnings call on August 13, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Revenue Surges 125% YoY; Normalised PAT Up 145%

• Revenue of Rs.13,457 Mn for Q1 FY 2026-2027, up 125.3% YoY from Rs.5,973 Mn in Q1 FY 2025-2026, driven by on-grid systems enabled by captive DCR cell production.
• EBITDA of Rs.2,548 Mn (margin 18.9%), expanding 140% YoY from 17.7% in Q1 FY 2025-2026, aided by operating leverage and backward integration.
• Normalised PAT of Rs.1,652 Mn (margin 12.3%), up 144.5% YoY, excluding a provisional exceptional loss of Rs.1,436 Mn from the Bawal facility fire.
• Reported PAT of Rs.578 Mn (margin 4.3%) absorbed the fire-related charge; assets are fully insured, with claim settlement expected by end of FY 2026-2027.
• Sales crossed Rs.1,300 Cr in Q1 FY 2026-2027, with on-grid systems (backed by captive DCR cells) contributing the majority of growth; off-grid segment grew at a slower pace.

Guidance Upgraded to ~70%; PM Suryaghar Scheme Driving Demand

• Management upgraded FY 2026-2027 revenue guidance to ~70% growth (from ~50%), citing Q1 actual performance of 70% growth and robust rooftop solar demand under the PM Suryaghar scheme.
• PM Suryaghar Muft Bijli Yojana has covered 5 million of the 10 million target households; current rooftop solar adoption run rate stands at 1 GW per month.
• Government target of "300 GW of solar capacity in India by 2030" was cited by management as a long-term TAM driver, with rooftop expected to contribute 90–100 GW by 2030.
• Management cited "government's PM Suryaghar Muft Bijli Yojana target of solarizing 1 crore households" as the primary near-term demand catalyst; 35 crore total homes represent the full addressable market.
• Management noted "the government is discussing 'Suryaghar 2.0' as a potential follow-on policy" expected to include battery storage support, generation-linked incentives, and community solar models.
• Acceptance rate under PM Suryaghar is currently 50–56%, attributed to DCR panel shortage and loan-processing delays; the government is pushing discoms for faster approvals.

2 GW Ratlam Plant Commissioned; Topcon Line Targeted for Q1 FY28

• 2 GW solar panel and 2 GW inverter capacities were commissioned at Ratlam in August 2026; total panel capacity reaches 3.5 GW, total power electronics capacity reaches 4 GW.
• DCR solar cell plant achieved 80%+ utilization in Q1 FY 2026-2027; total in-house solar cell capacity stands at 1 GW, supporting DCR panel sales and on-grid participation.
• Management targeted installation of second solar cell line (Topcon technology) by Q1 FY 2027-2028 (approximately 7.5 to 9 months from call date); building is complete and machine orders placed.
• 1.2 GW solar cell plant under construction is included in the Rs.1,300 Cr cumulative capex target for FY 2026-2027; separate from bioenergy and Zayo investments.
• New 2 GW lithium-ion battery line at Ratlam is on track for commissioning by Q2 FY 2027-2028, signaling entry into residential energy storage; 90% of revenue remains B2C residential rooftop.
• Acquired 50% stake in Zayo Energy and Zayo Cables (from 19%) for backward integration; capex of Rs.100 Cr allocated, with production expected within one year (by FY 2027-2028) and top line of Rs.400–500 Cr targeted for FY 2027-2028.

EBITDA Margin of 18.9% Seen as Sustainable; Fire Impact Contained

• EBITDA margin guidance of "sustainable to improve" for FY 2026-2027, supported by DCR in-house solar cells offsetting margin pressure in non-DCR modules; management intends to pass on margin gains to clients.
• Bawal fire incident caused a provisional exceptional loss of Rs.1,436 Mn in Q1 FY 2026-2027; assets with carrying value of Rs.143 Cr are insured, and management expects "full recovery of the net carrying value through insurance claims" by end of FY 2026-2027.
• Tubular battery fire impact was below 0.5% of gross margin in Q1 FY27, as tubular batteries contributed 10% of revenue; management expects to lease an existing running plant within one month (mid-September 2026) to avoid heavy capex.
• BIS non-compliance issue involved 15 SKUs representing less than 1% of Rs.500 Cr total stock (Rs.2 Cr); those items have since received BIS certification, and management views it as a one-time, immaterial event.
• New capacities at Ratlam are initially operating on a single shift (40–50% utilization), scaling up with demand; existing plants (ex-Ratlam) are running at 70–80% utilization.

Channel Network Crosses 10,100; Market Share Reaches ~10% in On-Grid Inverters

• Channel partner network expanded from 8,900 to over 10,100 during Q1 FY 2026-2027, driven by addition of two new states (Odisha and Uttarakhand) now fully covered with a distributor and service engineer per district.
• Distributor base grew to 1,150+ in Q1 FY 2026-2027 (from 950+ in Q4 FY 2025-2026); management targets 15,000 distribution points (including shops, dealers, and distributors) by end of FY 2027-2028.
• Management estimates ~10% market share in the on-grid inverter market in Q1 FY27, citing industry growth of ~40% in FY27 and the company growing faster due to distribution expansion and new geography acquisition.
• Key differentiators versus larger solar module players: solution-selling approach (assessing customer electricity bill and power-cut duration before recommending system size) and dedicated after-sales service with a company toll-free number.
• Average distributor BOM price for residential solar kits (panel, inverter, battery) in Q1 FY 2026-2027 was Rs.26–30 per watt, varying by DCR/non-DCR panel, lithium/lead-acid battery, and on-grid/off-grid configuration.
• B2C residential rooftop channel accounts for 90% of revenue; management declined to provide a detailed segmental revenue breakdown due to high variability across product types and geographies.

Rs.500 Cr Capex For FY26-27; Bioenergy & Zayo to Contribute in FY28

• Total CAPEX of Rs.500 Cr planned for FY 2026-2027: Rs.200 Cr from debt, Rs.100 Cr from IPO funds, Rs.200 Cr from internal accruals — no equity dilution. Gross block expected to reach Rs.1,300 Cr by year-end.
• Cumulative CAPEX stood at ~Rs.800 Cr as of Q1 FY 2026-2027; the 1.2 GW solar cell plant under construction is included in the Rs.1,300 Cr year-end target.
• Bioenergy project capex of Rs.200 Cr total (Fujiyama's 50% share, equity portion ~Rs.50 Cr), expected to be deployed in FY 2027-2028.
• Zayo subsidiaries (Zayo Energy and Zayo Cables) are expected to contribute top line of Rs.400–500 Cr in FY 2027-2028, operating as OEM suppliers to Fujiyama and other solar panel companies; margin guidance will follow after operations commence.
• Long-term competitive moat: distribution network in rural/semi-urban India built since 2008; even if subsidy ends, solar economics remain attractive with a 3–4 year payback and high awareness.
• Lead-acid battery fire at Bawal poses a near-term operational headwind; management expects to mitigate by leasing an existing running plant within one month (by mid-September 2026) without heavy capex, as the lead-acid business is declining.