Fujiyama Power Systems Limited (UTLSOLAR) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Fujayama Power System, 4QFI 26 earnings conference call, hosted by Motila Luswal Financial Services Ltd. As a reminder, all participant lines will be in the lesson only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference to Mr. Suman Kumar. From Mothilal Oswal, thank you, and over to you, sir.

Thank you. Good evening, everyone, and a very warm welcome to Fujiyama Power System Ltd. 4QFY26 post-reviewed earning call hosted by Mothilal Oswal Financial Services Ltd. On the call today, we have management team being represented by Mr. Pagan Kumar. Chair, Joint Managing Director, Mr. Yogesh Tuwar, CEO and Joint Managing Director, Mr. Surajit Kumar, Non-Executive Director, and Mr. Prasant Gupta, CFO. We will begin the call with three thoughts from the management team. Thereafter, we will open the floor for Q&A. I would now like to request the management to share their perspective on the performance of the company. Thank you, and over to you, sir.

Good afternoon. This is Pawan Ghaz. Good afternoon, everyone, and thank you for joining us today. It is pleasure to address you as we conclude our first full financial year post listing and share update on our performance for quarter and year ended 31st March 2026. Let me begin with thanking all our stakeholders for their continued support. Through this important year, the past 12 months have been significant for Fusiyama as we transition into listed company while continuing scale our operations, expand our manufacturing footprint, and strengthen our distribution network. Over the years, we have built a unique position in rooftop solar market by focusing off-grid and hybrid solutions. Our systems are largely adopted as reliable backup for households facing inconsistent grid supplies rather than being driven by subsidies. This approach has helped us build a strong customer base, especially in Tier 2, Tier 3 cities, that see solar as a necessary rather than an optional purchase, allowing us to grow consistently across the market cycles. Now coming to our performance, the March quarter marked a strong finish to the year. Revenue from operations. For the quarter is Rs 9,008 million, reflecting year-on-year growth of 87.5%. EBITDA for the quarter more than double year-on-year, to Rs 1,715 million. For the full year, revenue from operations reached Rs. 26,545 million, representing a growth of 72.3 year-on-year basis. EBITDA for the year was Rs. 4,903 million, with margin expanding to 18.5% as compared to 16.1% of last financial year. We have added 4 lakh plus households during this financial year, considering number of inverters sold during this period. This performance reflects the strength of our integrated model supported by manufacturing, distribution, and after-sale capabilities. A key contribution to this growth has been our continued focus on distribution. During the quarter, we added over. 80 distributors, more than 450 dealers, and 30 exclusive shoppies . With this, our total channel partner network has crossed 8,900 as on March 2026. This expansion has allowed us to deepen our presence in existing market while also entering new regions. On the manufacturing front, we have achieved an important milestone with commissioning of our 2,000 MW solar panel manufacturing facility at Rathlam. This plant strengthens our ability to meet growing demand and improves our overall supply readiness. At the same location, the commissioning of power electronics and battery capacities saw some delays. As we incorporated the latest advancements in lithium-ion battery technology, earlier we are using 100 AH cells, but in coming time, 300 AH and more capacity cells will be becoming more common in lithium-ion batteries. We have ordered our lines considering future technology demands. It is also worth to mention that we could manage the total cost of the line within our target cost while adopting more flexibility along with future ready technology requirements, ensuring our products remain relevant and competitive as the market evolves. In addition, certain geopolitical developments had an impact on supply timelines of plant and machinery during the execution phase. With these factors now largely addressed the inverter manufacturing line machinery already received at the facility and expected to be commissioned in first quarter of 2027. Furthermore, the battery machinery ordered have been placed and commissioning is expected in the second quarter of 2027. Further, strengthening our backward integration strategy, we are also setting up 1200 MW Stockholm solar cell manufacturing facility at Rakhlam. This addition will further enable us to address all-grid solar rooftop market more effectively. As we look ahead, the demand environment for solar solutions in India continue to remain favorable. With over 7 million installations still untapped under PM Suryagar Yojana, this represents close to 25 GW of incremental opportunity. With our existing 1,000 MW monopark solar cell capacity and planned additional 1,200 MW top-on facility, we are well positioned to address the imaging demand under the A11-2 framework. I would also like to update everyone on the unfortunate fire incident that occurred our bowel manufacturing facility. We are relieved to share that there were no casualties or injuries, and the safety and wellness of our employees and workers remain our highest priority. The effective facility had a lead-acid Battery manufacturing capacity of 1.3 Gigawatt, and the company maintains comprehensive insurance coverage for the plant, inventory, and related assets. Operations at the facility have been temporarily suspended, while the exact cause of the incident remains under investigations. So, in parallel, the company is facilitating food truckers. The employees to other manufacturing facilities to ensure the continuity of employment. To ensure uninterrupted customer supply and overall business continuity, we have already activated alternate manufacturing arrangements through third-party partners. Further, all critical business systems and operations continue to remain fully functional and secure. All critical business operations and ERP system continue to remain fully functional and secure. Ensuring uninterrupted business continuity with no loss of centralized digital data, the management remains confident that incident will not have any net real long-term impact on the company's overall business operations. Regarding the growth, Over the roots of solar industry, with electricity demand continuing to rise and conventional energy sources facing challenges, solar is becoming a preferred alternative. This shift is particularly visible in regions experiencing grid instability, where consumers are actively seeking more reliable and long-term energy solutions. Our focus remains clear. As we move into next year, we will continue to expand our distribution network, complete our ongoing capacity additions. At the same time, maintaining service quality and strengthening customer relationships will remain priority as we scale. Before I conclude, I would like to thank our employees for their dedication and consistent efforts across functions, which have enabled us to deliver this performance. I would also like to thank our shareholders for their continued confidence in Fujiyama as we build a business focused on long-term value. While contributing to India's transition towards the reliable and clean energy. Thank you very much. I will now hand over to our CFO, who will take you through the detailed financial. After that, we will be happy to take your courage. Thank you.

Thank you, Prabhanji. Good afternoon, everyone. I will take you through the financial performance for the quarter and year ended March 31, 2026. Let me begin with the quarterly performance. During Q4 FY26, revenue from operations was Rs. 9,008 million, compared to Rs. 4,803 million in Q4 last year, reflecting a year-on-year growth of 87.5%. EBITDA for the quarter was Rs.1715,000,000 with EBITDA margins improving to 19. Profit after tax for the quarter was Rs 1,063 million with fat margins improving to 11.8% compared to 10.7% in Q4 F525. The improvement in profitability on a year-on-year basis was mainly supported by better material margin, which expanded by 2.1%. This was driven by continued backward integration and higher captive manufacturing across solar panels, batteries, and power electronics. During the year, solar power manufacturing capacity increased from 1039 MW to 1639 MW. Our electronic capacity expanded from 1143 MW to 2180 MW, and lithium battery manufacturing capacity increased from 45 MWh to 545 MWh. The higher scale of operations also supported better absorption of fixed costs and improved manufacturing efficiency. During the quarter, we also saw increased participation in the on-grid solar segment, particularly under the Pradhanmantri Suragar, Muftabijini Yojana, which supported volume growth during the period. Employee and other operating costs remained broadly stable overall, with increases in certain expenses had substantially offset by efficiencies and savings across other costs. Let me now discuss with the sequential performance. On a quarter-on-quarter basis, revenue from operations increased by 53.1% compared to Q3 FY26, EBITDA increased by 56% while PAT increased by 58% sequentially. PAT margins improved from 11.4% in Q3 FY26 to 11.8% in Q4 FY26. Despite the significant increase in volume during the quarter, material margins remain broadly stable with only a margin movement sequentially.

Reflecting stable operating performance.

The improvement in FAT margins was also supported by lower finance costs following repayment of debt through utilization of ITOPC. This was partly offset by a moderate increase in other operating expenses during the quarter. Moving to the full year performance. For FY26, revenue from operations was Rs. 26,545 million, compared to Rs. 15,407 million in FY25, representing a growth of 72.3%. EBITDA for the year was Rs. 4,903 million, up by 97.3% year-on-year, with EBITDA margins improving to 18.5% from 16.1% in FY25. Profit after tax was Rs 3041 million. The improvement in full-year profitability was mainly driven by a 1.6% expansion in material margin, supported by backward integration, initiatives, and operating leverage benefits across manufacturing operations. Employee cost optimization and scale efficiencies also It also supported margin improvement during the year. Other operating costs remain under control overall with increase in certain expenses categories, largely offset by savings and other operating efficiencies across the business. Let me now briefly touch upon the balance sheet. As of March 31, 2026, our total assets were Rs. 23,436 million, compared to Rs. 10,140 million in April 25. Total equity increased to Rs. 12,734 million from Rs. 3,968 million in the previous year, supported by the IPO proceeds and profits generated during the year. Thank you. That concludes my remarks on financial performance. We can... We will now open the floor for questions and answers.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Apoorva Bahadur from IISL Capital. Please go ahead.

Hi, sir. Congratulations on a very good set of numbers, and thank you for taking my question.

Sir, it would be great if you can provide some color as to why the inventory increased very sharply this year.

Capacity has been increased in the last year. When we talk about solar panel, it increased from 1,039 MW to 1,639 MW. And power electronics from 1,143 MW to 2,180 MW. And in battery also, when we talk about lithium battery, manufacturing capacity increased from 45 MW to 545 MW. Now, to support this expansion, while we are increasing our sales, we need to keep the inventory, right? So, I would like to highlight one point. The increase in inventory that you are seeing is mainly in the raw material side. If you see in terms of fixed goods inventory days, it is close to the last year. But since we are opening new locations as we did in Dadri, in Noida also in last year and recently in the plant. So, uh... That's why we are keeping the raw materials there to sustain, to supply with, along with the increased demand.

Okay. Sir, can you provide a split between raw materials, finished course inventory?

Sure.

Huh.

900 crore inventory, 500 plus belongs to raw material, and rest is my WIP and finished goods.

Okay, and of this 400 crores of finished goods inventory, is it possible to provide a breakdown into solar panels and batteries and other equipment?

Right now, this information is not readily available with us, but generally, we consider our inventory as a SPGS in total package, solar power generating Kriksha. And we also do not give the segmentation in our financials also.

Understood.

One thing to note here, because per watt cost of solar panel is higher than the battery and inverter, so most likely total inventory for panel will be higher size in comparison to inverter and battery. Understood, sir. Very better. If we store same megawatt for inverter, same megawatt for battery, same megawatt for panel, then panel cost is higher size.

Okay, okay. Understood. And then you have also mentioned about the plan to install a 1.2 gigawatt TopCon cell line with a capital expenditure of 350 crores. So, sir, can you help us with if this line, the equipment and all, have we already ordered? And are these like absolutely new coming from the OEMs?

Actually, we have taken the quotations, and we have compared that, and we have, like, we will give the order now, because now we have taken the matter to, like, in the director meeting, then we have passed the resolution, and now we will give the order, we will place the order. We have taken the quotations, basically.

And this is the all-inclusive cost for the facility, 350 crore.

Yes sir.

Okay, okay, that's the example. For the existing line, which we commissioned this year, what is the exit utilization that you saw towards the end?

Now, at present, we are running around 65%, but we are ramping up, and we expect in a month or two it will be around 80%.

Okay, sir. Sir, last question, if I may ask, in your notes to accounts, you have mentioned two instances of BIS seizures. Can you help us understand, like, sir, what exactly did they pertain to and which equipment was seized in the sense that were it inverters or solar panels or batteries?

Okay. We have around 500 SKU, and like a few of the SKU in like inverter and battery, these were under like question from the BIS department, and as per our submission. To the department, BIS was not mandatory on those SKU, and their submission was that it is required, but we have filed the reply to them. Out of 500, I think, around 10 to 15 SKU are there in the question.

Okay, and largely related to inverters and batteries. Yes, sir. Okay, sir. Thank you. That's all from my side. All the missed.

Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to two participants. Should you have a follow-up question, please rejoin the queue. We will take our next question from the line of Anuj Apadhyay from Inrastech. Please go ahead.

Yeah, thanks for the opportunity and congratulations on a stellar performance. So, my first questions belong to your alarm capacity, the 2 gigawatt module which we have recently ramped up. So, how much revenue can this contribute to? And similarly, on the 1.2 gigawatt of a cell line which has been planned out here. So, what sort of revenue contribution as well as the margin expansion can be expected on this accelerator?

Okay, in the glam facility, we have two gigawatts integrated facility, including solar panels, inverters, and batteries, lithium-ion batteries. We can expect total revenue, peak revenue from this facility when all the lines will be fully operated and fully utilized around 5,000 crores. We can go up to 5,000 crores in terms of revenue. Regarding this token line, because A11-2 is coming very soon to continue our rooftop business. That is mandatory part for our business to accommodate all ALM2 requirements basically. That's why we have to go for additional sell, like token sell line of 1.2 gigabyte.

Okay, so for this 5000 crore you mentioned is including the cell revenue or cell has a separate set of revenue? I mean like it can contribute separately to this.

Actually, cell, regarding the cell, cell will not add the revenue because it is backward integration only. Backward integration improves the margins, not the revenue, sir.

Okay. Okay. And the next question is basically how you have already reached 8,900 plus kind of a channel partner. And in the last call, you had mentioned that we are seeking to cater to other geographies as well. So any targeted channel partner number which we have in mind over the next one or two years so that we can cover other market as well. And just a follow up on if you can quantify how much of gigawatt in terms of rooftop we sold in the current fixer or megawatt, whatever number is.

Okay, we can, we have that twin brand strategy basically, so we are expecting double our channel partners even our second brand, and 50% of our like area is untapped, basically it is starting phase, but if we go for fully operational all over the India, then we can, we can, Bye-bye. Thank you. Thank you. So, we are expecting double channel partners in the next three years, sir.

Sir, that's very helpful, sir. And lastly, sir, which I was asking on the gigawatt part or megawatt, how much sales you have done, if you can quantify that?

Okay. Now, in last financial year, basically just gone, so we have done one gigawatt plus like integrated SPGS sale in like 25-26.

1,026 MW.

1,000 MW plus, including in, oh, just a minute, actually, we had decided not to declare the segment-wide, but you can take aggregate 1 GW SPGS, same.

That's helpful, sir. I'll rejoin the queue for further questions. Thank you, sir. Yes, sir. Thank you.

Thank you. Next question is from the line of Aniket Madhwani from StepTrade Capital. Please go ahead.

Yeah, I'll go, sir. Am I a bit?

Yes, sir. Yes, sir.

So, I just wanted the clarification on your... So, I mean, recently the fire broke out on the facility. So, it's operational right now.

Right now, it is not operational, sir. It is suspended, basically.

We have lost the connection for the current participant. We will take the next question from the line of Sahil Faith from Anant Rati Institutional Equity. Please go ahead.

Hi, sir. Congratulations on the great set of numbers. If you can share what would be a revenue mix in terms of Tier 1, Tier 2, and Tier 3 cities, and where do you see more opportunity in the coming years?

Our major sale is, sir, in towns and villages, basically, in Tier 2, Tier 3 series, and towns and villages, basically. In Tier 1, like, we are now, because we are adding own grid solar sales now, so now Tier 1 will be added. Basically, now onwards, tier 1, we will focus tier 1 also. But in the past, mostly our sale is tier 2, tier 3, towns and villages. And our focus will remain for, like, towns and villages in the future also. Because mainly we are into, like, backup-based systems, mostly. For, like, On-grid also we have a hybrid system, which can be used as off-grid as well as on-grid, which has both the uses, it can export the electricity to the grid also, and it can give the backup in case of power failure. So mostly our focus is in that area where power fluctuations are there, power outages are there. But, along with that business, we are also focusing on on-grid business also, where no power shortage is there.

Got it, sir. And, sir, a follow-up to a previous question, where you said that new 2 gigawatts Ratham capacity will contribute around 5,000 crores of revenue. Why? When do you see?

That is peak revenue, sir. That will be peak revenue when it will be fully utilized.

When do you expect the capacity to be fully utilized?

We are expecting in the end of next financial year that will be fully utilized. Next financial year. By end of FY28. Yeah, Q4 28, we can expect it to be fully utilized.

My last question would be, as you mentioned that you have just placed orders for your new 1.2 GHz top 1 line for the manufacturing equipment, what would be, and is the land for the same in the existing Ratlam facility, or has it been acquired, or is it in process of being acquired?

Same land, sir, which was already taken, sir.

In the same facility? Yes, and would, and the 350 crore capex amount would be excluding the land cost?

Actually, land cost was around 18 crores, sir, basically, including earlier like phase 1 project and phase 2 project, and some land will be even, we have extra land. So, land cost is not very high in this cell line, but it is excluding of land, basically, sir. Land cost is even very marginal, but that is excluding of land cost. Because we have added the land cost in stage 1.

Answer is, do we have any plans to upgrade our existing Monopuck cell line to Topcon?

Till now, we have no such planning. After this ramp-up of Topcon, whatever will be the market situation, we will decide. I think we are not required to change. At present, we think we are not required to change, sir.

Got it, sir. This was very helpful and all the best. Thank you.

Thank you. Next question is from the line of Arjit Agarwal from Step 3 Capital. Please go ahead.

Hello. Hello. Yes, sir.

You are audible, sir.

Yes, sir. Congratulations on good set of numbers. So, I have two questions.

The first question is about the Bawal facility.

So, the fire incident happened in the Bawal facility. So, does it affect the capacity or is it operation?

Yes, temporary it affects the capacity, but we have already made the alternate arrangements. Luckily, at this time, for the lead-acid battery especially, there is huge capacity in the market basically, extra available. When we decided for starting of this facility at that time, like… Extra capacity in the market was not available in the season time mainly, and you can see this is our main season time, and we are experiencing, we can achieve even more than what we require from the market. From third-party, basically. We have made third-party arrangements, and that is done immediately, because extra batteries are available in lead acid battery, because market is shifting towards lead acid to lithium-ion battery. Okay, so will it affect the margin? Margin will have slightly different effect, but we will cover through top line, basically, adding extra top line, because like extra capacities are available in the market. There is marginal difference if we go for third party, because we could able to achieve good prices from third party.

Okay, and the second question is about can you give the revenue by application for this quarter?

For the final VATC and VATC funds. With Q4 or Q4? Yes, Q4. Largely, you can consider because panel prices are higher size comparatively, for whatever, if we see panel prices are higher size, but our electronics share is comparatively high, then we can just estimate like 40, 40, 20 percent in percent. Like 40% solar panel, 40% electronics, and 20% battery, largely.

Okay, okay.

That's all from my mind. Thank you. It fluctuates because we are adding new areas, like we are expanding existing areas, depending on geographical situations, and like electricity fluctuations, basically, these ratios deviates time to time. But largely, at this time, we can consider 40-40-20.

Thank you. Next question is from the line of Himanshu Dasani from Pinpoint X Capital. Please go ahead.

Hi, sir. Thanks for the opportunity and congratulations on the great set of numbers. Sir, if you could bifurcate your growth in revenue, in realization and volume perspective, that would be great.

For next year? For the current year, please. Repeat, sir, please. Question?

Sir, the current yearly revenue grew up by 70%. Can you bifurcate that growth in volume and realization terms?

Means you want to know if it is gigawatt or like that or what?

Sir, this is rooftop system that you have been...

So are you asking the per watt realization?

Yeah, per watt or from a system perspective, whatever. So growth from a price increase perspective and from a volume perspective is what I'm asking.

Largely, if you see, like, some of the components prices gone up, and some of the component prices come down. And if you see, if you want to, if we go for, like, in terms of gigawatt, like, if our revenue is gone up 70%, then in gigawatt also, it is around 70% up, sir.

So it is mostly volume bad, is what you are saying?

Yes, yes, volume, volume increase, sir.

Okay, okay. So, on the competitive side, so there are so many players who have announced or poured it into rooftop solar market. How do you see the competitive intensity? And also, sir, do you see a similar peer who has an integrated facility from, you know, cell panels to power electronics and also have a distribution as wide as ours?

Actually, sir, there is huge demand and huge opportunity in the market. If many people are coming, because we alone cannot gather this opportunity, because like you can see that China is adding 60 gigawatts every year in rooftop solar. And we even don't touch like even that number, cumulative number. And our population is more than China and our requirements are more than China because we have power outage also here. And like we have prices of power is higher side. And in rooftop solar, like if we consider this is the answer to like Crisis, because if power is not there, if fan is not running, if light is not there, that is the necessity basically, not the ROI condition basically. Even along with meeting the emergency, it is giving good returns also. This is a good, a lot of opportunity. Actually, awareness was not there because of a subsidy-linked business. Awareness is there. And because of that awareness, subsidy business is increased and non-subsidy business also increased a lot. There is huge opportunity in the market if good companies are coming and good services they will provide to customers. There is huge opportunity. Mr. Yogesh, he is taking care of marketing, he will also like to add something.

So we are catering more towards tier 2 and tier 3 segments of Indian markets. And we have been there in this market for a very long time. So making network here, making dealers, distributors, service engineers, and the sales network, it really takes time. So everyone is coming and everyone is welcomed. But making proper arrangements for sales and service in Tier 2 and Tier 3 areas is really challenging. Everyone, the best of luck. And because there is good opportunity, so everyone can do this well.

Understood. So you're saying that opportunity is wide enough for even, so then the competition is not that high right now.

Yes. If more number of people will come, like more number of customers will be, like awareness will be there, sir, basically. If more companies are coming, they will advertise and more awareness will be there, sir.

And just to continue on that, sir, that you are saying that it is such a big opportunity and, you know, government also has some ambitious targets of rapidly scaling rooftop market. How do you see your revenues and what is our guidance for coming in the medium term and for the next current year?

Yes, in current year, our guidance is 50% in revenue, sir.

50% in revenue growth?

Yes, sir.

Okay. So, sir, just to consider that, so your existing facility plus the Rathlam facility that we have managed, what is the top-line potential completely that it can generate?

Like we have 1.5 Gigawatt like integrated capacities across battery, panel, and like inverter, and Rathalam is adding 2 Gigawatt additional capacity integrated like inverter, solar panel, and batteries. So, we can achieve easily, basically, what is our guidance of 50% up, sir. Even we have the infrastructure for more revenue, sir.

Understood, sir. Thank you so much, and I'll join back in the queue. Thank you. Thank you, sir.

Thank you. Next question is from the line of Vinay Lakheera from Ratna Traya Capital. Please go ahead.

Hello. Yeah, hi, sir. I had two questions. One is on the capacity utilization side. Can you please mention the approximate utilization we had in FY26 for all the five categories we have made, like panels, power electronics, and others?

Sir, it is generally 70% to 80%, just to give you a range on each side, it is generally 70% to 80% of the available capacity. For all the batteries? In lithium batteries, we are catching up, but in the rest of the segment, it is 70% to 80%.

Okay, 70% to 80% for all the others, right?

Yes, for all these. I am giving you a range because all the products are in that range only. But in lithium batteries, we are catching up with that.

So, in terms of the new facility, Rathlam facility, how will it ramp up this capacity utilization? Can you just throw some light on that? For the next few years, what could be the capacity utilization for these capacities?

For Rathlam facility, in coming year, we are expecting 50% utilization. And for next financial year, by renting them in last quarter, we are expecting around 80% utilization. That is for all the categories, right? Yes, all the categories, yes.

Okay, and my next question is on the receivable side. So, from where are we getting this account receivable part? Can you just state it in terms of the customers? Because for the retail, it would be upfront, right, the payment?

Sir, we supply to the distributors and distributors further supply to the dealers and then dealers and our shop is supply to the end customers. So, we get our receivables from distributors only. Now, I think you are asking that whether the end consumer directly pays us. So, that is not the case. The end consumer pays to the dealers and dealers pay to the distributors and we receive the funds from the distributors. And our cycle, revenue cycle is around 14 days at least for this year.

I'm very sorry, sir.

One for 14. Okay. And who reaches the customer? For example, if I'm the customer, how will I decide with which brand should I go? Do you have any push in terms of marketing or all those things for the brand visibility?

The main point here is that if I have someone who has installed solar system nearby my house or any relatives or my friend has installed, so I will check whether this system is working well, then I will ask the brand, and then I will decide that I should go for this. The main reason behind this is that this is a huge investment for a person who is living in Tier 2, Tier 3 city, so they check the references and then decide upon the brand.

And on the customer side, do we have any long-term contracts with these pure EPC players?

Yes, see, once a distributor is added, so that continues to do business with us, because we are having a set of 500 SKUs, and this is the need he mostly has, because he has a wide range of customers living in villages, towns, cities, industrial customers, and they are business customers, so we have all range to get to his needs, so he never generally leaves us.

So, these PC players come from the distributor only, you are saying.

Yes, sir. Agreements are piece of paper only. It is relationship, sir. Basically, if our relationship, many of the distributors are from starting 15 years, 20 years, 25 years. So, it is relationship, sir, basically. Yes, sir.

Okay, got it. Thanks a lot.

Thank you. Next question is from the line of Sagar Shah from Spark PWM. Please go ahead.

Yeah, first of all, congratulations to the entire team of Fujiyama for hosting such a great set of numbers. Hello, Pawanji. Hello, Prashantji. Hope you're doing well. Thank you, sir.

Thank you.

Yeah, so, sir, my first question was related to our Atlam facility. Sorry to harp on again on this one. So, in this quarter, sir, how much revenue of the total revenue that we generated in this quarter of around 901 crores, how much was from Ratlam, sir? I think you have commissioned the solar panels for so many years.

Sir, this is just commissioned basically, and it will contribute in this quarter, sir, not last quarter, sir.

Okay, so right now the growth that we had got in this particular quarter, such healthy sequential growth as well as YOY growth, So, can you highlight that which of the facilities actually contributed to this growth? Was it Dadari? Was it Roten or Greater Moida? Which actually capacity and which product line did very well actually for you to clock such healthy growth, sir, in revenue terms as well as in the bottom line, actually?

Actually, sir, most, like, we can say it is NOEDA factory, basically, it is integrated factory, basically. Lithium-ion battery are there, like, inverters, all the range of inverters, off-grid, on-grid are there, and some of the solar panel lines are also there. So, if we can say, so, number one is NOEDA, and then, if we can say, then number two will be DADRI, basically.

Okay, so is it safe to assume, sir, that we are at these numbers, we are running at optimum capacity utilization of the four plants that we have? This is the best capacity utilization numbers?

Yes, sir. If you can see last quarter, we have done 900. We have done 400, sir. Correct, sir. If we consider the march, it is fully utilized, sir, more than fully utilized. It is more than, yes, sir.

Okay, okay. So, my second question was related to the southern region. The new facility, the plum facility that we will be ramping up in FI27 and FI28, and the growth will be largely visible from this factory, actually, and also from the Topcon cell facility, which is naturally integrated in the modules. But what I wanted to understand that the new states that you are venturing into with the help of this facility, I am talking of Karnataka, Andhra Pradesh, Telangana. So basically, what is the status now? Have you done that demand feasibility there? How is the demand supply situation? How are the competitors placed there? Because this is a different geography as compared to what we were in UT and Noida. Yeah, these are very mature states for you, because you have a very strong position here. But these are new states for you, where already competitors are there, so the pricing pressure will also be there. So what I wanted to understand that, how should we look in the southern region, actually? Can you explain the demand supply dynamics somewhat, the demand feasibility there?

Yes, sir. Actually, if you see our growth from last year to this year, it is a growth on every state. It is not only in some states. UP is our best state, and still it is growing on. See, the demand in UP is really high because of the population, because of the conditions there. Still, if we study the turnover increase, if we study the number of distributors, number of dealers and number of shop fee increase, it's everywhere equal. So, everywhere we are expanding. And also, towards geographical expansion, we are working. And from last year to this year, we have added Odisha as well as this. Andhra Pradesh from special focus to growing right now. And Atham was a potential state for us. Now it is our special focus state. So it is growing geographically as well. Demand, demand there is mostly for southern states, the demand is for on-grid or hybrid kind of systems. And in Assam and West Bengal, the demand is towards hybrid as well as off-grid. So we have done studies there, and we are also open industry which is there.

Okay. So, but how is the consumer demand, sir, means how is the demand that you are actually witnessing there? Is it the same as UP? Can you explain a little bit more about that?

Demands are, on-grid demand is given by the subsidy, given by the central government and state governments, and because of this awareness, the demand of hybrid as well as the off-grid is also there. So, we have studied these demands. We have mapped the distributors we can appoint in areas. We are working on that. So, we are very pretty confident that the proposed turnover is easily achievable.

Okay. Answer the inventory number 32.

I'm sorry, Mr. Agar. You let me ask you for more questions.

I'll come back in the queue, sure.

Next question is from the line of Saksham from Diamond Asia. Please go ahead.

Yeah, thank you for the opportunity and congratulations to the management for an extremely good quarter. Sir, I have just one question. How do you see the sell production ramp-up? I know you have already explained, but if you could highlight more on the top stability front, that would be really helpful.

Repeat, sir, please, question.

Sir, you have already mentioned about the production ramp-up. Could you more highlight on the profitability? How the company will be profitable because of this production lamp? If you could quantify on the numbers.

Okay, sir. Actually, it is definitely... Because, like, DCR was main challenge for the company, if you see the past, because sales were not available, and definitely in-house production of sales, like, good margins are there. But like we are not totally focusing on margin. We are more focusing on customer acquisition. You can see number of distributors and number of dealers we are acquiring quarter on quarter basis. Because we are passing some of the margins to customers also, basically. So, definitely margins for the VCR is higher side, but we are not keeping all the margins in our pocket. We are diverting that margin to customers so that we can acquire more and more customers. Basically, ALM-2 is coming, and because of that, ALM-2 means for other than rooftop business, all grid-connected systems will require DCR solar cell. Because of that, I think some margins... are likely to be increased, and we are expecting like, but there are other variables also in the market. Margin on non-DCR side is... We will... It's able to improve side overall margins basically.

Thank you, sir. All the best for the next year, sir. Looking forward to it.

Thank you. Next question is from the line of Slovish, from Bowman Capital. Please go ahead.

Hi, thank you for the opportunity. Am I audible? Yes, sir.

Yes, you are.

So my question is pertaining to the BIS inspection. I know you answered it earlier, but my question is slightly different. So given the inspections that we had, what are the nature of penalties that the BIS department could apply, if any? And also, are there any similar inspections that have been taken place at your peers or competitors?

Okay, sir, actually this will be decided by the court now, and provisions we have checked with legal team, the provisions are maximum, what is the penalty maximum is equal to seizure value, sir, basically. Maximum penalty, but in our case, it will not go up to that level, because their questions and our submissions are fair enough to settle down the situations, and we hope we will not face any penalty, basically.

Got it, sir. And, sir, have similar inspection occurred at other facilities of your competitors?

No, sir. We have not such information any.

Got it, got it. And sir, just one high-level question also. Does this inspection impact our ability to ramp up the new facilities that we have in Dadri and Ratlam? And also, does this impact our participation in the PM Suryakhar scheme?

No, sir. Because there is no such, because out of 500 SKU, only 10 to 15 SKU are in their questions, basically. So, it will not affect anyway, sir.

Got it.

So, sir, just to summarize, this means that even if in the worst case scenario, it will not have a material impact on your operations.

Yes, sir. Yes, sir.

All right. Thank you, sir.

Thank you. Next question is from the line of Darsil Saveri from Crown Capital. Please go ahead.

Hello. Good evening, sir. Thank you so much for taking my question, sir. Firstly, sir, congratulations on a great set of results, sir. Sir, हमने 50% growth का guidance दिया है, बड़ अगर मैं अपना Q4 का ही revenue देखू, उसको अपना annualize करें तो तो भी 50% growth हो जाएगा. So, I have no idea that we have a seasonality or a conservative guidance.

We have a seasonality. Last quarter, we have a lot of time. Last quarter, if we bifurcate like next year, so we can consider like K1-900 around, K2-800, K3-800, then 1500.

Okay, okay, okay, fair enough, sir. Okay, okay. And sir, margin, now we have capacity ramp up, so can it be better to our 19% of our customers, like we want to acquire customers, so we will maintain margin again?

Repeat, sir, please.

Sir, margins, I am asking that we are, right now, I think, FI 26, we did around 18% margin. So, we want to maintain that only or because of all the, you know, leverage, we should be able to do better, sir?

It will be sustained to improving, sir, basically.

Okay, okay, okay, fair enough, sir. And, sir, just wanted to understand, abhi competition ka kya hai ki bhoot capacities FI 27 me online ane wali hai. Toh, aapko lag raha hai ki any kind of, you know, price competition chaloo ho jayega ki jiski waise humko margins thoda compromise kar satna pade ga hai. A sir, kuch or, you know, revenue thoda difficult ho jayega, kuch aapko aisa lag raha hai ki what do you feel about competition, sir?

Sir, this competition, that is mostly ground-mounted business, basically, and in rooftop business, like in product mix, like inverters, solar panels, DCR cells, and like batteries, we don't think so, sir, basically, because if any of the product is facing challenges due to competition, any other product also giving good premium, sir. We have product mixes, very good product portfolio, and a very big range of products. Few of the products any time give more competition, but few of the products give good margins also. We have few of the products which are like, that is only with us, no one has those products, few of the products are like that, and like our range of stigma, that is hybrid solar PCU, those are proprietary items for the company. So, those products are, and we are also working for coming requirements like residential and industrial-based systems, BESS systems. So, those systems, we are working on those systems which are future requirements. So, market is changing every time, applications are changing every time, and we are working in advance. So, it will give us well comfort to maintain our margins, sir.

Okay, okay. Fair enough, sir. And, sir, just two questions last from my end.

I'm sorry to interrupt, Darsheel. You may please rejoin Dati for more questions. Thank you. Next question is from the line of Ashish from Leo Capital. Please go ahead.

Thank you, sir, for taking my question. Sir, could you explain how Fujiyama's market share measured as a percentage of the solar rooftop segment in Nagawatt has evolved from, let's say, FI21 to last year, FI26?

There are two segments, sir. One is on-grid or one is off-grid, basically. On-grid data are available with government agencies, but off-grid data is not available with government agencies. And overall, when there was like care research during the industry research, basically, that our market share in inverters was around like more than 10%, and we hope we are sustaining or improving that market share.

Okay, so off-grid, you don't have exact numbers.

Yes, Malab, there is no exact, with any of research agencies, or like, exact numbers are not there.

Can you give your sales volume from FI-21 in solar panels in FI-26?

In 2021, we don't have the in-house capacity in 2021, I think. I have to cross-check also. No, but general sales... Yes, sir. So, at that time, very little contribution was from the solar panel, because solar panel prices were very high at that time. Gradually, our, like, in-house manufacturing capacities ramp up, and solar panel prices are coming down. So, like, this contribution of solar panel increased time to time, sir, basically. And, uh, in the 21... Ha. Even, at present, our, like, electronics volume in terms of gigawatt is just double from the solar panel, if we consider a number of, like, how many gigawatt solar panel we sold, and how many gigawatt inverter we sold, our inverter gigawatt is double, basically.

No, sir, but sales volume in FI26 of solar panels?

Yes, revenue for solar panel is higher size because per watt solar panel cost is higher, inverter cost is lower in general.

Sir, I think, I mean, sir, in megawatt, how much sales did we have in FI26?

Sir, guidance, we need to avoid some details because of the competition. Basically, we have a remark that the competition is closely watching, so we need to avoid some segment-wise. But overall, in the last financial year, we can talk about an integrated solution.

Okay, sir. Thank you. Sir, you said there's room for everyone to grow. So I think from the investor community who could share little more data around sales volume, it would be better.

Sir, look, there are some closed competitors and some newcomers. So let's just look at both of them. Newcomers are all right, but the closed ones have to look at our business too.

All right. Thank you, sir.

Thank you, sir.

Thank you. Next question is from the line of Sanjay from Mipresen. Please go ahead.

Yes, sir. Can you hear me? Yes, sir. Yeah, two quick questions. One, again, regarding that inventory which has gone up, is that kind of an indication of the kind of revenue growth that you are looking at? Because inventory day-wise, it is up almost 50-60%. But at the same time, you are not really looking at a higher revenue in quarter one compared to quarter four.

So, part of your question is correct. We are, as another investor also asked the same question at the start of the call. So, if you see our inventory days, it has gone up in the raw material size. So, part of your question is correct, that we are building up our raw material inventory to scale up to meet the demand in the coming quarter. So, because on the FG side, if you see our inventory days are on similar lines of the previous year. And apart from that, we have opened a new location. In current year, we have opened a new location, including our cell plant in Dadri, which is mainly backward integration, if you see. And 1.2 gigawatt line is there in the solar panel in Dadri itself. Apart from that, there is our capability extension in the Noida as well. And recently, we have also started purchasing inventory for the plant as well.

With all these things, once it gets over, will your inventory day, which has gone up from some 120 to 180, should one expect that to go back to 120 days or not?

Yes, definitely, it will come down, sir, along with time. Basically, when we go for, in the history, we have seen, whenever we go for backward integration, our inventory days go up, because we have to take care of raw material, we have to take care of FG also. So, like if we consider solar cell, we have to take care of raw metal for solar cell, and we have to take care of like solar cell imported from China. So, we have to maintain both the... Both the inventory, but later on, when it is fully ramp up and it is fully utilized, it comes down. In history, we have seen the trend, sir. And for Ratlam facility, like whatever inventory we have collected in March, basically, that is like because lines are not started in March, so that is additional inventory. And when line will be started, like number of inventory days will come down automatically, sir.

Understood.

I'm sorry to interrupt, Sanjay. I'm ready. Sorry. You may please rejoin the key for more questions. We have other participants waiting for the turn. Thank you. Next question is from the line of Deksham from DB Wealth. Please go ahead.

Hi, sir. Congratulations on the numbers. My first question, yes, sir. So my first question Thank you. What is the sort of profitability that we can look on exact percentage terms? Right now, we are around at 11.45-11.5% fat margins for this year. So, what kind of fat margins are we hoping for? I'm talking in the terms of 12 months, 24 months, 36 months, what you can guide us.

Sir, for coming here, you can consider the guidance 11% to 13%, basically, for paid margin. The reason is, if, like, in any case, like, because... Because we have DCR cell, we can earn more margin. But we don't think we will keep in pocket. We will transfer the margins to customers, to acquire more customers. Because we are giving integrated system, not alone cell or not alone panel. We are providing an integrated system comprising of like solar panel, inverter, batteries, and like we have big distribution network. So we have to take care of every partner, basically. Like, distributors and dealers are also partners. So, if we are sharing the margins, we can increase our distribution network, basically, sir.

So I completely get it. And I mean, what we're doing is showing results. So kudos to you on that. But like, we are thinking that we can get 11 to 13% margin. But once our moats are stronger in terms of distribution, let's say 24 months from now or 36 months from now. Then, do we see an improving and accelerated trend of our margins? What I mean to say that, let's say that in 36 months, do we think that the peak margins is going to be 13%, 14%? Or what do you think? What's your aspiration? That's one part of the question. And second is on promoter holding. Do you, in the next 12 to 24 months, think that you are going to raise some money and sell promoter holding? That's it for myself, sir.

Okay, regarding second question, in next 12 months, we have no proposal for, like, promoter holding, to reduce promoter holding or raise any money in next 12 months. In first question, sir, because pet margin depends on many things. Mainly, it is demanded supply, basically, which drives the margin. If, like, But in our case, we are not just like equipment manufacturers or suppliers. We are the solutions provider, basically. So, integrated system along with services from our network, it can maintain this margin, definitely, because... Including of power electronics items, batteries, and solar panels, all together along with services of installation and after-sales services. We see margin. Definitely, we are, in a general view, it seems improving time to time, basically.

So, just for clarity, you're saying in 36 months, 3 years are set, can we see that our margins are going to be more than 13%, 14% or do you think that this is, we are a 12-13% margin business? Because competition will also come, our moat will also be there, new product mix will be there, we will perform great. But overall, the way that we're modeling our business, what kind of margins do you think that for a longer term, our business can fetch us?

We are doing a lot of work. We are doing a lot of work. We are doing a lot of work. We have a lot of work. We have done a lot of work with AI. We can reduce the expenses of services. We can reduce the expenses of sales. Good morning, everyone, and welcome to the call. In general, I will tell you what happens in industry standards. Thank you. Good morning, everyone, and welcome to the call.

Thank you so much for the clarity, sir, and amazing execution, sir. All the best to the team. Thank you, sir. Thank you.

Thank you. We will take that as the last question for today. I would now like to hand over the call back to the management for closing comments.

Thank you once again for joining us today and for giving continued interest in FUJYAMA. Many questions provide deep insight and we have noted those to work again. We appreciate the confidence you place in our company. If you have any additional questions, please feel free to reach out our Investor Relationship Advisors, Churchgate Partners. And we will be glad to assist you. Thank you very much for your time and support. Thank you. Thank you. Thank you. Thank you very much.

Thank you very much. On behalf of Motila Loswal Financial Services Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your lines.