Fujiyama Power Systems Limited (UTLSOLAR) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Fujiyama Power Systems Ltd. Q1 F527 Earnings Conference Call. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to build. As a reminder, all participant lines will be in the listen 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 pressing star and zero on your text phone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sumanth Kumar from Mutital Oswal Financial Services Limited. Thank you, and over to you, Mr. Kumar.

Thank you. Good evening, everyone, and very warm welcome to Fujiyama Power System Limited, Q1FY27 post-result earning call, hosted by Motila Oswal, Financial Services Limited. On the call today, we have management team being represented by Mr. Pavanth Margar, Chairman and Joint J.M.D., Mr. Yogesh Duva, CEO and J.M.D. And Mr. Prasant Gupta, CFO. We'll begin the call with the key thoughts from the management team. Thereafter, we'll open the floor for Q&A session. I would now like to request the management to share their perspective on the performance of the company. Thank you and over to you, Pavanji.

Thank you. Thank you, Pavanji. Good afternoon, everyone, and thank you for joining us today. It is a pleasure to connect with you and share an update of Fuziama operating and financial performance for the quarter ended with June 26th. Let me begin with thanking our customers, channel partners, employees, and shareholders for their continued trust in Fuziama. We have started the new financial year with meaningful progress across the business. During the quarter, we expanded our distribution reach, commissioned new manufacturing capacity, and took further steps towards the increasing of backward integration. Coming to our financial performance, the first quarter saw a significant increase in our scale of operations. Revenue from operations growing 125% year-on-year. Arbitra increased by 140% year-on-year. Arbitra margin expanded to 18.9% from 17.7% in K1-26. The distribution network recorded one of its largest quarterly extensions. During the quarter, we added more than 80 distributors, over 1,000 dealers, and more than 30 exclusive shoppings. This took a total channel partners network to over 10,100 as of June 26. The wider network gives Fusyama greater access to customers across different markets and supports faster product availability, installation, and after-sales service. This remains particularly important in residential rooftop solar segment where proximity to customers and dependable service are important sectors in purchase decisions. On the manufacturing front, we made significant progress at our Rathlam facility. During the quarter, we commissioned 2 GW solar panel manufacturing facility. With the addition, our total solar panel manufacturing capacity increased to 3.5 GW. Additionally, our Additionally, we also commissioned 2GW power electronics manufacturing facility at Radlam in August 26. The facility will manufacture solar inverter, UPS systems, and other related power electronics products. With this addition, Fuseama's total power electronics manufacturing capacity is increased to 4GW. Say that more. The 2GW lithium-ion battery manufacturing capacity at Rathlam is also on track for commissioning by Kewtwo 27. Once completed, Rathlam complex will bring solar panels, power electronics, and batteries under one manufacturing location, further strengthening integration across the company's product portfolio, and supporting its growing scale of operations. Alongside our capacity expansion, we are also taking further steps towards backward integration. During the quarter, the company increased its stake in Jio Energy PrevLimited and Jio Cable PrevLimited from 19% to 50% in each company. Jio-energy is engaged in manufacturing solar module components like aluminum frame, PV ribbon wire, bus bar, and solder wire, while Jio-cable is engaged in manufacturing of solar module components like PV junction box, solar cable, and EVA heat. Investment components our existing manufacturing capabilities by extending our presence into components used across the solar and power electronics products. As these business scales, the integration of our components within our value chain can help improve sourcing control and further deepen Fuseama's integrated manufacturing model. Looking at the broader market, the opportunity for rooftop solar in India remains significant. The PM Suryagar, Mufvijali Yojna, a target of solarizing one-crore household, is supporting the adoption of grid rooftop solar across the country. At the same time, demand for off-grid and hybrid solutions remain relevant in the regions where grid reliability is a concern. This allows Fusama to address both the on-grid and backup-driven requirements through its portfolio of solar panels, inverters, and batteries. Furthermore, we are also closely following the proposed next phase of the scheme, being referred to as PM Suryagar 2.0. While the framework is still under discussion and has not been formally notified, the proposed reports include support for the battery storage, incentives linked to actual power generation, and wider access through community solar and other models. If implemented, these measures could further expand the addressable market and increase the relevant of targeted solar and storage solutions. Our cost-effective service network will help us to get more share in the coming scheme. As we move through the year, our focus remains on scaling the recently commissioned capacities. And expanding our distribution network. We will also remain focused on service quality and customer relationship as our reach increases. At the same time, increasing backward integration across key components will remain an important part of our manufacturing strategy. Before I conclude, I would like to thank our entire Ujama team for their efforts. We remain focused on building Sujama as an integrated solar solution company and creating long-term value, while contributing India's transition towards clean and reliable energy. Thank you. I will now hand over to our CFO, who will take you through the detailed financials. After that, we will be happy to take your questions. Thank you, everyone.

Thank you, Bhavanji. Good afternoon, everyone. I will take you through the financial performance for the quarter ended June 30, 2026. Let me begin with the quarterly performance. During Q1 FI 27, revenue from operations was Rs. 13,457 million compared to 5,973 million in Q1 FI 26, representing a year-on-year growth of 125.3%. EBITDA for the quarter was Rs.2548 million, increasing by 140.6% year-on-year. EBITDA margin improved to 18.9% from 17.7% in Q1 F526. The improvement in operating profitability was supported by the significant increase in business scale during the quarter. Higher volumes enabled better utilization of our manufacturing and operating infrastructure and supported better absorption of cost. Process improvement across operations also contributed to the efficiency. Importantly, we passed on a portion of these efficiency gains to customers through competitive pricing during the water. Despite sharing part of these benefits with the customers, we were able to retain sufficient efficiencies within the business. Expansion of our manufacturing capacity also supported the increase in scale. During the quarter, we commissioned the 2 gigawatt solar panel manufacturing facility at Ruslan. This increase of total solar panel manufacturing capacity is to 3.5 gigawatt. The facility is being ramped up in phases as volumes increase. Let me now discuss the impact of the fire incident at our bowel facility during the quarter. The incident resulted in damage to building structures, plant and machinery, inventories, and other assets. Accordingly, the company has recognized a provisional exception loss of Rs. 1,436 million during the quarter. The affected assets are adequately insured and the company has lodged its claims with the insurer. The assessment process is at an advanced stage, although it has yet to be fully completed. Based on the insurance coverage available, management expects to recover the entire net carrying value of the affected assets through the claims process. After accounting for this exceptional item, profit before tax for the quarter was Rs.777 million. Reported profit after tax was Rs.578 million with a margin of 4.3%. For a like-for-like understanding of the underlying performance, excluding the barbell fire provision of Rs.174 million on a post-tech basis, normalized fat would have been Rs.1652 million. On this basis, normalized fat margin was 12.3% compared to 11.3% in Q1 F526. This represents a year-on-year increase of 144.5% in normalized fat. Looking ahead, as the recently commissioned capacities ramp up, our focus will remain on maintaining operating discipline and managing costs as a business expense. That concludes my remarks on the financial performance. We can now open the floor for questions and answers. Thank you.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question, that was Dharan 1 on the 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 comes from the line of... Prithvi Raj from Unify Capital. Please go ahead.

Yeah. Congrats, Rathim, for the great set of numbers. So, first on the guidance, given, you know, we had an exceptional start in Q1, how should we look at the full year guidance? You know, there seems to be a lot of, I mean, the coverage of the installations of rooftop solar has been picking up quite sharply over the last few months. So, how should we look at the full year revenue growth and profits?

In the last quarter, as we rightly mentioned, we gave them 50% of their talent for the complete annual year, and the efforts that we have put in during the last quarter, how we have expanded in terms of our manufacturing capacities or be expanding on our distribution network side. So we achieved 70% and it took a lot of effort. So, but as you rightly mentioned that demand is increasing and robust demand is there. So, we would like to revise our guidance for the full year to 70% considering the robust demand which is there and the capacities that we are ready with in Zatlam. And we would like to also highlight one thing that we can trail this guidance in the coming quarters as the year progresses.

Second, you know, you have been doing a lot of backward integration, adding your own modules, cells, capacity, etc. See, eventually, this will translate to better margins. So, should we expect margins to go up, or you think margins will be capped at this level, and instead you will pass on these benefits to the clients with respect to lower cost?

Sir, you rightly mentioned and pointed out that having this DCR cell in-house manufacturing capacity and the rest of backward integration that we have did in the past, that definitely supports our margin profile. But we would also like to discount the fact that there are a lot of variable factors in the market in terms of raw material pricing, and you have already covered our point that we will be passing on whatever margin gain that we will be gaining. So, we would like to continue our previous guidance of margin from sustainable to improve.

Okay. And final question on the new policy, a new series in framework, etc. What is your expectation? You know, by when can we expect government announcement on the 2.0 scheme of rooftop solar?

Sir, as per all knowledge, it is still under discussion, but government is actively working on it as we have seen at various media platforms. So, we are hopeful that they will come up soon with a PM2R 2.0 scheme on this side. As you are already aware that government is actively working to promote the renewable space, and they have a target of having 300 gigawatt solar in India by 2030. So, the government will be aggressive on that side. That is our belief.

Thanks. That's all for my share.

Thank you. Next question comes from the line of Archit Agarwal, with Step Trade Capital. Please go ahead. Hello. Speakers, please go ahead. Am I early on? Yes, you are.

First of all, congratulations on the set of numbers. Hello.

Hello. Thank you. Sir, my question is, you have previously said that when capacity is available, you must ask some of the integration benefits to customers to drive volume. Given the significant capacity now coming online, should investors expect a victim margin to remain around 18-19% or could a greater market share expansion lead to margin completion?

Yes, so I'd like to reiterate that point only. So we will continue our margin guidance from Sustenable to improve for the year. I am saying, I am reiterating on that point, that we would like to continue our guidance on EBITDA margins from sustainable to improve. So we have reported a 18.9% margin.

Okay. And the damage from the fire incident happened, so how much is recuperable from the insurance?

We have taken considering the carrying value of the asset that got impacted, it is close to 143 crores, and we have sufficiently covered under that, and on the progress on the claim side, that survey has already been done. And in the coming quarters, we believe that this claim should be settled by the end of this year. And on the loss side, whatever the maximum impact would have been taken, we have taken in this quarter only. So once the claim settle, you will see the recovery of the complete loss that we have suffered during this incident.

Okay. Thank you, sir.

Thank you. Thank you. Next question comes from the line of Anuj Fardia, Investech Visco.

Hi, sir. Thanks for the opportunity and congrats on a great set of results. So my first question is on your cell plant, which has already been operational. Can you mention that what stabilization that plant has created as of now?

It is operating at 80% plus utilization right now.

Great. So, fair to assume, sir, this could have been benefited from this DCR plan even at 80% and once this goes up further, then, you know, the margin can move further from here on.

We are hopeful, but as I mentioned in the previous question as well, that variable factors are there in terms of raw material pricing, and to achieve the scale that we are operating it, we will share that margin benefit with our existing new customers.

No, well, no. Secondly, we are consistently scaling up our channel partner network. You know, like last quarter, I guess we were close to 8,900. Now that number has crossed 10,000. Could we just elaborate which are the new areas where we have added these channel partners or at least the regions which we are catering to?

Yes. So, in the presentation, we gave a map where we statewide, we gave a detailing about what states are covered and what states are under growing states. So, in the previous charter, two states in this immediate quarter, we have added two new more states from growing category to covered, which is one is Odisha and the other one is Uttarakhand. So, the definition of coverage is that we have one distributor in each district and one service engineer, almost.

Okay, and any status on the upcoming TopCon facility? We mentioned that it would be up by Q1, but just to get a broader sense on equipment ordering or any development over there.

The building is completed and orders for the machine has also been given.

Thank you, Prashant. That's helpful. That's it from my side.

Thank you. Next question comes from the line of Deepak Poddar with Sapphire Capital. Please go ahead.

Hello. Hello, I'm audible, sir. Yes, sir. You are audible.

Yes, sir.

Thank you very much, sir, for this opportunity. So just wanted to understand, I mean, from the industry perspective, can you give through some light? So what sort of opportunity size we are looking in rooftop? I mean, what would be the industry size right now and how do you expect it to grow? So some sense on that would be very helpful.

Yes. So we can see this number at three levels. At the overall potential level, there was one report from Council of Energy where they gave around more than 630 gigawatt of rooftop solar potential is there. That is the one number. And another number that we are seeing is that overall target of solar set by the government is to have 300 gigawatt of solar capacity by FY30. And out of that 300, we believe that 90 to 100 gigawatt will come from the rooftop solar itself. So, this is the second number of 100 gigawatts of rooftop solar by 2030, and the third number is the actual capacity which is installed till now. So, till now, I believe over 30 gigawatts is being already installed in this rooftop solar industry, and out of that, 3M2RG are more typically, Oshina is also one of the biggest satellites in this site, and around 15 gigawatts have come from that only. And we believe that additional 15 GWh is also there in Phase 1 of this PM2 is the most regional team. As out of 1 crore houses, 50 lakh houses are already covered.

Out of, I mean the last line. Out of how many?

I think, sir, that in the first phase of PM Surigarh Mukherjali Yojana, government set a target to cover at least one crore household, and out of that, government has received 50%, which translates to 50 lakh households.

Okay, okay, understood. And so now, still now, 30 gigawatt solar rooftop capacity has been installed, and you expect that it to go to 9,200 gigawatt by 2030? And generally for one gigawatt solar top, so what's the realization we generally get?

Realization, sir, if you... Or one megawatt? Yeah. So generally we see it as per watt. How we measure it, we see it as a per watt realization. So for a system with battery, generally this cost comes close to 26 to 30 rupees per watt.

26 to 30 rupees per watt.

Yes, including panel inverter and battery. It depends what battery you have purchased. First thing, what panel you have purchased, whether DCR and not DCR, and whether your system is without battery or with battery. So that's why I'm giving you a range. Generally, it's 26 to 30 rupees. Home core. Home core.

Okay, okay. Yeah, that would be it from my say. Wish you all the best. Thank you. Thank you.

Thank you. Next question comes to the line of Himanshu Bisani with Pinpoint X Capital. Please go ahead.

I am an auditor. Yes, I am an auditor, Himanshuji. Please go ahead.

Congratulations, sir, on a great performance, and thanks for the opportunity. Sir, first question on the lines of margins. Sir, in your opening comments, you mentioned that EBITDA margins have been a factor of increased scale and better absorption of fixed cost. I just wanted to understand this downward movement in the prices of solar modules. How does that impact our margins? And obviously, that was offset by the operating leverage that kicked in. How much is that sustainable? And if prices continue to go down, what can be our margins?

So, you rightly mentioned that in non-DCR, this fact is applicable, because in non-DCR, margins are depleted, but since we have now this DCR in-house solar cell, so the margin profile that we are carrying of 18 to 90%, we are hopeful that we will continue to sustain this and rather improve it in the coming context. So, the guidance remains the same, as per the previous quarter, from sustainable to improve.

Understood, sir. And so, what kind of utilization we are looking at for the new 2GW facility, power electronic facility, like this?

We are ready with the capacity, as we have already commissioned 2GW solar panel, and recently in the month of August, we also installed 2GW inverter. But initially, we will start with one shift only. And as the demand increases in the coming quarter, as the demand scales up, we are also doing the testing of the lines parallel. So, if demand scales up further, we are ready with the capacities and we can meet the demand. So, initially, in terms of figure, you can take close to 40 to 50 percent utilization of the capacity of the plan.

Got it. Sir, a question on Suleghar Yuzna. So, the scheme has already covered around 5 million of the 10 million household target. And do you think that we will be able to cover the target by 2027? According to you, how do you see the on-ground work? And secondly, you mentioned in the opening comments about Suleghar 2.0 with some lines around best. And in previous calls, we haven't mentioned about exploring best as an opportunity. So if you can throw some more light on that, how do you see that opportunity and what that can bring to our books?

Sir, if you see the scale, the run rate of rooftop solar adoption under this game, it has scaled up a lot. And the current run rate is close to 1 gigawatt per month installation per month under this game only. So definitely the scale of adoption has increased and we believe it will further increase. That is the answer to your first question. And now on the second question that you asked about the 2.0. So, at various media platforms, we are seeing that government is discussing about it, and it should come up as there is a lot of potential, as we discussed in one of the questions asked by another investor. So, we believe since the potential is huge, government will definitely come up with new policies and new provisions to support adoption of groups of solar.

And let's do it, sir. Congratulations and thank you so much.

Thank you.

Thank you. Next question comes on the line of Vinay Lakhera with Ratna Triad to Capital. Please go ahead.

Yeah. Hi, sir. My first question was on the line of the acquisition. Can you give some details of the Zio Energy Private Limited acquisition, maybe in terms of what kind of impact we can see in margins For cost savings, and these details, if you can see, next year.

Apart from the margins, the primary objective to invest in these companies is to ensure our backward integration objectives so that the supply of the raw material is continuous and the bottlenecks can be removed. On the margins side, we will come up with a number as the quarter progresses. Right now, the company is in the stages of acquiring the land, and maybe in a year or so, they will complete the land acquisition and the construction process. In the coming quarters, we will come up with a margin improvement side, if any, that could be there. Margin is not the primary objective I'll be asked.

What would be the size of this deal if you have any details on that?

Just to give an approximate idea, at this stage, I believe it will be overall capex that will be needed for these plants will be close to 180 to 200 crores. That's an idea right now. We will come up with the final numbers in the coming quarter.

And the next question was on the capacity utilization part. So we have DCR and non-DCR capacity for solar panels. So can you give us a split of capacity utilization and moving forward, how do you see the sustainable rates for these?

We have one gigawatt of solar cell capacity, and so whatever we are manufacturing, we are utilizing in-house to sell these to DCR customers, who want DCR solar panels. And on the panel side, so machines are fungible, they can use DCR, non-DCL, both the solar cells. So, the capacity that we have right now is close to 1.6 gigawatt in the plant other than Datlam, and recently we have commissioned 2 gigawatt in Datlam. So... Till one gigawatt, we can have solar cell in-house. If the demand is high, as we are buying it right now also from outside, we can buy a secure DCI from the existing vendors as well.

So on the panel level calculation, what kind of capacity utilization we can see?

Utilization right now is close to 70%, the capacity that we are having, excluding Raslam, if you see, because Raslam, we are right now operating in one shift. So, at the other plant, the capacity utilization is close to 70% and 80%. And coming to the split side, as I mentioned to you, you can use the same machine for both DCR panel and non-DCR panel, both.

And, sir, on the growth part only, so beyond, for example, we have performed really well for the last two quarters, and also we are seeing that PM 2.0 coming to Rigoroja. So, apart from that, do you see any growth areas where the company is focusing, especially for after, like, one and a half years, from where the major growth can be seen, somewhere like lithium-ion or batteries?

So, 2 gigawatt ctmine batteries we are already installing in our Aslam plant, and so you can say in other way like we are already there in the residential bed. For the large scale beds, we are having something in our mind and we will definitely cover this in the coming quarter's guidance that how we will go into that sector. We are thinking about it and we are also drafting our plans for that.

And so the focus is still on the residential rooftop, right? Not the industrial part.

Yes, the primary focus is on that side. You can see that our 90% of our revenue is from B2C channel network only. So the primary target is on that side only.

Okay, thanks a lot.

Thank you. Next question comes on the line of Sanjay with ampersand. Please go ahead.

Yes, sir. Thank you a lot, Mr. President.

Mr. Sanjay, sorry for interrupting. We cannot hear you. Can I come a little closer and speak?

Yes, now we can. Please go ahead. Yeah, yeah. So this tubular battery factory which did not operate because of fire and you had to trade in, did that have some kind of negative impact on your gross margin?

Gross margin, yes. To a certain extent, the answer is yes, sir, because so whatever material margin that we were saving, having in-house tubular battery capacity was not there. And so at a gross margin level, definitely it got reduced when we were procuring tubular batteries from outside vendors.

And what could it be? Any quantification?

No. The tubular battery is generally 10% of our revenue, and we believe that at company level, the impact at the gross margin level will be below 0.5%.

My second question is that if you can just help us understand that definitely your company is faster than the industry, but if you can just give a teller about how the industry... Year-on-year and quarter-on-quarter compared to yourself and what kind of market share you have. Is it sufficient to say that your market share is now about 8 to 10%?

Officially, it's very difficult to confirm on the market share side, but we believe that in terms of inverters, that we are contributing in the roots of solar market, and now we are also supplying DTR panels, so we believe that we are, as you rightly mentioned, we are having around 10% of on-grid market share.

Okay, but how is, I mean, just trying to get a sense of your market share gain, are you going way faster than industry or not?

The growth in terms of distribution network is relatively high, as you rightly mentioned. So that's why you are seeing this growth more than industry. Because we are acquiring new geographical locations, we are adding new distributors in our network.

Understood, understood. And lastly, is it seasonally this kind of spike is usual for quarter 1 compared to quarter 4, or is it more because of the capacity that you added that you saw such a high growth compared to quarter 4?

Sir, can you please repeat the question?

So, your growth in Q1 compared to Q4 was very high compared to any time in the past. So, what I am trying to understand is that how much of the growth was because of seasonality and how much is it because of the initiatives that you took?

It's a mix of both factors. So, from 8,900 channel partners, we have moved to more than 10,100. So, definitely, we have added new customers. And we have reached out to new geographies, as I informed in the previous questions, that we have added two new states in our covered category, Odisha and Uttarakhand. And demand is there already, definitely, as you mentioned, that industry growth is there. So, industry is growing with a growth rate of 40%. So, it's a mix of both the factors, definitely.

Understood. Thanks and congratulations, Srinivasan, for growing almost more than twice the rate of industry. Thank you.

Thank you. Next question comes on the line of Sagar Shah. It's a part capital. Please go ahead.

Yeah. First of all, many congratulations to the entire team of Fujiyama, actually, for delivering such excellent set of earnings. And now, I have some few questions. Sir, my first question was that in this particular quarter, the revenue growth was actually quite robust. It was. So, in this quarter, what was the contribution from the Rathlam plant? Actually, can you quantify that? Have we started using the Rathlam solar panel unit also?

It will be relatively on a lower side because we applied this plant on 14th of May only. So it was available only for one and a half month. So if you see at a percentage level, it will be very on the lower side.

Okay, okay, fine. So, basically, this growth was largely contributed by the solar panels that we have in Noida, right? In Noida, and the growth was largely contributed by lithium-ion batteries and the solar inverters, right?

So we sell it as a package, so it's a mix of all three. But the good part is that earlier we were not having DCR panel, as we were dependent on the external vendors to give us the DCR solar cell. So since right now we have this DCR panel, so along with panel, now there is a definitely increase in sale of inverter and batteries.

Okay, so basically because of the realization, especially on the mono per DPR, that is how we got the higher realization. That's what you said. Sir, my second question was related to this Bawal Fire Insurance. How long are you expecting the claim to be actually, the claim to be refunded actually? At your end, it will take six months or nine months or even further?

So, we had made a good process. The survey is already done and the surveyor is finalizing his report. So, we believe that by the end of this financial year, we will get the claim amount.

Okay, okay, fine, sir. Now, my last question, sir, was related to the segmental revenue. First of all, if you have the data, if you can just quantify what segments actually did we clock the revenue. And secondly, my suggestion to the management is that going ahead in the investor presentation, if you can quantify that, the segments, how much revenue came actually for further transparency and clarity for the investors so that the company's products can also be highlighted along with obviously everybody knows that Fujiyama says as a combo, the portfolio, but still, it would really help the investors to understand your expertise in actually, and actually, your SK is also regarding the same, what, how critical are they in the future?

Okay, sir, from this side, so, sir, basically, main source is that because we buy FPGS, it has a lot of variable factors in the product portfolio, like DCR, non-DCR, battery, lead acid, lithium-ion, inverter, on-grid, off-grid, hybrid, and that's what we have further. There are a lot of things. See, if we give segment-wise, the confusion becomes much more. I'll tell you for an example. If we look at the megawatt, our inverter is double. If we buy a 1 gigawatt, then we buy a 2 gigawatt. If we look at revenue, then the inverter will come from the panel. Thank you. Good morning, everyone, and welcome to the call. Thank you. This way, when lithium's price fluctuates and goes up, lead acid increases, and when lithium's rate increases, then lithium's rate increases. So, there are so many variables that in every month, the ratio changes all the time. So, that's why we have avoided them, basically, so that the confusion will not get more.

Sir, this? Please tell me, sir.

Our revenue-based guidance, which we will do in the track, Good morning, everyone, and welcome to the call.

Okay, sir. My last question, our 950 plus distributors say last quarter, we have crossed this quarter, so 200 distributors, are we in the new states, or in the original states, where we have put so much presence in there? Thank you.

I mentioned two states in the previous question, Odisha and Uttarakhand. So, we have brought these two states under the category of cover. So, the definition of cover is that we have one distributor in almost each district and one service engineer for each district. So, in these two states, we have increased rapidly in terms of distributor.

And if there's just a few Yama, there's also some distributors in existing areas. So, there's also a number of distributors that are added.

Okay, okay. Fine, sir. Fine. I'll come back to Nikki. Thank you so much, and thank you for the opportunity.

Thank you. Next question comes on the line of Shweta Jain with Anand Durratti, Share and Stock Brokers Limited. Please go ahead.

Hi, good evening. Congratulations on a very good set of numbers. Most of my questions have been asked, actually. Just wanted to understand, sir, what's the company's strategy to further increase the distribution channel? Like, what is the target that we're looking for FY27 and FY28?

Thank you.

Whatever we have done earlier to increase our distribution channel, we are continuing the same strategy, same policy, that we keep on tracking the new M&A portal registered vendors and targeting them to get in UTL solar or Pajamas for the brand. And also, we are targeting the inverter battery dealers who are doing the business and converting them to be our distributors who do this. That's what we are doing, and we are doing it previously.

Sir, any targets that we are looking at for FF27, FF28?

So whatever rates we are growing, I hope we will be keeping the same growth rate.

Okay. And at the end of 28, we believe more than 1500, sir. 15,000. 15,000? Total net of 15,000.

In all, sir, including Shopee in hand.

Yes, yes. Including Shopee, dealer, and distributor, 15,000.

Okay. Okay. And so on the CAPEX front, sir, how much have we incurred so far and what is expected to be spent?

On the CapEx front, ma'am, just give me a moment. When we start this year, we were close to 800, including TV. And by the end of this year, it will be close to 1,300.

1,300 crores for F527.

Yes, no, I'm talking in terms of cumulative. So, cross-block. Cross-block only.

Cross-block.

Including PVPFN. So, just to give you an idea of what we have added here, we have added our solar cell plant that is coming up to our 1,2 gigawatt capacity. And other miscellaneous like solar park and the batch that we will be adding.

This does not include dry energy?

No. Okay.

That will flow on to next year, so not this year. Is that so? The 200 crores is what we spoke about last, in previous call.

I will clear that the total capex is 200, which will remain 50% and there will remain debt and equity, so if we can see that it will be less than 50 crores.

Thank you so much, sir. Thank you.

Thank you. Next question comes from the line of Diana with Dollar Capital. Please go ahead.

Hello, sir. Thank you for the opportunity. My question is on the PM Suryagar scheme. So, the acceptance rate for applications of this scheme is currently at 50-56%, and even the loans are not getting sanctioned for everyone who is applying. So, what do you think are the challenges faced here in the industry, and how do you think PM Suryagar 2.0 will solve this?

Good morning, everyone, and welcome to the call. Otherwise, there are a lot of push for the government. Discom to approve all the tax. Sometimes people are taking a loan for their loan, or they want to get the material and not get the material, So, the application staff has a lot of pending. So, the application staff has a lot of pending. But there is no such thing that the government has to delay or delay, and the government has a lot of push for it, and this will be the same as the cell capacity or the DCR cell capacity, so this will be the same as the adoption will be the same as the adoption.

Got it. And my second question is, this 2.0, will it have additional 30 gigawatts and will it be given to everyone or certain lower income households? So what is your view on this? How will this 2.0 come? Will it be same as 1.0? Any idea on that?

Yes, we have no idea of the lower income group, but we have already been working on that segment. The system is in the range of $50,000, and today it is the most running item, basically. We are getting a lot in the off-grid, and we have launched a lot in the on-grid, and we have launched the micro-inverter. Thank you. So, that's a good idea. If you look at the design of the micro-inverter, we are the first ones who have developed this and are also taking the approvals.

Got it. But any idea on 2.0, whether it will come for all the households or any division will be there? Any idea on that?

There is no clarity about what we are going to do, but there is a little clarity that the battery has increased and reduced power in the night, so we are going to add the battery to 20 people. And we are working on the battery-based system for three years, so we think that if this team comes to us, it will be good for us.

Thank you. That was from my side. Thank you.

Thank you.

Mr. Kumar, please go ahead. Mr. Kumar, please unmute yourself and go ahead. Since there is no reply from the line of Mr. Kumar, we will move to the next participant. That is Abhi Jain with AJ Capital. Please go ahead. Mr. Jain, please go ahead.

I hope I'm audible.

Yes, you are.

My question was that, you know, in the last investor question, you said that this year ending loss loss will be $1,300. And I've been seeing in the last three-four years that pitch asset turnover is close to 4x. Growth asset turnover is also close to 4x. So, is it safe to assume that FI27 will be nearing about 5,000-odd crores of revenue, and this 500 additional crores of capex that you will be doing this year, what percentage of it would be equity dilution, what percentage of that would be debt? That is my perception.

So on the revenue guidance side, we have upgraded our guidance, which was initially 50% upside to 70% for this year. We will trade it further in the coming quarters as the demand grows and as our revenue grows. And on the second question, you asked about the gross block of 1300. So, it is inclusive for solar cell plant and reclam capacities that will be computed. And on the asset turnover side, solar cell plant that we have added is more from a margin point of view rather than on the revenue side. So, this is, and the third question, can you repeat the third question that you asked?

Sir, I just only understand the 500 crore of capping that you'll be entering this year. What part of it would be equity dilution and what part of it would be debt?

There would be no equity dilution as such in this year, and so on the debt side, out of the 500, 200 crore will be from the debt side.

And 300 crore would be cash from business?

When we started this year, we have around 100 crores in our book from the IPO. So, 100 crores will be from there, and the rest 200 will be from our own firm.

So, secondly, I wanted to understand, you know, in terms of the long-term, you know, viability of the business when this subsidy and the scheme soon is that Yojana reaches a very critical mass.

So, I just want to understand that looking at FY28 and FY29.

What, how will you sustain growth? Where do you see growth coming from? How do you see your business shaping up into? So, can you just help me understand three, four years from now, how will the business look like? Where will growth come from? And how do you, you know, save yourself from this becoming a more commoditized business? That is what I wanted to understand.

Actually, we started the Sodor in the year 2008. At that time, the subsidy was not in our mind. We were trying to... We fulfill the demand which was there, but the product was not there. We developed the product. We given the market the solution it needed in terms of off-grid solar, and we made the network into villages of India, rural areas, and semi-urban areas. And this has been a very long time we are working on solar systems. So in this process, we have developed a lot of products which the market needs, and we developed the network where it matters the most, and the service network, the sales network, the people we need. So this is the solar is into our roots. So when the subsidy came, it gave us a very good push that What we were doing came up with a good result, and if the subsidy goes away, which we don't expect it will happen very soon, because there are 35 crores houses in India, and the government target of PM Suriga's Yojna was for 1 crore only, which is 50% covered yet. So PM2.0 is also coming. So we don't expect that it will go away very soon. Even if it goes, we have very good routes into SOLAS and we expect that the people who have come seeing this SOLAS subsidiary into the market, they will fade away and we will sustain. And we should get better market share in this case.

Perfect. So, distributed solar or rooftop solar double-efficient is, because we are generating, we are consuming, distribution is zero. ROI is very good, and we are seeing today's date. We saw inverter that there was no one. We said that we would send an electrician to the electrician, and we would have to see that the inverter will be fine. We have to put inverter in the car. So that's the trend we are seeing today. If there is a new vehicle, we would say that we would send an electrician to the car, and we would have to put solar on the car. So what do we need to use? Good morning, everyone, and welcome to the call. Thank you. Thank you.

Thank you, sir. That was helpful. Sir, please tell us about the non-impliance issues. Do you think it's one-time or do you think it can be an issue in your dating, or do you think it can be an issue? You'll understand how great it is.

So, I explain to you, sir, we have about 500 SKU, which, roughly, we call 250 BIS category in the category, but 50% is not. So, when the team came to us, they had 15 SKU out of 500, they had identified that in BIS category, and they didn't do it as for their evaluation, and we explained the same in our reply. Thank you. We will test the product from the certified lab and give them that our testing has been done, so they will give us a certification to us, so that's how we have done it. So we have done it after that, and if you see in our books, if you see in our books, it will be stored in 500 crores. Good morning, everyone, and welcome to the call. So, you can see all of this, and they have checked all of the products. They have identified 15 products, which are associated with them. The number of cases has been more than the number of cases. So, this is a complete story.

And if you ask all the best, and I'm sure I'll do number one, you will know.

Thank you. Next question comes from the line of Abhi Sehgal with Singularity AMC. Please go ahead.

Hi, sir. Thank you for the opportunity. Just wanted to clarify on something asked in the previous question. You said 26 to 30 rupees per watt, including panel, inverter, and battery was the bomb.

Yes, sir. Basically, Mr. Prashank has said that they have a distributor price, which is below the bill of material, in which you can say that as an average, if you put 15 rupees on the panel, and we put 5 rupees on the inverter, and we put 5 rupees on the battery, then it becomes less than 25-30 rupees. Good morning, everyone, and welcome to the call. Depending on the various sectors, it varies a lot, but at and average, our revenue is full of summarize, so that has explained you. I mean, you are here from the call.

GST is the one for the distributor.

Yes, yes, yes, the distributor is the one for the distributor.

Correct. Thank you sir. Sir, one more question.

Spide in my lack of your business. Just want to understand that what are differentiators in your business as compared to a large solar module player, which are now inverters and all of your kits are launching?

Look, sir, differentiators, we are a solution-providing company, meaning other suppliers can be a solution-providing company. I'll see you next time. For example, you go to someone and you say that for example, you go to the EPC or the distributor, you go to the EPC or the distributor, so you go to the 3KW system. So, you say that it will be 1,700,000 or 1,700,000. If you go to our distributor or shopper, you will say, how much is the PIN KVS system? Then you will ask yourself, how much is the bill? If you say the PIN KVS system, then you will ask yourself, how much is the bill? We'll ask 4 questions. But for the call, you need to add 2,000 for the call. If you say, 5,000 for the call, you need to add 5,000 for the call. Then, we'll ask, how much power is needed? If your power is less than 2 hours, then the system is different. More than 2 hours, then the system is different. If you ask 4-5 questions about the area, whether it is or not, this is a differentiator. Second thing is services. When we go to the distributor, when we say a big company, we must have a system. So we say that the system is not our responsibility, but we don't have the responsibility of the company. Please have a question now. If you take the system from UDL, the responsibility of the company's toll-free number is also. You can get both of them. So, this is a differentiator.

Got it, sir. Thank you. That was really helpful, sir. Thank you. Thank you, sir.

Thank you. Next question comes from the line of Utit Shekal with Pinpoint X Capital. Please cover it.

Good evening, sir, and congratulations on continuing the growth path. Sir, in the Tata power call, their CEO alluded that right now their rooftop solar business is something around 4,000 crores, and they see a potential of up to, say, 30,000

crores by 2030. I mean, is there that much of a potential and a growth runway ahead in this sector?

It seems that we have a lot of potential, but we do not speak a little. It seems that we are talking a little bit more, basically. It seems like we are too much.

I think there is a lot of scope for you at the time.

Sir, look, if someone comes to an economist, there is no region that doesn't exist, basically.

Sir, the government's 1 crore house target was 50 lakhs, and there are 25 crore houses, so the potential is clear.

That's right.

Second, sir, on the solar cell front, how are we placed?

The second line, which we were supposed to, I think we were going for Topcon line, right? I think from, when do we think that can be installed, right? Yes. Q1.

Yes, Q1, I mean, we have a target of Q1, sir, basically. Coming year, I mean, basically, after nine months, we can change. Nine or eight months, now 7.5 months.

Thank you, sir, and we look forward for the same growth path for the next two, three years, hopefully. Thank you, sir.

Thank you. Next question comes from the line of Sagar Shah with Spark Capital. Please go ahead.

Yeah, once again, thank you for the opportunity. Sir, my question was related to your incremental investment in a couple of your companies, actually. I'm talking of Zio cables and Zio energy. So, we have increased 19% to 50%. So, those companies are completely into the backward integration, in which Fujiyama is not into. So, what are your growth plans for this company? You already highlighted that 100 crore capex is there for these, I think, Zayo Energy, you told. But what is the growth outlook and what is the overall outlook? How do you think these companies integrate them into their business model in the NFI 27 and NFI 28?

The next year, the production will start now. They have acquired land, basically, and the next two or three months will start building buildings. We will order the machines in the next two or three months. So within one year, they have a target that we will start the production. In the next financial year, I think we cannot do much, but we can expect a top line of 400-500 crores.

But sir, these products that will be sold along with Fujiyama, Fujiyama products, will you buy these products in the market?

So, we will go, we will supply our OEM, we will supply our Fuseyama and other companies to supply our solar panel.

Okay, fine. Thank you. Thank you so much.

Thank you. Next question comes from the line of Amit Kumar with Determined Investments. Please go ahead.

Yeah, thank you so much for the opportunity, sir, and, you know, congratulations on an exceptional, you know, growth momentum. My first question, you know, this, let us sit, battery plant, jhaan pe thoda fire aapka hua hai. So 2Q, 3Q anyway are, you know, seasonally, you know, weak quarters demand jasi be thodi come rahati hai, but, you know, fourth quarter is typically the high quarter. By 4Q, shall we expect that, you know, this factory would be back online? When are you expecting, you know, this to restart?

Thank you. No, no, we will rent it, because the battery business is a little downward, basically, so we will rent it.

Basically, you will, you know, exclusive lease of sorts.

I am saying

that for this factory, this would be an exclusive lease. It will work exclusively for you, basically.

Yes, we will operate it, sir, with the whole company.

You know, part of your business, and now that you have started, you know, the DCR sales, you know, obviously, you know, you can go more aggressively in the on-grid and, you know, hybrid markets. You're just sort of trying to understand, you know, this kind of, you know, 100% growth that you are basically delivering. Is this entirely coming, you know, because of your, you know, entry and expansion into on-grid and, you know, hybrid systems? Yeah, you know, you know, you have a growth, you know, basically. So, if you can, you know, just clarify with respect to this quarter also, we've gone from 600 crores to 1,300, you know, plus crores in terms of sales. So, last year, I presume that that 600 crore would be entirely... You know, on the back of, you know, your off-grid, you know, business. So, you know, off-grid, what is the growth trajectory, and then, obviously, if there's a little break-up, basically, between on-grid, off-grid, and, you know, hybrid, you know, for this quarter, that'll be very helpful.

Okay, sir, so basically main is that focus on each other. So growth is the same thing. So focus, if you look at this time, if you look at this time, if you look at this outcome, if you look at this outcome, then focus on this one. Okay, so now the main focus is on the on-grid. If you can see, it's not that the on-grid is not increasing. Yes, the on-grid is not increasing, but the on-grid is increasing.

Obviously, because on-grade and high-grade are completely new, on an yearly basis, they are relatively new systems for the company. But this is what I'm basically trying to understand, that in the past year, the majority, the vast majority, 90%, 95% would be off-grade only out of that. So that has also still grown for you.

I mean, obviously, the majority of the growth would be... Good morning, everyone, and welcome to the call. Off-grade is definitely more, because we have some means number one.

If you have a distribution, then the demand of off-grade will be there.

Look at the towns that have 50,000,000, and the battery will also come. So, the person will have 50,000,000, but the one-grade will not go.

Thank you.

Thank you. Ladies and gentlemen, due to time constraints, we have reached the end of question and answer session. I now hand the conference over to Mr. Pavan Kumar Garg for closing comments.

Thank you once again for joining us today and for your continued interest in Fujiyama. We appreciate the confidence you placed 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 support. Thank you. Thank you. Thank you very much.

Thank you. On behalf of Fujiyama Power Systems Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.