# 1. Financial Performance ## A. Key Figures * EBITDA: ₹31.88 Cr 9M FY26 (+88.1% YoY) · 18.2% margin Q3 FY26 (+200 bps YoY) * PAT: ₹673 Mn Q3 FY26 · ₹1,978 Mn 9M FY26 * Gross Margin: +0.9% pts QoQ improvement in Q3 FY26 driven by backward integration * **Total Debt:** **₹470+ Cr** (term loans, working capital, vendor finance) ## B. Revenue Growth * **Robust Quarterly Momentum:** Revenue more than doubled YoY in Q3, reflecting strong execution and scaling of Fujiyama Power Systems’ integrated model. * **Subsidy Access Catalyst:** In-house solar cell manufacturing enables participation in PM Surya Ghar Yojana, unlocking new revenue streams previously constrained by DCR cell shortages. * **Sequential Growth:** Revenue up 6% QoQ, supported by improving demand and operational ramp-up. ## C. Profit Margins * **Significant Margin Expansion:** EBITDA margin improved to 7% in Q3 from 5% YoY, with gross margin up 9 pts QoQ due to backward integration and scale efficiencies. * **Sustainable Margin Leverage:** Gross margins resilient to input cost volatility, maintained within **±1–5% range** via disciplined pricing. * **Cost Discipline:** Stable operating expense ratios despite growth, with employee and other costs flat as % of revenue YTD, supporting PAT margin improvement. ## D. Cost Control * **Mixed Cost Trends:** Employee costs rose 4% sequentially due to pre-emptive hiring for expansion and labor code changes, offset by prior-year YoY decline of 3%. * **Controlled OpEx Inflation:** Other costs increased only marginally by 2% sequentially, underscoring operational efficiency during scale-up. --- # 2. Manufacturing & Capacity ## A. Key Figures * Solar Panel Capacity: 1.6 GW total (1.2 GW in Dadri) * **Ratlam CapEx:** **₹272 Cr** total (₹159 Cr machinery) * **Dadri Cell Plant Cost:** **₹300 Cr** (₹100 Cr under budget) * **Current Production Capacity:** **650–700 MW** annually ## B. Cell & Module Capacity * **Strategic Backward Integration:** New captive cell capacity supports module production, significantly reducing import dependence and enhancing supply chain control. * **Ratlam Expansion to Double Capacity:** Three new 2 GW lines (module, battery, inverter) will approximately double total manufacturing footprint, with scalable revenue potential tied to market demand. * **Cost-Efficient Technology Choice:** Adoption of **Mono-PERC** over TOPCon enabled faster commissioning and lower capex (**~₹250–300 Cr/GW** vs. **>₹500 Cr/GW**), preserving revenue timing for DCR projects. * **Future-Proofing via Conversion Plan:** Existing PERC lines are designed for eventual upgrade to TOPCon, ensuring long-term competitiveness without sacrificing near-term economics. ## C. Plant Commissioning * **Best-in-Class Execution:** Dadri 1 GW cell plant completed in **six months**—well ahead of industry norms and under budget—demonstrating strong project delivery capability. * **Revenue Ramp-Up Underway:** Cell production has commenced; full ramp-up expected by quarter-end, with initial sales already realized. * **Ratlam to Drive Future Growth:** New facility lines set to contribute revenue from **Q1 FY27**, aligning with rising demand for integrated clean energy solutions. ## D. Utilization Rates * **High Utilization Confidence:** Management expects **maximum utilization at Ratlam possibly within the year**, supported by strong order visibility. * **Dadri Cell Plant Rapid Ramp:** Utilization set to double from **~40% to 80%** by quarter-end, enabling ~800 MW annual DCR panel supply at full run-rate. * **Operational Excellence Focus:** AI integration and **CAPA system** deployment are key levers to sustain high efficiency and exceed industry-average utilization benchmarks. --- # 3. Product & Segment Mix ## A. Key Figures * **Solar Panel Shipments:** **460 MW** 9M FY26 (+80%) · **255 MW** 9M FY25 * **Inverter & Power Systems Shipments:** **900 MW** 9M FY26 (+77%) · **508 MW** 9M FY25 * **Revenue Mix:** **45–47%** from solar panels ## B. Solar Panels * **Strong Volume Growth:** Solar panel shipments nearly doubled year-to-date, reflecting robust demand and scaling execution. * **Technology Flexibility:** Both Mono-PERC and TOPCon are operationally viable, with **Mono-PERC remaining the preferred choice** due to superior cost-efficiency balance. * **Market & Supply Resilience:** U.S. and global markets show no near-term pressure to shift from Mono-PERC; wafer supply remains stable. * **DCR Capacity Utilization:** Ratlam plant’s DCR Mono-PERC cells are strategically aligned with government-subsidized rooftop demand, with **full in-house absorption expected**. ## C. Inverters & Batteries * **Inverter Segment Scaling Rapidly:** Fujiyama Power Systems achieved near-doubling in shipments, indicating strong traction in power electronics. * **Cost Allocation Insight:** Out of total product cost, **solar panels accounted for 74.5%**, batteries for 25%, and electronics for 40%—highlighting disproportionate panel cost intensity. --- # 4. Distribution & Channel ## A. Key Figures * **Channel Expansion:** **+60 distributors**, **+400 dealers**, **+20 exclusive Shoppes** in Q3 FY26 · Total channel partners exceed **8,200** ## B. Distributor Network * **Strategic Scaling:** Ongoing expansion and deepening of the distribution network, with a focus on partner quality, financial strength, and **mandatory investment** as a commitment mechanism. * **Improved Supply-Demand Alignment:** Enhanced DCR cell manufacturing capacity has resolved prior supply constraints, enabling **better fulfillment** and improved distributor satisfaction. * **Proactive Channel Management:** Distributors are notified in advance of price changes, allowing **smoother inventory adjustments** and stronger relationship management. ## C. Shoppes Outlets * **Enhanced Customer Touchpoints:** Shoppes format drives engagement through localized **system guidance, installation support, and financing assistance**, boosting penetration in new and existing markets. ## D. Channel Expansion * **Integrated Competitive Advantage:** Vertical integration across manufacturing, distribution, and after-sales strengthens positioning to capture growth from India’s accelerating solar adoption. --- # 5. Supply Chain & Input Costs ## A. Raw Material Pass-Through * **Full Cost Pass-Through Policy:** Fujiyama maintains a strict policy of passing all raw material cost fluctuations—both increases and decreases—to B2C customers over time, ensuring no sustained margin impact. * **Gradual Pricing Adjustments:** Price changes are phased in slowly (e.g., **Rs. 25 per watt per week**) to balance profitability, customer comfort, and goodwill, especially when inventory allows delay. * **Recent Input Cost Relief:** Silver and aluminum prices have shown **significant short-term decline**, reversing prior inflationary pressure, though industry-wide adjustments remain gradual. ## B. Wafer & Cell Sourcing * **In-House Cell Production Advantage:** Domestic Mono-PERC cell manufacturing enhances supply chain resilience and supports integrated solar solutions, with stable global Mono wafer supply. * **DCR Cells Trade at Premium:** India-made DCR cells command a higher price than non-DCR variants due to persistent **demand-supply imbalance**, though premiums vary monthly. * **R&D on Silver Alternatives Ongoing:** Exploration of copper paste to mitigate silver cost exposure is in progress but remains **6–12 months from potential commercialization** due to technical hurdles. ## C. Custom Duty Impact * **No Duty on Wafers Confirmed:** Recent speculation about a 7%–10% import duty on wafers is false; current duty remains **0%**, with policy focus limited to polysilicon. * **Glass Input Costs to Ease:** A reduction in custom duty on glass raw materials from **5% to 0%** is expected to improve domestic glass pricing, benefiting a key cost component. * **Duty-Free Access for Battery Equipment Maintained:** The IGCR license continues to enable **duty-free import of battery manufacturing machinery**, supporting planned capacity expansion. --- # 6. Regulatory & Policy Risks ## A. Regulatory Outlook & DCR Timeline * **Full DCR Rollout Expected by Mid-2026:** All solar panel projects, including non-subsidized ones, will soon require domestically manufactured cells, with enforcement anticipated by **June–July 2026**, though minor delays possible. * **Industry Tailwinds from DCR Expansion:** Upcoming mandate aligns with maturing domestic manufacturing capacity, positioning the Indian solar industry for structural growth. ## B. Policy Support & Input Cost Relief * **Raw Material Cost Benefits:** Exemption of basic customs duty on solar glass raw materials offers potential margin support, though magnitude remains undisclosed. * **Ecosystem Development Boost:** Duty-free import of machinery under new licenses accelerates the build-out of a **self-reliant battery energy ecosystem** in India. --- # 7. Guidance & Outlook ## A. Key Figures * **FY27 Sales Target:** **1 GW** each for solar panels, inverters, and batteries (minimum) * **Rooftop Solar CAGR:** **40–45%** projected (forward outlook) · **45%** historical ## B. FY27 Sales Targets * **Ambitious Product-Specific Guidance:** Management targets minimum **1 GW** annual sales volume across all three core product lines by FY27, signaling confidence in market capture and execution capability. * **Favorable Market Trajectory:** Long-term demand supported by India’s **300 GW solar capacity target by 2030**, rising energy awareness, and grid instability, expanding the addressable market. * **Rooftop Growth Confidence:** Outlook remains robust with expected **40–43% CAGR** in rooftop solar, underpinned by sustained government support reflected in recent budget allocations. ## C. Capacity Utilization * **Ratlam Ramp-Up Plan:** Facility expected to reach **at least 50% utilization in Year 1** and **full capacity in Year 2**, with potential for accelerated ramp-up if demand exceeds expectations.