Fujiyama Power Systems posted stellar Q3 FY26 results with revenue up 73.8% YoY to Rs. 5,885 million, driven by margin expansion to 18.7% and PAT at Rs. 673 million. The company also commissioned a 1 GW solar cell plant, bolstering backward integration. With India's solar targets, management forecasts strong FY27 growth from new capacities.
Fujiyama Power Systems has reported a significant uplift in its Q3 and 9M FY26 financial performance, underscoring robust growth and operational advancements.
- The Numbers: For the third quarter of FY26, the company posted revenue from operations of Rs. 5,885 million, a substantial 73.8% year-on-year (YoY) increase. EBITDA more than doubled YoY, reaching Rs. 1,099 million, with margins expanding to 18.7% from 15.5% in Q3 FY25. Profit After Tax (PAT) for the quarter stood at Rs. 673 million, with a PAT margin of 11.4%, up from 8.9% YoY. Sequentially, revenue grew by 3.6% and EBITDA/PAT saw approximately 6.7-7.0% growth in Q3 FY26.
For the nine months ended December 31, 2025 (9M FY26), revenue grew by 65.4% YoY to Rs. 17,537 million. EBITDA surged 88.1% YoY to Rs. 3,188 million, with margins improving to 18.2% from 16.0% in 9M FY25. PAT for 9M FY26 was Rs. 1,978 million, at a margin of 11.3% compared to 9.9% in the prior year period.
- The Quality: The improved profitability is attributed to better gross margins (up 2.1% YoY) and enhanced operational efficiencies. A key driver has been increased in-house manufacturing of solar panels, inverters, and batteries, alongside benefits derived from economies of scale. This backward integration not only controls costs but also enhances supply chain security.
- Management Commentary: Management expressed confidence in their ability to pass on fluctuations in raw material prices to customers, targeting to maintain gross margins within a narrow band. They anticipate further improvements in operational efficiency and margins through AI adoption and continuous improvement initiatives (CAPA). Benefits are also expected from recent government policy decisions, including customs duty exemptions on raw materials for solar glass and machines for battery manufacturing.
🚀 Operational Milestones & Outlook
Operationally, Fujiyama Power Systems has made a significant stride with the commissioning of a 1 Gigawatt (GW) solar cell manufacturing plant at Dadri, Uttar Pradesh, involving an investment of approximately Rs. 300 crores. This facility, along with an existing 1.2 GW capacity at Dadri, brings the company's total solar panel manufacturing capacity to 1.6 GW. The Dadri plant's capacity is primarily for captive consumption, enhancing backward integration. Furthermore, the company has expanded its distribution network by adding over 60 distributors and 400 dealers, taking its total channel partner base to over 8,200.
The company projects a favorable long-term outlook, driven by India's ambitious solar adoption targets (300 GW by 2030), growing energy-saving awareness, and grid instability. Management expects new manufacturing lines at the Ratlam facility (including solar modules, lithium-ion packs, and inverters) to contribute to revenue from Q1 FY27. They are targeting a minimum of 1 GW each for solar panel, inverter, and battery sales in FY27. The Dadri solar cell plant is anticipated to reach up to 80% utilization by the end of the current quarter, and the Ratlam facility is expected to utilize 50% of its new capacity in FY27, scaling to 100% thereafter, contingent on market demand.
