Fujiyama Power Systems IPO

It achieved robust financial performance, with revenue from operations growing at a high CAGR of 52.32% from FY23 to FY25. Revenue reached ₹1,540.68 crore in FY25, demonstrating strong operational scalability.

Profitability has substantially increased, evidenced by the EBITDA margin rising from 7.77% in FY23 to 16.13% in FY25. Its profit grew nearly six times, from ₹24.37 crore in FY23 to ₹156.34 crore in FY25.

It holds a significant competitive market position in a key product segment, capturing approximately 15.5% market share in the total Indian solar battery market in FY25. This diversified portfolio reduces dependency on any single product category, ensuring resilience.

It possesses a strong distribution network critical for its business-to-consumer (B2C) focus. As of June 30, 2025, the network consisted of over 7,371 channel partners, including 725 distributors, 5,546 dealers, and 1,100 exclusive Shoppe franchisees.

A primary focus on the retail consumer market (B2C) contributes significantly to stable revenue. The B2C channel generated ₹1,379.43 crore (89.5% of the total sales) in FY25, confirming its strong brand recognition among retail customers.

It is investing in a new facility in Ratlam, Madhya Pradesh, to meet anticipated market demand. This expansion will add 2 GW of capacity for solar panels and inverters, and 2 GWh for Lithium-ion batteries. Post-completion, its total installed capacity will rise to 3.04 GW (Solar Panels), 3.74 GW (Inverters/Electronics), and 2.54 GWh (Lithium-ion Batteries).

The cost associated with post-sales liabilities appears low, suggesting reliable product quality. Warranty expense accounted for only 0.10% of revenue from operations in the three months ended June 30, 2025, demonstrating contained repair and replacement costs.

Retail sales are heavily concentrated, creating exposure to region-specific market risks. For the three months ended June 30, 2025, the state of Uttar Pradesh generated 42.18% of its total retail sales, while the top 5 states contributed 77.10%, leaving it vulnerable to localized policy shifts.

It relies heavily on international suppliers, primarily China, for critical raw materials like solar cells and lithium-ion cells. The cost of imported materials amounted to 29.08% of total purchases in the three months ended June 30, 2025. Out of this, purchases from China contributed 92.03%, creating foreign currency and geopolitical risks.

It operates with a significant total outstanding borrowing amount of ₹687.65 crore as of September 30, 2025. The debt has increased significantly from ₹211.1 crore in FY23. This increased debt resulted in a debt-to-equity ratio of 0.93 times (as of June 30, 2025) and requires strict compliance with restrictive financing covenants.

It recently experienced adverse cash flow, with net cash from operating activities amounting to a negative ₹4.55 crore during the three months ended June 30, 2025. Sustained negative cash flow could restrict its ability to fund working capital or expansion plans.

All four existing manufacturing facilities are concentrated entirely within northern India. This geographical concentration makes operations vulnerable to unforeseen regional risks, such as natural disasters, labor disruptions, or infrastructure failures, affecting production schedules.

The proposed Ratlam expansion, costing an estimated ₹272 crore total, is subject to high risk. Delays in civil work, machinery acquisition, or obtaining necessary approvals like environmental clearance could lead to substantial cost overruns and time delays.