Fujiyama Power Systems approved a ₹25 crore capital expenditure plan to expand its battery manufacturing footprint by 2 GWh across Madhya Pradesh and Uttar Pradesh.

The Board of Directors, meeting on August 24, 2026, sanctioned the investments alongside the re-appointment of Mr. Sunil Kumar as a director and an amendment to the company's Articles of Association.

Capacity Expansion Details

The expansion focuses on two distinct facilities:

• Ratlam Plant, Madhya Pradesh: Addition of 1 GWh lithium battery manufacturing capacity. This complements an earlier announced 2 GWh expansion at the same site. The project requires an estimated investment of ₹5 crore and is expected to commence commercial operations by Q2 FY27. Upon completion, the Ratlam facility’s total lithium battery capacity will reach approximately 3.5 GWh.
• Hathras Facility, Uttar Pradesh: Establishment of a new 1 GWh tubular batteries manufacturing plant. This project requires an estimated investment of ₹20 crore and is targeted for commissioning by Q3 FY27. This new facility replaces 1.3 GWh of tubular battery capacity at the Bawal facility, which was damaged in a fire incident on May 6, 2026.

Both projects will be funded through internal accruals.

Governance Updates

The board also addressed key governance matters:

• Director Re-appointment: Mr. Sunil Kumar (DIN: 09824459) was re-appointed as a director liable to retire by rotation. His appointment is subject to shareholder approval at the ensuing Annual General Meeting. Mr. Kumar holds a Bachelor of Technology in electrical engineering from IIT Delhi and has over 25 years of experience in software engineering, including roles at Google LLC, Xilinx Inc., and Mentor Graphics. He is related to Mr. Yogesh Dua, the Joint Managing Director & CEO.
• Articles of Association Amendment: The board approved altering the Articles of Association to designate Joint Managing Director(s) as rotational directors. This change aligns the company’s governance structure with the Companies Act, 2013, ensuring non-independent directors are included among those liable to retire by rotation.

What the Numbers Show

The company is actively replacing lost capacity while simultaneously scaling up its lithium battery operations. The Hathras tubular battery project (₹20 crore) is four times larger in investment value than the Ratlam lithium addition (₹5 crore), despite both adding 1 GWh of capacity. This disparity suggests higher capital intensity per unit of capacity for the tubular battery segment or significant costs associated with establishing a new greenfield facility to replace the fire-damaged Bawal unit. Meanwhile, the existing Greater Noida lithium facility operates at approximately 70% utilization against its 0.5 GWh capacity, indicating room for near-term output growth before the new Ratlam capacity comes online.

Fujiyama Power Systems reported a significant expansion in its financial scale for the quarter ended June 30, 2026. Revenue from operations grew 125% year-on-year to ₹13,457 million, while normalized profit after tax (PAT) increased by 144.5% to ₹1,652 million.

The company revised its full-year growth guidance upward from 50% to 70%, citing robust demand and expanded manufacturing capabilities. This upgrade reflects management's confidence in sustaining momentum through its integrated solar solution portfolio.

Financial Performance

The quarter saw substantial improvement in operating profitability alongside top-line growth. EBITDA rose 140.6% year-on-year to ₹2,548 million, with the margin expanding to 18.9% from 17.7% in the corresponding period of the previous fiscal year.

Reported PAT for the quarter stood at ₹578 million, impacted by an exceptional loss provision of ₹1,436 million related to a fire incident at the Bawal facility. Management expects full recovery of this amount through insurance claims, which are currently under assessment.

What the Numbers Show

The divergence between reported and normalized profit highlights the impact of non-recurring events on the bottom line. While reported PAT margins appeared compressed at 4.3%, the underlying operational health is reflected in the normalized PAT margin of 12.3%. This suggests that core business efficiency improved significantly, driven by better absorption of fixed costs across higher volumes rather than pricing power alone.

Capacity and Integration

Manufacturing capacity additions played a pivotal role in supporting revenue growth. The company commissioned a 2-gigawatt solar panel facility at Ratlam, bringing total panel capacity to 3.5 gigawatts. Additionally, a 2-gigawatt power electronics facility was commissioned in August 2026, increasing total power electronics capacity to 4 gigawatts.

Backward integration efforts continued with the increase of stake in Zayo Energy Private Limited and Zayo Cable Private Limited from 19% to 50%. These entities manufacture critical components such as aluminum frames, PV ribbon wires, and solar cables. The company anticipates these investments will enhance supply chain control and potentially improve margins as production scales up next year.

Distribution Network Expansion

The distribution network witnessed one of its largest quarterly expansions, adding over 80 distributors, 1,000 dealers, and 30 exclusive shops. The total channel partner network now exceeds 10,100 partners. Two new states, Odisha and Uttarakhand, were added to the covered category, defined as having at least one distributor per district.

Management targets expanding this network to over 15,000 partners by the end of FY28. This aggressive expansion aims to capitalize on the PM Surya Ghar Muft Bijli Yojana, which has already seen 50 lakh households covered out of a target of 1 crore.

Outlook and Guidance

Looking ahead, the company plans to maintain operating discipline while scaling newly commissioned capacities. The focus remains on the residential rooftop solar segment, which contributes approximately 90% of revenue. With the government targeting 300 gigawatts of solar capacity by 2030, including 90-100 gigawatts from rooftop installations, the addressable market remains substantial.

Capex for the current financial year is expected to reach ₹1,300 crore cumulatively, funded through a mix of debt and internal accruals without equity dilution. The company continues to monitor policy developments regarding PM Surya Ghar 2.0, which may include battery storage incentives.