Fujiyama Power Systems (NSE:UTLSOLAR) Q1 2026 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Fujiyama Power Systems Limited Q1 FY 'twenty seven 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 of date of this call. These statements are not the guarantees of future performance and involve risks 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 by pressing star then 0 on your text on phone. Please note that this conference is being recorded. I now hand the conference over to mister Sumant Kumar from Motilal Oswal Financial Services Limited.

0:45 Thank you, and over to you, Mr. Kumar. Yeah. Thank you. Good evening, everyone, and very warm welcome to Fujiyama Power Systems Limited Q1 FY twenty seven post result earning call posted by Motilal as well Financial Services Limited. On the call today, we have management team being represented by Mr. Pawan Margar, Chairman and joint GMD Mr. Yogesh Dua, CEO and GMD and Mr. Prasanth Gupta, CFO, will begin the call with the key thoughts from the management team. Thereafter, we'll open the floor for Q and 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, Pavanjee. Thank you, Jumanji. Good afternoon, everyone, and thank you for joining us today.

1:34 It is a pleasure to connect with you and share an update of Fujiyama operating and financial performance for the quarter ended with June 26. Let me begin with thanking our customers, channel partners, employees and shareholders for their continued trust in Fujiyama. 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.

2:21 Revenue from operations growing 125% year on year. EBITDA increased by 140% year on year. EBITDA margin expanded to 18.9% from 17.7% in Q1 'twenty six. 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 SOPs. This took a total channel partners network to over 10,100 as of June 26. The wider network gives Fujiyama greater access to customers across different markets and support faster product availability, installation and after sales service.

3:16 This remains particularly important in residential rooftops solar segment, where proximity to customers and dependable service are important factors in purchase decisions. On the manufacturing front, made significant progress at our Ratlang facility. During the quarter, we commissioned two gigawatt solar panel manufacturing facility. With the addition, our total solar panel manufacturing capacity increased to 3.5 gigawatts. Additionally, we also commissioned two gigawatt power electronics manufacturing facility at Rotterdam in Aga Twenty 6.

4:02 The facility will manufacture solar inverter, UPS systems and other related power electronics products. With this addition, Fujiyama total power electronics manufacturing capacity is increased to four gigawatts. Furthermore, the two gigawatt lithium ion battery manufacturing capacity at Raslan is also on track for commissioning by Q2 'twenty seven. Once completed, the complex will bring solar panel and batteries under one manufacturing location, further strengthening, integrating integration across the company's product portfolio and supporting its growing scale of operations.

4:48 Alongside our capacity expansion, we are also taking further steps towards backward integration. During the quarter, the company increased its stake in Jio Energy Prevalid and Jio Cables Prevalid from 19% to 50% in each company. Jio Energy is engaged in manufacturing solar module components like aluminum frame, PV ribbon wire, busbar and solder wire, while Jio cables is engaged in manufacturing of solar module components like PV junction box, solar cable and EVA sheet. These investments component our existing manufacturing capabilities by extending our presence into components used across the solar and power electronics products.

5:42 As these business scale, the integration of our components within our value chain can help improve sourcing control and further deepen Fujiyama's integrated manufacturing model. Looking at the broader market, the opportunity for roof of solar in India remains significant. The PM Suriyagar, most recently, 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.

6:28 This allows Fujiyama to address both the on grid and backup driven requirements through its portfolio of solar panel, inverter and batteries. Furthermore, we are also closely following the proposed next phase of the scheme, being referred to as PM Suriyazhar 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 relevance of targeted solar and storage solutions.

7:21 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 Fujiyama team for their efforts. We remain focused on building Fujiyama as an integrated solar solution company and creating long term value, while contributing India's transition towards clean and reliable energy.

8:19 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 06/30/2026. Let me begin with the quarterly performance. During Q1 FY 'twenty seven, revenue from operations was INR 13,457 million compared to 5,973 million in Q1 FY 'twenty six, representing a year on year growth of 125.3%. EBITDA for the quarter was INR 2,548 million, increasing by 140.6 percent year on year.

9:11 EBITDA margin improved to 18.9% from 17.7% in Q1 FY 'twenty six. The improvement in operating profitability was supported by the significant increase in business scales 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 quarter. Despite sharing part of these benefits with the customers, we were able to retain sufficient efficiencies within the business. The expansion of our manufacturing capacity also supported the increase in scale. During the quarter, we commissioned the two gigawatt solar panel manufacturing facility at Rasla.

10:04 This increase of total solar panel manufacturing capacity to 3.5 gigawatts. The facility is being ramped up in phases as volumes increase. Let me now discuss the impact of the fire incident at our Bawal facility during the quarter. The incident resulted in damage to building structures, plant and machinery, inventories and other assets with a net carrying value of INR $1,436,000,000. Accordingly, the company has recognized a provisional exception loss of INR $1,436,000,000 during the quarter. The affected assets are adequately insured, and the company has lost its claims within with the insurer. The assessment process is at an advanced stage, although it has yet to be fully completed.

10:54 Based on the insurance coverage available, management expects to recover the entire net carrying value of the affected assets through the claim process. After accounting for this exceptional item, profit before tax for the quarter was INR $777,000,000. Reported profit after tax was INR $578,000,000 with a margin of 4.3%. For a like for like understanding of the underlying performance, excluding the provision of INR $1,774,000,000 on a post tax basis, normalized FAT would be would have been INR $1,652,000,000. On this basis, normalized FAT margin was 12.3% compared to 11.3% in Q1 FY 'twenty six. This represents a year on year increase of 144.5% in normalized FAT.

11:48 Looking ahead, as the recently commissioned capacity ramp up, our focus will remain on maintaining operating discipline and managing costs as the business expands. That concludes my remarks on the financial performance. We can now open the floor for question and answers. Thank you. Thank you. We will now begin the question and answer session. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question comes from the line of Fujiyama from Unifi Capital. Please go ahead.

12:36 Yes. Congrats, Ratin, for the great set of numbers. So first on the guidance, given we had an exceptional start in Q1, how should we look at the full year guidance? There seems to be a lot of I mean, the coverage or 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? So sir, in the last quarter, as you rightly mentioned, we gave a 50% upside guidance 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.

13:30 So but as this as you rightly mentioned that demand is increasing and a 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 capacity that we are ready with in the plant. And we would like to also highlight one thing that we can trail this guidance in the coming quarters as the year progress. Got it. Second, you have been doing a lot of backward integration, adding your own modules, sales capacity, etcetera. 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?

14:19 So you rightly mentioned and pointed out that having this TCR 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'll be gaining. So we would like to continue our previous guidance of margins from sustainable to improve. Okay. And final question on the new policy and new fields and framework, etcetera. What is your expectation? By when can we expect government announcement on the 2.0 scheme of rooftop solar?

15:07 Sir, as per our knowledge, it is still under discussion, but government is actively working on it as we have seen it on at various media platforms. So we are hopeful that they will come up soon with the PM2 laser 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. That is our belief. Next question comes from the line of Archit Agarwal with Step Trade Capital. Please go ahead.

15:55 Hello. Speakers, please go ahead. Am I audible? Yes, you are. First of all, congratulations on good set of numbers. You. You. Hello. Sir, my question is on sir, my question is, you have previously said that when capacity is available in the past some of the integration benefit to customers to drive volume. Given the significant capacity now coming online, should investors expect EBITDA margin to remain around 18% to 19%? Or could aggregate market share expansion lead to margin completion? Yes. So I'd like to reiterate that point only. So we will continue our margin guidance on sustainable to improve for the year.

16:52 Sorry? I'm saying I'm 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 to continue that. Okay. Okay. And sir, the damage from the fire incident had funds, so how much is the equivalent from the insurance? Sir, we are adequately covered. We have taken considering the carrying value of the asset that got impacted. It is close to 143 crore, and we are sufficiently covered under that. And on the progress on the claim side, that survey has already been done.

17:38 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 recovery of the complete loss that we have suffered during this incident. Sir. Thank you. That's helpful. Thank you. Next question comes from the line of Anujiyama Power Systems Limited. Please go ahead. Hi, sir. Thanks for the opportunity and congrats on great set of results.

18:26 So my first question is on your cell plant, which has already been operational. Can you mention at what stabilization that plant has reached as of now? It is operating at 80% plus utilization right now. Okay. So fair to assume, sir, this quarter we benefited from this DCR plan even at 80% and once this goes up further, then the margin can move further from here on. We are hopeful. But as you mentioned 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 and new customers.

19:20 Fair enough. Secondly, we are consistently scaling up our channel partner network. You know, like, we have... Last quarter, I guess, we were close to 8,900. Now that number has crossed 10,000. Could you 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 so in the presentation, we gave a map where we statewide, we gave a detailing about that what states are covered and what states are undergoing state. So in the previous quarter, two states in this immediate quarter, we have added two new more states from covered from growing category to cover, which is one is Odisha and the another one is Uttarakhand.

20:10 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 top contractility? You mentioned that it could 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. Thank you. Next question comes from the line of Deepak Podda with Safrae Capital. Please go ahead.

20:59 Hello, am I audible, sir? Yes, sir. You are audible. Yes, Yes, are you very much, sir, for this opportunity. So just wanted to understand, I mean, from the industry perspective, can you get 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. Yes. So we can see this number at three levels, sir. At the overall potential level, sir, they were doing report from Council of Energy, where they gave us around more than six thirty gigawatts of total solar potential this year. 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 FY 'thirty. And out of that 300, we believe that 190 to 100 gigawatt will come from the rooftop solar itself.

21:55 So the third this is the second number of 100 gigawatt solar by 2030. And the third number is the actual capacity, which is installed till now. So till now, I believe over 30 gigawatt is being already installed under in this roof of solar industry. And out of that, we and two rigs are mostly originally also one of the biggest catalysts in this side. And around 15 gigawatts has come from that only. And we believe that additional 15 gigawatt is also there in Phase one of this PM2 rig are mostly originally. As out of one third houses, 50 lakh houses are already covered. Out of I missed the last line. So out of how many? I'm saying, sir, that in the first phase of PM, government set a target to cover at least INR 1 crore household. And out of that, government has achieved 50%, which translates to 50 lakh households.

22:58 Okay, okay. Understood. And so now still now 30 gigawatt solar rooftop capacity has been installed, you expect that it to go to 90 to 100 gigawatt by two Yes, thousand and yes. Right? And generally, one gigawatt solar top, so what's the realization we generally get? Realization, sir, if you add... Or one megawatt? Yes. So generally, we see it as a per watt. How we measure it, we see it as a per watt realization. So for a system with battery, generally, this cost comes to close to INR 26 to INR 30 per watt. INR 26 to INR 30 per watt? Yes, including panel inverter. But it depends and depends that what battery you have purchased, first thing, what panel you have purchased, whether DCR and not diesel and whether your we we very in in So you.

24:07 Thank pleased made you. Next question comes from the line of Himanshu Bisani with Pinpoint X Capital. Please go ahead. Hi, am I audible? Yes, we are audible, Imamshujiy. Please go ahead. Congratulations, sir, on a great performance and thanks for the opportunity. Sir, first question on the lines of margin. Sir, in your opening comments, you mentioned that the EBITDA margins have been a factor of increased scale and better adoption of fixed cost. 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 is sustainable? And if prices continues to go down, what can be our margins?

24:58 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 quarters. So the guidance remains the same as for the previous quarter from sustainable to improve. Understood, sir. And sir, what kind of utilization we are looking at for the new two gigawatt facility, power electronics facility like this? We are ready with the capacity as we have already commissioned for two gigawatt solar panel. And recently, in the month of August, we also installed two gigawatt inverter.

25:53 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. If demand scales up further, we are ready with the capacities, and we can meet the demand. So initially, you in terms of figure, you can take close to 40% to 50% utilization of the capacity of the plant. Got it, sir. Sir, a question on Suresa and Yuzna. So the scheme has already covered around 5,000,000 of the 10,000,000 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 Suriyama 2.0 with some lines around debt. And in previous calls, you have already mentioned about exploring debt as an opportunity.

26:47 So if you can throw some more light on that, how do you see that opportunity and what does 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 one gigawatt per month installation per month under this game only. So definitely, the scale of production 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 question asked by the another investor.

27:36 So we believe since the potential is huge, government will definitely come up with new policies and new provisions to support adoption of group of solar. Understood, sir. Congratulations, and thank you so much. Thank you. Thank you. Next question comes from the line of Vinay Lakira with Ratna Triad Capital. Please go ahead. Yes. 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 or cost savings and these details, if you can.

28:23 Apart from the margins, the primary objective of to invest in these companies is to ensure our backward integration objective so that the supply of the raw material is continuous and the bottleneck can be removed. On the margin side, we will come up with a number as the quarter progress. Right now, the company is in the stages of acquiring the land. And maybe in a year or so, they will complete the land and acquisition in the construction process. In the coming quarters, we will come up with the margin improvement side, if any, that could be there. Margin is not the primary objective, Okay. While And what would be the size of this deal, if you have any details on that?

29:09 Just to give an approximate idea at this stage, I believe it will be overall CapEx that will be needed for these plants to be close to INR 180 crores to INR 200 crores. That's an idea right now. We will come up with the final numbers in the coming quarters. Okay. And my 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, whatever who wants DCR solar panels.

29:58 And on the panel side, so machines are fungible. They can use DCR non retail, both the solar cell. So the capacity that we have right now is close to 1.6 gigawatt in the plant other than the plant. And recently, we have commissioned two gigawatt in the plant. 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 procure DCR from out from the existing vendors as well. So on the panel level calculation, like what kind of capacity utilization we can see?

30:47 Utilization right now, it's close to 70%, the capacity that we are having, excluding the slam, if you see, because the slam, we are right now operating in one shift. So at the other plant, capacity utilization is close to 7080%. And coming to the split side, as I mentioned to you, you can use the machines, the same machine for both DCR panel and non DCR panels, both. Okay. And sir, on the growth part only, so beyond, for example, we have performed really well for the last 0.5. And also, we are seeing that PM 2.0 coming to Rigorhoja. So apart from that, do you see any growth areas where the company is focusing for especially for after like one and one point five years from where the major growth can be seen, somewhere like lithium ion battery side?

31:39 So two gigawatt lithium ion batteries, we are already installing in our plant. And so you can say in other way, like we are already there in the residential bed. At the for the large scale beds, we are having something in our mind, and we will definitely cover this in the coming quarters 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. As you can see that our 90% of our revenue is from B2C channel network only. So the primary target is on that side only.

32:33 Next question comes from the line of Sanjay with Ampersand. Mr. Sanjay, sorry for interrupting. We cannot hear you. Can you 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, was that 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 vendor.

33:36 And what would 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 would be below 0.5%. Understood. 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 color 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 converters that we are contributing in the roof of solar market. And now we are also supplying lithium channel. So we believe that we are as you rightly mentioned, we are around we are having around 10% of on grid market share.

34:39 Okay. But how is I mean, just want to get a sense of your market share gain. But are you growing way faster than industry or not? The growth in terms of the distribution network is relatively high, as you rightly mentioned. So that's why you're 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 one compared to quarter four? Or is it more because of the capacity that you added that you saw such a high growth compared to quarter four? Sir, can you please repeat the question?

35:25 Sir, your growth in quarter one compared to Q4 was really 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? So it's a mix of both of our 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 question that we have added two new states in our covered category, Orissa and Uttarakhand. And demand is still already definitely is there.

36:10 As you mentioned, that industry growth is there. So our industry is growing with a growth rate of 40%. So it's a mix of both the factors, definitely. Understood. Thanks and congratulations on Zhiqin for growing almost more than twice the rate of industry. Thank you. Thank you. Thank you. Next question comes from the line of Sadar Shah with Spark Capital. Please go ahead. Yes. First of all, many congratulations to the entire team of Fujiyama actually for delivering such excellent earnings. And now my I have some few questions. Sir, my first question was that in this particular quarter, the revenue growth was actually quite robust. Was.

37:00 So in this quarter, what was the contribution from the Ratlamp plant? Actually, can you quantify that? Have you used started using the Ratlamp solar panel plant also, solar panel unit also? It will be relatively on a lower side because we capitalized this plant on May 14 only. So only it was available only for one point five months. So if you see at a percentage level, it will be very on the lower side. 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?

37:50 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 DCR panel. So along this panel, now there is a definitely increase in tail of inverter and batteries. So basically, because of the realization, especially on the mono PERC DCR, that is how we got the higher realization. That's what you're saying. Sir, my second question was related to this Bawal Fire Insurance, this means 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?

38:52 So we had made a good progress. Survey is already done, and 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, was related to the segmental revenue. First of all, if you can if you have the data, if you can just quantify what segments actually did we clog the revenue? And secondly, my suggestion to the management is that going ahead in the investor presentation, if you can quantify that the segments which 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 sales as a combo in the portfolio.

39:47 But still it would really help the investors to understand your expertise in actually and actually, SKUs also regarding the same, what how critical are they in the future? Okay. Sir, Okay, sir. So my last question,

42:32 nine fifty plus distributors last quarter, one one five zero cross 200 distributors 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 distribution. Okay.

43:36 Okay. Fine, sir. Fine. I'll come back in queue. Thank you so much. And thank you for the opportunity. Thank you. Next question comes from the line of Shweta Jain with Anandrati Share and Stockbrokers 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 FY '27 and FY '28? So whatever we have done earlier in to increase our distribution channel, we are continuing the same strategy, same policy that we keep on tracking the new M and A portal registered vendors and targeting them to get in UTLSOLAR or Fujiyama's other brand. And also, we are targeting the inverter battery dealers who are doing the business and converting them to be our distributors or dealers.

44:45 That's what we are doing and we are doing it previously. So any targets that we are looking at for FY '27, FY 2020? So whatever rate we are growing, we will keep I hope we will be keeping the same growth rate. Okay. And as of '28, we believe it's more than 1,500, sir. 15,000. 15,000. Nine Yes. 100 Yes. Including Shopee dealer and distributor, 15,000. Okay. And so on the CapEx front, sir, how much have you incurred so far, and what is expected to be spent?

45:32 On the CapEx front, ma'am, just give me a moment. When we saw it's yes, we were close to INR800 crores, including PB. And we are by the end of this year, it will be close to INR 1,300 INR 1,300 crores for FY 'twenty seven? Yes. No, I'm talking in terms of cumulative. So gross block only. Gross block. Including Sorry? So just to give you an idea what we have added here, we have added our solar cell plant that is coming up to our 1.2 gigawatt capacity.

46:23 And other miscellaneous like Polar Park and the best that we will be adding. This does not include Zayo Energy? No. Okay. That will flow on to next year, so not this year. Is that so? Yes. The Yes. 200 crores is what we spoke about last... In previous call. Okay.

47:21 Thank you so much, sir. Thank you. Thank you. Next question comes from the line of Diana with Doll Capital. Please go ahead. Hello, sir. Thank you for the opportunity. My question is on PM Suriyama's 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 EM Suriyama 2.0 is all this? Okay.

49:09 Got it, sir. And my second question is this 2.0, will it have additional 30 gigawatt or and will it be given to everyone on certain lower income households? So what is your view on this scale? How will this $2 come? Will it be same as $1,000,000,000 Any idea on that? Got it. So, but any point about any idea on 2.0 whether it will come for all the households or any division will be there and any

50:56 Okay. Got it, sir. That's all from my side. Thank you. Thank you. Mr. Kumar, please go ahead. Kumar, please unmute yourself and go ahead. Since there's no reply from the line of Mr. Kumar, we'll move to the next participant. That is Abhijit Jain with AG Capital. Please go ahead. Mr. Jan, please go ahead. I hope I'm audible?

51:42 Yes, you are. My question was that in the last investor question, you said that this year ending loss loss will be INR 1,300 crores. And I've been seeing in the last three, four years our fixed asset turnover is close to about 2x or the gross asset turnover is also close to 4x. So that is it safe to assume that FY 'twenty seven, we'll be nearing about INR 5,000 odd crores of revenue? And this INR 500 additional crores of CapEx that you'll be doing this year, what percentage of it would be equity dilution? What percentage of that would be like? That is my first question. Sir, 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.

52:36 And on the second question, you asked about the gross block of INR 1,300 crores. So it is inclusive of our solar cell plant and the plant capacity that will be completed. On the asset turnover side, so the 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 please repeat the third question that you asked? So I just wanted to understand the INR 500 crores of CapEx that you'll be incurring in this year. What part of it would be 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 this INR 500 crores, 200 will be from the debt side.

53:24 And INR 300 crores would be cash from business? We have around when we started this year, we have around INR 100 crores in our book from the IPO. So 100 crores will be from there. And rest INR 200 crores will be from our own funds. Sir, secondly, I wanted to understand in terms of the long term viability of the business when this subsidy and the scheme Fujiyama reaches a very critical mass. So I just want to understand that looking at FY 'twenty eight and FY 'twenty nine, 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 save yourself from become from this becoming a more commoditized business?

54:21 That is what I wanted to understand. Actually, we started the solar in year 2008. At that time, the subsidy was not in our mind. We were trying to 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 very long time we are working on solar systems. So in this process, we have developed a lot of products with the market needs.

55:08 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 Zuricharh is INR 1 crore only, which is 50% covered yet. So PM Solarisar is going to 2.0 is also coming. So we don't expect that it will go very soon. Even if it goes, we have very good routes into solar, and we expect that the people who have come seeing this solar subsidy into the market, they will fade away, and we will sustain.

56:10 And we should get better market share in this case. Thank

1:00:30 you. Next question comes from the line of Abhi Segal with Singularity AMC. Just wanted to clarify on something asked in the previous question. You said 26 to INR 30 per watt, including panel inverter and battery was the bomb? Yes, sir. So basically, depending on DCR and non DCR battery lithium lead acid system only hybrid high end system low end system features less features rich product.

1:01:59 And sir, one more question. Pardon my lack of your business. Just want to understand as compared to a large solar module player to up inverters to get out of Got it, sir. Thank you. That really helpful,

1:03:59 sir. Thank you. Thank you. Next question comes from the line of Uttit Sagal with Pinpoint X Capital. Please go ahead. Yeah. Good evening, sir, and congratulations on continuing the growth path. Sir, in the Tata Power call, the 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? Basically.

1:05:16 So second laser on the solar cell front, how are we placed the second line, which we were supposed to I think you're going to top line, right? I think from when do we think that can be installed? Q1. Yes, Q1 basically. Coming year basically, after nine months, we can say nine or eight months, now seven point five months remaining, basically. Okay, okay. Perfect, sir. 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 Sagarsha with Spark Capital. Please go ahead.

1:06:06 Yes. 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 Zayo cables and Zayo Energy. So, I'm looking at the state 19%, so 15% we have increased. So they are... That is the... But those companies completely into the backward integration in which Fujiyama is not into. So what are your growth plans for this company? You already highlighted that INR 100 crore CapEx is there for this cover, I think, Zayo Energy you told. But what is the growth outlook and what is the overall outlook business model in FY 'twenty seven and FY 'twenty eight?

1:07:04 Year, production basically or next two, three months building So within one year, target production Okay.

1:08:07 Fine. Thank you. Thank you so much. Thank you. You. Next question comes from the line of Amit Kumar with Determined Investments. Please go ahead. Yes. Thank you so much for the opportunity, sir, and congratulations on an exceptional growth momentum. My first question on this lead acid battery plant, So 2Q, 3Q anyway are seasonally weak quarter demand basically to come here. But fourth quarter is typically the high quarter. By 4Q, shall we expect that this factory would be back online? When are you expecting this to restart? Restart time after insurance activities Meanwhile, So immediately...

1:09:17 So sourcing contract, plant to acquire. Let us say the battery business for a downward basically. So lease basically, you will exclusively of sorts. But basically, okay? I'm saying that for this factory, it would be an exclusive lease. It will work exclusively for you, basically. Understood, sir. That is much appreciated. So just a follow-up on one of the what a previous participant was also talking about. At least this upgrade, on grade or hybrid breakup, if it is possible to sort of share.

1:10:15 So the only reason why we are basically asking is that, see, till last year, upgrade would have been or was the major part of your business. And now that you have started the DCR sales, obviously, you can go more aggressively in the on grid and hybrid market. We're just sort of trying to understand this kind of 100% growth that you are basically delivering. Is this entirely coming because of your entry and expansion into on grid and hybrid systems? Yes, off grid system growth basically. So if you can just clarify with respect to this quarter also, you've gone from INR600 crores to INR1300 plus crores in terms of sales. So last year, presume that that INR600 crores would be entirely on the back of your off grid business.

1:11:12 So which may off grid basically growth what is the growth trajectory? And then obviously, I'll to a breakup basically between on grid, off grid and hybrid for this quarter, that will be very helpful. Okay, sir. So basically, main focus to grow Because on grade and hybrid are completely new, but on an yearly basis, they are relatively new systems for the company. But this is what I'm basically trying to understand. Obviously, majority...

1:12:13 The vast majority, 90%, 95% would be upgrade only, you know, out of that. So that has also still grown for you. I mean, is because of OnGrid.

1:13:34 Understood, sir. Thank you. Much appreciated. 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. Pawan 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 Relations Advisers, Churchgate Partners, and we will be glad to assist you. Thank you very much for your support. Thank you. 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.