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    UTLSOLAR

    UTLSOLARGood
    Capital Goods·10 Dec 2025
    Management Summary

    Fujiyama Power Systems Limited (UTLSOLAR) reported strong financial performance for Q2 and H1 FY26, driven by an integrated business model and capacity expansion. Revenue grew significantly year-on-year, and profitability improved. The company is actively expanding its manufacturing capabilities with new facilities in Dadri and Ratlam, aiming to enhance backward integration and meet growing demand in the rooftop solar market, particularly in Tier 2, Tier 3, and rural areas. Management emphasized its focus on power electronics and energy solutions, catering to off-grid and hybrid solutions.

    Highlights

    8
    • Q2 FY26 revenue from operations stood at INR 5,679 million, marking a 72.6% year-on-year increase.

    • PAT margins for Q2 FY26 improved from 9.7% in Q2 FY25 to 11.1% in Q2 FY26.

    • H1 FY26 revenue from operations reached INR 11,653 million, up 61.5% year-on-year.

    • H1 FY26 EBITDA was INR 2,089 million, with margins of 17.9%.

    • The 1,000 megawatt solar cell line in Dadri is expected to be commissioned within one month.

    • The Ratlam facility will add 2,000 megawatts each of solar panels, inverters, and batteries by March 2026.

    • Net working capital days for H1 FY26 were 70 days, broadly stable compared to 71 days in FY25.

    • Post-IPO, INR 2,750 million was utilized for debt repayment, bringing pro forma net debt-to-equity to 0.35.

    What Changed2

    vs Q3 FY26

    Guidance items9 → 11 (+2)Risks discussed3 → 4 (+1)

    Key financials

    Single quarter

    10 metrics
    1. 01Revenue₹567.9 Cr+72.6%YoY
    2. 02PAT₹62.9 Cr-7.0%QoQ
    3. 03PAT Margin11.1%-1.8%QoQ
    4. 04H1 Revenue₹1,165.3 Cr+61.5%YoY
    5. 05H1 EBITDA₹208.9 Cr

    Segment breakdown

    • Panel₹529 Cr45.4%
    • Battery₹237.4 Cr20.4%
    • Electronics₹330 Cr28.3%
    • Other Service Components₹68.1 Cr5.8%
    Donut· Share of Revenue

    Guidance & targets

    11
    CategoryTargetPriority
    Capacity
    Dadri Solar Cell Line Operationalization
    within 1 month
    High
    Capacity
    Ratlam Facility Capacity Addition (Solar Panels, Inverters, Batteries)
    2,000 MW each
    High
    Capacity
    Dadri Solar Cell Line Full Capacity
    full capacity
    Medium
    Capacity
    Total Capacity Doubling
    double, approximately double
    High
    Capacity
    Battery Stabilization (Dadri)
    stabilized
    High
    Capex
    Ratlam Capex
    INR 272 crores
    High
    Capex
    Dadri Capex
    INR 350-400 crores
    Medium
    Working Capital
    Inventory Cycle Days
    around to 90 to 98 days
    Medium
    Profitability
    Operational Margin Improvement
    improve
    Medium
    Sales
    Revenue Growth Rate
    better and better every time
    Medium
    Market Share
    Tier 1 Market Share
    get shares
    Low

    Risks & concerns

    5
    RiskSeverity

    Sales deferral due to GST rate cut

    GST rate cut from 12% to 5% caused customers to postpone purchases, leading to a temporary pause in the market and a 4.9% QoQ revenue decline.Management acknowledged

    medium

    Industry oversupply of solar photovoltaic modules

    Management stated that their module manufacturing is primarily for backward integration and in-house consumption for their B2C rooftop solar solutions, mitigating the impact of general market oversupply.Analyst downplayed

    low

    Temporary increase in inventory and working capital cycle

    Inventory days increased to 108 due to sales deferrals and raw material procurement for new capacities during backward integration, but is expected to stabilize around 90-98 days.Management acknowledged

    medium

    Competition from large players like Tata Power in B2C

    Management views the market as having many opportunities and welcomes competition, focusing on sustainable service and customer trust as differentiators.Analyst acknowledged

    low

    Areas of Evasion(1)

    • Specific immediate revenue impact from new capacities in the very short term (Q4 FY26).

    Q&A highlights

    3

    “So definitely some of it will be recovered but not as much as the loss that has happened in that period. What happens is that the sale that is lost, is lost.”

    Directly addresses the reason for QoQ revenue decline and clarifies that lost sales are not fully recoverable, impacting overall financial revenue.

    asked by Srishti Agarwal

    3 min read6 chapters

    Detailed Narrative

    01

    Robust Q2 & H1 FY26 Financial Performance

    Fujiyama Power Systems Limited delivered strong financial results for Q2 FY26, with revenue from operations growing 72.6% year-on-year to INR 5,679 million. PAT margins improved from 9.7% in Q2 FY25 to 11.1% in Q2 FY26. For the first half of FY26, revenue reached INR 11,653 million, a 61.5% increase year-on-year, while EBITDA stood at INR 2,089 million with a margin of 17.9%. The company's profitability for H1 FY26 was 11.2% PAT margin, up from 10.4% in H1 FY25, driven by improved material margins and operational efficiencies.

    02

    Strategic Focus on Power Electronics & B2C Rooftop Solar

    Management reiterated its core identity as a power electronics and energy solutions company, not just a solar panel manufacturer. The B2C segment remains the primary revenue driver, contributing over 90% of H1 FY26 revenue, focusing on off-grid and hybrid rooftop solar solutions for customers facing unreliable grids. The company's integrated approach provides complete systems including solar inverters, batteries, and panels, with a network of 7,500+ channel partners and 600+ service engineers supporting last-mile delivery and after-sales service.

    03

    Aggressive Capacity Expansion & Backward Integration

    UTLSOLAR is undertaking significant capacity expansion, funded by IPO proceeds. The 1,000 megawatt solar cell line in Dadri is expected to be commissioned within one month and reach full capacity by March/April 2026. Additionally, the Ratlam facility is projected to add 2,000 megawatts each of solar panels, inverters, and batteries by March 2026. These expansions aim to double the company's total capacity by the end of FY26, enhancing backward integration and securing consistent supply for in-house consumption.

    04

    Working Capital Dynamics and Balance Sheet Health

    As of September 30, 2025, total assets increased to INR 15,900 million, and total debt rose to INR 6,740 million, reflecting pre-IPO funding. Post-IPO, INR 2,750 million was used for debt repayment, bringing the pro forma net debt-to-equity ratio to a healthier 0.35. Net working capital days for H1 FY26 were 70, stable year-on-year. However, inventory days temporarily increased to 108 due to sales deferrals from a GST rate cut and raw material procurement for new capacities, with management expecting stabilization to 90-98 days in coming quarters.

    05

    Market Outlook and Growth Strategy

    The company sees a favorable environment for solar technology, driven by India's target of 300 gigawatts of installed solar capacity by 2030 and rising household awareness. Despite an industry concern about module oversupply, management believes its B2C focus and captive consumption for integrated solutions insulate it from this risk. UTLSOLAR targets Tier 2, Tier 3, and rural villages, with plans to expand into Tier 1 cities once DCR cell capacity is available. The company also highlighted its use of AI in sales to improve conversion ratios and operational margins.

    06

    Impact of GST Rate Cut and Sales Deferrals

    The Q2 FY26 revenue saw a 4.9% quarter-on-quarter decline, primarily attributed to a temporary market pause caused by a GST rate cut on solar equipment from 12% to 5%. Customers postponed purchases to benefit from the lower tax rate, leading to a month of muted activity. Management clarified that "the sale that is lost, is lost," indicating that these deferred sales are not fully recoverable, which impacted the overall financial revenue for the quarter.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.