| Fujiyama Power Systems Limited | ||||||
| Ratings placed on 'Watch Developing' | ||||||
| Rating Action | ||||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||||
| 1 crore = 10 million | ||||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed rationale Crisil Ratings has placed its ratings on the bank facilities of Fujiyama Power Systems Limited (FPSL) on ‘Rating Watch with Developing Implications’.
The ratings have been placed on watch with developing implications, following the announcement made by FSPL on the stock exchange that a fire accident had occurred in the late hours of May 6, 2026, at its facility in the Bawal Industrial Area, Rewari, Haryana.
The cause of the fire is presently under investigation and the company is in the process of assessing the extent of damage/ loss caused by the incident and evaluating its impact on operations.
However, as per discussion with the management, any damage to stock, machinery, loss of production due to this accident is fully covered under insurance. The quantum of loss due to the accident is yet to be ascertained and will remain monitorable.
Crisil Ratings will actively monitor developments in this regard and their impact on the credit risk profile of FPSL. Crisil Ratings will take a final rating action once there is more clarity regarding the quantum of damage caused by the incident.
The ratings continue to reflect the extensive experience of the promoters in the solar power generation and storage equipment industry and the diversified customer base and product range, vast distribution network and healthy financial risk profile of the company. These strengths are partially offset by the moderate scale of operations amidst intense competition and large working capital requirement. |
Analytical approach Crisil Ratings has evaluated the standalone business and financial risk profiles of FPSL. |
Key rating drivers - Strengths Extensive experience of the promoters, an established and diversified customer base and wide presence: The promoters, Pawan Kumar Garg and Yogesh Dua, are well-qualified, with nearly three decades of experience in the power storage equipment industry; their sound understanding of market dynamics, strong relationships with suppliers and wide dealer and distributor networks in Tier-2 and Tier-3 cities should continue to support the business. The promoters were pioneers in the electrical component manufacturing segment. Over time, the company has transitioned itself from being an electronic component manufacturer to operating as a one-stop solution provider for rooftop solar power systems, in line with shifting market dynamics, with pan-India presence. The company has generated a revenue of Rs 2655 crore in fiscal 2026 (Rs 1541 crore in fiscal 2025) on the back of increased sales of bundled products in the solar manufacturing sector.
Healthy financial risk profile: Adjusted networth stood at Rs 1214.45 crore as on March 31, 2026, as against Rs 337.18 crore a year earlier. The company undertook a capital expenditure (capex) of Rs 158 crore, funded by additional debt of around Rs 55 crore in fiscal 2025, to increase its installed capacity to manufacture solar panels from 0.5 gigawatt (GW) to 1 GW, along with solar battery from 1 GW to 1.4 GW and power electronics component capacity from 0.5 GW to 1 GW. Despite the additional debt-funded capex, capital structure is healthy, as reflected in gearing of 0.38 time and total outside liabilities to adjusted networth (TOL/ANW) ratio of 0.47 time as on March 31, 2026 (1.03 times and 1.83 times, respectively, a year earlier), which is due to improvement in the operating margin.
The company commissioned the 2000 megawatt (MW) solar panel manufacturing facility line in May 2026, which is part of the greenfield capex of around Rs 180 crore that the company has been undertaking funded through internal accrual and a debt of around Rs 100 crore. It is also likely to incur regular maintenance capex of Rs 20-25 crore per fiscal, which will be funded through internal cash accrual. As operationalisation of the cell manufacturing unit will lead to backward integration of operations and expansion of operating margin, healthy accretion to reserve should strengthen the capital structure, as indicated by estimated gearing and TOL/ANW ratios of 0.78 time and 1.35 times, respectively, as on March 31, 2026. Debt protection metrics were superior, with interest coverage and net cash accrual to total debt ratios of 9.32 times and 0.50 time, respectively, for fiscal 2025. The metrics are estimated to be around 11.5 times and 0.5 time, respectively, in fiscal 2026, supported by expansion of operating margin. |
Key rating drivers - Weaknesses Large working capital requirement: Gross current assets (GCAs) were sizeable at 188 days as on March 31, 2026, driven by inventory and receivables of 180 and 19 days, respectively. Payments from customers are backed by sound credit terms as the company leverages its market position to negotiate favourable terms. However, to manufacture varied products based on consumer requirements and demands, the company must hold large raw material inventory. No major changes are likely in the working capital management practices and inventory holding period will likely range between 100 and 110 days and GCAs between 130-150 days over the medium term. Stable working capital cycle, despite scale up in operations, will remain monitorable.
Moderate scale of operations amidst intense competition: Revenue increased significantly to Rs 2655 crore in fiscal 2026 from Rs 1541 crore in fiscal 2025, reflecting the moderate, but improving scale of operations. FPSL faces intense competition from established players in the uninterrupted power supply (UPS) and invertors market. However, it has established a significant presence in the Tier II and Tier III markets through its network of 960+ distributors, 6,800+ dealers and 1,150+ shoppes. In the absence of any major competitors, the company is able to meet the growing demand for off-grid rooftop solar systems, given the prolonged power cuts in these regions, and may consider expanding its distribution network. Operating income is expected to grow by 15-20% in the subsequent fiscals; however, with intensifying competition, the company may find it difficult to gain significant market share over the medium term. |
Liquidity Strong Bank limit utilisation averaged 66.74% for the 11 months through July 2025. Expected cash accrual of Rs 250-300 crore per annum, should more than suffice to cover the yearly debt obligation of Rs 30-39 crore over the medium term. Current ratio was moderate at 1.26 times while unencumbered cash and equivalent was Rs 12.48 crore as on March 31, 2025. |
Rating sensitivity factors Upward factors
Downward factors
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About the company Set up as a partnership firm in 2008, the entity was reconstituted into a private limited company in November 2017 and finally as a public limited company, with the current name in 2025. FPSL was earlier involved in trading and manufacturing of batteries, invertors and UPS. However, from March 2015, it ventured into the manufacture and sale of UPS systems, invertors and solar and non-solar batteries and battery charges. The company also manufactures solar panels. The products are sold under the in-house brand, UTL Solar. The facilities are at Parwanoo (Himachal Pradesh), Greater Noida (Uttar Pradesh) and Bawal (Haryana). Yogesh Dua and Pawan Kumar Garg are the promoters. |
Key financial indicators (Crisil Ratings Adjusted)
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Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Annexure: List of instruments and names of regulators of the instruments As required by SEBI CRA Circular dated Feb 10, 2026, a list of activities or instruments falling under the purview of various FSRs, along with the names of respective FSRs, is being disclosed below:
* Includes securitisation transactions involving assignee payout, acquirer's payout. ~ The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In PRs subsequent to issuance(s), Crisil Ratings Limited shall separately capture the rated quantum details along with names of respective regulators. ^ Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions. # There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. @ These ratings were assigned during regulatory regime prior to introduction of SEBI CRA Circular dated Feb 10, 2026 and the investor side regulators have accordingly been included.
Note: Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
Criteria Details
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