IPO closes on 17 Nov'25
Fujiyama Power Systems Ltd
Minimum Investment
₹ 14,820 / 65 shares
Our Verdict:
Neutral
- Fujiyama Power Systems Ltd (FPSL) has delivered strong financial performance over the last three years, supported by healthy return ratios and expanding margins. The company has supplied over 1.64 GW of solar inverters—equivalent to nearly 10% of India’s installed rooftop solar capacity—and holds an estimated 15.5% market share in the solar battery segment.
- The ongoing capacity expansion, along with an extensive and integrated distribution network, positions the company well to benefit from India’s accelerating rooftop solar adoption and broader renewable energy transition.
- Valuation, however, remains a concern. At a P/E of 41x FY25 earnings, the IPO appears fully priced, leaving limited scope for meaningful near-term upside.
- Overall, the IPO offers a balanced proposition. Long-term investors looking to participate in India’s fast-growing solar and energy-storage ecosystem may consider subscribing. However, those targeting quick listing gains should be cautious. A more prudent strategy could be to “buy on dips” post-listing, once the stock establishes a stable trading range.
About the company
Founded in
29 Nov'17
Managing director
Yogesh Dua
- FPSL is a leading manufacturer and solutions provider in India’s rooftop solar ecosystem, offering one of the most extensive and integrated product portfolios in the industry. Its range includes solar PCUs, off-grid, on-grid and hybrid inverters, solar panels, PWM chargers, multi-type battery chargers, lithium-ion and tubular batteries, online and offline UPS systems, solar management units and solar charge controllers. In the EV segment, the company supplies lithium-ion batteries and chargers for three-wheeler e-rickshaws.
- FPSL offers over 522 SKUs, enabling customisable combinations tailored to varying customer needs and regional conditions. In FY25, revenue was diversified across key segments—43% from solar panels, 21% from batteries, 30% from inverters/chargers/UPS and the remaining 6% from other services.
- FPSL operates four manufacturing facilities across Greater Noida, Parwanoo, Bawal and Dadri, with a combined installed capacity of 2,782 MW for panels and inverters and 1,863 MWh for batteries. A fifth facility at Ratlam, partly funded through IPO proceeds, is expected to double production capacity by FY26. Additionally, the planned 1 GW solar cell line at Dadri (scheduled for early 2026) will enhance backward integration, improve cost efficiency and strengthen long-term competitiveness.
STRENGTHS
- Integrated Presence Across the Solar Value Chain: FPSL operates across the full rooftop solar value chain—from product development and manufacturing to nationwide distribution and service—reducing reliance on external OEMs and strengthening execution. The company has supplied 1.64 GW of inverters (nearly 10% of India’s rooftop solar capacity) and holds around 15.5% market share in solar batteries, reflecting its strong industry positioning.
- Impressive Growth: FPSL has demonstrated remarkable growth between FY23 and FY25, achieving a CAGR of 52% in operating revenue, 119% in EBITDA and an impressive 153% in net profit.
- Margin Expansion: FPSL has consistently improved its profitability, with net margins rising from 3.67% in FY23 to 10.15% in FY25 and further to 11.31% in Q1FY26. EBITDA margins also expanded significantly—from 7.77% to 16.13%—reflecting disciplined cost management and strong operational leverage.
- Strong Return Ratios: FPSL boasts a Return on Net Worth (RONW) of 69.44% for FY25, outperforming its peers. Additionally, a Return on Capital Employed (ROCE) of 23.33% highlights the company's efficient use of capital.
RISK FACTORS
- Dependence on Imports: FPSL imports 25–26% of its total purchases, sourcing a large share of raw materials from China and procuring key equipment from other foreign markets. Any increase in import duties, supply chain disruptions, or unfavourable regulatory changes—whether in India or export destinations—could adversely impact costs, margins and supply continuity.
- Geographic Concentration: A substantial portion of FPSL’s retail sales is concentrated in Uttar Pradesh, which alone contributed 35.61% of FY25 sales. The top five states together accounted for 71.97%, exposing the company to regional demand fluctuations, policy changes or competitive pressures in these markets.
- High Attrition: FPSL reported an attrition rate of 20% in FY25, with levels as high as 42% in FY23. Persistent high attrition, particularly in technical and sales roles, may lead to increased hiring costs, knowledge loss, and operational inefficiencies.
- Cash Flow Concerns: FPSL reported negative cash flow from operating activities in Q1FY26. Continued negative cash flows could strain liquidity, affect working capital and impact the company’s ability to meet operational and financial obligations.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 828 crore
Fresh Issue
₹ 600 crore
OFS
₹ 228 crore
Price range
₹ 216 - 228
Lot size
65 shares
Issue Objective
The net proceeds from the fresh issue will be utilised towards the following purposes:
- Part funding the establishment of a new manufacturing facility in Ratlam, Madhya Pradesh;
- Repaying or prepaying certain outstanding borrowings taken by the company; and
- General corporate purposes
Dates
Bidding open
13 Nov'25
Bidding close
17 Nov'25
Allotment date
18 Nov'25
Refund date
19 Nov'25
Listing
20 Nov'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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