Fujiyama Power Systems IPO: Should you apply?

Summary: Fujiyama Power Systems, a rooftop solar solutions provider, will open its IPO on November 13, 2025. We provide a detailed analysis of the company’s financials, strengths and weaknesses to help you better decide if its IPO is worth your money.

Fujiyama Power Systems, a manufacturer in the rooftop solar industry, is all set to go public. The IPO (initial public offering) will open on November 13, 2025 and close on November 17, 2025. The Rs 828 crore IPO comprise a fresh issue of Rs 600 crore, while Rs 228 crore will be an offer for sale (OFS).

Below is a breakdown of the company’s business, financials, strengths, risks and valuation to help you make an informed investment decision.

What the company does

Fujiyama Power Systems is a diversified manufacturer in the rooftop solar space, offering on-grid, off-grid, and hybrid systems under its brands UTL Solar and Fujiyama Solar. It produces solar panels, inverters, and both lead-acid and lithium-ion batteries, backed by strong R&D in inverter technology. The company operates four manufacturing facilities and is known for several firsts in Indian inverter design.

With over 522 SKUs, Fujiyama provides an end-to-end solar product range to minimise OEM dependence. As of June 2025, it reaches customers through a vast network of 725 distributors, 5,546 dealers, 1,100 exclusive stores and a 600-member service team.

Track record and valuation

In terms of financials, Fujiyama Power Systems has fared impressively. Between FY23 and FY25, the company posted double-digit revenue growth of 52 per cent. Its net income (profit after tax) and earnings before interest and tax (EBIT) also increased, reporting yearly growth of 153 per cent and 125 per cent, respectively, during the same period.

At the upper end of the price band (Rs 228), Fujiyama Power Systems’ stock is expected to be valued at nearly 45 times its FY25 earnings and around 6.6 times its book value. By contrast, its peers trade at a P/E and P/B of almost 36 times and 8 times, respectively.

The good

Here are some of Fujiyama Power Systems' key advantages.

#1 Market leader in the rooftop solar industry

Fujiyama Power Systems offers a comprehensive range of rooftop solar products, positioning itself as a one-stop solar solutions provider in India. Its diverse portfolio includes solar inverters (on-grid, off-grid, hybrid), panels, batteries, UPS systems and charge controllers, along with EV chargers and lithium-ion batteries for e-rickshaws. 

With over 522 SKUs customised for different needs and geographies, the company reduces reliance on any single product line, ensuring stable growth. Over the past five years, it has supplied 1.64 GW of solar inverters, equivalent to approximately 9.6 per cent of India’s total rooftop solar capacity as of March 2025, reinforcing its leadership in the segment.

#2 Extensive sales and distribution network

Fujiyama Power Systems has built a strong pan-India sales and distribution network to cater to a wide customer base. As of June 2025, the company operates through 725 distributors, 5,546 dealers, and 1,100 exclusive ‘Shoppe’ outlets. Moreover, its 602 service engineers provide on-ground support across the country, ensuring efficient delivery, installation, and after-sales service for its solar products.

The bad

Despite having steady financials and enjoying a substantial market share, Tenneco Clean Air India comes with its fair share of risks.

#1 Uncertainty regarding raw material imports

Fujiyama Power Systems sources a major portion of its raw materials, such as solar cells, semiconductor devices, and lithium-ion cells, from China due to their competitive pricing and quality. While materials are shipped by sea and undergo strict quality checks, the company remains exposed to import-related risks, as any changes in trade policies, tariffs or restrictions by the Indian government or foreign authorities could disrupt supply, impact costs and affect overall business performance.

#2 A decline in raw material prices can impact margins

Fujiyama Power Systems’ profitability is closely tied to market prices of solar products, which are influenced by raw material costs, technology, demand-supply dynamics and global economic trends. For instance, a steep fall in solar panel prices, driven by oversupply from China, from 18 USD cents per watt in FY24, down 42 per cent from the previous year, to 17.7 cents in FY25, has already affected margins. Any further drop in solar panel prices could strain profit margins and adversely affect the company’s revenue and cash flows.

#3 Nearly half of the company’s revenue comes from a single state

Fujiyama Power Systems derives a large share of its retail sales from Uttar Pradesh. However, heavy dependence on a single state makes the company vulnerable to regional demand fluctuations or regulatory changes. Entering new geographies also poses challenges such as lower brand recognition, higher marketing costs and slower sales ramp-up. Further, competing with established players in these regions may strain resources and delay profitability, potentially impacting overall growth.

Where will the IPO proceeds go?

Of the fresh issue size of Rs 600 crore, Fujiyama Power Systems aims to utilise around Rs 180 crore towards the financing of a new manufacturing facility in Ratlam, Madhya Pradesh. Another Rs 275 crore will be allocated towards repaying the company’s borrowings. The remaining funds will be directed towards general corporate purposes.

So, should you subscribe to the Fujiyama Power Systems IPO?

Fujiyama Power Systems may look impressive with its market position and steady numbers, but lasting wealth doesn’t come from jumping into every IPO trend. It comes from staying patient, disciplined, and backing businesses that deliver sustainable growth.

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Also read: Tenneco Clean Air India IPO: The good and the bad