Fujiyama Power Systems Limited announces a new order win

The board-approved expansion entails an estimated total outlay of approximately Rs 45 Crores, with commercial operations targeted in phases during Q2 and Q3 FY 2026-27:

• Ratlam, Madhya Pradesh: 1 GWh lithium-battery capacity addition; estimated investment of approximately Rs 25 Crores; commercial operation expected by Q2 FY 2026-27. The stated financing mode is internal accruals. ^[1]
• Hathras, Uttar Pradesh: 1 GWh tubular-battery facility; estimated investment of approximately Rs 20 Crores; commercial operation expected by Q3 FY 2026-27. The stated financing mode is internal accruals. ^[2]

Funding mix: the full disclosed outlay is to be funded through internal accruals; no debt component was specified in the board outcome. The Rs 45 Crores total is derived from the two disclosed project estimates of Rs 25 Crores and Rs 20 Crores. ^{[1] [2]}

The governance update strengthens board accountability, but it does not create a project-specific oversight framework. The disclosed changes were:

• Board composition: The Articles of Association were amended so that Joint Managing Directors, as non-independent directors, would also be liable to retire by rotation. The stated purpose was to provide flexibility in board composition and align the Articles with the Companies Act, 2013 ^[3].
• Director continuity and shareholder approval: Mr. Sunil Kumar was re-appointed as a director liable to retire by rotation, effective 24 August 2026, subject to approval by shareholders at the ensuing AGM. The re-appointment followed a recommendation from the Nomination and Remuneration Committee ^[4].
• Relationship disclosure: The filing states that Mr. Sunil Kumar is related to Mr. Yogesh Dua, the Joint Managing Director and CEO ^[4].
• Committee mandates: The resolutions listed in the board-outcome filing cover the Articles amendment, director re-appointment, and capacity approvals; they do not report any change to the Audit, Risk Management, Nomination and Remuneration, or other committee mandates ^[5].

Relevance to the capacity expansion

The board approved a 1 GWh lithium-battery expansion at Ratlam with an estimated investment of Rs 25 Crores, funded through internal accruals and targeted for commercial operation by Q2 FY2026-27 ^[1]. It also approved a 1 GWh tubular-battery facility at Hathras, involving approximately Rs 20 Crores of investment, similarly funded through internal accruals and targeted for Q3 FY2026-27 ^[2].

The alignment is therefore formal rather than project-specific:

• Including Joint Managing Directors within the rotation framework increases periodic shareholder accountability for executive board members ^[3].
• Sunil Kumar’s re-appointment through the Nomination and Remuneration Committee and subsequent AGM approval preserves the established board-level approval route for a sizeable, internally funded capital programme ^[4].
• However, the filing does not announce a dedicated project steering committee, enhanced Audit Committee review, independent-director monitoring, stage-gate approvals, capex-utilisation reporting, or project-risk mandate. Accordingly, the governance changes support general oversight and accountability, but investors would still need subsequent disclosures on construction milestones, spending versus budget, commissioning, utilisation, and operational-risk controls to assess execution oversight.

The expansion is large in operating-capacity terms but modest relative to the balance-sheet asset base. The approved outlay is about 45 Crores, equivalent to approximately 1.92% of FY26 standalone total assets and 5.66% of fixed assets, assuming the filing’s crore figures are INR-denominated.

Scale versus existing base

• Ratlam lithium: The proposed 1 GWh addition is 2.0x the company’s existing 0.5 GWh lithium capacity. Including the earlier announced 2 GWh expansion, Ratlam’s lithium capacity is expected to reach 3.5 GWh, or 7.0x the current disclosed lithium base. ^[1]
• Hathras tubular: The proposed 1 GWh facility has no existing Hathras capacity for comparison. It is described as a replacement for the erstwhile 1.3 GWh Bawal tubular facility damaged in the fire; therefore, it is largely capacity restoration rather than pure incremental capacity versus the pre-fire footprint. ^[2]
• Financial scale: The Ratlam lithium addition carries an estimated investment of 25 Crores and the Hathras facility 20 Crores, or 45 Crores in aggregate. ^{[1] [2]} Against FY26 standalone total assets of Rs 2,343.60 Crores and fixed assets of Rs 795.32 Crores, the aggregate outlay is derived at approximately 1.92% of total assets and 5.66% of fixed assets. ^{[6] [7]}

Asset-turnover impact

Using FY26 standalone revenue of Rs 900.77 Crores and total assets of Rs 2,343.60 Crores, the current asset turnover is approximately 0.384x, derived as revenue / total assets. ^{[8] [6]}

If the full 45-Crore investment were capitalized immediately but generated no incremental revenue, the asset base would rise to approximately Rs 2,388.60 Crores and asset turnover would fall mechanically to about 0.377x, a decline of roughly 0.007x or 1.9%. This is the initial dilution effect, not a forecast.

The filing discloses approximately 70% utilization for the existing 0.5 GWh lithium capacity, implying about 0.35 GWh of utilized capacity. Applying 70% only as a scenario to the eventual 3.5 GWh Ratlam lithium footprint would imply 2.45 GWh of utilized capacity, or 7.0x the existing utilized lithium capacity. ^[1] However, the filing does not provide a utilization target for the new Ratlam capacity, and Hathras utilization is reported as not applicable because existing capacity is nil. ^[2]

Implication: a utilization-based asset-turnover forecast cannot be quantified from the filing alone because revenue generated per GWh, product mix, ramp-up timing, and the utilization target for the new facilities are not disclosed. The company would need roughly 17.3 Crores of incremental revenue to keep asset turnover at the existing 0.384x after the 45-Crore investment, derived as 0.384x multiplied by 45 Crores. Higher incremental revenue would lift turnover above the pre-expansion level; weaker ramp-up would leave it diluted.