DCR mandate implementation delay
Government mandate for compulsory DCR cells in subsidy rooftop solar may be delayed beyond June 2026, affecting demand for new cell capacity.
UTLSOLAR / bear-case history
Track the concerns that keep returning.
Fujiyama Power Systems · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
medium
Raw material price volatility
Rising silver and aluminium prices could pressure margins if not fully passed through; management expects pass-through but with lag.
Technology obsolescence risk for mono PERC cell line
The new 1 GW mono PERC cell line may face competition from TOPCon technology; management believes it is viable for 3 years but conversion may require additional capex.
Debt level increase
Total debt stood at ₹470 crore, which may increase with further capex for Ratlam facility, impacting leverage.
BIS inspection on 10-15 SKUs
BIS department has questioned compliance on 10-15 SKUs out of 500. Management has filed replies and expects no material penalty, but worst-case penalty could equal seizure value.
Fire incident at lead-acid battery facility
A fire at the 1.3 GW lead-acid battery facility temporarily suspended operations. Alternate third-party arrangements are in place, but margin impact is possible.
Execution delays in battery line commissioning
Battery manufacturing line commissioning delayed to Q2 FY27 due to technology upgrades and geopolitical supply chain issues.
Inventory buildup and working capital pressure
Net working capital days increased to 83 from 71, driven by higher raw material inventory to support expansion. Management expects normalization as new facilities ramp up.