Fujiyama Power Expands Value Chain with Zayo Stake

Fujiyama Power Systems reported quarterly revenue of ₹588.5 crore and a net profit of ₹67.3 crore for the December 2025 quarter. The company has now approved acquiring an additional 31% stake in Zayo Energy Private Limited (ZEPL) and Zayo Cables Private Limited (ZCPL) for ₹31,000 each.

The Announcement

Fujiyama Power Systems Ltd announced on April 25, 2026, that its Board of Directors approved acquiring an additional 31% stake in Zayo Energy Private Limited (ZEPL) and Zayo Cables Private Limited (ZCPL). The acquisitions, costing ₹31,000 per company, will raise Fujiyama's total shareholding in both to 50% each, designating them as associate companies. This move targets backward integration and operational synergies within Fujiyama's value chain.

ZEPL manufactures solar panel components like EVA sheets, junction boxes, and backsheets, while ZCPL produces electronic and electric wires and cables. The company anticipates the acquisition will be finalized within 30 days.

Strategic Rationale

This acquisition highlights Fujiyama Power Systems' commitment to strengthening its manufacturing base and supply chain control. By bringing production of key components such as solar panel parts and electrical cables in-house, Fujiyama expects to reduce its reliance on external suppliers, improve cost management, and enhance quality control. The integration aligns with Fujiyama's strategy to offer complete solar solutions and boost its competitive edge in the growing renewable energy market.

Broader Strategy

This move follows Fujiyama Power Systems' ongoing efforts to deepen its manufacturing integration. In January 2026, the company commissioned a 1 GW solar cell manufacturing facility in Dadri, Uttar Pradesh, with an investment of approximately ₹300 crore. This facility is intended for captive use, reinforcing integration between cell and module production. Fujiyama also plans to leverage government initiatives like the PM Surya Ghar Muft Bijli Yojana and expand its pan-India distribution network.

Impact on Fujiyama

With this acquisition, Fujiyama gains direct oversight of critical upstream component production for its solar products and other electrical needs. This control is expected to enable better cost management and potentially improve profit margins over time. The integration is also anticipated to foster greater operational coordination between Fujiyama and its new associate companies, supporting its market position as a comprehensive provider in renewable energy and electrical solutions.

Key Risks

In March 2026, Bureau of Indian Standards (BIS) officials seized products valued at ₹2.52 crore from Fujiyama's Greater Noida facility due to alleged non-compliance with standards. Fujiyama stated this had no material impact on its financials or operations, but it indicates ongoing regulatory scrutiny.

Additionally, both ZEPL and ZCPL reported nil turnover for FY24-25. This suggests that their immediate financial contribution will likely be minimal, and their integration will require strategic development.

Competitive Landscape

Fujiyama Power Systems operates within a competitive market. In the wires and cables sector, major players include Polycab India Ltd and KEI Industries Ltd. For solar panel components and manufacturing, Waaree Energies Ltd and Tata Power Solar Systems Ltd are significant competitors, with Waaree being India's largest solar panel manufacturer.

Key Details on Zayo Units

Zayo Energy Private Limited and Zayo Cables Private Limited have a paid-up share capital of ₹1,00,000 each.

Zayo Energy Private Limited and Zayo Cables Private Limited reported nil turnover for the financial year 2024-25.

Looking Ahead

Key developments to watch include the successful completion of the ZEPL and ZCPL acquisitions within the 30-day period. Investors will also track management's strategy for integrating these operations to realize synergy and backward integration benefits. The future performance and contribution of the acquired entities to Fujiyama's overall business and profitability will be crucial. Any updates regarding the BIS investigation into product compliance will also be significant.