Fujiyama Power Systems books Rs 143.58 crore fire loss

Fujiyama Power Systems Limited booked a Rs 143.58 crore exceptional loss for the half year ended 30 September 2026 after a 6 May 2026 fire damaged buildings, machinery and inventory at its Bawal facility, while no insurance recovery was recognised because the assessment remained in progress.

What did the Bawal fire cost Fujiyama Power Systems?

Fujiyama Power Systems recognised Rs 143.58 crore as an exceptional item labelled “Loss due to Fire in Bawal Plant.” The 6 May 2026 incident occurred at one of its production facilities in Bawal, District Rewari, Haryana, and damaged building structures, plant and machinery, and inventories with an aggregate net carrying value of Rs 143.58 crore.

The entire exceptional charge appeared in the quarter ended 30 June 2026, while the quarter ended 30 September 2026 carried no additional fire-loss charge. The half-year charge therefore remained Rs 143.58 crore, according to the standalone financial-results statement approved by the board on 5 November 2026.

Fujiyama Power Systems said the event was material and non-recurring, which was why the loss was separately presented rather than included within regular operating expenses. The company reported that it produces and sells solar power generating systems-related products, with operations predominantly in India.

How did the fire loss affect Fujiyama Power Systems profit?

Fujiyama Power Systems reported profit before exceptional items and tax of Rs 401.38 crore for the half year ended 30 September 2026. After deducting the Rs 143.58 crore exceptional fire loss, profit before tax was Rs 257.80 crore, and profit after tax was Rs 190.65 crore following a net tax charge of Rs 67.14 crore.

The comparable half year ended 30 September 2025 had no exceptional item. In that earlier period, Fujiyama Power Systems reported profit before tax of Rs 174.55 crore and profit after tax of Rs 130.49 crore, while revenue from operations was Rs 1,165.26 crore compared with Rs 2,652.51 crore in the latest half year.

The quarterly pattern reflects when the charge was recognised. Profit before tax was Rs 77.66 crore in the quarter ended 30 June 2026, which included the Rs 143.58 crore exceptional item, and Rs 180.14 crore in the quarter ended 30 September 2026, when no fresh fire-loss charge was recorded.

Will Fujiyama Power Systems recover the Bawal fire loss from insurance?

Fujiyama Power Systems said it has adequate insurance coverage for the assets damaged in the Bawal fire and has lodged claims with its insurer. However, it did not recognise a recovery by 30 September 2026 because the loss assessment was still being conducted by the insurance surveyor and the insurer.

Management expects to recover the net carrying-value loss in due course, but the filing does not disclose a recovery amount or a payment timetable. The accounting position at 30 September 2026 is therefore a Rs 143.58 crore exceptional charge, with no matching insurance income in the reported half-year results.

S N Dhawan & Co LLP drew attention to the fire in both its standalone and consolidated limited-review reports dated 5 November 2026. The auditor noted the Rs 143.58 crore carrying value of the damaged assets and said its conclusion was not modified in respect of the matter.

What changed in Fujiyama Power Systems' financial position?

Fujiyama Power Systems reported standalone total assets of Rs 2,906.69 crore at 30 September 2026, compared with Rs 2,343.56 crore at 31 March 2026. Property, plant and equipment increased to Rs 706.21 crore from Rs 535.15 crore, while inventories rose to Rs 1,229.54 crore from Rs 909.82 crore despite the fire-related write-off.

Cash and cash equivalents declined to Rs 51.81 crore at 30 September 2026 from Rs 139.46 crore at 31 March 2026. The half-year cash-flow statement recorded net cash used in operating activities of Rs 263.44 crore, compared with an outflow of Rs 147.51 crore in the half year ended 30 September 2025.

Current borrowings increased to Rs 661.44 crore at 30 September 2026 from Rs 325.41 crore at the March year-end, while non-current borrowings rose to Rs 190.20 crore from Rs 136.07 crore. Total equity stood at Rs 1,465.74 crore, up from Rs 1,273.36 crore at 31 March 2026.

What other matters did Fujiyama Power Systems disclose?

Fujiyama Power Systems acquired 31% of the equity capital in each of Zayo Energy Private Limited and Zayo Cables Private Limited on 25 April 2026. Both companies became associates from that date, and the 30 September 2026 consolidated results were prepared for the first time using the equity method under Indian Accounting Standard 28.

On 9 September 2026, Fujiyama Power Systems subscribed to 833 compulsorily convertible debentures issued by an associate at Rs 60,093 per debenture. Each debenture had a face value of Rs 10 and is compulsorily convertible into equity shares according to the terms of issue.

The filing also covered Bureau of Indian Standards, or BIS, proceedings. A court order dated 13 October 2026 imposed a fine of Rs 0.30 lakh each on Fujiyama Power Systems and its two Joint Managing Directors, paid on 14 October 2026; the company expects release of products valued at Rs 24.50 lakh, while it awaits a BIS response concerning Rs 19 lakh of goods seized at Bawal on 28 April 2026.

Conclusion

The Bawal fire had a clearly identified accounting impact: Fujiyama Power Systems wrote off Rs 143.58 crore of damaged assets as an exceptional item in the half year to 30 September 2026. That charge reduced profit before tax from Rs 401.38 crore before exceptional items to Rs 257.80 crore, while half-year revenue increased to Rs 2,652.51 crore from Rs 1,165.26 crore a year earlier.

The next disclosed item to watch is the insurance assessment, as Fujiyama Power Systems has lodged claims and management expects recovery but had not recognised an amount by 30 September 2026. The company also awaits a BIS response on Rs 19 lakh of seized Bawal goods and will account for its associates acquired on 25 April 2026 in subsequent consolidated reporting.