Fujiyama Power Maintains 18% To 19% EBITDA Guidance Pending Q3 Review

Market snapshot: Fujiyama Power Systems has signaled that its operational EBITDA margins remain sustainable within its benchmark range of 18% to 19%. However, management plans to issue a formal guidance update following Q3 financial results to adjust for shifting industry dynamics, including ALMM 2 policy rollout, domestic content requirement (DCR) cell shortages, and pending guidelines for PM Surya Ghar 2.0.

Data Snapshot

• Revenue from operations reached ₹1,306.8 crore in Q2 FY27, representing a 130.1% YoY increase from ₹567.9 crore in Q2 FY26.
• EBITDA for Q2 FY27 reached ₹222.9 crore with an EBITDA margin of 17.1%, compared to 18.1% in Q2 FY26 and 18.9% in Q1 FY27.
• Reported Net Profit for Q2 FY27 stood at ₹132.9 crore, up 111.2% YoY from ₹62.9 crore in Q2 FY26.

What's Changed

• Q2 FY27 EBITDA margin settled at 17.1% vs 18.9% in Q1 FY27 (derived: down 180 bps QoQ).

Key Takeaways

• Operational EBITDA guidance of 18% to 19% remains the baseline expectation prior to Q3 reviews.
• Market factors including DCR cell shortages and ALMM List 2 compliance schedules present operational variables.
• The company is evaluating upstream integration into ingot wafers and next-generation sodium-ion battery chemistries.

SAHI Perspective

Fujiyama Power's strategy to evaluate ingot wafer production and sodium-ion technologies reflects a defense against DCR cell availability bottlenecks. While backward-integrated manufacturing capacity supports top-line expansion, near-term margin realization will depend heavily on regulatory execution under ALMM frameworks and cell availability.

Market Implications

Component supply tightness across DCR solar cells may temporarily pressure execution timelines for rooftop solar deployments. Investors will closely watch the post-Q3 guidance revision to gauge whether margin stability at 18%-19% can be sustained under evolving trade and subsidy norms.

Trading Signals

Market Bias: Neutral

Baseline guidance of 18%-19% EBITDA margins provides structural confidence, but near-term guidance uncertainty following upcoming Q3 results warrants a neutral bias pending clarity on DCR supply and policy updates.

Overweight: Rooftop Solar Solutions, Power Electronics & Inverters

Underweight: Non-integrated Solar Assemblers

Trigger Factors:

• Q3 FY27 financial performance and official guidance revision
• Implementation timeline for ALMM List 2 compliance
• Pricing and availability trends for DCR solar cells
• Official framework clarity regarding PM Surya Ghar 2.0

Time Horizon: Near-term (0-3 months)

Industry Context

India's rooftop solar sector is undergoing policy-driven restructuring. With mandatory domestic content requirements for government-subsidized programs and expanding ALMM mandates, backward integration into cells and wafers has become critical for maintaining cost competitiveness.

Key Risks to Watch

• Supply chain delays or cost inflation in DCR solar cells.
• Policy shifts or implementation delays in PM Surya Ghar guidelines.
• Execution risk associated with aggressive expansion into battery storage and wafer manufacturing.

Recent Developments

In October 2026, Fujiyama Power clarified to stock exchanges that equipment for its 1.2 GW TOPCon solar cell facility at Ratlam, Madhya Pradesh, had already been delivered, mitigating impact from overseas technology export restrictions.

Closing Insight

While Fujiyama Power's baseline guidance targets strong operating margins, execution around domestic cell sourcing and regulatory alignment ahead of Q3 will determine its near-term valuation trajectory.

High Performance Trading with SAHI.