Fujiyama Power Systems Posts Q2 EBITDA of ₹2.23 Billion with 17.06% Margin

Market snapshot: Fujiyama Power Systems Limited reported its Q2 financial performance, recording a sharp operational expansion. EBITDA rose to ₹223 crore from ₹103 crore in the year-ago period, though operating margins narrowed slightly to 17.06%.

Data Snapshot

• Q2 EBITDA reached ₹223 crore, up 116.5% YoY from ₹103 crore in the prior-year period.
• Q2 EBITDA margin contracted by 108 basis points YoY to 17.06% compared to 18.14% in Q2 of the previous fiscal.
• Equipment delivery for the 1.2 GW domestic content requirement solar cell facility at Ratlam was confirmed on track for commissioning in Q1 FY28.

What's Changed

• Q2 EBITDA grew to ₹223 crore compared to ₹103 crore in Q2 of the prior fiscal year.
• Q2 EBITDA margin contracted to 17.06% from 18.14% in the year-ago period.

Key Takeaways

• Robust top-line volume growth drove absolute EBITDA up by 116.5% YoY.
• Operating margin contracted by 108 bps YoY, reflecting higher key input costs or shift in product mix.
• Backward integration via the upcoming 1.2 GW Ratlam cell manufacturing facility remains on track for Q1 FY28 commissioning.

SAHI Perspective

The Q2 operational results highlight strong market absorption in the rooftop solar and power electronics segments, enabling Fujiyama Power Systems to scale absolute profits significantly. While margin compression of 108 basis points points to cost pressures or competitive pricing in retail channels, the sharp overall surge in EBITDA demonstrates solid execution across product categories.

Market Implications

The strong surge in absolute operating earnings reinforces earnings visibility for the rooftop solar equipment sector. Investors will monitor whether margin pressures normalize as domestic cell manufacturing capacity comes online.

Trading Signals

Market Bias: Bullish

Supported by strong operational growth with Q2 EBITDA expanding 116.5% YoY to ₹223 crore despite minor margin compression.

Overweight: Renewable Energy Equipment, Rooftop Solar Solutions

Trigger Factors:

• Sustained demand under national rooftop solar schemes
• Commissioning progress of 1.2 GW Ratlam solar cell facility
• Margin recovery in subsequent quarters

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

Industry Context

India's rooftop solar segment is benefiting from policy momentum and expanding retail adoption of solar inverters and energy storage solutions. Backward integration into cell manufacturing is key to securing supply chains and protecting long-term operating margins.

Key Risks to Watch

• Fluctuations in global solar component and raw material prices
• Intense competition in domestic retail rooftop solar channels
• Execution delays in commissioning backward integrated manufacturing assets

Recent Developments

On October 21, 2026, the company clarified that equipment for its 1.2 GW solar cell manufacturing facility at Ratlam had been delivered, confirming no impact from external technology export restrictions.

Closing Insight

Fujiyama Power Systems' ability to double its operating profit in Q2 underscores strong market position, while future margin trajectory will depend on successful backward integration.

High Performance Trading with SAHI.