Fujiyama Power To Expand Capacity And Enhance Backward Integration For Growth

Market snapshot: Fujiyama Power Systems Limited is scaling its rooftop solar and power electronics infrastructure through strategic manufacturing expansion and backward integration. The company has commissioned 2 GW of Power Electronics manufacturing capacity and initiated a ₹350 crore investment for a 1.2 GW TOPCon solar cell plant at Ratlam, Madhya Pradesh.

Data Snapshot

• Fujiyama Power is setting up a 1.2 GW TOPCon solar cell manufacturing facility at Ratlam, Madhya Pradesh with an investment of ₹350 crore.
• Fujiyama Power commissioned 2 GW Power Electronics manufacturing capacity at Ratlam in Q2 FY27 alongside its existing 2 GW solar panel line.
• Fujiyama Power reported Q2 FY27 revenue from operations of ₹1,306.8 crore, representing 130.1% YoY growth compared to ₹567.9 crore in Q2 FY26.

What's Changed

• Revenue from operations expanded to ₹1,306.8 crore in Q2 FY27 from ₹567.9 crore in Q2 FY26 (≈130.1% YoY growth).
• EBITDA increased to ₹222.9 crore in Q2 FY27 from ₹103 crore in Q2 FY26 (≈116.4% YoY growth).

Key Takeaways

• Backward integration via a 1.2 GW TOPCon solar cell plant reduces reliance on imported cells and safeguards gross margins.
• Commissioning of 2 GW power electronics capacity enhances in-house manufacturing of inverters and solar management systems.
• Multi-region expansion includes planned battery facilities, such as 3 GWh Li-ion capacity at Ratlam and 1 GWh tubular battery capacity at Hathras.

SAHI Perspective

Fujiyama Power's strategy to move upstream into solar cell production addresses critical supply chain bottlenecks in India's rooftop solar segment. Internalizing cell production directly mitigates global input price volatility, allowing the company to defend its operating margins while serving growing B2C solar demand.

Market Implications

Increased domestic manufacturing capacity strengthens Fujiyama Power's alignment with government renewable energy mandates and domestic content requirement norms. This operational scale enables higher margin protection and market share gains against non-integrated solar assemblers.

Trading Signals

Market Bias: Bullish

Fujiyama Power demonstrates strong revenue growth of 130.1% YoY in Q2 FY27 to ₹1,306.8 crore, backed by the commissioning of 2 GW Power Electronics capacity and a ₹350 crore investment in 1.2 GW backward-integrated solar cell capacity.

Overweight: Renewable Energy, Solar Capital Goods, Power Electronics

Trigger Factors:

• Commissioning timeline of the 1.2 GW solar cell plant at Ratlam
• Operational execution of the 3 GWh Lithium-ion battery facility
• Sustained EBITDA margins above 17%

Time Horizon: Medium-term (3-12 months)

Industry Context

India's rooftop solar sector is seeing accelerated adoption driven by policy incentives and rising energy demand. Manufacturers prioritizing backward integration into solar cells gain a structural cost advantage over pure-play assembly units facing global supply line shifts.

Key Risks to Watch

• Capex execution delays for the Ratlam solar cell project
• Fluctuations in raw material costs for power electronics and battery components
• Regulatory adjustments in domestic solar manufacturing policies

Recent Developments

Fujiyama Power commissioned 2 GW Power Electronics capacity at Ratlam in Q2 FY27 and announced a ₹350 crore capex for a 1.2 GW TOPCon solar cell manufacturing plant. Additionally, the company approved a ₹5 crore investment in associate firm Zayo Energy.

Closing Insight

By executing backwards-integrated manufacturing alongside capacity expansion, Fujiyama Power positions itself to capture expanding renewable energy demand with reinforced supply security.

High Performance Trading with SAHI.