Synopsis: Shares of solar module, inverter and battery manufacturer receive Buy coverage from Motilal Oswal and see potential upside of up to 102% in its bull case. The optimism is driven by expansion plans, strong earnings visibility, and rising opportunities in India’s rooftop solar market.
India’s solar sector continues to gain momentum as the country has already crossed 100 GW of installed solar capacity, marking a major milestone in its renewable energy journey. With rooftop solar expected to be a key growth driver in the coming years, this creates long-term opportunities for integrated renewable energy companies. Against this backdrop, the shares of India’s one of the leading rooftop solar manufacturers have come into focus due to its expansion plans and strong earnings outlook.
With a market capitalisation of ₹9,085 crores, the shares of Fujiyama Power Systems closed at ₹296.45 apiece down 1.08% from its previous day close of ₹299.7 apiece. The stock, however, has delivered a return of 45% in a Month against Nifty 50’s return of 6 percent.
The Buy Rationale
Shares of Fujiyama Power Systems are in focus after brokerage firm Motilal Oswal initiated coverage with a Buy rating and a target price of ₹340, implying around 15% upside. In its bull case scenario, the brokerage sees the stock reaching ₹600 by FY28, indicating a potential upside of 102%.
Strong Existing Manufacturing Base: As of December 2025, Fujiyama had already scaled capacity across solar panels, batteries, and power electronics to over 1.5 GW each. This established manufacturing base provides a strong platform to meet rising demand and scale operations further.
₹300 Crore Expansion to Capture Growth: The company has outlined a ₹300 crore capex plan at its Ratlam facility to expand capacity to 3.7 GW panels, 3.7 GW inverters, and 3.8 GWh batteries. This aggressive expansion could help Fujiyama capture India’s growing rooftop solar opportunity.
Backward Integration to Improve Margins: Fujiyama has entered solar panel manufacturing through a 1 GW Domestic Content Requirement (DCR) facility commissioned in January 2026. This is expected to improve gross margins to around 51% in the DCR segment while strengthening domestic supply capabilities.
Strong Earnings Growth Visibility: Motilal Oswal expects robust growth over FY25-28, projecting 56% CAGR in revenue, 65% CAGR in EBITDA, and 65% CAGR in PAT. The growth outlook is supported by policy-led demand, capacity ramp-up, and improving operating leverage.
Key Insights for Investors
Investors may closely track the government’s continued push toward rooftop solar adoption, domestic manufacturing incentives, and renewable energy expansion, as these policy measures can directly support demand for players like Fujiyama Power Systems. At the same time, monitoring capacity utilisation, margin delivery, competition, and future order momentum will be important, as rapid sector expansion often rewards efficient operators the most.
Company Overview and Financials
Fujiyama Power Systems is an Indian renewable energy and power solutions company focused on manufacturing and supplying solar energy products across residential, commercial, and institutional segments. The company has built a presence in the fast-growing distributed solar market by offering end-to-end solutions that cater to both energy generation and power backup needs.
Its product portfolio includes solar panels, inverters, batteries, UPS systems, solar management units, and other power electronics products, allowing it to serve customers across multiple categories under one brand. This integrated model helps the company participate across the broader solar value chain rather than relying on a single product segment
Year-on-Year analysis: Revenue from operations has increased from ₹925 crores in FY25 to ₹1,541 crores FY26, up 66.59%, with reported operating and net profit being ₹249 crores and ₹156 crores for the same period.
Quarter on Quarter analysis: Revenue from operations has increased from ₹339 crores to ₹588 crores, up 73.4% for December Q3’FY25, with reported operating and net profit being ₹110 crores and ₹67 crores for the same period. The company reported an ROCE of 38.9% and an ROE of 49.1%, and the company has a debt-to-equity of 1.38 which indicates more emphasis on debt based expansion.
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