Solar Stock Jumps 5% After Reporting 107% YoY Increase in Net Profit

Synopsis: Fujiyama Power Systems Limited strengthened its growth momentum through rising rooftop solar demand, network expansion and manufacturing integration, while new capacity additions and product expansion plans are expected to support its next growth phase. 

The shares of this small cap company majorly engaged in manufacturing solar products and providing solutions in the rooftop solar industry, including on-grid, off-grid, and hybrid solar systems were in focus after posting robust Q4 FY26 results. 

With the market capitalization of Rs. 8682 Crores, the shares of Fujiyama Power Systems Ltd reached an intraday high of Rs. 286.75 per share rising nearly 5 percent from its previous day closing of Rs. 273.10 per share and is trading at a P/E of 28.6 whereas industry P/E stands at 27.6 

Q4 FY26 Result

Year on Year analysis: Revenue from operations has increased from Rs. 480 Crores to Rs. 901 Crores, up 87 percent. Operating profit has increased from Rs. 79 Crores to Rs. 171 Crores, up 116 percent and net profit has increased from Rs. 51 Crores to Rs. 106 Crores, up 107 percent. 

Quarter on Quarter analysis: Revenue from operations has increased from Rs. 588 Crores to Rs. 901 Crores, up 53 percent. Operating profit has increased from Rs. 110 Crores to Rs. 171 Crores, up 55 percent and net profit has increased from Rs. 67 Crores to Rs. 106 Crores, up 58 percent. 

Rooftop Solar Demand Remained Strong

Management highlighted that the residential rooftop solar market continued to witness healthy demand during the year, especially across Tier-2 and Tier-3 cities. Rising consumer preference for reliable power solutions, favourable government policies and increasing solar adoption supported business growth. The company also expects demand under the PM Surya Ghar Muft Bijli Yojana to create additional opportunities for residential installations.

Distribution Network Continues to Expand

Fujiyama further expanded its distribution reach during Q4FY26 by adding more than 80 distributors, 450 dealers and 30 exclusive Shoppes. With this addition, the company’s total channel partner network crossed 8,900 partners as of March 2026. Management stated that a strong service and installation network remains critical for improving customer accessibility, service reliability and response timelines in the rooftop solar segment. 

Ratlam Expansion Strengthens Manufacturing Integration

The company commissioned a 2,000 MW solar panel manufacturing capacity at Ratlam, Madhya Pradesh, during the year. In addition, Fujiyama is setting up a 1,200 MW TOPCon solar cell manufacturing facility at Ratlam with an investment of around ₹350 crore.

Management said the expansion will strengthen backward integration, improve manufacturing capabilities and support the company’s expansion into the on-grid solar segment. The company also believes the facility will help it participate more effectively in government-supported residential solar opportunities.

Update on Inverter and Battery Manufacturing Lines

Fujiyama shared that commissioning of the inverter and battery manufacturing capacities at Ratlam witnessed some delays due to incorporation of advanced lithium-ion battery technologies and geopolitical disruptions affecting supply timelines.

The inverter manufacturing line is expected to be commissioned by Q1FY27, with machinery already received at the facility. Meanwhile, machinery orders for the battery manufacturing line have already been placed, with commissioning expected by Q2FY27 

Outlook Ahead

Looking ahead, the company remains optimistic about the residential solar market, supported by policy continuity, increasing awareness and rising demand for reliable and sustainable energy solutions. Fujiyama stated that its focus will remain on capacity expansion, strengthening backward integration, improving operational efficiencies and expanding distribution reach across India. 

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