Fujiyama Power Systems has successfully commissioned a 1.2 GW TopCon solar cell manufacturing facility at its Ratlam plant in Madhya Pradesh, marking a significant milestone in the company's backward integration strategy. The project, which was originally approved by the board, has now been completed with commercial operations expected to commence from Q1 FY2028. This expansion substantially strengthens the company's integrated manufacturing capabilities across the solar value chain, complementing its existing 1 GW Mono PERC solar cell manufacturing facility at its Dadri plant in Uttar Pradesh. The commissioning comes as part of the company's strategic shift from module assembly to core cell manufacturing to improve margins and meet domestic content requirements.
The commissioned facility represents an estimated investment of ₹350 crore, which was funded through a combination of debt and internal accruals. As reported by ETManufacturing, the commercial operations of the Ratlam TopCon facility are expected to commence from Q1 of FY2028. The investment appears well-covered by the company's robust financial performance, with Q4FY26 revenue surging to ₹900.8 crore, up 87% YoY. The company reported a 107% jump in net profit to ₹106.3 crore for the quarter ended March 2026, fueled by post-IPO expansion and strong distribution growth. The backward integration is expected to reduce cost-of-goods-sold (COGS) by controlling cell margins internally, with margin expansion typically adding 5-8% to EBITDA margins compared to module-only assembly.
The commissioning of the TopCon facility adds to Fujiyama Power Systems' existing manufacturing capabilities, which now scale towards 4.7 GW total capacity including 3.5 GW modules, batteries, inverters, and the new 1.2 GW cell facility. The company's business remains predominantly B2C, with a strong presence in Tier-2 and Tier-3 markets, supported by an extensive distribution network including over 950 distributors, 1,150 exclusive Shoppes, and 6,800 dealers as of the latest update. The new TopCon capacity is designed to support the company's competitive position in the on-grid rooftop solar market, particularly under schemes like the Pradhan Mantri Surya Ghar Muft Bijli Yojana. TOPCon cells offer higher efficiency (~24-25%) over traditional PERC technology, allowing the company to produce panels that generate more electricity from the same rooftop area, a key selling point for residential users.
The backward integration strategy positions Fujiyama Power to capture significant policy benefits, as local cell production qualifies the company for the highest 'Domestic Content Requirement' (DCR) project tiers, potentially lowering installation costs for retail customers. The company is well-positioned to cater to domestic demand of DCR Solar Panels and expand presence in the on-grid rooftop solar market, with the new TopCon capacity designed to support the company's competitive position in the residential segment. With the national target of 500 GW renewable capacity by 2030, domestic cell manufacturing is critical to reducing the current 70%+ reliance on imported Chinese solar components. The investment signals heightened competition for established solar cell manufacturers like Tata Power and Adani Solar, while indicating a robust capital allocation strategy funded largely by internal accruals following the stellar Q4 performance.
The expansion is strategically timed with the government implementing ALMM-II – Approved List of Models and Manufacturers – for Solar PV Cells from June 1, 2026, designed to boost domestic demand for DCR solar panels and cells manufactured in India. Fujiyama's inclusion in the MNRE's ALMM-II list for solar cells positions it well to supply into this growing domestic market, particularly under the Pradhan Mantri Surya Ghar Muft Bijli Yojana. From a business perspective, in-house cell production helps the company reduce cost volatility, improve gross margins, and ensure a steady supply of DCR-compliant cells for its solar panels – a key competitive advantage in the B2C rooftop solar segment. The company serves over 1.4 million end customers through a network of more than 8,900 channel partners across India, leveraging its 30 years of operating experience and manufacturing facilities across multiple states.
