Solar Stock in Focus After Announcing ₹350 Cr Expansion to Build 1.2 GW TOPCon Facility in MP

Synopsis: A domestic solar manufacturer is scaling up its cell-making capacity with a major greenfield investment, betting on rising demand for locally made solar components under key government schemes.

India’s rooftop solar sector is at an inflection point. With government mandates pushing domestic content requirements and new compliance norms kicking in, solar companies with in-house manufacturing are better placed than those dependent on imports. One listed player has now made a significant move to strengthen that edge.

With a market cap of Rs. 8,182 Crore, the shares of Fujiyama Power Systems Ltd. are trading at a price of Rs. 266.25 per share i.e. 0.66% up from its previous closing price of Rs. 264.5. It is trading at P/E ratio of 26.8.

New Factory, New Technology

Fujiyama Power Systems Limited has announced board approval for setting up a 1.2 GW TopCon solar cell manufacturing facility at its Ratlam plant in Madhya Pradesh. The project carries an estimated investment of ₹350 crore, to be funded through a mix of debt and internal accruals.

TopCon, or Tunnel Oxide Passivated Contact, is a next-generation solar cell technology that offers higher efficiency compared to the older Mono PERC technology currently used in the company’s existing facility. Fujiyama already operates a 1 GW Mono PERC solar cell plant at its Dadri facility in Uttar Pradesh. The Ratlam plant represents both a capacity addition and a technology upgrade. Commercial operations at the new facility are expected to begin from Q1 of FY2028.

Why This Move Makes Sense

The expansion is driven by a clear regulatory tailwind. The government is implementing ALMM-II – Approved List of Models and Manufacturers – for Solar PV Cells from 1st June 2026. This policy is designed to boost domestic demand for DCR (Domestic Content Requirement) solar panels and cells manufactured in India, limiting the use of imported cells in government-backed projects.

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, the flagship rooftop solar scheme targeting Indian households.

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.

About Fujiyama Power Systems

Fujiyama Power Systems Limited is one of India’s leading providers of rooftop solar solutions, offering solar panels, inverters, lithium and tubular batteries, chargers, and power-electronics systems. With 30 years of operating experience and manufacturing facilities across Himachal Pradesh, Uttar Pradesh, Haryana, and Madhya Pradesh, the company serves over 1.4 million end customers through a network of more than 8,900 channel partners across India.

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