Synopsis: A leading rooftop solar and power backup company has caught the attention of a top domestic brokerage, which sees a sharp jump in profitability over the next two years, backed by capacity expansion and policy tailwinds.
The residential solar space in India keeps drawing brokerage attention, and government incentives pushing adoption in smaller towns and cities are a big reason why. Strong volume growth, expanding manufacturing capacity, and improving margins have made this a space worth watching, and one company’s latest numbers, along with a brokerage’s fresh outlook, are turning heads this week.
Strong Show in Q4 and FY26
Fujiyama Power Systems Limited sells under the UTL Solar and Fujiyama Solar brands. The company makes solar panels, inverters, batteries, and power backup equipment, with plants in Uttar Pradesh, Haryana, Himachal Pradesh, and Madhya Pradesh – a footprint that covers most of the residential rooftop solar chain.
The Q4 FY26 numbers were strong. Revenue from operations stood at ₹900.8 crore, up 87.5% from ₹480.3 crore a year ago. EBITDA rose 116.9% to ₹171.5 crore, and margins moved up to 19% from 16.5%. Profit after tax came in at ₹106.3 crore, up 107.5% year-on-year.
The full year looked much the same. Revenue from operations reached ₹2,654.5 crore, a 72.3% jump over FY25. EBITDA for FY26 stood at ₹490.3 crore, up 97.3%, while margins widened to 18.5% from 16.1%. Profit after tax grew 94.5% to ₹304.1 crore for the year.
Management put the improved profitability down to higher operating scale, better utilisation across manufacturing facilities, and a growing contribution from backward-integrated operations. The channel partner base also grew, crossing 8,900 as of March 2026 across 23 states.
Motilal Oswal’s Bullish Call
Domestic brokerage Motilal Oswal has a ‘Buy’ rating on the stock with a target price of Rs 470 – an upside of roughly 23% from the current market price of Rs 376. The brokerage expects the company to gain from rising demand for residential rooftop solar under the PM Surya Ghar Muft Bijli Yojana. It also called out the company’s captive solar cell manufacturing capacity and expansion into new states as key drivers going forward.
Motilal Oswal said, “UTLSOLAR is well-positioned to benefit through its captive 1GW Mono PERC DCR cell facility,” and added, “We expect UTLSOLAR to clock a CAGR of 49%/53%/53% in revenue/EBITDA/adj PAT during FY26-28.”
The brokerage also flagged that expansion into states like Assam, Karnataka, Telangana, and West Bengal, alongside rising demand under the government’s rooftop solar subsidy scheme, could give the company a longer runway for growth.
Capacity Expansion on Track
Backward integration has been a steady focus for the company. It has already commissioned a 2,000 MW solar panel manufacturing facility at Ratlam and is now building a 1,200 MW TOPCon solar cell facility at the same site.
Management said the inverter manufacturing line should be commissioned by Q1FY27, while battery manufacturing is expected by Q2FY27 – both pushed back slightly due to newer lithium-ion battery technology being incorporated, plus some geopolitical developments that hit supply timelines.
The balance sheet is in noticeably better shape too, helped along by the November 2025 IPO. Net debt to equity fell sharply to 0.25x as of March 2026, down from 0.85x a year earlier, leaving more headroom to fund the ongoing expansion.
On capacity, the company currently runs 2,180 MW in power electronics, 1,000 MW in solar cells, 3,568 MW in solar panels, 545 MWh in lithium-ion batteries, and 1,318 MWh in tubular batteries. Once the ongoing expansions are done, power electronics capacity should rise to 4,180 MW, solar cells to 2,200 MW, and combined battery capacity to 2,545 MWh – all part of the broader push to deepen backward integration across the solar value chain.
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