Zodiac Energy Ltd Q2 FY26 – Solar Profits That Shine Brighter Than the Sun Itself (But With 16.9% Pledge Cloud Cover)
1. At a Glance
Zodiac Energy Ltd – Ahmedabad’s solar hustler – just dropped its Q2 FY26 report card, and let’s just say the sun didn’t disappoint. The company clocked ₹96.78 crore in revenue this quarter with a PAT of ₹2.68 crore, marking a modest 7.63% QoQ growth but a massive 83.4% YoY jump in sales. At a market cap of ₹507 crore and a P/E of 24.7, this smallcap is priced like an overexcited green stock that just discovered ESG buzzwords.
The stock, currently shining at ₹335, is down -32.7% YoY — probably because investors realized solar panels don’t print money at night. Yet, the fundamentals remain bright: ROE of 27.5%, ROCE of 20%, and a sales growth of 64.7% in TTM. The company’s debt-to-equity ratio of 1.76 does raise eyebrows, but hey, even the sun needs clouds for contrast.
Oh, and if you’re wondering about management confidence — promoters still hold 69.9%, though 16.9% of that is pledged (a.k.a. “the sun is shining but EMI bhi dena hai”).
2. Introduction
There are companies that sell dreams. Then there’s Zodiac Energy — selling literal sunlight, packaged neatly in panels, cables, and EPC contracts. Founded in 1992, Zodiac Energy has graduated from being a regular EPC contractor to a renewable power ninja that builds, installs, and sometimes even babysits your solar setup through its O&M services.
In an era where everyone’s screaming “Net Zero,” Zodiac quietly made ₹470 crore in FY25 revenue. For a firm that started with diesel co-generation projects, this transition to the solar side feels like a Bollywood redemption arc — the villain-turned-hero who now saves the planet (for a fee, of course).
Over the last five years, Zodiac’s profits have grown at 45.8% CAGR, and its sales have doubled every 2.5 years. The last twelve months alone saw them acquiring three new subsidiaries, landing international orders, and commissioning multiple solar projects in Gujarat. Basically, if there’s sunlight and empty land, these guys are there with a hard hat and a tender.
Still, investors aren’t clapping too hard — the stock tanked 33% this year. Why? Because apparently, the market prefers solar stories from companies with buzzwords like “hydrogen” and “AI,” not from a Gujarati family-run EPC outfit doing actual work.
3. Business Model – WTF Do They Even Do?
Zodiac Energy isn’t just a solar installer. It’s a one-stop renewable electricity factory. They handle everything from designing, supplying, testing, and commissioning solar plants to maintaining them once the ribbon-cutting ceremony is over.
Their operations run across:
Residential rooftops: Where your uncle’s bungalow gets a subsidy and a bragging point.
Commercial/industrial rooftops: For factories tired of paying ₹12 per unit.
Ground-mounted captive projects: For the big boys who can afford acres of sunlight real estate.
The company also dabbles in concentrated solar thermal (CSP) systems, diesel/gas-based captive power, and building-integrated PVs (BIPV) — because apparently, they like variety in their photons.
And they’re not stopping there. Zodiac has now started poking around in EV charging, lithium batteries, and solar desalination, which sounds like the start of a new renewable multiverse.
Their client list includes Amul, ISRO, L&T, SBI, and Toyota — basically, if your brand has ever been in a government tender, Zodiac has probably quoted for you.
4. Financials Overview
Quarterly Comparison Table (Standalone, ₹ crore)
Metric
Sep 2025
Sep 2024
Jun 2025
YoY %
QoQ %
Revenue
96.78
52.77
98.05
83.4%
-1.3%
EBITDA
10.28
4.91
9.68
109.4%
6.2%
PAT
2.68
2.49
2.69
7.6%
-0.3%
EPS (₹)
1.77
1.65
1.78
7.3%
-0.6%
Commentary: A slight sequential dip but strong YoY momentum — the kind of performance that says “solar panels don’t do Diwali discounts.” EBITDA margin held around 10.6%, which is solid for an EPC outfit. The real flex? Zodiac’s OPM has consistently climbed from 5% in FY23 to 10% in FY25, showing that they’ve learned how to quote tenders without undercutting themselves.
5. Valuation Discussion – Fair Value Range (Educational)
