ZODIAC - Zodiac Energy
📢 Recent Corporate Announcements
Zodiac Energy Limited is contesting a tax demand for FY 2018-19 involving CGST, SGST, and IGST. The company has filed a Special Civil Application before the Gujarat High Court seeking a stay and has also initiated an appeal with the Deputy Commissioner of State Tax to quash the demand, interest, and penalties. Management is optimistic as the Gujarat High Court previously quashed a similar demand against the company in July 2025 on identical legal grounds. This legal action is a proactive step to mitigate potential financial liabilities arising from the tax notice.
- Show Cause Notice dated June 30, 2025, alleged GST demands for the 2018-19 financial year
- Company filed a Special Civil Application on March 03, 2026, seeking a stay from the Gujarat High Court
- Management decided on March 13, 2026, to file an appeal for quashing tax, interest, and penalties
- A similar previous tax demand was quashed by the High Court on July 17, 2025, providing a strong legal precedent
- The current appeal is based on identical facts and legal grounds as the successfully contested previous case
Zodiac Energy Limited has acquired a 98% majority stake in Shamli Solar Projects LLP, officially making it a subsidiary. The acquisition was completed for a nominal cash consideration of Rs. 19,600, as the target entity currently reports zero turnover. Shamli Solar is focused on solar power plant development and electricity sales, which aligns with Zodiac's core business objectives. This acquisition appears to be a strategic move to create a project-specific vehicle for future renewable energy expansion.
- Acquired 98% ownership interest in Shamli Solar Projects LLP for a cash consideration of Rs. 19,600.
- Target entity is engaged in setting up solar power plants and electricity generation.
- Shamli Solar Projects LLP reported nil turnover for the financial years 2022-23, 2023-24, and 2024-25.
- The acquisition is intended to facilitate the further expansion of Zodiac Energy's business in the solar sector.
Zodiac Energy Limited has announced its participation in Arihant Capital’s Bharat Connect Conference: Rising Stars-2026. The virtual group meeting is scheduled for March 10, 2026, from 02:00 PM to 03:00 PM IST. Senior management will represent the company to interact with analysts and institutional investors. The company clarified that discussions will be limited to publicly available information and no unpublished price sensitive information will be shared.
- Virtual group meeting scheduled for March 10, 2026, at 02:00 PM IST.
- Participation in Arihant Capital’s Bharat Connect Conference: Rising Stars-2026.
- Senior Management to engage with institutional investors and analysts.
- Discussions will strictly adhere to publicly available information.
- Event provides a platform for the company to showcase its business to the investment community.
Zodiac Energy Limited has announced the relocation of its registered office within Ahmedabad to Times Corporate Park, effective February 09, 2026. The company cited the need for a larger workspace to accommodate a growing workforce and strengthen infrastructure as the primary reason for the move. This administrative shift is expected to improve operational efficiency and support long-term growth. Since the relocation is within the same city, there are no significant regulatory or tax implications for the company.
- Registered office shifted to A 12, Times Corporate Park, Thaltej, Ahmedabad, effective Feb 09, 2026.
- Relocation is within the local limits of the same city (Ahmedabad).
- Move driven by the requirement for larger space to accommodate an expanding workforce.
- The change was approved by the Board of Directors in a meeting held on February 09, 2026.
Zodiac Energy reported a strong 32% YoY revenue growth for Q3 FY26, reaching ₹137.56 crore. While revenue grew significantly, Profit After Tax (PAT) saw a YoY decline of 11% to ₹5.07 crore, primarily due to higher finance costs and depreciation. On a sequential basis (QoQ), the company showed a robust recovery with revenue up 42% and PAT up 89%. Additionally, the board approved a strategic investment in Zenwatt Clean Energy Limited to enter the Battery Energy Storage Systems (BESS) market.
- Revenue from operations grew 31.8% YoY to ₹137.56 crore in Q3 FY26.
- Net Profit (PAT) for the quarter stood at ₹5.07 crore, down 11.1% YoY but up 89.3% QoQ.
- Finance costs increased significantly to ₹4.49 crore compared to ₹2.60 crore in the same quarter last year.
- Nine-month revenue (Apr-Dec 2025) reached ₹332.38 crore, a 40.6% increase over the previous year.
- Board approved acquiring a strategic stake in Zenwatt Clean Energy Limited, focusing on Battery Energy Storage Systems (BESS).
Zodiac Energy Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations for the period ended December 31, 2025. The certificate, issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited, confirms that share certificates received for dematerialization were processed within prescribed timelines. It verifies that physical certificates were mutilated, cancelled, and the name of the depositories substituted in the register of members. This filing is a standard procedural requirement to ensure the integrity of the company's shareholding records.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Confirmation provided by Registrar and Share Transfer Agent MUFG Intime India Private Limited.
- Securities received for dematerialization were processed and listed on stock exchanges.
- Physical certificates were mutilated and cancelled after due verification by the depository participant.
- The filing confirms adherence to SEBI (Depositories and Participants) Regulations, 2018.
Zodiac Energy Limited has entered into a formal agreement with Amanta Healthcare Limited for the installation of a 10.8 MWp solar power plant. The project will be located in the Kheda district of Gujarat and is dedicated to generating electricity for captive consumption. This development signifies a healthy addition to the company's project pipeline in the renewable energy sector. The transaction is confirmed to be at arm's length with no promoter group involvement.
- 10.8 MWp solar power plant installation agreement signed on January 02, 2026.
- Strategic partnership with Amanta Healthcare Limited for captive power generation.
- Project site located at Village Baroda, Kheda District, Gujarat.
- Transaction is non-related party and adheres to standard regulatory disclosures.
Zodiac Energy Limited has successfully resolved a GST dispute with the Gujarat State Tax authorities regarding the financial year 2021-22. The Assistant Commissioner of State Tax has quashed a Show Cause Notice dated September 01, 2025, which had alleged discrepancies in Input Tax Credit (ITC) availed by the company. The final order concludes the matter with nil demand and zero financial liability. This resolution ensures there is no negative impact on the company's financial position or operational activities.
- Tax authorities quashed the Show Cause Notice dated September 01, 2025, regarding FY 2021-22 GST liability.
- The order from the Assistant Commissioner of State Tax (Gujarat) results in nil demand and nil liability.
- The proceedings were related to alleged discrepancies in Input Tax Credit (ITC) for the period April 2021 to March 2022.
- Company confirms zero financial or operational impact following this regulatory clearance.
Zodiac Energy Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This is a standard regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations for the upcoming financial results for the quarter and nine months ending December 31, 2025. The window will remain closed until 48 hours after the financial results are officially declared. The company will announce the specific date for the board meeting to approve these results at a later time.
- Trading window closure to commence on January 1, 2026.
- Closure relates to the financial results for the quarter and nine months ended December 31, 2025.
- Window will reopen 48 hours after the announcement of the unaudited financial results.
- The board meeting date for result approval is yet to be determined and will be shared later.
Zodiac Energy Limited announced the results of its postal ballot, with shareholders approving a special resolution related to giving loans or guarantees under Section 185 of the Companies Act, 2013. Remote e-voting showed strong support, with 10,856,789 votes in favor and only 64 votes against. Promoter and Promoter Group voting resulted in 10,547,263 votes in favor. Public Non-Institutions cast 309,526 votes in favor. The total number of shareholders on record date was 39947.
- 10,856,789 total votes in favor of the special resolution.
- 10,547,263 votes in favor from Promoter and Promoter Group.
- 309,526 votes in favor from Public Non-Institutions.
- 64 total votes against the special resolution.
- Total 39947 shareholders on record date.
Zodiac Energy Limited has increased its stake in Priyapritam Solar Projects LLP and Radhavallabh Solar Projects LLP from 51% to 98% effective November 17, 2025. The company's contribution to each LLP is now ₹98,000 out of a total capital of ₹1,00,000. Simultaneously, Zodiac Energy disposed of its entire 50% stake in Dhwarkesh Solar Projects LLP, effective November 21, 2025, for a consideration of ₹50,000. The buyer of the Dhwarkesh stake is Ms. Miti Kunjbihari Shah, a relative of a Director and part of the Promoter Group.
- Increased stake in Priyapritam Solar Projects LLP to 98% from 51%
- Increased stake in Radhavallabh Solar Projects LLP to 98% from 51%
- Disposed of 50% stake in Dhwarkesh Solar Projects LLP for ₹50,000
- New contribution to Priyapritam Solar Projects LLP is ₹98,000
- New contribution to Radhavallabh Solar Projects LLP is ₹98,000
Zodiac Energy has consolidated its ownership in two subsidiaries, Priyapritam Solar Projects LLP and Radhavallabh Solar Projects LLP, by increasing its stake from 51% to 98% in each. The additional 47% stakes were acquired for a nominal cash consideration of ₹98,000 per entity, totaling ₹1.96 lakh. Concurrently, the company disposed of its entire 50% stake in Dhwarkesh Solar Projects LLP for ₹50,000 to a member of the promoter group. While the acquired entities currently report nil turnover, the move is aimed at business expansion in the solar power generation sector.
- Increased stake in Priyapritam and Radhavallabh Solar Projects LLPs from 51% to 98% effective Nov 17, 2025.
- Acquisition cost for the additional 47% stake in each LLP was ₹98,000, totaling ₹1.96 lakh.
- Exited Dhwarkesh Solar Projects LLP by selling the entire 50% stake for ₹50,000 to a promoter group member.
- The acquired LLPs are focused on solar power generation but have reported nil turnover for the last three financial years.
- Transactions were conducted on an arm's length basis as related party transactions.
Financial Performance
Revenue Growth by Segment
Total revenue from operations reached INR 407.8 Cr in FY25, representing a robust 85.5% YoY growth from INR 220.1 Cr in FY24. The growth is primarily driven by the scaling of the ground-mounted solar EPC business and the execution of a healthy order book which grew 320% YoY.
Geographic Revenue Split
The company is primarily focused on the Indian market, specifically Gujarat, with Ahmedabad as its base. A significant portion of revenue visibility is tied to projects in Gujarat, such as the IPP project with UGVCL (Uttar Gujarat Vij Company Ltd).
Profitability Margins
Gross margin improved slightly to 13.3% in FY25 from 13.1% in FY24. PAT margin remained stable at 4.9% in FY25 compared to 5.0% in FY24, despite a significant increase in finance costs which rose 98% YoY to INR 8.7 Cr.
EBITDA Margin
EBITDA margin expanded by 47 bps to 9.1% in FY25 (INR 37.0 Cr) from 8.6% in FY24 (INR 19.0 Cr). This improvement was driven by the stabilization of solar module prices and a shift in the sales mix toward higher-margin ground-mounted solar projects.
Capital Expenditure
Property, plant, and equipment (PPE) increased significantly from INR 2.3 Cr in FY24 to INR 75.7 Cr in FY25, an absolute increase of INR 73.4 Cr, primarily to fund the development of Independent Power Producer (IPP) assets under the KUSUM scheme.
Credit Rating & Borrowing
Credit rating was upgraded in August 2025 to CARE BBB; Stable (Long-term) and CARE A3+ (Short-term). Total borrowings increased to INR 157.5 Cr (INR 93.2 Cr non-current and INR 64.3 Cr current) to support capital-intensive IPP projects.
Operational Drivers
Raw Materials
Key raw materials include solar modules, inverters, and battery storage systems. Solar module prices are a critical driver, as their stabilization directly contributed to the 47 bps expansion in EBITDA margins.
Import Sources
While specific countries are not named, the company is susceptible to global solar module price volatility, which typically involves imports from major manufacturing hubs like China.
Capacity Expansion
The company expanded its asset base for power generation (IPP) from INR 2.3 Cr to INR 75.7 Cr in FY25. It is also actively executing BESS (Battery Energy Storage Systems) projects to capitalize on storage tailwinds.
Raw Material Costs
Cost of materials consumed including changes in inventories was INR 337.8 Cr in FY25, representing 82.8% of revenue, up 83% YoY from INR 184.2 Cr in FY24.
Strategic Growth
Expected Growth Rate
72%
Growth Strategy
Growth will be achieved by scaling the ground-mounted solar EPC business, selectively deepening the rooftop solar presence, and expanding the high-margin IPP business under the PM-KUSUM scheme which provides 25-year revenue visibility through PPAs. The company is also positioning itself ahead of the curve in BESS and BIPV technologies.
Products & Services
Turnkey solar EPC solutions (ground-mounted and rooftop), solar power generation (IPP), distribution of solar products, Battery Energy Storage Systems (BESS), and Building Integrated Photovoltaics (BIPV).
Brand Portfolio
Zodiac Energy, Zodiac Genset.
New Products/Services
New focus on BESS (Battery Energy Storage Systems), BIPV (Building Integrated Photovoltaics), and hybrid systems to enhance the value proposition of clean energy offerings.
Market Expansion
Scaling ground-mounted business and deepening rooftop presence across India, supported by government initiatives like PM-KUSUM and rooftop solar programs.
External Factors
Industry Trends
The industry is seeing a shift toward consolidation where only technically and financially strong players will survive. There is a growing trend toward energy storage (BESS) and hybrid solar systems.
Competitive Landscape
Highly competitive market with a large number of unorganized players offering products at unrealistic prices, though medium-term consolidation is expected.
Competitive Moat
The company's moat is built on the 30+ year track record of promoter Kunj Shah and its ability to provide end-to-end turnkey solutions from design to commissioning, which is difficult for unorganized players to replicate at scale.
Macro Economic Sensitivity
Highly sensitive to government renewable energy policies (e.g., PM-KUSUM) and the broader Indian clean energy transition, which is described as a multi-decadal growth story.
Consumer Behavior
Increasing adoption of rooftop solar and energy storage solutions among C&I (Commercial and Industrial) customers to reduce energy costs and meet sustainability goals.
Geopolitical Risks
Supply chain disruptions and trade barriers affecting the import of solar modules could impact project costs and execution timelines.
Regulatory & Governance
Industry Regulations
Operations are governed by the Companies Act 2013, SEBI Listing Regulations, and specific renewable energy policies like the PM-KUSUM scheme and rooftop solar guidelines.
Environmental Compliance
ESG risks are currently noted as 'Not applicable' in credit rating assessments for the company's current scale and sector.
Taxation Policy Impact
Effective tax rate for FY25 was approximately 27.6%, with total tax expenses of INR 7.6 Cr on a PBT of INR 27.5 Cr.
Risk Analysis
Key Uncertainties
Key risks include solar module price volatility (impacting EPC margins), timely receipt of government grants, and achieving minimum contracted PLF levels for IPP projects.
Geographic Concentration Risk
High concentration in Gujarat, with major project execution and off-taker (UGVCL) dependencies located within the state.
Third Party Dependencies
Dependency on solar module and inverter manufacturers for timely supply and pricing stability.
Technology Obsolescence Risk
Risk of rapid changes in solar cell efficiency and storage technology; company is mitigating this by moving into BESS and BIPV.
Credit & Counterparty Risk
Receivables quality is generally healthy; debtor days improved significantly from 130 to 51 days in FY25, and the primary IPP off-taker (UGVCL) has a strong credit profile.