💰 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.