Zodiac Energy reported a 33% year-on-year increase in revenue from operations to ₹543.5 crore for the financial year ended March 31, 2026 (FY26). The fully integrated renewable energy EPC player attributed this growth to robust execution across its solar verticals, including EPC ground-mounted, rooftop, and Independent Power Producer (IPP) businesses. EBITDA for the period surged 50% to ₹55.3 crore, with margins expanding by 114 basis points to 10.2%. Profit after tax (PAT) increased 5% to ₹21.0 crore, while cash profit after tax grew 36% to ₹31.0 crore.

The company’s operational efficiency improved as debtor days reduced to 57 from 61 in the previous year, and cash conversion days stood at 94 compared to 83 in FY25. Return on equity (RoE) improved to 19.5% from 18% in the prior year. The net debt-to-equity ratio was recorded at 1.9x. Zodiac Energy’s overall orderbook stood at ₹382.3 crore, with order inflow for the year reaching ₹163.4 crore. The IPP business contributed ₹15.6 crore in revenue, a 478% year-on-year growth.

Strategic Initiatives and Expansion

Zodiac Energy is focusing on building a scalable distributed energy platform through its Zenwatt business model, which offers mobile Battery Energy Storage Systems (BESS) for diesel replacement. The company targets high-usage segments such as construction, events, and commercial facilities. It has also expanded its footprint into Africa, commissioning its first hybrid renewable solution in the region. In India, the company maintains a presence across 15+ states and union territories, with over 500 C&I projects executed.

Financial Performance

The income statement highlights a consistent rise in top-line and operational metrics. Total operating expenses increased 102% year-on-year to ₹47.6 crore, while finance costs rose 116% to ₹18.8 crore. Depreciation for the year stood at ₹10.0 crore. The balance sheet remained robust, with total assets growing to ₹329.7 crore in FY26 from ₹302.4 crore in the previous year. Equity capital increased to ₹118.7 crore from ₹96.6 crore.

Business Outlook

Management highlighted the structural tailwinds driving India’s clean energy transition, including policy support, cost reductions in solar PV modules, and infrastructure expansion. The company continues to leverage its EPC stronghold to expand geographically and technologically, focusing on emerging areas like Building Integrated Photovoltaics (BIPV) and hybrid systems.

Zodiac Energy has approved the establishment of wholly owned subsidiaries in India and Zambia, marking a notable step in the company's corporate expansion strategy. The decision to set up entities in both a domestic and an international jurisdiction underscores the company's intent to strengthen its operational presence across multiple geographies.

Key Corporate Development

The following table summarizes the key details of the approved subsidiary formation:

Domestic and International Expansion

The approval covers the formation of wholly owned subsidiaries in two distinct markets — one within India and another in Zambia. The establishment of a subsidiary in Zambia represents an international foray, while the domestic subsidiary is aimed at reinforcing the company's presence within India. Wholly owned subsidiaries provide companies with full operational control and flexibility in managing business activities across different regulatory environments.

Strategic Significance

The simultaneous approval of subsidiaries in both India and Zambia highlights Zodiac Energy's dual focus on consolidating its home market operations while pursuing international growth opportunities. Such corporate structuring decisions are typically undertaken to facilitate business diversification, streamline operations, or support new project pipelines in target geographies.