Zodiac Energy has incorporated a wholly-owned subsidiary, Zodiac Energy IPP-2 Private Limited, to execute solar power generation and engineering, procurement and construction projects. The entity was registered on August 25, 2026.

The company disclosed the incorporation pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The new entity serves as a special purpose vehicle to support the firm’s business expansion strategy in renewable energy.

Incorporation Details

Zodiac Energy subscribed to 100% of the initial paid-up share capital of the subsidiary. The investment structure is detailed below:

The Registrar of Companies issued the Certificate of Incorporation on August 25, 2026. The authorized representative for the incorporation was Mr. Kunjbihari Shah.

Strategic Intent

The subsidiary aims to strengthen operational capabilities in the renewable energy sector. It will undertake projects related to solar power generation alongside EPC activities. The move aligns with the company’s long-term business expansion strategy to broaden its renewable energy portfolio.

No governmental or regulatory approvals were required for this incorporation. The transaction involved a cash consideration, with no related-party interests disclosed beyond the holding company relationship.

The Board of Directors of Zodiac Energy approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026 (Q1FY27), alongside significant strategic acquisitions in the solar sector.

Consolidated net profit attributable to owners of the parent company rose to ₹7.02 crore, compared to ₹2.69 crore in Q1FY26. Revenue from operations grew 45% year-on-year to ₹141.81 crore from ₹98.05 crore. Basic earnings per share (EPS) increased to ₹4.57 from ₹1.78 in the corresponding period of the previous fiscal.

Financial Performance

The company’s financial results reflect strong top-line growth supported by expanding margins in its core business segments. Consolidated total income reached ₹143.30 crore, while total expenses were contained at ₹133.49 crore. Profit before tax stood at ₹9.81 crore, up from ₹3.67 crore in Q1FY26.

*EBITDA calculated as Profit Before Tax + Depreciation & Amortization + Finance Costs.

Standalone figures mirrored this trend, with net profit reaching ₹7.02 crore on revenue of ₹141.81 crore. Finance costs decreased slightly to ₹5.18 crore from ₹4.41 crore in the prior year quarter, while employee benefit expenses remained stable at ₹3.52 crore.

What the Numbers Show

The growth trajectory is heavily concentrated in the Solar Photovoltaic Modules & EPC Contracts segment, which contributed ₹137.86 crore to revenue and generated a segment result of ₹10.35 crore. In contrast, the Generation of Power segment, while showing improved performance with a segment result of ₹0.66 crore against a loss of ₹1.06 crore in Q1FY26, continues to contribute minimally to overall profitability. This divergence highlights the company’s current reliance on trading and EPC execution for immediate cash flows, rather than power generation assets.

Strategic Acquisitions and Corporate Actions

In a move to expand its asset base, the board approved the acquisition of a 98% ownership interest in Umaputra Solar Projects LLP and Kripalu Solar Projects LLP through direct capital contribution, effective August 13, 2026. Additionally, Zodiac Energy increased its stake in Govind Solar Projects LLP and Harikrishna Solar Projects LLP by 83%, raising its total holding in each entity from 15% to 98%.

The board also fixed September 16, 2026, as the record date for determining entitlement to the final dividend of ₹0.75 per equity share for FY26. The 34th Annual General Meeting is scheduled for September 23, 2026, to be held via Video Conferencing/Other Audio-Visual Means (VC/OAVM).

NPKU & Associates served as the statutory auditors, issuing a limited review report on the financial statements prepared in accordance with Ind AS 34.