Renewable energy player Zodiac Energy reported a 157% year-on-year surge in net profit for Q1FY27, reaching ₹7.0 crore. The growth was underpinned by a 45% rise in operating revenue to ₹141.8 crore, supported by expanding operational efficiency and margin accretion.

The Ahmedabad-based company filed its investor presentation with stock exchanges on September 3, 2026, disclosing strong top-line momentum alongside improved profitability metrics. Earnings per share (EPS) more than doubled to ₹4.6 from ₹1.8 in the corresponding period last year.

Financial Performance Snapshot

Revenue from operations grew significantly, outpacing cost inflation to drive broader bottom-line expansion. EBITDA rose 55% year-on-year to ₹15.1 crore, with the margin expanding by 70 basis points to 10.6%. This indicates improved operating leverage despite higher input costs.

Gross profit increased 41% to ₹28.3 crore, although gross margins contracted by 260 basis points to 20.0%. The divergence between gross and operating performance highlights effective control over other operating expenses, which grew at a slower pace (32%) than material costs (46%).

What the Numbers Show

A notable divergence exists between gross margin pressure and overall profitability. While gross margins fell due to rising material consumption costs, the company successfully insulated its bottom line through strict operating expense management. Finance costs remained relatively stable, rising only 5% to ₹4.6 crore, preventing interest burden from eroding the expanded EBITDA base. Consequently, PAT margins nearly doubled, demonstrating that operational discipline offset input cost inflation.

Operational Highlights & Strategic Outlook

Zodiac Energy secured a new contract worth approximately ₹7.1 crore for a 2 MW solar power plant in Gujarat. The company also incorporated a wholly owned subsidiary dedicated to solar power and EPC projects, signaling intent to scale execution capabilities.

Key operational metrics reflect improving working capital dynamics:

• Debtor days improved to 57 days from 61 days in the prior period.
• The IPP portfolio is scaling, with revenue reaching ₹5.0 crore, positioning it as a long-term growth driver.
• In FY26, cash PAT stood at ₹31.0 crore, up from ₹22.7 crore in FY25, driven by the dual advantage of EPC and IPP businesses.

Management outlined a strategic roadmap focusing on three pillars: scaling Battery Energy Storage Systems (BESS) execution to tap into a market growing at a 20-25% CAGR, consolidating presence in Africa through export-oriented EPC projects, and selectively deepening rooftop solar penetration. The company has set a target of ₹1,000 crore revenue by FY29, leveraging its Zenwatt-led expansion.

Balance Sheet Position

As of FY26, the net debt-to-equity ratio stood at 1.9x, a slight increase from 1.8x in FY25. Total assets grew to ₹482.4 crore from ₹302.4 crore in FY25, driven by an increase in inventories to ₹128.5 crore and trade receivables to ₹113.1 crore. Return on Equity (RoE) declined to 19.8% from 27.7% in FY25, while Return on Capital Employed (RoCE) fell to 19.9% from 27.0%, reflecting the capital-intensive nature of recent expansions.

Zodiac Energy has scheduled its 34th Annual General Meeting for September 23, 2026. The Board recommends a final dividend of ₹0.75 per equity share for the financial year ended March 31, 2026.

The company notified stock exchanges that the AGM notice and annual report for FY25-26 were dispatched to registered members on August 21, 2026. For members without registered email addresses, the company has provided a web-link to the Annual Report 2025-26 in compliance with Regulation 36(1)(b) of the SEBI Listing Regulations. The report is also available on the company website.

Key Agenda Items

The AGM notice outlines several ordinary and special business items for shareholder approval:

• Final Dividend: Approval of a dividend of ₹0.75 per equity share of face value ₹10 each. This applies to 1,51,52,633 fully paid-up equity shares.
• Director Re-appointment: Re-appointment of Mrs. Parul Kunjbihari Shah as Whole Time Director. She retires by rotation but is eligible for re-appointment. Her remuneration remains at ₹60 lakh per annum.
• Articles of Association Alteration: Removal of provisions relating to the common seal from the company’s Articles of Association. This special resolution aims to simplify document execution processes.

Voting and Meeting Details

The meeting will be conducted via video conferencing or other audio-visual means. Remote e-voting will commence on September 20, 2026, at 9:00 am and conclude on September 22, 2026, at 5:00 pm. The facility is provided by National Securities Depository Limited (NSDL). M/s. SCS & Co LLP has been appointed as the scrutinizer for the voting process.

Shareholders on record as of September 16, 2026, are eligible to receive the dividend and participate in e-voting. Members attending the AGM who have not cast their vote during the remote e-voting period can vote on resolutions during the meeting. The dividend payment is expected on or around September 29, 2026.

What the Numbers Show

The proposed dividend of ₹0.75 represents a payout ratio of 7.5% relative to the ₹10 face value of the equity shares. This indicates a consistent return policy to shareholders for FY26, assuming the total payout aligns with the recommended per-share amount across the 1.51 crore outstanding shares.