Zodiac Energy Ltd posted a 33% year-on-year revenue growth to ₹543.5 crore for FY26. EBITDA surged 50% to ₹55.3 crore, but PAT saw a modest 5% increase to ₹21.0 crore due to higher finance and depreciation costs. The company aims for ₹1,000 crore revenue by FY29.
Zodiac Energy Ltd. FY26 Results
Revenue from operations reached ₹543.5 crore, marking a 33% year-on-year increase. EBITDA saw a significant 50% jump to ₹55.3 crore. Profit After Tax (PAT) grew by 5% to ₹21.0 crore.
Reader Takeaway: Strong revenue growth is positive, but margin contraction is a concern.
What just happened
Zodiac Energy Ltd. announced its financial results for the fiscal year 2026. Key performance indicators show robust top-line expansion. Revenue from operations stood at ₹543.5 crore, a 33% increase compared to the previous fiscal year. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 50% year-on-year, reaching ₹55.3 crore. The company's Profit After Tax (PAT) for the period was ₹21.0 crore, a 5% increase over the prior year.
The overall order book also expanded by 23% year-on-year to ₹382.3 crore. Return on Equity (RoE) was reported at 19.5%.
Why this matters
The significant revenue and EBITDA growth indicate strong operational performance and expansion. However, the lower PAT growth suggests increasing costs or financial burdens impacting the bottom line. The order book expansion points to future revenue visibility.
The backstory
In FY25, Zodiac Energy had reported revenues of ₹407.8 crore and EBITDA of ₹37.0 crore. PAT for FY25 was ₹20.0 crore, with Earnings Per Share (EPS) at ₹13.4. The company has been focusing on its Independent Power Producer (IPP) segment, which saw revenue of ₹15.6 crore in FY26, a substantial 478% year-on-year growth. This segment offers annuity-style income.
What changes now
Zodiac Energy is focusing on Battery Energy Storage Systems (BESS) execution and maintaining its role as an export-oriented EPC player. Management has set a revenue target of ₹1,000 crore by FY29. The company is also expanding its geographical footprint, with projects commissioned in Zambia.
Risks to watch
Despite revenue growth, the PAT margin declined to 3.9% in FY26 from 4.9% in FY25, attributed to higher finance costs and depreciation. The net debt-to-equity ratio increased to 1.9x from 1.8x, indicating higher leverage. The cash conversion cycle has also lengthened to 94 days from 83 days.
Peer comparison
(No specific peer comparison data was provided in the filing.)
Context metrics
- Revenue (FY26): ₹543.5 crore (33% YoY growth)
- EBITDA (FY26): ₹55.3 crore (50% YoY growth)
- PAT (FY26): ₹21.0 crore (5% YoY growth)
- Order Book (FY26): ₹382.3 crore (23% YoY growth)
- PAT Margin (FY26): 3.9% (down from 4.9% in FY25)
- Net Debt/Equity (FY26): 1.9x (up from 1.8x in FY25)
- Cash Conversion Cycle (FY26): 94 days (up from 83 days in FY25)
What to track next
Investors will be watching the company's ability to manage its expanding debt and improve its PAT margins. Progress on the ₹1,000 crore revenue target and successful execution of BESS projects will be key indicators.