Zodiac Energy reported a strong Q2 FY27, with revenue surging 72% YoY to INR 166.2 crore and profit after tax jumping 241.7% to INR 9.2 crore. The company is aggressively entering the Battery Energy Storage Systems (BESS) market with a 63.5% stake acquisition in Zenwatt Clean Energy and plans for a 2 GW manufacturing facility near Ahmedabad. With 80.7 MW of new C&I projects commissioned, the company has set an ambitious revenue target of INR 1,000 crore by FY29.
Zodiac Energy Q2 Revenue Hits INR 166.2 Cr, Profits Surge 241%
Revenue grew 71.8% YoY to INR 166.2 Cr, while PAT climbed 241.7% to INR 9.2 Cr in Q2 FY27.
Reader Takeaway: Robust operational growth and a strategic pivot into BESS energy storage drive momentum, though capital intensity persists.
What just happened
Zodiac Energy posted a sharp uptick in financial performance for the second quarter of FY27. Revenue from operations reached INR 166.2 crore, a significant jump from INR 96.8 crore in the same period last year. Profitability improved across the board, with EBITDA margins expanding to 11.6% from 10.6% and net profit margins reaching 5.5%.
Why this matters
The company is signaling a shift from traditional EPC projects toward higher-margin, high-tech energy storage solutions. By acquiring a majority stake in Zenwatt Clean Energy for INR 1.14 crore and planning a 2 GW manufacturing plant near Ahmedabad, Zodiac is positioning itself to capture the rising demand for grid-scale battery storage. This diversification is key to achieving the management-stated revenue target of INR 1,000 crore by FY29.
Operational Performance
The company successfully commissioned 80.7 MW of Commercial and Industrial (C&I) solar projects during the quarter. Management is now prioritizing large-scale ground-mounted solar projects to improve operational efficiency and expand its footprint in international markets, particularly Africa.
Balance Sheet and Leverage
Financial health indicators have shown marked improvement. The net debt-to-equity ratio improved to 1.4x as of Q2 FY27, down from 2.1x in FY26. Total assets now stand at INR 405.3 crore, reflecting the company’s ongoing capital expenditure cycle.
Risks to watch
Success depends heavily on the timely execution of the proposed 2 GW manufacturing facility and navigating the regulatory complexities of the renewable energy sector. While debt ratios have improved, the scale of the upcoming BESS manufacturing investment will require disciplined capital management to maintain stable leverage levels.
What to track next
Investors should monitor the construction timeline of the Ahmedabad BESS facility and quarterly updates on the transition toward the INR 1,000 crore revenue goal.