Whalesbook
📉 The Financial Deep Dive
The Numbers:
Zodiac Energy Limited announced its unaudited standalone and consolidated financial results for Q3 FY26, ending December 31, 2025. Standalone revenue from operations surged by 31.85% year-on-year (YoY) to ₹13,755.90 Lakhs (₹137.56 Cr). However, Profit After Tax (PAT) saw a decline of 11.16% YoY to ₹5,074.90 Lakhs (₹50.75 Cr). Standalone EBITDA increased by 18.92% YoY to ₹9,737.00 Lakhs (₹9.74 Cr), but the EBITDA margin compressed to 7.05% from 7.81% in Q3 FY25.
Sequentially, the company demonstrated strong growth, with revenue up 42.15% QoQ and PAT surging by 89.25% QoQ.
For the nine-month period (9M) ended December 31, 2025, standalone revenue grew 40.58% YoY to ₹33,238.47 Lakhs (₹332.38 Cr), while PAT remained nearly flat, down 0.82% YoY to ₹10,444.40 Lakhs (₹104.44 Cr).
On a consolidated basis, revenue for Q3 FY26 was ₹13,766.62 Lakhs (₹137.67 Cr), up 31.61% YoY. Consolidated PAT was ₹5,076.70 Lakhs (₹50.77 Cr), a decrease of 11.11% YoY. These consolidated figures are being reported for the first time this quarter.
The Quality:
The primary drivers for the YoY pressure on profitability and margins were substantial increases in finance costs and depreciation. Finance costs rose sharply from ₹2,595.20 Lakhs in Q3 FY25 to ₹4,494.80 Lakhs in Q3 FY26. Similarly, depreciation and amortization expenses jumped from ₹543.50 Lakhs to ₹2,724.90 Lakhs YoY. These higher operating expenses, despite strong revenue growth, led to the year-on-year decline in PAT and margin compression.
Management Commentary & Guidance:
The announcement did not provide specific forward-looking guidance or detailed management commentary on future prospects or market conditions. However, the strategic approval to acquire a stake in Zenwatt Clean Energy Limited signals a significant diversification strategy and a move into the burgeoning Battery Energy Storage Systems (BESS) sector.