Zodiac Energy Ltd. (ZODIAC) AI Stock Analysis

• Market Cap: ₹3.52B
• Dividend Yield: 0.25%
• Average Volume (3M): 10.32K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 1.15
• Revenue Growth: 64.71%
• EPS Growth: 48.65%
• Country: IN
• Employees: 111
• Sector: Energy
• Sector Strength: 52
• Industry: Construction Materials
• EPS (TTM): 3.36
• Shares Outstanding: 15,123,690
• 10 Day Avg. Volume: 9,184
• 30 Day Avg. Volume: 10,321
• PEG Ratio: 0.39
• Price to Book (P/B): 6.28
• Price to Sales (P/S): 1.49
• P/FCF Ratio: -4.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ₹242.00 ▼(-20.63% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held back primarily by weak cash flow (negative operating and free cash flow) and elevated leverage, despite strong revenue growth and improved gross margin. Technicals add risk with a pronounced downtrend and bearish momentum, only partially tempered by oversold signals. Valuation is reasonable with a moderate P/E, but the low dividend yield offers minimal support.

Positive Factors

Revenue Growth

A near-47% revenue increase indicates strong demand and scalable market traction in construction materials. Sustained top-line growth supports economies of scale, funds reinvestment, and can enable market share expansion, strengthening structural cash generation over months.

Gross Margin Expansion

Improved gross profit margins point to either better pricing power or tighter cost controls in core operations. Margin expansion tends to be durable if driven by structural efficiency or product mix, enhancing operating leverage and providing a buffer vs. input cost volatility.

Improved ROE

Rising ROE suggests management is deploying shareholder capital more effectively. Higher ROE can reflect competitive positioning or operational improvements that persist, supporting reinvestment and capital attraction, though it must be considered alongside leverage trends.

Negative Factors

Negative Cash Flow

Persistent negative operating and free cash flow constrains the company’s ability to self-fund capex, service debt, and invest in growth. Reliance on external financing raises cost and execution risk, limiting strategic flexibility and heightening vulnerability if credit tightens.

Rising Leverage

Significantly higher debt-to-equity and a declining equity ratio increase financial leverage, elevating interest and refinancing risks. Coupled with weak cash generation, elevated leverage narrows risk tolerance and may force deleveraging or constrain growth options.

Low Net Profitability

A persistently low net margin despite revenue and gross margin gains indicates rising operating expenses or financial costs are eroding profitability. This reduces retained earnings and slows conversion of revenue growth into sustainable free cash flow unless costs or financing are addressed.

Zodiac Energy Ltd. Business Overview & Revenue Model

Company Description

Zodiac Energy Limited engages in the installation of power generation plants and items in India. It offers solar photovoltaic (PV) systems; solar water heaters for residential, commercial, and industrial uses; and grid connected solar PV systems, rooftop solar PV systems, off grid solar PV systems, solar pumping solutions, building integrated PV systems, etc. The company also provides engineering, procurement, and construction services for diesel and gas generator sets; generates solar energy; and design, supply, testing and commissioning, and operation and maintenance, as well as turnkey solutions for power plants. Zodiac Energy Limited was incorporated in 1992 and is headquartered in Ahmedabad, India.

How the Company Makes Money

Zodiac Energy Ltd. generates revenue through multiple streams, primarily by providing installation and maintenance services for solar panels and wind turbines. The company sells solar energy systems directly to consumers and businesses, often offering financing options to facilitate purchases. Additionally, ZODIAC earns income from energy efficiency consulting services that help clients reduce energy consumption and costs. Strategic partnerships with local governments and utility companies also contribute to its revenue, enabling ZODIAC to participate in incentive programs and grants that promote renewable energy adoption. Furthermore, the company may engage in power purchase agreements (PPAs), allowing it to secure long-term contracts for selling generated energy, thus creating a stable income source.

Zodiac Energy Ltd. Financial Statement Overview

Summary

Income statement strength (revenue growth and improved gross margin) is offset by low net profitability. Balance sheet leverage has risen meaningfully, increasing risk despite improved ROE. Cash flow is the key weakness with negative operating and free cash flow, limiting financial flexibility.

Income Statement

Zodiac Energy Ltd. has demonstrated robust revenue growth with a significant increase from previous years, particularly from 2024 to 2025. The gross profit margin has improved, indicating efficient cost management. However, the net profit margin remains relatively low, signaling potential issues in controlling operating expenses or financial costs. The EBIT and EBITDA margins reflect a stable operational efficiency, but there is room for improvement in profitability.

Balance Sheet

The company's debt-to-equity ratio has increased significantly, reflecting higher financial leverage, which may pose a risk if not managed properly. Despite this, the return on equity (ROE) has improved, indicating effective utilization of shareholders' funds. The equity ratio has declined, suggesting a lower proportion of assets funded by equity, which might affect financial stability.

Cash Flow

Zodiac Energy Ltd. faces challenges in cash flow management, as evidenced by negative free cash flow and operating cash flow. The free cash flow to net income ratio is concerning, indicating that the company is not generating sufficient cash from its operations. This could impact future investment and growth opportunities if not addressed.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.26B	4.08B	2.20B	1.38B	1.43B	1.00B
Gross Profit	740.23M	699.98M	241.73M	116.37M	121.08M	104.78M
EBITDA	408.64M	370.37M	199.04M	83.37M	98.51M	74.20M
Net Income	203.29M	199.70M	109.72M	31.89M	54.60M	44.16M
Balance Sheet
Total Assets	0.00	3.02B	1.16B	947.54M	791.63M	558.36M
Cash, Cash Equivalents and Short-Term Investments	180.78M	180.78M	15.71M	55.71M	34.04M	25.55M
Total Debt	0.00	1.75B	408.12M	459.20M	177.52M	134.97M
Total Liabilities	-965.64M	2.06B	681.05M	587.04M	462.51M	284.30M
Stockholders Equity	965.64M	965.64M	475.74M	360.50M	329.12M	274.06M
Cash Flow
Free Cash Flow	0.00	-1.31B	137.50M	-260.44M	-9.04M	-58.66M
Operating Cash Flow	0.00	-488.41M	159.73M	-259.92M	8.35M	-48.59M
Investing Cash Flow	0.00	-977.28M	-19.99M	-33.89M	-39.99M	-17.82M
Financing Cash Flow	0.00	1.53B	-54.16M	281.68M	45.34M	67.30M

Zodiac Energy Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 304.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ZODIAC, the sentiment is Negative. The current price of 304.9 is above the 20-day moving average (MA) of 245.61, above the 50-day MA of 261.94, and below the 200-day MA of 368.02, indicating a bearish trend. The MACD of -9.45 indicates Negative momentum. The RSI at 40.04 is Neutral, neither overbought nor oversold. The STOCH value of 65.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ZODIAC.

Zodiac Energy Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SOLEX	64 Neutral	₹9.53B	38.37	―	0.04%	80.97%	393.79%
ZODIAC	63 Neutral	₹3.52B	22.77	―	0.25%	64.71%	48.65%
WEBELSOLAR	59 Neutral	₹22.47B	14.56	―	―	152.12%	―
SWELECTES	58 Neutral	₹8.01B	25.40	―	0.47%	39.01%	-42.51%
URJA	48 Neutral	₹4.66B	404.42	―	―	33.07%	4.57%
SURANASOL	45 Neutral	₹1.04B	166.44	―	―	―	―

Zodiac Energy Ltd. Corporate Events

Zodiac Energy Ltd. Expands Solar Holdings and Divests Stake

Zodiac Energy Ltd. has announced significant changes in its subsidiary holdings, increasing its stake in Priyapritam Solar Projects LLP and Radhavallabh Solar Projects LLP from 51% to 98%, effective November 17, 2025. This strategic move is aimed at expanding the company’s business in line with its core objectives. Additionally, Zodiac Energy has disposed of its entire 50% stake in Dhwarkesh Solar Projects LLP, which is no longer a subsidiary as of November 21, 2025. These changes reflect Zodiac Energy’s strategic realignment to strengthen its position in the solar energy sector.

Zodiac Energy Ltd. Restructures Subsidiary Holdings to Boost Solar Expansion

Zodiac Energy Ltd. has announced a significant change in its holdings within its subsidiary LLPs. The company increased its stake in Priyapritam Solar Projects LLP and Radhavallabh Solar Projects LLP from 51% to 98%, while it disposed of its entire 50% stake in Dhwarkesh Solar Projects LLP, which will no longer be a subsidiary. This strategic move is expected to enhance Zodiac Energy’s business expansion in the solar energy sector, aligning with its core objectives and potentially strengthening its market position.