Zodiac Energy Ltd. (ZODIAC) AI Stock Analysis

• Market Cap: ₹5.74B
• Dividend Yield: 0.22%
• Average Volume (3M): 10.32K
• Price to Earnings (P/E): 28.2
• Beta (1Y): 1.58
• Revenue Growth: 64.71%
• EPS Growth: 48.65%
• Country: IN
• Employees: 111
• Sector: Energy
• Sector Strength: 52
• Industry: Construction Materials
• EPS (TTM): 1.77
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ₹343.00 ▲(3.52% Upside)

Zodiac Energy Ltd. faces significant challenges with bearish technical indicators and high financial leverage. While revenue growth is strong, profitability and cash flow issues, along with a high P/E ratio, suggest caution. The stock's current downtrend and low dividend yield further impact its attractiveness.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and successful product adoption, which supports long-term business sustainability.

Operational Efficiency

Improved gross profit margins suggest effective cost control, enhancing the company's ability to reinvest in growth and innovation.

Return on Equity

Higher ROE reflects efficient use of equity capital, which can attract more investment and support sustainable growth.

Negative Factors

High Financial Leverage

Increased leverage can lead to financial instability and restrict the company's ability to invest in future opportunities.

Negative Cash Flows

Insufficient cash generation from operations may limit the company's ability to fund growth and meet financial obligations.

Low Net Profit Margin

Low net profit margins can hinder profitability, affecting the company's ability to sustain long-term growth and competitiveness.

Zodiac Energy Ltd. Business Overview & Revenue Model

Company Description

Zodiac Energy Ltd. (ZODIAC) is a leading provider of renewable energy solutions, specializing in solar power, wind energy, and energy efficiency technologies. The company operates in the clean energy sector, offering a range of products and services including solar panel installations, wind turbine setups, and energy management systems. ZODIAC is committed to promoting sustainable energy practices and reducing carbon footprints for both residential and commercial clients.

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

Zodiac Energy Ltd. shows strong revenue growth and operational efficiency. However, profitability and cash flow management need improvement. High leverage and negative cash flows present potential risks, despite effective equity utilization.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: 331.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 331.35 is below the 20-day moving average (MA) of 366.40, below the 50-day MA of 376.59, and below the 200-day MA of 418.59, indicating a bearish trend. The MACD of -11.31 indicates Positive momentum. The RSI at 30.63 is Neutral, neither overbought nor oversold. The STOCH value of 10.49 is Positive, 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%
WEBELSOLAR	59 Neutral	₹51.08B	25.12	―	―	152.12%	―
ZODIAC	57 Neutral	₹5.74B	28.17	―	0.22%	64.71%	48.65%
SWELECTES	57 Neutral	₹10.59B	31.32	―	0.44%	39.01%	-42.51%
URJA	47 Neutral	₹6.75B	330.33	―	―	33.07%	4.57%

Zodiac Energy Ltd. Corporate Events

Zodiac Energy Limited Honored for Excellence in Solar Project Development

Zodiac Energy Limited has been recognized as the ‘Ground Mount Projects Developer of the Year’ for its excellence in utility scale, captive, and PM Kusum projects at the Gujarat State Annual Solar Awards 2025. This accolade, awarded by Suryacon Ahmedabad-2025, underscores Zodiac Energy’s prominent position in the solar energy sector and highlights its commitment to advancing renewable energy initiatives.

Zodiac Energy Enhances Shareholder Engagement with Digital Communication

Zodiac Energy Ltd. has announced the dispatch of a letter to shareholders who have not registered their email addresses with the company or relevant depositories, providing them with a web link to access the Annual Report for the fiscal year 2024-25. The company also informed about its upcoming 33rd Annual General Meeting scheduled for September 19, 2025, to be held virtually. This initiative underscores Zodiac Energy’s commitment to enhancing shareholder communication and engagement, ensuring that all stakeholders have access to critical company information and updates.

Zodiac Energy Ltd. Receives Upgraded Credit Rating Amidst Solar Project Success

Zodiac Energy Limited has received an upgraded credit rating from CARE Ratings Limited for its bank loan facilities, reflecting improved operations and profitability. The company’s successful commissioning of solar projects and a long-term power purchase agreement with Uttar Gujarat Vij Company Limited provide revenue stability, although challenges remain due to financial risks and market competition.

Zodiac Energy Ltd. Clarifies Misreported Penalty Figures

Zodiac Energy Ltd. has issued a clarification regarding a news article published by Fundsmap Private Limited on its platform ScoutQuest, which inaccurately reported penalties imposed by UGVCL on the company. The article incorrectly stated the penalties as Rs. 64.96 Crore and Rs. 92.22 Crore, whereas the actual amounts are Rs. 64.96 Lakhs and Rs. 92.22 Lakhs. Zodiac Energy Ltd. plans to contest the penalties and has requested the removal of the incorrect article.