Zodiac Energy Q2 FY27 PAT rises 242% as revenue grows 72%

Zodiac Energy Limited reported profit after tax of Rs 9.2 crore in Q2 FY27, up 242% year on year, as revenue from operations rose 72% to Rs 166.2 crore and earnings before interest, taxes, depreciation and amortisation margin increased 93 basis points to 11.6%. The company commissioned 80.7 megawatts of commercial and industrial projects during the quarter.

How did Zodiac Energy perform in Q2 FY27?

Zodiac Energy reported revenue from operations of Rs 166.2 crore in Q2 FY27, up 72% year on year. Earnings before interest, taxes, depreciation and amortisation, or EBITDA, rose 87% to Rs 19.2 crore, while profit after tax, or PAT, increased 242% to Rs 9.2 crore.

Reported margins also increased in Q2 FY27. EBITDA margin reached 11.6%, up 93 basis points year on year, and PAT margin was 5.5%, up 274 basis points. One basis point equals one-hundredth of a percentage point, and the margin movement accompanied PAT growth that exceeded the reported 72% rise in revenue.

Zodiac Energy also reported cash profit of Rs 12.4 crore in Q2 FY27, up 266% year on year, with a cash-profit margin of 7.5%, up 199 basis points. In its financial highlights, the company described this measure as cash PAT and compared it with Rs 5.3 crore in Q2 FY26.

Why did Zodiac Energy’s Q2 FY27 margins increase?

Zodiac Energy’s reported EBITDA and PAT rose faster than its revenue in Q2 FY27, producing the stated expansion in EBITDA margin to 11.6% and PAT margin to 5.5%. EBITDA grew 87% against revenue growth of 72%, while PAT grew 242%.

The presentation does not provide Q2 FY27 material costs, employee expenses, depreciation, finance costs or tax expenses. It therefore establishes the revenue, EBITDA and PAT progression, but does not quantify which cost line or operating measure caused the 93-basis-point EBITDA-margin and 274-basis-point PAT-margin increases.

Zodiac Energy attributed the increase in cash PAT to Rs 12.4 crore from Rs 5.3 crore in Q2 FY26 to its engineering, procurement and construction, or EPC, and independent power producer, or IPP, dual advantage. The presentation does not disclose the respective Q2 FY27 revenue, generation income or margin contribution from the EPC and IPP businesses.

What solar project activity did Zodiac Energy report in Q2 FY27?

Zodiac Energy said it commissioned 80.7 megawatts of commercial and industrial, or C&I, projects and received solar project orders totalling 24.8 megawatts in Q2 FY27. The commissioning figure represents completed project execution, while the order figure represents awards received rather than stated revenue recognition.

The company also won a contract worth about Rs 7.1 crore to build a 2-megawatt solar power plant in Gujarat. The 2-megawatt award is a specific contract, whereas the 24.8-megawatt order figure aggregates solar project orders without disclosing their value, locations or expected execution dates.

Management said Zodiac Energy would reinforce its position as an export-oriented EPC player while consolidating its presence in Africa. It also said the company would continue scaling ground-mounted projects and selectively deepen its rooftop presence, although the presentation gives no Q2 FY27 export revenue, Africa order value or segment-wise revenue split.

What does the Zenwatt acquisition mean for Zodiac Energy?

Zodiac Energy acquired a 63.5% stake in Zenwatt Clean Energy for Rs 1.14 crore, making Zenwatt Clean Energy a subsidiary. Management identified Zenwatt-led expansion as a source of growth visibility alongside its stated Rs 1,000 crore revenue target for FY29.

The presentation does not disclose Zenwatt Clean Energy’s revenue, profit, installed capacity, customer base or expected financial contribution after the 63.5% acquisition. It establishes the purchase consideration of Rs 1.14 crore and the resulting subsidiary status, but not the timing or scale of financial consolidation.

Zodiac Energy also incorporated a wholly owned subsidiary for solar power and EPC projects. The company does not name that entity or disclose its initial capital, pipeline, commercial start date or contribution to Q2 FY27 revenue of Rs 166.2 crore.

What debt, return and growth measures did Zodiac Energy disclose?

Zodiac Energy reported return on equity of 25.2% in Q2 FY27, up 557 basis points year on year, and return on capital employed of 23.6%, up 358 basis points. These return measures were reported alongside Q2 FY27 PAT of Rs 9.2 crore rather than as separate profitability measures for individual business segments.

The presentation contains two net-debt-to-equity figures for Q2 FY27. Its performance snapshot reports 1.6 times, down 0.5 times year on year, while its financial highlights say the ratio improved to 1.4 times in Q2 FY27 from 2.1 times in FY26; the document does not reconcile the two Q2 FY27 figures.

Management said it planned to scale battery energy storage system, or BESS, execution to address a cited 20% to 25% compound annual growth rate market opportunity. The presentation attributes that market-growth range to the World Energy Outlook but does not specify the applicable period, geography, planned investment or revenue potential for Zodiac Energy.

Zodiac Energy’s solar installation track record increased from 14.1 megawatts in FY22 to 99.7 megawatts in FY26, which the company describes as a 7.1-times increase and a 47.9% compound annual growth rate. Its FY26 installation total was higher than 92.8 megawatts in FY25, while management’s FY29 revenue target sits alongside plans for Zenwatt, ground-mounted solar, rooftop projects, export EPC and BESS.

Conclusion

Zodiac Energy’s Q2 FY27 results show earnings growing faster than sales, with revenue up 72% to Rs 166.2 crore, EBITDA up 87% to Rs 19.2 crore and PAT up 242% to Rs 9.2 crore. The reported margin gains, Rs 12.4 crore cash profit and 80.7 megawatts of C&I commissioning provide the operating context for the quarter.

The next disclosed items to watch are management’s Rs 1,000 crore FY29 revenue target, Zenwatt-led expansion and planned growth in ground-mounted solar, rooftop projects and BESS execution. Future disclosures could also clarify the two stated Q2 FY27 net-debt-to-equity ratios of 1.6 times and 1.4 times, as well as Zenwatt’s financial contribution.