The shares of the solar product and service provider hit a 5 percent upper circuit after the company received its first international Rooftop order from Kitwe, Zambia for $720,626.00.
With a market capitalization of Rs 852.78 crore, the shares of Zodiac Energy Ltd were trading at Rs 564.90 per share, increasing around 5 percent as compared to the previous closing price of Rs 538.00 apiece.
Reason for rise:-
The shares of the company have seen positive movement after Zodiac Energy Ltd received its first international Rooftop order from Kitwe, Zambia for $720,626.00 for the Designing, Engineering, Supplying, Installing, Testing, and Commissioning of Grid Tied 2 MWp Rooftop Solar System Turnkey with Battery Energy Storage System (BESS).
Financial performance:-
Looking forward to the company’s financial performance, revenue magnified by 53 percent from Rs 34.41 crore in Q2FY24 to Rs 52.77 crore in Q2FY25. During the same period, net profit stretched by 68 percent, from Rs 1.48 crore to Rs 2.49 crore.
Growth Driver:-
Zodiac Energy Ltd’s growth is driven by entry into the IPP segment with a ₹152 crore PPA under PM KUSUM, a robust EPC order book over 50 MW, strong demand in PM Surya Ghar Yojana, and expansion into Africa, with potential order conversions boosting future prospects.
Margin Guidance:-
EBITDA margins contracted due to growth investments, higher salary and interest costs, and high working capital projects. Management expects margins to improve in coming quarters with stabilized solar panel prices and enhanced project execution efficiency, addressing current challenges effectively.
Clientele:-
Zodiac Energy’s key clients include Adani, Torrent, RBI, Nirma, Honda Motorcycle & Scooters India, UGVCL, and Ahmedabad Municipal Corporation. The company enjoys significant repeat business, having executed multiple projects for these major clients, reflecting its strong client relationships and reliable project delivery.
Future Capex plan:-
The company plans future capex investments in the IPP segment and projects under PM KUSUM and C&I sectors. Current debt stands at ₹50 crore from Axis Bank, with an average interest rate of 9.35%, reflecting a strategic focus on growth while managing financial commitments effectively.
Management guidance:-
The management remains optimistic about growth prospects in the solar energy sector, driven by supportive government policies and strong market confidence in solar investments, which are expected to fuel sustainable growth.
Company Snapshot:-
Zodiac Energy Limited is an India-based energy solution provider. The Company provides turnkey solutions from concept to commissioning of power plants. The Company is primarily engaged in the installation of solar power generation plants/items.
Written by:- Abhishek Singh
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