Key Events This Week
Feb 9: Flat quarterly results amid rising interest costs
Feb 10: Stock surges to upper circuit with 12.73% gain
Feb 11: Quality grade upgraded to good, signalling operational improvements
Feb 12-13: Profit-taking leads to declines, stock closes lower
9 February: Flat Quarterly Performance Amid Rising Interest Costs
Zodiac Energy reported a flat quarterly performance for the December 2025 quarter, with net sales rising 31.85% year-on-year to ₹137.56 crores. Despite this strong top-line growth, net profit after tax declined 11.2% to ₹5.07 crores, weighed down by a sharp 74.97% increase in interest expenses to ₹13.42 crores for the nine months ended December 2025. This pressure on margins and profitability led to a downgrade in the company’s financial trend score from positive to flat.
On the trading front, the stock closed at Rs.266.45, up 1.54%, modestly outperforming the Sensex’s 1.04% gain. The market appeared to digest the mixed results cautiously, reflecting concerns over rising debt costs despite revenue growth.
10 February: Upper Circuit Surge on Robust Buying Pressure
The stock witnessed a remarkable rally on 10 February, hitting its upper circuit limit and closing at Rs.301.60, a 12.73% gain on the day. Intraday volatility was significant, with prices ranging from Rs.267.75 to Rs.321.05, the latter triggering the regulatory freeze on further upward movement. This surge was supported by a 23.02% increase in delivery volumes compared to the five-day average, indicating strong investor participation.
Zodiac Energy outperformed its construction sector peers, which gained 1.83%, and the Sensex, which rose 0.25%. The stock’s technical positioning improved as it traded above its 5-day, 20-day, and 50-day moving averages, signalling short-term bullish momentum despite remaining below longer-term averages.
Rising fast and still accelerating! This Small Cap from FMCG sector is riding pure momentum right now. Jump in before the rally reaches its peak!
- - Accelerating price action
- - Pure momentum play
- - Pre-peak entry opportunity
11 February: Quality Grade Upgrade Reflects Operational Improvements
Zodiac Energy’s quality grade was upgraded from average to good, reflecting improvements in key fundamentals such as return on equity (17.37%) and return on capital employed (11.83%). The company’s five-year compound annual growth rates for sales (40.74%) and EBIT (49.03%) underscore its operational leverage and growth potential. However, the elevated debt levels remain a concern, with an average debt to EBITDA ratio of 3.44 and net debt to equity of 0.79.
The stock closed at Rs.298.45, up 2.12%, continuing the positive momentum from the previous day. Despite the upgrade, the company’s modest market capitalisation of approximately ₹444 crore and a Mojo Score of 52.0 suggest cautious optimism among investors.
12-13 February: Profit-Taking and Sector Headwinds Weigh on Price
Following the strong gains earlier in the week, Zodiac Energy’s stock corrected on 12 and 13 February, closing at Rs.283.00 (-5.18%) and Rs.276.20 (-2.40%) respectively. These declines coincided with a broader market pullback, as the Sensex fell 0.56% and 1.40% on the same days. The stock’s retreat reflects profit-taking and concerns over the company’s rising interest costs and leverage amid a challenging sector environment.
Trading volumes also declined, with 2,039 shares changing hands on 13 February, indicating reduced liquidity and investor caution. The stock remains below its 100-day and 200-day moving averages, signalling that longer-term trend confirmation is pending.
Is Zodiac Energy Ltd your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- - Better alternatives suggested
- - Cross-sector comparison
- - Portfolio optimization tool
Daily Price Comparison: Zodiac Energy Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.266.45 | +1.54% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.292.25 | +9.68% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.298.45 | +2.12% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.283.00 | -5.18% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.276.20 | -2.40% | 36,532.48 | -1.40% |
Key Takeaways
Positive Signals: Zodiac Energy demonstrated strong revenue growth with a 31.85% increase in quarterly sales and a quality grade upgrade reflecting improved profitability metrics such as ROE and ROCE. The stock’s midweek surge to the upper circuit highlighted robust investor interest and short-term bullish momentum.
Cautionary Signals: Rising interest expenses, which increased nearly 75% over nine months, have pressured net profits and margins. The company’s leverage remains elevated, with a debt to EBITDA ratio of 3.44 and net debt to equity of 0.79. The stock’s recent volatility and retreat below longer-term moving averages suggest that sustained recovery depends on managing financial costs and broader sector conditions.
Conclusion
Zodiac Energy Ltd’s week was characterised by a strong rally driven by operational improvements and investor enthusiasm, followed by profit-taking amid concerns over rising debt costs and sector headwinds. The stock outperformed the Sensex by over 5% for the week, reflecting a positive short-term momentum. However, the company’s elevated leverage and margin pressures warrant close monitoring. Investors should consider these mixed signals carefully, balancing the company’s growth potential against financial risks as it navigates a challenging environment.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
