Zodiac Energy Reports Strong Growth Amid Ongoing Cash Flow Challenges

Zodiac Energy, a microcap player in the construction industry, has recently undergone a financial trend adjustment reflecting its improved performance metrics for the quarter ending September 2025. The company reported a notable increase in its score, driven by significant growth in key financial indicators.
In the latest results, Zodiac Energy's profit after tax (PAT) for the nine-month period reached Rs 14.81 crore, marking a growth of 40.91%. Additionally, net sales for the quarter stood at Rs 96.78 crore, showcasing an impressive growth rate of 83.40%. The company also achieved its highest dividend per share (DPS) at Rs 0.75, with a dividend payout ratio (DPR) of 5.67%. Furthermore, the operating profit to net sales ratio reached a peak of 10.62%, indicating effective cost management and operational efficiency.

However, challenges remain, particularly in operating cash flow, which recorded a low of Rs -48.84 crore. Interest expenses over the latest six months also rose to Rs 8.83 crore, reflecting a growth of 34.81%. Additionally, profit before tax less other income for the quarter was at its lowest, recorded at Rs 3.24 crore.

In terms of market performance, Zodiac Energy has faced difficulties compared to the Sensex, with a year-to-date return of -24.68% and a one-year return of -29.51%. Despite these challenges, the company has shown resilience over a three-year period, achieving a return of 162.16%, significantly outperforming the Sensex's 37.08% return in the same timeframe.