Zodiac Energy Sets Up Two New Subsidiaries to Push Solar Work in India and Zambia

Zodiac Energy Limited, a solar engineering, procurement and construction (EPC) company based in Ahmedabad, has approved the creation of two new wholly owned subsidiaries. The move is aimed at expanding its solar project footprint both in India and abroad.

The board gave the green light for one subsidiary in India and another in Zambia. The Indian unit will be called Zodiac Green Energy Private Limited and will focus on developing solar projects in Rajasthan. The Zambia unit, named Zodiac Energy Zambia Limited, will target solar work in the southern African country.

The company made the announcement through a stock exchange filing. It did not give a timeline for when the subsidiaries would start operations or disclose the investment amount.

Zodiac Energy has been growing its project pipeline in the solar space. It already has a presence in Gujarat, Rajasthan, and other states. The new Indian subsidiary is expected to help the company tap into Rajasthan's strong solar potential. The state has some of the highest solar irradiation levels in the country and hosts large-scale solar parks.

The Zambia subsidiary marks Zodiac's first direct push into Africa. Zambia has set a target to add 500 MW of solar capacity by 2030 as part of its national energy plan. The country faces frequent power shortages, and solar is seen as a way to improve energy access. Zodiac's move aligns with India's broader push to export renewable energy expertise to African nations.

The company did not name any specific projects or clients for either subsidiary. It said both units would be used to build, own, and operate solar plants.

Zodiac Energy's shares have risen over the past year as the Indian government has pushed for higher renewable energy targets. The country aims to hit 500 GW of non-fossil fuel capacity by 2030. Solar is expected to make up the bulk of that target.

The company reported a net profit of Rs 8.1 crore for the quarter ending December 2024. Revenue stood at Rs 80.8 crore for the same period. Zodiac Energy has an order book of over Rs 700 crore, mostly from solar EPC work.

Analysts say the move into Zambia could open up new revenue streams. But they also warn that operating in a new country brings risks, including currency volatility and regulatory uncertainty. The company has not yet revealed who will lead the Zambia unit.

The board's approval came during a meeting held on March 27, 2025. The filing did not mention any other business discussed at the meeting.