Z-Tech — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Z-Tech delivered robust financial performance in Q3 FY26, with significant year-on-year growth across revenue, EBITDA, and PAT. The company is aggressively expanding its parks business, aiming for 15+ operational parks by April 2026, and reaffirmed its FY26 revenue and PAT guidance. While facing temporary margin compression in the geotech segment and operational delays in park inaugurations, Z-Tech remains confident in its long-term strategy and robust order pipeline.

Highlights

  • Revenue increased by 74% YoY to approximately INR 42 crores in Q3 FY26.

  • EBITDA grew by 58% YoY to INR 11.6 crores in Q3 FY26.

  • Profit After Tax (PAT) increased by 51% YoY to INR 7.62 crores in Q3 FY26.

  • The company is on track to have 15+ operational parks by April 2026, significantly expanding its recurring revenue base.

  • Management confirmed the FY26 revenue guidance of INR 150 crores and PAT guidance of INR 40 crores, indicating strong performance in Q4.

Concerns

  • Geotechnical business experienced a mix change leading to lower margins in Q3, though management expects normalization.

  • Operational delays for park inaugurations due to VIP availability, impacting the timeline for revenue generation from new parks.

  • High receivables were noted, which management attributed to the process of operationalizing parks, rather than collection issues.

Key financials

  1. Revenue ₹42 Cr +74%YoY
  2. EBITDA ₹11.6 Cr +58%YoY
  3. PAT ₹7.62 Cr +51%YoY
  4. EPS (Basic) ₹5.31
  5. EPS (Basic) 9M ₹11.66

What they filed

Q4 FY25: revenue up 58.0%, net profit up 236.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ1 FY24Q2 FY24Q3 FY24Q4 FY24Q1 FY25Q2 FY25Q3 FY25Q4 FY25
Revenue11 19 16 22 16 +51%19 +2%24 +52%35 +58%
EBITDA1 5 2 3 3 +193%4 −20%8 +225%13 +275%
Net profit1 4 1 3 2 +130%3 −18%6 +442%9 +236%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue Q3
₹64 Cr Total
  • Parks Business ₹32 Cr 50.0%
  • Parks Business (EPC) ₹27.5 Cr 43.0%
  • Parks Business (O&M) ₹4.5 Cr 7.0%

Order book

medium confidence

Total value

₹235 Cr

as of 2025-12-31 range

Inflow this quarter

₹35 Cr

Composition

  • Creative Park (remaining) (product) ₹76 Cr
  • Water Segment (segment) ₹15 Cr
Order pipeline remains robust with healthy inflow across transport infrastructure, urban development and public utility segments, with a target to reach INR 300 crores by FY26 end.

Source: Q&A

Capital allocation

low confidence
  • Debt Debt disclosed
    Our balance sheet remains strong with prudent leverage controlled working capital cycle and a sufficient liquidity to support ongoing and upcoming growth initiatives.
  • Liquidity Liquidity disclosed Sufficient liquidity to support ongoing and upcoming growth initiatives.
    Our balance sheet remains strong with prudent leverage controlled working capital cycle and a sufficient liquidity to support ongoing and upcoming growth initiatives.

Guidance & targets

Operational Parks

  • Number of operational parks Operational Parks · FY26 end (by April 2026) · High confidence 15+

    Previously 4 → 15+

    And we have been very determined to see that we move from 4 parks operational at the beginning of the year to at least 15 parks by end of this financial year. ... And we are hopeful that as of beginning of April, we'll move to 15-plus parks.

    — Sunil Ghorawat

  • Number of operational parks Operational Parks · within 3 years · High confidence 100
    in three years, we need to reach to a level of around 100 parks nationally.

    — Sunil Ghorawat

Revenue

  • Total Revenue Revenue · FY26 · High confidence INR 150 crores
    I think you have already kind of confirmed it, like for pipe, financial year '26, you at the start of this year, you were guiding at around INR150 odd crores as a top line... So we are sticking to that? Yes, pretty much.

    — Sunil Ghorawat

Profitability

  • PAT Profitability · FY26 · High confidence INR 40 crores
    I think you have already kind of confirmed it, like for pipe, financial year '26, you at the start of this year, you were guiding at around INR150 odd crores as a top line and around INR 40 odd crores of bottom line. So we are sticking to that? Yes, pretty much.

    — Sunil Ghorawat

Order Book

  • Total Order Book Order Book · FY26 end · Medium confidence INR 300 crores
    And we expect we will end up the year with an order book somewhere close to almost close to INR 300 crores.

    — Sunil Ghorawat

Parks Business

  • Ticketing and Non-Ticketing Revenue Parks Business · FY26 · High confidence INR 8 crores
    Dhairya Trivedi: It mentions that ticketing and non-ticketing revenues at INR 8 crores. So is this for nine months FY '26 or is that the number that we are projecting for the full financial year of '26? Sunil Ghorawat: This we are projecting for the full financial year

    — Sunil Ghorawat

  • EPC Revenue Parks Business · FY27 · High confidence INR 125 crores plus
    EPC number probably should be around INR125 crores plus, because all the parks have to be built and for that we need the numbers.

    — Sunil Ghorawat

  • Total Parks Business Revenue Parks Business · FY27 · High confidence INR 200 crores
    Dhairya Trivedi: So, which is INR 125 crores plus the INR 60 odd crores that you mentioned, that ticketing and non-ticketing revenue, which means roughly we are looking at roughly, say, around INR 200 crores, give or take, a few crores here and there, just from the parks business, so for FY '27? Is my understanding, right? Sunil Ghorawat: Plus and minus 10%, 20%, right? Because there's a lot which probably goes between right from the ideation to tendering to do it. But yes, you are reasonably correct.

    — Sunil Ghorawat

  • EBITDA Margin (Ticketing & F&B) Parks Business · Ongoing · High confidence 50%+
    Our the margin on the ticketing and F&B and activities is in the range of somewhere close to around 50-plus percent.

    — Sunil Ghorawat

  • EBITDA Margin (EPC) Parks Business · Ongoing · High confidence 25-40%
    And EPC, it will vary from somewhere around 25% to 40%.

    — Sunil Ghorawat

Water Segment

  • Revenue Growth Water Segment · next year · Medium confidence 2-3x
    I expect that our revenue in the coming year would at least grow two to three times, but it will still remain a small part of our overall offering.

    — Sunil Ghorawat

  • EBITDA Margin Water Segment · Ongoing · High confidence 15-25%
    And our margins typically range between 15% to 25%, depending from customer to the kind of an affluent which we are treating.

    — Sunil Ghorawat

Terra Vertical

  • EBITDA Margin Terra Vertical · Ongoing · High confidence 15-20%
    No, our margins remain in the range of around 15%, 20%.

    — Sunil Ghorawat

What to watch in Q4 FY26

Operational Parks Count

by April 2026
Current Less than 15
Target 15+ operational parks

Why it matters

Achieving 15+ operational parks is key to Z-Tech's strategy of shifting towards a recurring, asset-light revenue model and will significantly impact FY27 performance.

And we are hopeful that as of beginning of April, we'll move to 15-plus parks.

Risks & concerns

  • Delays in Park Inaugurations

    medium

    Formal park openings can be delayed due to VIP availability (e.g., CM), impacting the timeline for parks to become operational and generate revenue.

    Management acknowledged

  • Government Preference for Free Parks

    low

    Some government entities prefer parks to be free, which means they are not under the company's operational control for ticketing, affecting the revenue model.

    Management acknowledged

  • Margin Compression in Geotech Business

    low

    A shift in project mix towards broader geotech projects (e.g., flood mitigation) for building references has temporarily led to lower margins in Q3.

    Analyst acknowledged

Q&A highlights

7 direct
H2 Revenue Confidence Direct
We are, reasonably confident because, as I have said earlier, the Q4 of every year is very good for all our businesses and there is a reason behind it, right? This period, January-February-March, is most conducive for people to stay out more and we see significant footfalls across our parks, number one.

Analyst questioned management's confidence in achieving H2 revenue targets given Q3 performance, prompting management to explain seasonal strengths and operational readiness for Q4.

Asked by Manoj Sharma

Geotech Business Margins Partial
We have been trying to build our more references in the sewage recycling space because we have been doing some very highly specialized only, some chemical recovery kind of a thing. We're trying to make that a little broad-based. And that might be the reason why probably it probably has gone down quite a bit. But I think this will come up again. I don't see that as a challenge at all.

Analyst noted a significant jump in geotech revenue but a decline in margins, leading management to explain a strategic shift towards broader projects and building references, which temporarily impacts margins.

Asked by Akshat Mehta

Operational Park Target Confidence Direct
So we learnt our lesson in terms of the park opening things around. So I'll just give you an example that the Jungle Trail Park, the authority wanted Honorable CM to probably inaugurate it. And because Honorable CM had many other preoccupations, we almost lost more than three, four months for it to open.

Analyst questioned the confidence in reaching 15 operational parks by April given past delays, to which management explained that delays are often due to VIP inauguration schedules and they are now prioritizing soft launches to operationalize faster.

Asked by Raunak

Equity Share Capital Error Direct
Yes. There were some topographic error, which we noticed today also and we have rectified the same and uploaded to the stock exchange. ... Currently, the equity shares numbers are it is 1,43,66,422.

Analyst identified a discrepancy in reported equity shares, which management clarified as a typographical error that has been corrected and re-filed, providing the accurate share count.

Asked by Dhairya Trivedi

FY26/FY27 Parks Business Revenue Targets Direct
EPC number probably should be around INR125 crores plus, because all the parks have to be built and for that we need the numbers. ... roughly, say, around INR 200 crores, give or take, a few crores here and there, just from the parks business, so for FY '27? Is my understanding, right? Sunil Ghorawat: Plus and minus 10%, 20%, right? ... But yes, you are reasonably correct.

Analyst sought and received confirmation on specific revenue targets for the parks business for FY26 (ticketing/non-ticketing) and FY27 (EPC and total parks business revenue).

Asked by Dhairya Trivedi

Noida Park Performance and Expansion Direct
So Noida has been giving us great numbers. We have been able to get around 50,000 to 60,000 visitors every month. We are looking at revenue of almost we have been clocking close to almost INR 80 lakhs to INR 1 crore of revenue out of that park. ... As far as the second phase is concerned, so we have been building a sports arena there.

Analyst inquired about the performance of the newly opened Noida Park, and management provided specific visitor numbers, revenue figures, and details on planned second-phase expansion including a sports arena and food court.

Asked by Ashwani Agarwal

International Expansion and Acquisitions Direct
As we currently speak, we have been at least inquiries going on from 15 countries, spanning from multiple African countries to Saudi Arabia to Poland to U.K. and Greece. ... nothing on the acquisition, and we probably will not do anything until at least next six months.

Analyst asked about the company's plans for international growth and M&A, to which management detailed ongoing international inquiries and an EOI for a park in Ghana, while stating no new acquisitions are planned for the near term.

Asked by Ankit Patel

Water Recycling Technology Explanation Direct
So as I mentioned earlier that the technologies which we acquired are two-pronged. One is for sewage treatment recycling sewage treatment and recycling, and the second is towards water body rejuvenation. ... when we are going and doing many of these parks right now, there are in some cities, the NGP guidelines are there that any of these any parks must be you must use the recycled water for the horticulture purposes, which meant that these parks we have to also build sewage treatment plant.

Analyst sought clarification on the acquired water recycling technology, prompting management to explain its dual purpose (sewage treatment/recycling and water body rejuvenation) and its strategic fit with park development projects.

Asked by Ashwani Agarwal

3 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

Z-Tech reported a strong financial performance for Q3 FY26, with revenue increasing by 74% year-on-year to approximately INR 42 crores. This growth was accompanied by a 58% rise in EBITDA to INR 11.6 crores and a 51% increase in Profit After Tax (PAT) to INR 7.62 crores. The company's basic EPS for Q3 stood at INR 5.31, and for the nine months of FY26, it was INR 11.66. Management reaffirmed its full-year FY26 guidance of INR 150 crores in revenue and INR 40 crores in PAT, anticipating a robust Q4.

Parks Business (Zing Park) Strategy and Expansion

The parks business is a key growth driver, with Z-Tech aiming to transition from an EPC-only model to an operator model generating recurring revenue. The company plans to increase its operational parks from 4 at the start of FY26 to over 15 by April 2026, with 7 more parks expected to be ready by March 2026. The Noida Park, a recent opening, has demonstrated strong performance, attracting 50,000-60,000 visitors monthly and generating INR 80 lakhs to 1 crore in revenue. For FY27, the parks business is projected to achieve approximately INR 200 crores in revenue, with EPC contributing over INR 125 crores.

Geotechnical (Terra) Business Growth and Margin Dynamics

The Terra vertical experienced significant growth in Q3, with revenue nearly quadrupling year-on-year. This was driven by increased management bandwidth and a strategic expansion into new areas like flood mitigation and mining stabilization, moving beyond traditional roads and bridges. While this shift in project mix temporarily led to lower margins in Q3, management expects this to normalize as they build references and execute these broader projects, which typically command EBITDA margins of 15-20%.

Water (Agua) Business and Acquisitions

Z-Tech's Agua vertical, focused on sustainable water management, is benefiting from past acquisitions in sewage treatment and recycling. The segment's current order book is around INR 15 crores, and management projects a 2-3x revenue growth for the next year. The company caters to industries like chlor-alkali and nutraceuticals for chemical recovery from affluent streams, and the government sector for sewage recycling. The acquired technology for water body rejuvenation has been successfully showcased in Noida Park.

Order Book and Future Outlook

The company's total order book stood at approximately INR 230-240 crores as of Q3 FY26, with a target to reach INR 300 crores by the end of FY26. New orders worth INR 35 crores have been secured and are awaiting formal announcement. The creative park segment currently has INR 76 crores remaining in its order book, with a target of INR 125-150 crores by FY26 end. Z-Tech is also actively exploring international expansion, with inquiries from 15 countries and an Expression of Interest for a park in Ghana, though no new acquisitions are planned for the next six months.

Operational Challenges and Solutions

Z-Tech has encountered operational challenges, particularly with delays in formal park inaugurations due to VIP availability, which can push back revenue generation. To mitigate this, the company is now focusing on soft launches to operationalize parks faster, as demonstrated by the Pimpri-Chinchwad park. Management also addressed concerns about high receivables, clarifying that these are primarily due to the nature of operationalizing parks and ensuring their completion before full revenue realization.

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