Z-Tech (India) Limited Q3 FY26 Earnings Call Summary

Summary

Z-Tech (India) Limited - Q3 FY 2026 Earnings Call Summary Friday, February 13, 2026, 4:00 PM

Event Participants

Executives 4 Ashish Goel (CS), Sanghamitra Borgohain (MD), Sunil Ghorawat (CBO), Vikas Jain (CFO)

Analysts 7 Akshat Mehta, Ankit Patel, Ashwani Agarwal, Atul Daga, Dhairya Trivedi, Mahesh Kumar, Manoj Sharma

Financials & KPIs (Consolidated)

Geographic & Segment Commentary

• Habitat (Zing Park): This segment contributed ₹32 crores in Q3, with ₹27-28 crores from EPC and the remainder from operations. The company is transitioning to an “Annuity Model,” moving from 4 operational parks at the start of the year toward a target of 15 by April 2026. Key successes include the Khurja Park (Tier-3 city) seeing 25,000-30,000 monthly visitors and the Noida Jungle Trail generating ₹80 lakhs to ₹1 crore monthly revenue.

• Terra (Geotechnical): Revenue grew 4x YoY due to increased management bandwidth and diversification into ground improvement, flood mitigation, and mining stabilization. While margins are lower than the Habitat segment (15-20%), this vertical is critical for infrastructure corridor projects in UP, J&K, and Rajasthan.

• Agua (Water Management): Focus is on chemical recovery (Chlor-alkali industry) and decentralized sewage recycling. The order book stands at ₹15 crores, with revenue expected to grow 2-3x next year off a low base. Management is integrating recently acquired sewage treatment technology into their park developments to meet NGT recycled water guidelines.

Company-Specific & Strategic Commentary

• Transition to Operator Model: Z-Tech is shifting focus from pure EPC to Park O&M to capture high-margin (50%+) recurring revenue from ticketing, F&B, and events. Management targets 100 operational parks nationally within three years.

• International Expansion: The company has received inquiries from 15 countries (Saudi Arabia, UK, Poland, etc.) and recently submitted an EOI for a 15-acre park in Ghana.

• Strategic Acquisitions: Integration of a water recycling tech firm is complete, allowing Z-Tech to offer in-house STP and water body rejuvenation solutions, currently being showcased at the Noida Park.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Thematic Headers

• H2 Performance Confidence: Sunil Ghorawat noted that Q4 is historically the strongest quarter due to lack of rain facilitating fast site work and peak winter footfalls in parks (Sunil Ghorawat).
• Park Economics: Management clarified that O&M margins (ticketing/F&B) are 50%+, significantly higher than EPC margins (25-40%). The Noida park is already seeing 50k-60k monthly visitors organically (Sunil Ghorawat).
• Order Inflow: Z-Tech confirmed winning a major 35-acre Krishna-themed park in Mathura and is seeing repeat orders from LDA (Lucknow) and Pimpri-Chinchwad (Sunil Ghorawat).
• Water Segment Strategy: The recently acquired tech focuses on chemical recovery for industrial clients (Grasim, GACL) and sewage recycling for parks to ensure NGT compliance (Sunil Ghorawat).
• Equity Base Correction: Vikas Jain clarified a typographical error in the reporting, confirming the basic share count remains at 1.43 crore shares with minor warrant dilution expected by September (Vikas Jain).

Key Takeaway

Z-Tech (India) Limited reported a strong Q3 FY26 with a 74% YoY revenue jump to ₹42 crores, driven by aggressive execution in its Habitat and Terra verticals. The company is undergoing a fundamental structural shift from a project-based EPC firm to a consumer-facing annuity player, aiming to increase its operational park count from 4 to 15 by the start of FY27. Strategic focus areas include scaling the high-margin Zing Park O&M model (50%+ margins) and integrating water rejuvenation technologies to meet environmental mandates. While Q4 requires a significant push to reach the guided ₹40 crore PAT for the full year, management remains confident based on a robust ₹240 crore order book and peak seasonal demand. Investors should watch for the successful soft-launch of 7-9 parks currently in advanced stages and the ramping up of international EOIs to sustain long-term growth.