Z-Tech (India) Ltd Q1 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jai Chauhan - Trinetra Asset Managers - Analyst : So sir, my first question is towards the Habitat, the Zing Park side, where in past con calls, you have mentioned there are various business models, right, like asset-light and maintenance model where you get right for non-ticketing revenue like F&B, fixed fee model like you're using in Pimpri Chinchwad and the full investment model like your flagship in Noida. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Jai Chauhan - Trinetra Asset Managers - Analyst : Got it, sir. Understood, understood. And as I can see, sir, you have around INR126 crores of order book for creative park for Habitat. So this is just for EPC or how does it work if we take an example of the model that -- which is the most preferred one, the majority CapEx done by government and you get a fixed rental for the same. So for the order book that we see -- yeah, sir.

Question: Jai Chauhan - Trinetra Asset Managers - Analyst : Right, right. But my question was actually what I see in the order book of INR126 crores, this is just the EPC contract, right? The CapEx that will be done by the government and by you and the fees that you take and then the recurring revenues come later, right?

Question: Jai Chauhan - Trinetra Asset Managers - Analyst : That was my question. And the segment-wise revenue breakup that you gave, which was around 76% for specialized Park development, that consists of the recurring revenue that you get, right?

Question: Jai Chauhan - Trinetra Asset Managers - Analyst : And what percentage is the recurring revenue? And what --?

Question: Jai Chauhan - Trinetra Asset Managers - Analyst : Right, right, sir, understand. And these contracts are long term, right? What are the exact 20? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Jai Chauhan - Trinetra Asset Managers - Analyst : Okay, sir. Understood, understood. Okay, sir. That's it from my side. Thank you.

Question: Pranav Shrimal - PINC Wealth Advisory - Analyst : Sir, I wanted to ask about the timeline with regard to the park. How many parks do we currently have that we are working on? How many do we have in the order book? And how many will be completed by this year?

Question: Pranav Shrimal - PINC Wealth Advisory - Analyst : 20 to 25 parks. And most of them are revenue sharing or they are just EPC projects?

Question: Pranav Shrimal - PINC Wealth Advisory - Analyst : Understood. So what revenue can we expect, let's say, in Q4 after all the parks have been completed?

Question: Pranav Shrimal - PINC Wealth Advisory - Analyst : Got it. 20% from recurring business. And sir, secondly, on the water division, you said that we are shifting our business to Baroda, correct?

Question: Pranav Shrimal - PINC Wealth Advisory - Analyst : So is there any timeline that we expect that the labs will open up and we can start expecting some revenue to start going --?

Question: Pranav Shrimal - PINC Wealth Advisory - Analyst : Understood. Understood, sir. So the Baroda Lab, this will also help us in sort of increase the margins in the water division, especially the lab --

Question: Pranav Shrimal - PINC Wealth Advisory - Analyst : Understood, understood. That's it from my side. Thank you so much, and best of luck.

Question: Darshan Jhaveri - Crown Capital - Analyst : Firstly, congratulations on a great set of results, sir. So just wanted to know, sir, that for FY26 that we stated previously that we are targeting around INR150 crores, INR160 crores of revenue and INR35 crores, INR40 crores of PAT. Are we in line of achieving those targets, sir?

Question: Darshan Jhaveri - Crown Capital - Analyst : Okay. That's great to know, sir. So I just want to know then in terms of seasonality, like how do we look at it, sir, because so like Q2, Q3 would be major? Or how would it flow through? Because I think in the first quarter, it's not flowing a lot of revenue, so that's why.

Question: Darshan Jhaveri - Crown Capital - Analyst : Correct, correct, sir. Fair enough, sir. And sir, just wanted to know like now, so the INR126 crores order book for our specialized parks that we have right now, those all will get executed by the end of the year, right, if we go around by the six to eight months target that we have for constructing. So if they are all going to get constructed how is the order bid pipeline looking like, sir, like how do we go ahead? Like what is the scenario of there? Because I think in a way, we are just -- we are the first creators of this kind of segment. So there is -- I think we are going and creating this in every state, right? So how do we just see the conversation happening? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Darshan Jhaveri - Crown Capital - Analyst : And sir, just like last question from my end. So as like more recurring ticketing revenue starts flowing through us, so how will the margins behave? Because I think we have substantially better margins than like everywhere else. So I just wanted to know how do we see envisage the margins moving because ticketing margin should ideally will maybe flow directly through the PAT because all the costs would have been already been incurred? Or how would it just go ahead, sir, if you could help me out with that? How do we envisage the future margin, sir?

Question: Darshan Jhaveri - Crown Capital - Analyst : Okay, okay. That helps me a lot, sir. Thank you so much. All the best.

Question: Mann Ashar - Vivek Jain Family Office - Analyst : So before I start, I just wanted to -- I just have three questions. So first is that I wanted to understand that the order flow has been significantly slow. The way that we actually want to achieve those numbers of 20, 25 parks by the end of this year, do we have significant (technical difficulty) (spoken in foreign language) yes, yes, yes. So I just wanted to understand this (spoken in foreign language) order flow has been significantly slow in regards to what we want to achieve. So I would like to understand that how the order pipeline is going to flow like from where -- from where are we going to get the orders. And there have been certain orders for which we have been declared.

Question: Mann Ashar - Vivek Jain Family Office - Analyst : Got it. Got it, sir. Got it. And second question, I'll come to that is that the EBITDA margins or the margins in the Park business has gone down significantly. And considering that EPC execution was low and contribution of the same will be on account of O&M revenue. So why it is that the margins have dipped a bit considering the same as of that of, say, last quarter? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Mann Ashar - Vivek Jain Family Office - Analyst : Got it. Got it. So we should see the margins going back to where the quarter four margins were (multiple speakers).

Question: Mann Ashar - Vivek Jain Family Office - Analyst : Got it. Got it. Got it. (inaudible) yeah, that's it. That's it. Thank you so much.

Question: Pratham Agarwal - Orbit Fund Management - Analyst : So my first question is, last time, quarter one was 17.5% of our entire financial year revenue, but this time, INR20 crores, if I extrapolate based on our target of INR150 crores to INR170 crores would be 12% to 13% of the entire financial year. So sir, do you think we were a little weak on execution this?

Question: Pratham Agarwal - Orbit Fund Management - Analyst : Okay. Fair enough, sir. So my next question is, so can you help me understand how many Park EPC projects are currently ongoing? And what amount of billing or what value of billing those will generate?

Question: Pratham Agarwal - Orbit Fund Management - Analyst : Yes, sir, the ongoing projects, the Park EPC projects and what revenue will they generate --?

Question: Pratham Agarwal - Orbit Fund Management - Analyst : Currently, both -- except the operating O&M part, the EPC projects which are ongoing and like what revenue will they generate?

Question: Pratham Agarwal - Orbit Fund Management - Analyst : Okay. Okay. Got it, sir. Sir, my last question is, last quarter, we had guided for around INR100 crores order book we'll get in like next three, four months. So do we expect to win this INR100 crores order in the next one month?

Question: Pratham Agarwal - Orbit Fund Management - Analyst : Okay. Thank you so much, sir. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Dhairya Trivedi - DJT Investments - Analyst : Congratulations on a good set of numbers. So my first question is that -- we are looking to open roughly 25 parks you said by the end of the year.

Question: Dhairya Trivedi - DJT Investments - Analyst : Got it. So the full impact of these parks will come in FY27, right?

Question: Dhairya Trivedi - DJT Investments - Analyst : So I mean, while I understand that it's difficult to kind of generalize, but what's the total kind of revenue that we can expect from these 24 operational parks by the end of next year, given that they'll be operational in different states or different sizes and all of that?

Question: Dhairya Trivedi - DJT Investments - Analyst : Okay. This is the EPC part of the business?

Question: Dhairya Trivedi - DJT Investments - Analyst : Okay. Okay. And how much EPC revenue can we add to this? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Dhairya Trivedi - DJT Investments - Analyst : Right. So the incremental revenue you are saying will be roughly around INR2 crores of [park], right?

Question: Dhairya Trivedi - DJT Investments - Analyst : Right, right. Understood. And also, you mentioned in response to one of the earlier participants that you're tying up with certain vendors for a lot of these venture activities. So how do the commercials work out in that kind of an arrangement? Like do we pay --?

Question: Dhairya Trivedi - DJT Investments - Analyst : Okay. But the fees will be paid by us to them, right? So then that's a revenue share in that.

Question: Dhairya Trivedi - DJT Investments - Analyst : Okay. Okay. And how do -- I mean, what do they charge in that sense then?

Question: Dhairya Trivedi - DJT Investments - Analyst : Right, right. Okay. Okay. Understood. And sir, just one last question. What is the current cash that we are carrying on our balance sheet at the end of Q1?

Question: Dhairya Trivedi - DJT Investments - Analyst : So that's good enough to manage the opening of various parks.

Question: Dhairya Trivedi - DJT Investments - Analyst : Right, right, sir. Okay. Okay. Clear, sir. Thank you, and all the best.

Question: Keshav Harlalka - BHH Securities Private Limited - Analyst : Firstly, I would want to congratulate you for a set of excellent numbers. So as we rightly know, this is a seasonal business. Right now, it is seasonal because of the rains which have come. So we cannot strictly compare the numbers with March. So there are no rains in March. There are rains, April, May, June. This is what you reported and the unseasonal rains which have happened. So I see the numbers are excellent, sir, like you've grown -- so 20% growth, even for the worst quarter of your business. So you've guided 70% CAGR growth, right, for this year versus last year for the full year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Keshav Harlalka - BHH Securities Private Limited - Analyst : So that's quite ambitious. I would just want to say that I just wanted to give you some idea on receivables. What are your receivables? Why the receivables are on the higher side? Is it because it's a government business? Or can you give us some -- your thoughts on that?

Question: Keshav Harlalka - BHH Securities Private Limited - Analyst : Got it -- as again, a big congratulations. The numbers are great. I don't know why the stock hit lower circuit today. The guys who bought it are very, very smart. And I think I wish you all the best. I this is amazing guidance what you've given us for the full year. Thank you so much again for excellent set of numbers.

Question: Maitri Shah - Sapphire Capital - Analyst : Yeah. Just participant asked about the growth guidance for FY27. Could you reiterate it again?

Question: Maitri Shah - Sapphire Capital - Analyst : So a minimum of 70% growth that we are targeting for FY26, can we do the same in FY27 and '28 as well?

Question: Maitri Shah - Sapphire Capital - Analyst : That is great. Secondly, on -- we are planning to shift to Vadodara for our wastewater treatment. So just one last question if that's okay? Just one question.

Question: Maitri Shah - Sapphire Capital - Analyst : Yeah. So your wastewater contribution, how do we expect it to improve from maybe 27% or 28%? And what part of it will be?

Question: Maitri Shah - Sapphire Capital - Analyst : And you'll see a margin -- significant margin improvement from that happening. Is that correct?

Question: Maitri Shah - Sapphire Capital - Analyst : Thank you so much, and all the best.

Question: Deepak Pandey - Sagun Capital - Analyst : Just two questions. First would be on the major expenses side for recurring revenue and also in the EPC portion, what are the major costs -- and secondly, how many such tenders are being floated each year? And what could be this number for next two, three years, if you can help me with this?

Question: Deepak Pandey - Sagun Capital - Analyst : Yes.

Question: Deepak Pandey - Sagun Capital - Analyst : What is the current number? And what sort of tenders do we expect in the next two, three years, some visibility there?

Question: Deepak Pandey - Sagun Capital - Analyst : Understood, sir. And the second question is on the receivable side. So can you provide the number --? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Deepak Pandey - Sagun Capital - Analyst : Yeah, no worries. Thank you.