Z-Tech (India) Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Z-Tech (India) Ltd trades at ₹435, in a downtrend and 4 weeks into that stage. That is −20.9% against its own 200-day average. It sits at 0% of a 52-week range of ₹435 to ₹660. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (10 weeks and counting).

Today the stock is in a downtrend — week 4 of stage 4, confirmed. At ₹435 it trades −20.9% versus its 200-day average and sits at 0% of its 52-week range (₹435–₹660).

Against the market, two honest reads. Cumulative: over the last 2.3 years the stock moved +276% while the NIFTY 500 moved +4% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (10 weeks and counting; last ahead the week of 2026-07-03) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Z-Tech (India) Ltd's story is not scored yet against the markers our research file set on 14 June 2026. Where it sits in its own cycle: EARLY_EXPANSION. Still open: Management credibility pattern — 4 documented cross-call reversals + post-hoc history revision Our fortnightly research layers last read it on 27 June 2026.

Our read, 14 June 2026. An EPC contractor crossing the annuity threshold — FY27 is the year O&M recurring revenue finally eclipses construction PAT, permanently lifting the margin floor and re-rating the multiple.

From the numbers. PE at 42.4x, 55.6th percentile of 10-year range (curve_40q). Earnings curve EXPANDING at 238% slope per year (R2=0.83) — EPS compounding hard. Multiple curve MONOTONIC_EXPANSION with flat R2=0.05 (essentially…

From the price. Price stage 4, week 4 — below its 200-day line, relative strength falling.

From the research. An EPC contractor crossing the annuity threshold — FY27 is the year O&M recurring revenue finally eclipses construction PAT, permanently lifting the margin floor and re-rating the multiple.

🚨 Where they disagree. PE at 42.4x, 55.6th percentile of 10-year range (curve_40q). Earnings curve EXPANDING at 238% slope per year (R2=0.83) — EPS compounding hard. Multiple curve MONOTONIC_EXPANSION with flat R2=0.05 (essentially range-bound 34-51x over 9 observed quarters). Price has run 5.15x over 36-48 months (corr_depth_pct 84). Cycle_position_score = -11 reflects extension penalty tempered by EPS compounding (M5 rule: extension tempered when EPS compounding hard and not absolutely rich). GOLDEN_SETUP designation from pe_pb_cycle: EPS accelerating while PE is contracting in trend (smoothed YoY -12.81%). Fresh Stage-2 grace bonus (S12) applies as price_curve.stage=2 with only 4 weeks in stage. Normalized PE…

What is proven. An EPC contractor crossing the annuity threshold — FY27 is the year O&M recurring revenue finally eclipses construction PAT, permanently lifting the margin floor and re-rating the multiple.

What is not proven yet. Management credibility pattern — 4 documented cross-call reversals + post-hoc history revision

🚨 Layer 1 read, 27 June 2026 — DROP. Real revenue/margin growth but cash isn't converting — annuity transition is the unproven swing factor. Z-Tech grew revenue from 11cr to 35cr and expanded gross margin from 22% to 52% over eight quarters on a genuine EPC-plus-parks mix-shift, not acquisitions. The problem is the profit is not turning into cash — three-year operating cash flow is -91cr against +30cr of profit (OCF/PAT -3.03) — and management's repeated misses (park count cut from 24 to 15, Dubai shelved) make the FY27 OCF-positive commitment the thesis's whole hinge.

What would change Layer 1’s mind. If OCF fails to turn positive (or recurring revenue misses ~20cr annualised by Sep 2026, milestone M1/M3), the accrual-heavy build is funding growth that never converts to cash — flipping P2 to DROP. A clean OCF-positive quarter would conversely lift it toward P1.

The test written in advance. Management credibility pattern — 4 documented cross-call reversals + post-hoc history revision — Management credibility pattern — 4 documented cross-call reversals + post-hoc history revision Q1 FY27 recurring revenue quantum, parks count reaching 18-20 by Sep 2026 by the next result.

The test written in advance. Structural negative OCF — Rs -91 Cr FY25, 3y aggregate OCF/PAT = -3.03 — Structural negative OCF — Rs -91 Cr FY25, 3y aggregate OCF/PAT = -3.03 FY26 annual cash flow statement — working capital expansion rate and OCF direction by the next result.

The test written in advance. Working capital 471 days — 5.7x expansion from historical 83-day average — Working capital 471 days — 5.7x expansion from historical 83-day average FY26 annual balance sheet working capital number and delta from FY25 by the next result.

🚨 What the surface reading misses. The surface reading is: OPM 36.75% in Q4 FY26 — the highest margin quarter in the company's observable history, at 88th percentile of own 8-quarter range. The research reads it further: This OPM step-change from ~20% (H1 FY26) to 32-37% (H2 FY26) is caused by: (1) parks EPC mix shifting toward larger, more complex Rs 19+ Cr projects vs earlier Rs 5-10 Cr parks; (2) O&M recurring revenue at 50-60% EBITDA margins beginning to show — Rs 8 Cr in FY26 is 5% of Rs 155.79 Cr revenue but carries disproportionate margin. GPM also expanded in the same direction (22% Jun 2023 to 51.7% Mar 2025 per), confirming genuine gross-level improvement not SG&A reduction. Q4 additionally benefits from seasonal concentration (March government budget utilization) — a partially cyclical peak.

Lever 1 · Operating leverage — BUILDING. With 15 parks now operational, recurring ticketing/F&B/events revenue targets 5x growth — this is the margin floor shift from EPC-only to annuity-plus-EPC that drives the re-rating. What proves it keeps working: Recurring O&M Revenue 5x Inflection — Rs 8 Cr to Rs 40-42 Cr FY27. It stops working if Q1 FY27 recurring revenue quantum, parks count reaching 18-20 by Sep 2026.

Lever 2 · Value-added mix — BUILDING. 30 parks by March 2027 from 15 today, with Rs 3-4 Cr net profit per park at scale — the government-land asset-light model keeps capex requirements minimal. What proves it keeps working: Parks Ramp 15 to 30 to 100 — Each Park Rs 3-4 Cr Net Profit at Scale. It stops working if Q1 FY27 recurring revenue quantum, parks count reaching 18-20 by Sep 2026.

Lever 3 · Management change — BUILDING. Lucknow DA 2nd park, Delhi MCD 4th project, Pimpri Chinchwad 4th project — repeat orders prove the procurement model and reduce bid risk per new park. What proves it keeps working: Repeat Government Customer Validation — Institutional Moat. It stops working if Q1 FY27 recurring revenue quantum, parks count reaching 18-20 by Sep 2026.

Lever 4 · Paying down debt — BUILDING. Restructured into 5 focused verticals targeting Rs 75 Cr FY27 from Rs 43 Cr FY26 — a secondary revenue leg with improving margin mix toward higher-value projects. What proves it keeps working: Engineered Infrastructure Multi-Vertical — Rs 43 Cr to Rs 75 Cr Target. It stops working if Q1 FY27 recurring revenue quantum, parks count reaching 18-20 by Sep 2026.

Sources: our stock research file (14 June 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Z-Tech (India) Ltd reported ₹29.1 Cr of revenue in the Jun 26 quarter, +42.3% year on year. That is the 9th straight quarter of year-on-year growth. Over 5 years it has compounded at 46.6% a year. The last full year, FY26, came in at ₹156 Cr. The last four reported quarters add to ₹164 Cr.

FY26 revenue came in at ₹156 Cr (+66.0% on the year), capping 5 years at 46.6% compound. The latest quarter (Jun 26) printed ₹29.1 Cr, +42.3% year on year — the 9th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +66.4% growth against the decade's 46.6% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +66.7% over the last 4 quarters against +50.3%/yr over the last 8 — accelerating; TTM profit +81.6% vs +94.2%/yr — rolling over.

FY26-Q4. revenue ₹59 Cr and profit ₹19 Cr as reported.

FY27-Q1. revenue ₹29 Cr and profit ₹4 Cr as reported.

Why-sources: our stock research file (14 June 2026) and the company’s own results for those quarters.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Z-Tech (India) Ltd's operating margin is 22.8% in the Jun 26 quarter, −1.6 percentage points against the same quarter a year ago. Across 6 fiscal years the operating margin has ranged 1.1% to 30.0%. The current quarter sits inside that band.

Why this happened. The May 2026 concall provided specific quantification: Rs 8 Cr recurring revenue in FY26 (from 4-9 parks operational through the year) targets Rs 40-42 Cr in FY27 from 15+ parks contributing full-year O&M revenue. At ARPU minimum Rs 100 per visitor and a 5 Mn visitor target, the math is: 5 Mn x Rs 100 = Rs 50 Cr gross at entry alone. F&B, events, brand partnerships are additive. EBITDA margins 50-60% on this stream vs 38% on EPC — each incremental recurring rupee is structurally higher quality. The Noida company-funded park delivering Rs 1 Cr/month at 50,000-60,000 visitors provides a verifiable proof-point. 21 activations (FY26) plus 20 in the first 45 FY27 days indicate events revenue is…

The latest quarter's operating margin is 22.8%, −1.6 pp against the same quarter a year ago. Across 6 fiscal years the operating margin has ranged 1.1%–30.0%.

🚨 Why the margin moved: operating margin went −1.6 pp year on year while gross margin went −1.1 pp — the loss came mostly from the gross line: input costs and pricing.

FY26-Q4. revenue ₹59 Cr and profit ₹19 Cr as reported.

FY27-Q1. revenue ₹29 Cr and profit ₹4 Cr as reported.

Why-sources: our stock research file (14 June 2026) and the company’s own results for those quarters.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Z-Tech (India) Ltd earned ₹4.0 Cr of net profit in the Jun 26 quarter, +33.2% year on year. It is the 7th consecutive quarter of growth. Full-year FY26 profit was ₹36.0 Cr. The 5-year compound rate is 104.8%. That is 13.9% of the quarter's revenue. The same quarter a year earlier earned ₹3.0 Cr.

Jun 26 profit was ₹4.0 Cr, +33.2% year on year — the 7th consecutive quarter of growth. On the full year, FY26 printed ₹36.0 Cr (+80.0%), and the 5-year compound rate is 104.8%.

Why profit moved: revenue contributed +42.3% and the margin −1.6 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +73.2% vs revenue +66.4%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

FY26-Q4. revenue ₹59 Cr and profit ₹19 Cr as reported.

FY27-Q1. revenue ₹29 Cr and profit ₹4 Cr as reported.

Why-sources: our stock research file (14 June 2026) and the company’s own results for those quarters.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years −202% of Z-Tech (India) Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹−38.0 Cr of operating cash against ₹36.0 Cr of profit. After ₹46.0 Cr of capital spending, ₹−84.0 Cr was left as free cash.

FY26: operating cash of ₹−38.0 Cr against reported profit of ₹36.0 Cr, leaving free cash of ₹−84.0 Cr after ₹46.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is −202% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at −202%: the cash cycle stretched 49 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: conversion is below par and the cash cycle has stretched 49 days — the next section's job is to find where the cash is stuck.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Z-Tech (India) Ltd's cash conversion cycle runs 117 days in FY26, up from 68 days in FY21. Capital spending ran ₹86.0 Cr over the last 3 years. At FY26 sales of ₹156 Cr each day of that cycle holds about ₹0.4 Cr, so roughly ₹50.0 Cr sits inside the business at any moment.

FY26: debtors at 220 days, inventory at 14 days — roughly 0.5 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 117 days, looser than FY21's 68.

The full loop: cash goes out to suppliers and production on day 0; stock waits 14 days to sell; customers pay about 220 days after that; and suppliers themselves are paid at 118 days — netting out to the 117-day cycle.

In money terms: at FY26 sales of ₹156 Cr, each day of the cycle holds about ₹0.4 Cr — so the 117-day loop keeps roughly ₹50.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹86.0 Cr over the last 3 fiscal years against ₹4.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹24.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.⚠ unverified

Z-Tech (India) Ltd earns a ROCE of 20% in FY26. That is up from a trough of 2% in FY22. Return on invested capital clears the cost of that capital by +2.0 percentage points, so growth here adds value rather than only size. The wiring behind it is 23.1% net margin on 0.46× asset turns.

FY26 ROCE is 20%, recovered from a FY22 trough of 2% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 23.1% net margin × 0.46× asset turns × 1.52× balance-sheet leverage ≈ 16.2% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 14.0% − 12.0% = a +2.0 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.⚠ unverified

Z-Tech (India) Ltd carries total debt of ₹75.0 Cr against shareholder equity of ₹224 Cr as of Mar 26, a debt-to-equity of 0.33. On the annual view that ratio went from 0.05 in FY24 to 0.33 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Why this happened. Restructured from a generalized model into five focused verticals: ground improvement, hydrology, environment, rockfall protection, core infrastructure. Revenue targeting Rs 75 Cr in FY27 from Rs 43 Cr FY26 (+74%), with 2pp EBITDA margin expansion from ~12% to ~14%. Securing orders from major contractors (Afcons, Bhardwaj). The Geotech mining stabilization business drove the Rs 75 Cr FY26 debt; management confirmed no further capex needed — only revenue scaling from here.

Mar 26: total debt of ₹75.0 Cr against shareholder equity of ₹224 Cr — a debt-to-equity of 0.33. On the annual view, debt-to-equity went from 0.05 (FY24) to 0.33 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 8.0 points of Z-Tech (India) Ltd over 8 quarters, the biggest move on the register. That takes promoters to 52.7% of the company. Foreign institutions moved +2.5 points over the same window, to 4.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

Why this happened. Repeat orders from the same government bodies (Lucknow DA, Delhi MCD, Pimpri Chinchwad) demonstrate that Z-Tech's model survived operational delivery and passed the local government satisfaction test — a significant selection filter. The Khurja Tier-3 park generating 25,000-30,000 monthly visitors proves demand extends beyond metros. This creates a defensible competitive position: once a government body has experienced one Zing Park, the procurement cycle for subsequent parks is shorter and the bid risk lower — the pipeline of 20+ active UP conversions reflects this dynamic.

The register over the last two years — Promoters: −8.0 points over 8 quarters to 52.7%; Foreign institutions: +2.5 points over 8 quarters to 4.3%; Domestic institutions: +0.5 points over 8 quarters to 0.6%.

🚨 Why the register moved: promoters drove it (−8.0 points), absorbed on the other side by foreign institutions (+2.5 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Z-Tech (India) Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Z-Tech (India) Ltd trades at 17.5× P/E, about the cheapest it has ever traded. Its long-run median P/E is 42.2×, measured across 2.3 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 17.5× is about the cheapest it has ever traded, against a long-run median of 42.2× measured over 2.3 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +81.3% against a −25.9% price move — earnings outran the price, pushing the multiple DOWN its own range.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

A quarterly PEG curve, which only the second data source carries, is not drawn on this page: its two data sources do not share enough overlapping reported history to be compared. A figure nobody could check is not used to price growth — the gap is a decision, not missing data.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 29 June 2026 price, Z-Tech (India) Ltd was paying for profit growth of about 23.7% a year. Profit itself has compounded 104.8% a year over the past 5 years. Today the market pays 17.5× P/E, the 2nd percentile of its own 2-year range.

What the two numbers say together. The multiple is low against its own past, and the growth the price is paying for is below what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 29 June 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Z-Tech (India) Ltd reads as mixed on its fundamental arc. Mixed — growth is normalizing off a hyper-growth base: revenue growth has eased from +73.9% at its peak to +42.3% (single-quarter readings) but is still expanding, ROCE slipping at 20.0%. The read is built from 9 quarters across 3 curves, on partial evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

51.8/100 — rank 1 of 3 in Amusement Parks · 77% evidence confidence

Z-Tech (India) Ltd scores 51.8 out of 100 against the 3 companies it is compared with in Amusement Parks, ranking 1. Acceleration candidate, not a confirmed leader: earnings are strong but sector-relative strength is -17% and the one-year return is -20.7%. Do not upgrade until sector-relative strength is above zero and another reported period confirms growth.

The four contributions add to the total exactly: 23.9 + 17.9 + 10 + 0 = 51.8. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Z-Tech (India) Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

🚨 Park Operating Milestone Rolled Forward · 14 August 2026. The Jun 2025 call targeted 24 operating parks by the end of FY26. In the Aug 2026 call, after that milestone period had passed, management said only 9 parks were fully operational and moved the target to 25-30 parks by the end of FY27, while not acknowledging a meaningful slippage in the prior target; the cited inauguration and land issues do not reconcile the gap.

🚨 Operational Park Target Miss and Revised History · 21 May 2026. During the Jun 2025 call, management confidently projected reaching 24 operational parks by the end of FY26. However, in the May 2026 call, they reported only reaching 15 operational parks, contradicting previous guidance while falsely claiming this lower number was their "earlier strategy" and "as promised.".

🚨 International Expansion Commitments Shelved · 21 May 2026. In both the Feb 2025 and Jun 2025 calls, management firmly committed to opening their first international park by FY26, specifically targeting Dubai. In the May 2026 call, they pushed this initiative into the indefinite future, citing geopolitical headwinds and vaguely shifting focus to African countries without addressing the failure to execute their prior Dubai plans.

🚨 Operational Park Guidance Miss · 13 February 2026. Management significantly reduced their target for operational parks for the fiscal year. In the June 2025 call, they explicitly targeted having around 24 parks operating by year-end, but in the latest call, this target was lowered to 15 parks, representing a material reduction in execution velocity. Earlier call (Jun 2025): “Our hope is that by end of the year, we should have around 24 parks operating.” Later call (Feb 2026): “We have been determined to move from four operational parks at the beginning of the year to at least 15 parks by the end of this financial year.”

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions