Building India Differently — From the Ground Up
This SME Player Is Quietly Emerging as a Compounder in Theme Park Engineering, Industrial Wastewater & Geotechnical Design
COMPANY OVERVIEW
Z-Tech (India) Limited, established in 1994 & converted to a public limited company in 2024, specializes in comprehensive civil engineering products & services. The company focuses on Geo-Technical Specialised Solutions, Industrial Waste Water Management, & Sustainable Theme Park Development.
SERVICES
Z-Tech India offers a range of innovative products & services across its three core segments:
Geo-Technical Solutions: These include materials & techniques for soil reinforcement, slope stabilization, retaining structures, ground improvement, & erosion control.
Industrial Waste Water Management: Utilizes proprietary GEIST technology to treat chemical-laden wastewater, recover valuable chemicals, & produce reusable water.
Sustainable Theme Park Development: Involves creating beautification artwork & infrastructure from recycled scrap materials, landscape designing, & providing amenities for theme parks.
BUSINESS SEGMENTS
Z-Tech India operates through three distinct yet complementary business segments, with a growing focus on sustainability & circular economy principles.
Sustainable Theme Park Development:
The specialized park development segment significantly contributed to FY25 revenue at 77%. Landmark projects like Happiness Park & UP Darshan Park in Lucknow were commissioned. Progress continues on the ₹20 Cr Ahmedabad Waste-to-Art Park (20-year management contract). The ₹20 Cr Noida Jungle Trail Park is set for a soft launch by mid-June 2025. New creative park categories such as urban forests, health parks, sports arenas, & pet parks are also being explored.
This is the blooming segment of the company currently. Under this the company plans, designs, constructs and maintains the theme park. This is an innovative segment where the company has addressed the significant challenges in waste material management, recycling, and processing and proposed to the government the establishment of a sustainable theme park. They have completed 6 projects worth ₹38.81 Cr and have 13 ongoing projects worth ₹88.77 Cr. Their parks developed in Delhi had given them a payback within one year's time.
Revenue stream from this business segment comes from three models:
Hybrid Annuity Model (HAM) : This is a cooperative effort between the government and the company under which both parties pool funds for the development of the theme parks. Once these parks are operational they generate revenue from ticket sales that is shared between them and the government.
EPC & O&M : Under this they limit themselves to providing EPC and O&M services to their clients for which they receive a revenue for the project development and a revenue for the project operation and maintenance. This is an asset light model where the company generates revenue without putting in anything from their end.
Public Private Partnership (PPP): In this the company makes investment for development of parks and the government contributes by way of land and scrap material to be used. The revenue from tickets is shared between them & the government. They also generate revenue from rentals received from the food court & kids area along with 15% revenue share from them. This revenue structure is particularly advantageous for metropolitan cities as it draws large crowds to the parks, ensuring a rapid return on our investment and promising substantial profits in the ensuing year. These projects are usually of 20 years span.
Geo-Technical Specialised Solutions:
This segment contributed 17% of the total revenue in FY25. The company recently secured multiple new work orders in slope protection (soil nailing, geocell applications) & reinforced wall construction for highway & railway infrastructure. Management expects 60-70% growth in this segment compared to last year.
Business Model:
Primarily EPC & O&M, where the company offers engineering, procurement, & plant setup services, as well as operation & management without direct investment.
Industrial Waste Water Management:
The wastewater business contributed 5% of the total revenue in FY25. The company is restructuring this business, moving it from Goa to Gujarat to be closer to customers & attract better talent. The company utilizes its proprietary GEIST technology for profitable zero liquid discharge (ZLD) solutions, converting 'waste into wealth' by extracting chemicals.
Business Models:
Design, Build, & Operate Model (DBO): Company funds, builds, & operates the treatment plant.
EPC & O&M: Offers engineering, procurement, & plant setup services, as well as operation & management.
Engineering & Supervision Model: Provides consultation for plant maintenance only.
REVENUE SPLIT
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FINANCIALS
FUTURE OUTLOOK
Z-Tech India is accelerating towards a sustainable future, targeting significant expansion & enhanced profitability.
Ambitious Financial Targets: Management projects FY26 revenue between ₹150-175 Cr & PAT of ₹35-40 Cr.
Sustainable Theme Park Expansion:
Targeting 24 operating parks by FY26 (up from 4).
Anticipating 20 new parks this year, valued at ₹100 Cr.
Noida Jungle Trail Park, a flagship ₹20 Cr investment, will showcase diverse zones & innovative experiences, setting a new benchmark.
Actively pursuing international expansion in Dubai, with promising discussions.
Venturing into new categories like urban forests, health parks, sports arenas, & pet parks.
Strategic Business Mix: By FY27, park business is expected to drive ~67% of revenue, with other infrastructure contributing ~33%. Within parks, ~67% of FY26 revenue is projected from EPC & ~33% from ticketing/F&B.
Geotechnical Momentum: Expecting 60-70% growth in this segment, fueled by a strong order book.
Wastewater Renaissance: Restructuring operations to Gujarat promises a breakthrough year in FY27, enhancing efficiency & customer proximity.
Inorganic Growth Focus: Actively seeking acquisitions across all segments, aiming for at least one strategic deal this year.
Thriving Industry Landscape: Bolstered by strong industry growth: geosynthetics at >8% CAGR & the overall park business at >15% CAGR.
RISK & STRENGTHS
Disclosure
This article is for educational purposes only and does not constitute investment advice. Readers should consult a SEBI-registered advisor before making investment decisions.
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