Z-Tech (India) Ltd Management Discussions

Economic Overview

Global Economy1

In CY 2024, the global economy registered a growth rate of 3.3%. Despite headwinds, such as persistent geopolitical conflicts and shifting trade dynamics, economies worldwide demonstrated resilience. Major economies adapted to evolving conditions and witnessed a moderate, broad-based growth.

Global inflation moderated, with headline inflation easing to 5.7% in CY 2024, indicating early signs of price stabilisation.2 Advanced economies expanded at a pace of 1.8%, while Emerging Market and Developing Economies (EMDEs) recorded a stronger growth of 4.3%, led by robust performance across Asia and Africa. The US economy grew by 2.8%, primarily fuelled by sustained domestic demand. In contrast, the Euro area struggled with weak consumer confidence and heightened uncertainty, resulting in sluggish domestic demand and constrained consumption-led growth.

Outlook

Global economic growth is projected to moderate to 2.8% in CY 2025, with slight improvement to 3.0% in CY 2026. EMDEs are anticipated to remain the primary growth drivers, with projected growth of 3.7% in CY 2025 and 3.9% in CY 2026, supported by robust domestic demand, sustained investment momentum and proactive policy measures aimed at promoting economic stability. In contrast, advanced economies are likely to witness subdued growth, with forecasts rates of 1.4% in CY 2025 and 1.5% in CY 2026, primarily due to the lagging effects of tight monetary policies and evolving trade dynamics.

Indian Economy

India emerged as the worlds fourth-largest economy during the year, surpassing the USD4 trillion GDP milestone and surpassing Japan.3 In FY 2024-25, the economy registered a growth rate of 6.5%, driven by strategic government initiatives aimed at accelerating infrastructure development and stimulating domestic demand.

A substantial capital outlay of H11.21 lakh crore was allocated to infrastructure development, with a strong emphasis on rural connectivity, playing a crucial role in sustaining economic momentum.4 This substantial capital infusion was achieved while upholding fiscal discipline, keeping the fiscal deficit contained at 4.4% of GDP.5 Prudent fiscal management provided the Government of India with greater flexibility to enhance public spending and stimulate domestic demand without compromising macroeconomic stability.

The focus on infrastructure development boosted employment and had a multiplier effect across various sectors, reinforcing overall economic activity. Additionally, rising consumer spending emerged as a key growth driver, reflecting improved public sentiment and greater willingness to spend on goods and services. By prioritising long-term productivity through sustained investments in roads, transportation and water infrastructure, the Government of India has laid a strong foundation for continued economic expansion in the years ahead.

Outlook

The outlook for FY 2025-26 remains optimistic, demonstrating resilience amid turbulent global environment, strong domestic demand, easing inflationary pressures and a steady employment scenario. The real GDP growth is projected at 6.5%. In addition, the Reserve Bank of Indias 50 basis point reduction in the repo rate to 5.50% is aimed at increasing liquidity, encouraging credit growth and improving overall market sentiment.6

However, global growth continues to face headwinds, with persistent trade conflicts, policy uncertainties and continuing geopolitical conflicts. These external challenges could affect Indias growth trajectory and require close and continuous monitoring.

Industry Overview

Indian Geotechnical Industry

The Indian geotechnical industry is valued at USD 2.29 billion in 2024 and is expected to reach USD 2.42 billion by 2025, representing a year- on-year growth rate of approximately 5.4%. This growth is underpinned by large-scale infrastructure development, including projects under the PM Gati Shakti National Master Plan and the Bharatmala Pariyojana, which demand extensive geotechnical site assessments. Additional drivers include land-use change initiatives, urban expansion and increasing investments in renewable energy, particularly wind and offshore installations.

Leading geotechnical service providers are rapidly adopting advanced technologies particularly digital data platforms and deep water exploration tools to enhance project efficiency and improve client deliverables. These technological advancements, coupled with strategic mergers and partnerships, have strengthened the market position of Indian firms both regionally and globally, particularly across North America and Asia Pacific.

Looking ahead, the market is projected to expand to approximately USD 3.07 billion by 2029, supported by factors such as resilience building initiatives, expanded mining activity, increasing urbanisation and continued development of renewable energy projects, especially offshore wind. The sector is also witnessing a major digital transformation, with greater use of data driven workflows and real time subsurface modelling, enabling more advanced analytical capabilities and informed decision-making.

Indian Wastewater Management Industry8

Indias wastewater treatment sector is valued at USD 9.64 billion in 2024, driven by rapid urban expansion, industrial growth and intensifying water scarcity concerns. The industry benefits from stringent environmental regulations and policies such as the Jal Jeevan Mission and Amrut 2.0 are mandating the adoption of onsite treatment systems and Zero Liquid Discharge (ZLD) frameworks, especially in water intensive industries such as textiles, pharmaceuticals and chemicals. Additionally, municipal and decentralised treatment is gaining traction, supported by government programmes such as Namami Gange and are facilitating modernisation of municipal sewage treatment plants in riverine zones.

The sector is undergoing a transition towards advanced treatment technologies, such as Membrane Bioreactors (MBRs), Reverse Osmosis (RO) and Advanced Oxidation Processes (AOPs), which enhance pollutant removal and enable safer water reuse. Urban centres are also increasingly adopting IoT-enabled and smart monitoring systems for real time optimisation, alongside modular and energy efficient plant designs. These innovations support cost reduction, regulatory compliance and enhanced environmental outcomes.

The market is projected to grow at a Compound Annual Growth Rate (CAGR) of approximately 7.6% from 2025 to 2033, reaching around USD 18.6 billion by 2033. Longterm growth will be driven by sustained urbanisation, increasing emphasis on wastewater reuse and the acceleration of Public Private Partnerships (PPPs). The broader adoption of Zero Liquid Discharge (ZLD) systems and smart water management technologies will pave the way for sustainable growth and operational excellence across the sector.

Creative Park Industry

The Indian creative park industry has experienced a notable resurgence, driven by rising consumer spending on leisure and entertainment. With increasing urbanisation, evolving lifestyle preferences and a growing aspirational middle class, creative parks across major metropolitan areas and Tier-II cities have seen strong visitor footfall, particularly during holiday seasons and school vacations. To capitalise on this demand, operators have focused on enhancing the visitor experience through technology-enabled rides, immersive storytelling zones and improved safety protocols. Strategic collaborations with global entertainment brands and film franchises have further strengthened visitor engagement and boosted merchandising revenues. Government initiatives such as the Swadesh Darshan Scheme are further catalysing investment in tourism-linked infrastructure, including creative parks, especially in underserved regions.

The industry is poised for sustained expansion, supported by favourable demographic trends, infrastructure development and government initiatives to promote tourism. Going forward, operators are expected to invest in digital transformation for enhanced guest interaction, smart crowd management systems for operational efficiency and green infrastructure to align with sustainability goals. With international players eyeing market entry and domestic players scaling up operations, the sector is set to evolve into a key contributor to the countrys leisure and tourism economy. Additionally, the growing preference for experiential entertainment, particularly among young members and millennials, is expected to sustain long-term growth momentum.

Company Overview

Z-Tech (India) Limited, incorporated in 1994 and headquartered in New Delhi, is a pioneer in sustainable infrastructure solutions with a strong presence across multiple Indian states. Originally, established as a civil construction firm, the Company has evolved into a creative urban rejuvenator, known for developing eco-friendly infrastructure and interactive public spaces that underscore its commitment to environmental sustainability and social impact. Z-Tech has strategically diversified into three high- growth verticals:

• Creative park development using upcycled materials and immersive designs

• Industrial wastewater treatment powered by its propriety GEIST technology and

• Geo-technical and civil engineering industry to address challenges related to soil and rock mechanics.

The Company has carved a distinct niche in development of experiential, sustainable outdoor spaces. Flagship projects such as the Shivalaya Park in Prayagraj and Dinosaur Park in Maharashtra have received widespread acclaim, drawing impressive visitor footfalls and establishing Z-Tech as a leader in green-themed leisure spaces.

Backed by a scalable and efficient revenue model, strong R&D capabilities and an expanding footprint into South India and international markets such as Dubai, Z-Tech is well-positioned for long-term growth. Its progress is further supported by an experienced management team and strategic capital infusion raised through its Initial Public Offering (IPO). As the Company continues to scale operations, it remains focused on driving innovation, profitability and environmentally responsible urban infrastructure.

Business Segment

The Company operates through three key business segments:

Creative Parks Development

Z-Tech has pioneered a distinctive approach in the creative park segment through its development of Creative Parks, eco-conscious public spaces that blend environmental sustainability with recreational value. These parks are constructed using recycled scrap materials, transforming underutilised urban spaces into immersive, thematic environments. Each park is designed to cater to a wide audience, encompassing educational, spiritual, wellness-based and adventure based themes. In addition to enriching community engagement, the Company explores diversified revenue streams through ticketing, rentals and revenue-sharing models with vendors, backed by increasing visitor footfalls and strong partnerships with municipal and urban authorities. This segment is poised for continued growth, driven by rising demand for inclusive and sustainable entertainment experiences across cities.

Industrial Wastewater Management

Z-Tech offers advanced solutions in industrial water treatment through its proprietary GEIST technology, designed to address critical challenges in wastewater recycling hazardous chemical removal. These systems support clients in meeting stringent environmental standards and advancing their sustainable operations. With increasing water scarcity and tighter compliance norms, Z-Techs wastewater management solutions serve a growing client base across sectors such as chemicals, food processing and municipal utilities. The Company is proactively investing in R&D technology upgrades and team expansion to overcome execution challenges and scale operations effectively. The segment is further buoyed by the Government of Indias emphasis on clean water access and industrial environmental accountability, positioning Z-Tech as a key enabler of wastewater treatment expertise.

Geotechnical and Civil Infrastructure Solutions

Building on a solid expertise in civil infrastructure, Z-Tech offers solutions in geotechnical and civil infrastructure development, with a focus on the design, supply and construction of critical retaining structures. Over the years, the Company has expanded its capabilities to include slope stabilisation, embankment construction and landslide mitigation, serving large- scale infrastructure projects such as national highways, riverbanks and rail corridors. Despite temporary disruptions from weather-related project delays, the long-term outlook for this segment remains strong, supported by Indias infrastructure push and growing demand for resilient, sustainable engineering solutions.

Financial Highlights

Consolidated

(Rs in Crore)

Particulars	FY 2024-2025	FY 2023-2024
Revenue From Operations	94.40	67.32
EBITDA	27.81	11.74
PBT	28.04	11.07
PAT	20.18	8.47
Net Worth	170.86	21.63

Key Ratios

Particulars	As at 31 March, 2025	As at 31 March, 2024
Current Ratio	4.67	1.84
Debt-Equity Ratio	0.01	0.06
Debt Service Coverage Ratio	310.91	126.20
Return on Equity Ratio	0.11	0.37
Inventory turnover ratio	3.67	18.08
Trade Receivables turnover ratio	1.93	2.36
Trade payables turnover ratio	0.33	1.32
Net capital turnover ratio	0.75	4.15
Net profit ratio	0.21	0.13
Return on Capital employed	0.11	0.35

Operational Performance

The Company delivered strong operational performance, highlighting the success of its integrated, sustainability-focused approach. Growth was propelled by the efficient execution of projects across key verticals, leading to notable gains in operational efficiency and profitability. This was reflected in the marked improvement in margins and earnings, driven by disciplined cost control. Strategic project selection, the deployment of innovative solutions such as proprietary wastewater recovery technologies, and expansion into emerging segments like slope protection and urban mobility infrastructure contributed to this momentum. The Companys emphasis on circular design principles, use of upcycled materials, and development of tailored public spaces further reinforced its dedication to sustainable urban transformation. These achievements remain closely aligned with the Company long-term objective of delivering environmentally responsible infrastructure and encouraging scalable, future-ready growth.

Outlook

The Company enters the coming year with a strong order book, a diversified portfolio, and a well- established presence in sustainable infrastructure. Backed by robust demand across its core segments creative parks, wastewater management, and geotechnical solutions the Company remains focused on delivering innovation-led, design- based public infrastructure that is both value-driven and environmentally responsible. With strategic priorities centred on operational excellence, digital transformation and customer-centric execution, the Company is actively strengthening its product and services portfolio, expanding into South India, and enhancing its R&D capabilities. These initiatives, supported by financial prudence and a commitment to sustainability, position the Company to deepen its market presence and drive the next phase of profitable, long-term growth.

Risk and Management

The Company adopts a proactive approach to risk management by integrating it closely with its business strategy, which emphasises innovation, sustainability and operational excellence. Recognising the dynamic nature of the infrastructure sector and its exposure to external variables such as project delays, regulatory shifts and environmental challenges, the Company has embedded strong internal controls, meticulous project selection and cost-optimisation frameworks into its operational model. This alignment enables the Company to mitigate execution risks while delivering high-quality outcomes within stipulated timelines and budgets. Moreover, its strong emphasis on R&D, compliance and sustainability ensures that emerging risks such as those arising from climate change, technological disruptions, or regulatory requirements are addressed pre-emptively. By managing risks through strategic planning and continuous monitoring.

Human Resources

The Company places strong emphasis on building a future-ready workforce through structured training programmes, leadership development and crossfunctional upskilling. The Company promotes a high-performance culture grounded in meritocracy, inclusivity and strong focus on employee well-being. Strategic hiring initiatives aligned with business expansion have strengthened capabilities across manufacturing, R&D and customer-facing teams. These efforts reflect the Companys commitment to nurturing talent, empowering its workforce and aligning human capital with long-term strategic growth.

Internal Control Systems and their Adequacy

Considering its scale and operational activities, the Company has established and maintains appropriate internal control systems and procedures that encompass all financial and operational aspects. The Company believes that a robust internal control framework is a fundamental element of good corporate governance. It continuously works to improve the systems ability to prevent unauthorised use or losses. The Audit Committee plays a supervisory role over all internal operational matters and provides guidance on necessary corrective measures.

Cautionary Statement

Certain statements in the Management Discussion and Analysis describing the Companys objectives and predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may vary significantly from the forward-looking statements in this document due to various risks and uncertainties, including the effects of economic and political conditions in India.