Z-Tech India Ltd Management Discussions

Economy Overview

Global Economy¹

The global economy remained resilient during CY 2025 despite geopolitical uncertainties, evolving trade policies and escalating Middle East conflicts. According to the International Monetary Fund (IMF), global GDP augmented by 3.5%, while headline inflation moderated to 4.1%, supported by easing supply chain disruptions and steady domestic demand. Economic activity was driven by sustained investments in Artificial Intelligence (AI), digital infrastructure and technology, alongside resilient consumer expenditure across major economies. Advanced economies expanded by 1.9%, while Emerging Markets and Developing Economies (EMDEs) registered a 4.5%growth, driven by robust domestic demand and public investments.

Amid persisting geopolitical volatilities and heightened energy prices, enhanced consumer confidence and greater investments in infrastructure and technology propelled consistent economic activity. Long-term progress will be driven by strategic investments in urban infrastructure, tourism, leisure and consumer-oriented industries.

Outlook

Global GDP growth is expected to moderate to 3.0% in CY 2026 before improving to 3.4% in CY 2027. Despite near-term headwinds including geopolitical uncertainties and inflationary pressures, consistent investments in technology, infrastructure and consumer-driven sectors are expected to promote long-term economic growth. (in %)

Global GDP Growth Trend

Global Economy	(in %)
CY 2025	3.5
CY 2026 (P)	3.0
CY 2027 (P)	3.4
Advanced Economies
CY 2025	1.9
CY 2026 (P)	1.7
CY 2027 (P)	1.8
EMDEs
CY 2025	4.5
CY 2026 (P)	3.8
CY 2027 (P)	4.5

P – Projections

Source – IMF World Economic Outlook, July 2026

Global Inflation Trend	(in %)
Inflation %
CY 2025	4.1
CY 2026 (P)	4.7
CY 2027 (P)	3.9

Indian Economy

As one of the worlds fastest-growing major economies, Indias real GDP growth was estimated at 7.7% in FY 2025–26, as compared with 7.1% in the previous year. Progress was backed by resilient domestic demand, optimised agricultural productivity, robust service sector performance and sustained public infrastructure investments.

Private consumption remained a key growth driver, reinforced by favourable rural demand, elevated disposable incomes and moderating inflation. Consumer Price Index (CPI) inflation eased to 3.93% in May 2026 (revised 2024 base year) , thereby enabling sustained household expenditure across urban and rural markets.

Government initiatives catalysed sustained expansion. The Union

Budget 2026 27 allocated 12.2 lakh crore towards capital expenditure while promoting the development of MSMEs and digital infrastructure through streamlined business operations.

Additionally, increasing internet penetration, rapid digital payment adoption and expanding urbanisation promoted organised consumption while enhancing access to leisure, entertainment and lifestyle services, primarily across Tier II and Tier III cities.

Indias economic resilience was further reinforced by stable foreign exchange reserves and disciplined fiscal management. Despite global uncertainties, surging domestic demand and favourable demographics continue to drive sustained expansion.

Outlook

Indias economic outlook remains favourable. In FY 2026-27, real GDP is projected to reach 6.6%. Consistent government infrastructure investments, escalating private consumption, rapid urbanisation and sustained digital adoption are expected to propel long-term progress. These structural trends are expected to accelerate demand for organised recreational infrastructure, tourism and consumer experiences, thereby ensuring a conducive business environment.

Indian GDP Growth Trend

GDP growth (%)	(in %)
FY 2024-25	7.1
FY 2025-26	7.7
FY 2026-27 (P)	6.6

Industry Overview

Indian Creative Park Industry

Indias creative parks industry is emerging as a distinct segment within the countrys tourism and urban infrastructure ecosystem. Rapid urbanisation, rising disposable incomes and dynamic consumer preferences are increasing the demand for organised recreational destinations that prioritise leisure, culture, heritage, wellness and community engagement. As public cities evolve into integrated urban centres creative parks are rapidly gaining prominence as significant public assets. They enhance the quality of life, attract tourism while promoting vibrant social spaces. Government initiatives aimed at the development of tourism and urban infrastructure will further accelerate industry expansion. Targeted nationwide investments are driving the establishment of eco-parks, waterfronts, adventure facilities, heritage destinations, public recreational areas while ensuring comprehensive visitor amenities. Additionally, Public-Private Partnership (PPP) models are promoting private sector engagement across operations.⁵ Unlike conventional amusement parks, creative parks integrate recreation with local culture, sustainability and experiential tourism, thereby generating diverse revenue opportunities through admissions, food and beverage, event organisation while encouraging retail and community activities. The industry is well-positioned for long-term progress, bolstered by favourable urban demographics, surging domestic tourism and significant growth potential across Tier II and Tier III cities.

Key Growth Drivers

Growth Driver	Industry Relevance
Rapid Urbanisation	Expanding cities are driving consistent demand for organised leisure and community spaces that enhance urban experience.
Surging Domestic Tourism	Escalating intra-state and domestic travel is increasing the demand for destination-based experiences and family-centric attractions.
Experience-led Consumption	The transition toward experiential consumer expenditure is driving the expansion of leisure, activities over conventional entertainment forms.
The Governments Prioritisation of Tourism Infrastructure6	Investments in tourism infrastructure, heritage conservation, eco-tourism and destination development is promoting advancements in the creative parks industry.
PPP-led Development	PPP models are enabling disciplined execution and streamlining operations while optimising the maintenance of recreational infrastructure.
Untapped Market Potential	Primary urban centres and emerging cities continue to offer substantial growth opportunities for organised creative park development with minimal organised competition.

Industry Outlook

Indias creative parks industry is expected to witness sustained long-term growth, backed by favourable demographics, expanding urbanisation, increasing tourism and the surging preference for experiential recreation. As governments consistently prioritise destination development and private participation in tourism infrastructure, organised creative parks are expected to progressively enable the development of vibrant public spaces while enhancing visitor experiences. Domestic economic progress will promote strategic scalability for organised operators by harnessing advanced capabilities to deliver long-term value.

Indian Geotechnical Industry⁷

Indian Geotechnical Industry Market Size Growth Trend

Market Size (USD Billion)
2025	3.0	8.7%
2026	3.3
2036	7.6	CAGR (2026–2036)

Indias geotechnical industry is witnessing robust growth, backed by sustained investments in transportation, water and environmental infrastructure. The increasing adoption of geosynthetics across highways, railways, embankments, landfills, coastal protection and water management projects is enhancing soil stabilisation, drainage, reinforcement and long-term infrastructure durability. Additionally, Government initiatives promoting the utilisation of domestically manufacturedgeosyntheticmaterialsacrossinfrastructuraloperations is further accelerating the industry transition while bolstering the domestic supply chain. The South Asia geosynthetics market is projected to augment from USD 3.3 billion in 2026 to USD 7.6 billion by 2036, at a CAGR of 8.7%7. India is expected to record substantial regional growth at a CAGR of 9.3% during the forecast period.

Key Growth Drivers

Growth Driver	Industry Impact
Infrastructure Development	Large-scale investments in highways, railways and transport corridors are driving sustained demand for geotechnical solutions.
Indigenous Material Adoption	Government policies promoting the utilisation of domestic geosynthetic materials, encourages localised sourcing while minimising import dependence.
Complex Engineering Requirements	Construction advancements across unstable areas, embankments and uneven terrains are driving the adoption of specialised ground enhancement technologies.
Environmental and Water Infrastructure	Growing investments in drainage, water retention, landfill and coastal protection operations is consistently expanding application areas.
Performance Enhancement	Infrastructure agencies are leveraging operational capabilities by progressively adopting engineered solutions that bolster durability, reliability and long-term value creation.

Outlook

The outlook for Indias geotechnical industry remains optimistic, underpinned by consistent public infrastructure investments and the surging demand for engineered ground enhancement solutions. The expanding adoption of geosynthetics across transportation, environmental and water infrastructure is further reinforced by the sustained policy support for indigenous technical textiles, thereby driving substantial demand. India is expected to emerge as the fastest-growing geosynthetics market in South Asia, expanding at a CAGR of 9.3% over 2026–2036. The country is well positioned to capitalise on emerging opportunities while leveraging capacities and capabilities to deliver advanced geotechnical solutions.

Indian Water and Wastewater Treatment Technology Industry⁸

Market Size Growth Trend

Market Size (USD Billion)
2025	2.98	9.62%
2026	3.27
2031F	5.17	CAGR (2026–2031)

Indias water and wastewater treatment technology industry is witnessing robust progress, driven by increasing water scarcity, rapid urbanisation, strategic industrial expansion and strict environmental compliance. Heightened government investments including the implementation of AMRUT 2.0, Jal Jeevan Mission and Swachh Bharat Mission 2.0 are accelerating the deployment of advanced treatment technologies across municipal and industrial applications. The prioritisation of water reuse, recycling and Zero Liquid Discharge (ZLD) compliance is encouraging the adoption of membrane technologies, biological treatment systems, process automation and digital monitoring solutions. The industry is estimated at USD 2.98 billion in 2025. It is projected to reach USD 3.27 billion by 2026 and augment to approximately USD 5.17 billion by 2031, registering a CAGR of 9.62% over 2026–2031.

Key Growth Drivers

Growth Driver	Industry Impact
Urbanisation and Population Growth	Urban demographic expansion is increasing the demand for municipal water supply and wastewater treatment infrastructure.
Government Initiatives	AMRUT 2.0, Jal Jeevan Mission and Swachh Bharat Mission 2.0 are driving investments in water treatment and reuse infrastructure.
Industrial Water Reuse	Stricter environmental standards and ZLD mandates are encouraging industries to adopt advanced treatment and recycling technologies.
Technology Adoption	Increasing deployment of membrane filtration, automation, process control and digital monitoring is enhancing operational efficiency.
Sustainability and Water Security	Progressive water conservation, resource recovery and circular water management is fuelling the demand for advanced treatment technologies.

Outlook

The outlook for the Indian water and wastewater treatment technology industry remains favourable, reinforced by sustained investments in water infrastructure, stringent regulatory complianceandthedeploymentofadvancedtreatmentsolutions across municipal and industrial sectors. The prioritisation of wastewater recycling, desalination, digital water management and sustainable resource utilisation will propel long-term market expansion. The market is forecasted to reach USD 5.17 billion by 2031, expanding at a 9.62% CAGR over 2026 and 2031.

Company Overview

Z-Tech(India)Limitedofferssustainableinfrastructuresolutions. The Company remains committed to deliver long-term value through urban development, environmental sustainability and specialised engineering operations. Since its incorporation in 1994, the Company has evolved from a conventional EPC contractor into a diversified platform across creative parks, engineering infrastructure and chemical recovery, with a strategic focus on developing scalable businesses that integrate engineering excellence with sustained revenue generation. The Companys business model is centred on developing sustainable public infrastructure that enhances urban experiences while addressing critical environmental and infrastructure challenges. Its creative park business aims to promote destination-specific recreational spaces that drive tourism and foster community engagement while offering experiential leisure. Additionally, the engineering infrastructure business delivers specialised geotechnical solutions for critical infrastructure projects. The chemical recovery segment leverages proprietary technology to facilitate efficient industrial operations while ensuring sustainable water management. Through an extensive portfolio, the Company maintains diversified revenue streams to deliver long-term value with resilience and operational excellence. Backedbythecollectiveexpertiseandintellectofanexperienced leadership team, strong technical capabilities and a disciplined capital allocation, Z-Tech continues to expand its pan- India presence through consistent innovation and technological advancements. The Company is progressively scaling its creative park operations while expanding its engineering and environmental solutions segments, thereby driving sustainable progress to deliver long-term stakeholder value.

Key Ratios

Particulars	As at 31 March, 2026	As at 31 March, 2025
Current Ratio	2.68	4.67
Debt-Equity Ratio	0.33	0.01
Debt Service Coverage Ratio	25.79	310.91
Return on Equity (RoE) (%)	16	11
Inventory Turnover Ratio	4.47	3.67
Trade Receivables Turnover Ratio	1.66	1.93
Trade Payables Turnover Ratio	0.54	0.33
Net Capital Turnover Ratio	1.07	0.75
Net Profit Margin (%)	23	21
Return on Capital Employed (RoCE) (%)	12	11

Operational Performance

In FY 2025–26, the Company consolidated its position across creative parks, engineering infrastructure and chemical recovery segments. Through consistent operational footprint expansion, technological innovations and disciplined execution, the Company optimised its strategic business model while expanding its revenue margins. The creative parks business registered significant momentum with the establishment of new parks, increasing visitor engagement and the maintenance of diversified revenue streams through ticketing, food and beverage activities, organisation of events and the promotion of leisure experiences. During the year, the parks registered an approximated 12 lakh footfall, accelerating the Companysrobustgrowthpotential.Theengineeringinfrastructure business bolstered its presence in specialised geotechnical applications while expanding direct project execution capabilities. Additionally, the chemical recovery segment extended support to industrial clients through with proprietary resource recovery and sustainable water management solutions.

Opportunities and Challenges

Opportunities

Growing demand for organised recreational infrastructure and destination parks across India.

Increasing government prioritisation of urban infrastructure, sustainable development and tourism.

Surging demand for specialised geotechnical solutions driven by consistent infrastructural advancements.

Expanding opportunities in industrial water management and resource recovery driven by emerging sustainability initiatives.

Substantial revenue generation through ticketing, food and beverage activities, organisation of events and allied experiences.

Strategic footprint expansion across new states while prioritising potential global opportunities.

Challenges

Maintaining consistent customer experience while scaling the creative parks network.

Timely execution of significant technically critical infrastructure operations.

Seamless project execution amid evolving regulatory and approval requirements.

Acquisition and development of specialised engineering and operational capabilities through a and customer-centric approach.

Adapting to evolving consumer preferences while promoting visitor engagement.

Effectively navigating macroeconomic uncertainties and managing input cost fluctuations.

Business Outlook

The Company remains well-positioned to deliver sustainable long-term growth by leveraging its differentiated business model, disciplined execution capabilities and continued focus on innovation. Management will continue to prioritise the expansion of its Creative Parks business through increasing the number of operational parks, enhancing visitor engagement, improving repeat footfalls and strengthening average revenue per visitor. Supported by technology-enabled operations, standardised processes and decentralised park management, the parks business is expected to progressively strengthen its recurring revenue profile.

Alongside the parks business, the Company continues to enhance its Engineering Infrastructure portfolio by focusing on specialised geotechnical applications, increasing direct project execution and expanding its presence in technically complex engineering solutions. The proprietary Chemical Recovery business is also expected to gain further traction, supported by its differentiated technology platform and increasing customer acceptance across industrial applications. Together, these businesses provide a diversified platform for long-term growth. Favourable policy support for urban infrastructure, tourism development, environmental sustainability and water resource management, coupled with rising demand for organised recreational destinations, continues to create a conducive operating environment. As the Companys businesses mature, management also envisages the potential to evolve them into focused growth platforms, enabling greater strategic flexibility and sharper execution over the long term. The Company remains committed to strengthening its operational capabilities, pursuing disciplined capital allocation and delivering sustainable value creation for all stakeholders.

Risk Management Framework

Through an integrated risk management approach, the Company ensures proactive risk assessment to safeguard its operations and ensure seamless business continuity. As Z-Tech continues to expand its presence across creative parks, engineering infrastructure and chemical recovery segments, it prioritises the identification of emerging risks while bolstering its execution capabilities, thereby ensuring a resilient business framework. Through disciplined project identification, robust operational controls, technology-enabled systems and consistent monitoring, the Company seeks to mitigate potential risks while driving sustainable long-term progress.

Risk	Description	Mitigation Strategy
Project Execution Risk	Engineering and infrastructure projects involve technical complexity, multi- stakeholder coordination and strict execution timelines, which may impact project delivery and profitability.	The Company undertakes meticulous project evaluation prior to bidding. It prioritises projects in alignment with its technical capabilities while streamlining project management through proactive monitoring to deliver long-term value.
Creative Parks Expansion Risk	Rapid expansion of the creative park business may exert operational pressure, thereby impacting consistent customer experience and service quality across diverse locations.	Each park operates as an independent profit centre in alignment with standard operating procedures. Decentralised management and a technology-enabled operating platform promotes operational consistency while ensuring customer satisfaction.
Recurring Revenue Risk	The long-term progress of the creative parks segment is dependent optimal visitor footfalls, repeat visits and revenue margin expansion.	The Company continues to strengthen its destination park strategy through diversified attractions, food beverage offerings, events, adventure activities and customer engagement initiatives to enhance visitor experience while enhancing average revenue per visitor.
Technology and Innovation Risk	Sustained innovation and digital integration are integral to drive business scalability while maintaining operational efficiency.	The Company is progressively investing in technology- enabled operating platforms, digital customer engagement initiatives and consistent innovation to enhance operational effectiveness and support long- term growth.
Regulatory Compliance Risk	Revisions in regulatory measures, environmental requirements and statutory approvals may adversely impact project execution and business performance.	TheCompanymaintainsarobustcomplianceframework, proactively monitors regulatory developments while collaborating with specialised authorities to ensure timely compliance.
Human Capital Risk	Sustained business growth requires engineering expertise operational capabilities across business verticals, to deliver long-term stakeholder value.	The Company focuses on the acquisition of experienced professionals. Through initiatives aimed at leadership capability development, it strategically invests in employee development to foster a future-ready organisation.
Business Expansion Risk	geographical footprint expansion and portfolio diversification across business segments require effective execution and organisational scalability.	Through a structured expansion strategy, The Company ensures disciplined capital allocation, leadership expertise, standardised processes and consistent performance monitoring to drive sustainable growth.

Human Resources

The Companys recognises its people as the cornerstone of its long-term progress. While expanding its operations across creative parks, engineering infrastructure and chemical recovery segments, it prioritises the development of a future-ready organisation. By leveraging its technical, operational and customer engagement capabilities, the Company promotes people-centric initiatives in alignment with its strategic growth priorities. During the year, the Company bolstered its performance through the acquisition of experienced professionals across key leadership and functional roles. Sustained investments in capability enhancement, technical advancement and cross-functional learning further reinforced its long-term growth prospects. Additionally, the Company accelerated the expansion of the creative parks segment while enhancing its engineering expertise across specialised infrastructure and environmental solutions through a customer-centric approach. The Company promotes a productive, collaborative and inclusive work environment that encourages innovation and accountability, thereby ensuring a culture of continuous learning. By consistently fostering talent in alignment with its business priorities, the Company remains committed to deliver long-term stakeholder value with confidence and resilience.

Total Employees as of March 31, 2026

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.