💰 Financial Performance

Revenue Growth by Segment

Specialized Park Development grew to dominate the mix at 90.52% of revenue in Q2 FY26, compared to 77.07% in FY25. Civil Engineering/GeoTech Solutions contributed 7.88% in Q2 FY26 (down from 17.05% in FY25), and Waste Water Management fell to 1.60% from 5.21% in FY25.

Geographic Revenue Split

The North region is the primary contributor at 58.18%, followed by the East at 20.74%, West at 17.77%, and South at 3.31% as of Q2 FY26.

Profitability Margins

Net profit ratio improved significantly from 13% in FY24 to 21% in FY25. For H1 FY26, PAT reached INR 9.1 crores, a 70% increase over H1 FY25's INR 5.4 crores, driven by higher-margin sustainable green power and park projects.

EBITDA Margin

EBITDA grew 136.9% YoY in FY25 to INR 27.81 crores. In H1 FY26, EBITDA (excluding other income) was INR 12 crores, representing a 66.7% YoY growth from INR 7.2 crores in H1 FY25.

Capital Expenditure

While specific historical Cr figures are not detailed, the company raised INR 4.80 crores through the conversion of 1,28,000 warrants at INR 575 per share in late 2025 to fund expansion and project execution.

Credit Rating & Borrowing

The company maintains a very low Debt-Equity Ratio of 0.01 as of March 31, 2025, down from 0.06 in FY24. The Debt Service Coverage Ratio is exceptionally high at 310.91, indicating minimal reliance on external debt and strong internal accruals.

⚙️ Operational Drivers

Raw Materials

Construction materials and recycled waste components represent approximately 63.7% of total income, amounting to INR 22.00 crores in Q2 FY26.

Import Sources

Not specifically disclosed in available documents; however, operations are spread across North, East, West, and South India.

Key Suppliers

Not disclosed in available documents; however, the company noted a major reduction in trade payables due to timely payments and discounts availed from vendors in FY26.

Capacity Expansion

Current capacity involves operating 4 parks as of FY25; the company is expanding to 15-20 operational parks by the end of FY26 and targeting 25-30 parks by FY27 to build a recurring annuity income stream.

Raw Material Costs

Raw material costs were INR 22.00 crores in Q2 FY26, up 76.8% from INR 12.44 crores in Q2 FY25, tracking the 81.2% growth in total income.

Manufacturing Efficiency

Inventory turnover ratio decreased from 18.08 in FY24 to 3.67 in FY25, reflecting a shift toward longer-gestation specialized park projects and better utilization of existing inventory.

📈 Strategic Growth

Expected Growth Rate

81.20%

Growth Strategy

Growth is driven by scaling the park portfolio from 4 to 30 units by FY27 to generate recurring revenue. The company is also executing a demerger of its park and infrastructure businesses to unlock stakeholder value and is pursuing inorganic growth through acquisitions, such as the one slated for completion in November 2025.

Products & Services

Specialized 'Waste to Wonder' parks, Geotechnical solutions, Wastewater management systems, and Civil Engineering services.

Brand Portfolio

Z-Tech, Waste to Wonder Park.

New Products/Services

Expansion into 'Sustainable Green Power' business and recurring annuity-based park operations, expected to meaningfully contribute to revenue stability from FY27 onward.

Market Expansion

Targeting expansion into existing Indian markets with a focus on the North (currently 58.18%) and East (20.74%) regions, while scaling the park portfolio to 30 locations.

Market Share & Ranking

Not disclosed in available documents; however, the company describes itself as a 'unique and innovative' player in the integrated sustainability and creative park arena.

Strategic Alliances

Partnerships with municipal bodies like Shimla Municipal Corporation for EPC orders; Investor Relations managed by Adfactors PR and Kirin Advisors.

🌍 External Factors

Industry Trends

The industry is shifting toward experiential entertainment and digital transformation (smart crowd management). Domestic players are scaling up to meet the demand from millennials for sustainable leisure and tourism.

Competitive Landscape

The company faces competition from international players eyeing the Indian leisure market and domestic infrastructure firms, though its integrated sustainability approach is positioned as unique.

Competitive Moat

Durable advantages include specialized in-house engineering for 'waste-to-art' projects and a high-visibility order book (INR 200 Cr) which creates a barrier to entry for general civil contractors.

Macro Economic Sensitivity

Highly sensitive to Indian economic and political conditions and government initiatives to promote tourism and green infrastructure.

Consumer Behavior

Growing preference for experiential entertainment among young members and millennials is sustaining long-term growth momentum for creative parks.

Geopolitical Risks

Exposure to regulatory shifts and environmental challenges within India; no specific international trade barrier impacts mentioned.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act, 2013, and SEBI (LODR) Regulations; the company must adhere to municipal EPC standards and environmental sustainability norms for park development.

Environmental Compliance

The company focuses on 'Waste to Wonder' and wastewater management, aligning with green infrastructure goals; specific ESG compliance costs are not disclosed.

Taxation Policy Impact

The company reported a PBT of INR 28.04 Cr and PAT of INR 20.18 Cr in FY25, implying an effective tax rate of approximately 28%.

Legal Contingencies

As of May 29, 2025, the company reported no pending litigations that would impact its financial position.

⚠️ Risk Analysis

Key Uncertainties

Potential for project delays and regulatory shifts in government infrastructure spending could impact the 87.98% government-dependent revenue stream.

Geographic Concentration Risk

High geographic concentration in Northern India, which accounts for 58.18% of total revenue.

Third Party Dependencies

Dependency on government partners for 87.98% of contracts; vendor dependency is managed through timely payments and discount negotiations.

Technology Obsolescence Risk

The company mitigates technology risks by investing in R&D and digital practices to enhance delivery speed and quality.

Credit & Counterparty Risk

Trade receivables turnover ratio was 1.93 in FY25, down from 2.36 in FY24, indicating a slight increase in the collection period, typical for government-related businesses.