Z-Tech (India) Limited ($ZTECH)

Ladies and gentlemen, good day, and welcome to the Z-Tech India Limited Q4 and FY '26 Earnings Conference Call. [Operator Instructions] From the management, we have Ms. Sanghamitra Borgohain, Managing Director; Mr. Sunil Ghorawat, Chief Business Officer; Mr. Vikas Jain, Chief Financial Officer; Mr. Ashish Goel, Company Secretary and Compliance Officer. I now hand the conference over to Ms. Sanghamitra Borgohain, Managing Director. Thank you, and over to you, ma'am.

Thank you, Ria, and good afternoon, everyone, and a warm welcome to all the investors, analysts and stakeholders joining us today for the Q4 and full year financial year 2026 Earnings Conference Call of Z-Tech India Limited. I'm joined today by Mr. Sunil Ghorawat, our Chief Business Officer, along with our senior management team and our Investor Relations advisers. Thank you for taking the time to join us and for your continued trust and support in our journey. Financial year 2026 has been transformational year for Z-Tech India. During the year, we strengthened our position as an integrated sustainability-led infrastructure company operating across Habitant, Equa and Tera verticals. More importantly, we made significant progress in transitioning the company from a predominantly EPC-led model towards a hybrid model with increasing recurring and annuity-based revenues through our expanding Zing Park platform. Throughout the year, we continued to scale our operations across urban and experiential infrastructure, wastewater management, geotechnical engineering and environmental solutions. We also expanded our geographical footprint into new states and strengthened our execution capabilities across all business verticals. I am pleased to share that during quarter 4 of the financial year 2026, the company delivered a strong growth in revenue, profitability and execution momentum. Our continued focus on operational discipline, technology integration and efficient capital allocation helped us maintain healthy margins while scaling our project pipeline. Publicly available quarterly updates indicated strong Y-o-Y growth in revenue and profitability during 2026. The year also witnessed important milestone for our farm businesses, multiple plant becoming operational and several projects nearing completion. This gives us strong visibility for financial year 2027 as operational revenues from ticketing F&B events and allied activities continue to scale up. The Equa vertical has expanded our capabilities in sewage treatment, wastewater recycling and water regeneration. Our Tera vertical also delivered a strong performance during the year with increasing traction in soil stabilization, slope protection and flood mitigation and mining-related geotechnical solutions. Importantly, our order pipeline remains healthy across the 3 verticals, and we continue to see strong opportunities emerging from urban infrastructure, modernization, sustainable public infrastructure and environmental engineering projects across the country. Before I hand over the call to Mr. Sunil Ghorawat for operational and financial highlights, I would like to sincerely thank all of you, our employees, clients, government authorities, partners and shareholders for their continued confidence in Z-Tech India. I hand over to Mr. Sunil Ghorawat.

Thank you, Sanghamitra, and good afternoon, everyone. Financial year '26 has been one of the most defining years in the history of Z-Tech India from both a strategic as well as an operational standpoint. Over the last few years, as we have been discussing, we had articulated our vision of transforming the company from being only more of an EPC contractor into a platform that has started the first kind of public-private partnership model in the space of park development, in which we not only own, develop and operate these sustainable public infrastructure, but we have also made significant progress in that objective working with the various government bodies. The Zing Park platform has seen the rapid expansion in our ecosystem in the current financial year. At the beginning of FY '26, we only had a few operational parks, 4 parks to probably start with. Today, we have significantly expanded our operational footprint and several additional parks are either operationally ready or nearing commissioning. And we intend to probably add around 11 parks into the [indiscernible] probably reach to a level of 15 operational parks. What is important here is not only the number of parks, but the business model itself, as we have discussed in the past. This model is not about just the park development. It's about creating a very annuity kind of a revenue stream, which can be giving you revenue on a multiple fronts on next 20 years. We have generated various revenues over a period of last 1 year through ticketing, food and beverages, events, sports activities, adventure zones, brand partnerships and various other recreational experiences. The visitor profile has also significantly changed -- evolved over a period of last 1 year. We had almost more than 12 lakh visitors who visited our parks, which we intend to take it to close to around 50 lakh visitors this year. Similarly, our revenue from operations purely out of these recurring activities have grown more than 100%. This has been achieved not only just through delivering these parks at the operational level, but also taking a very strong approach towards building the brand value of the parks. You will be very happy to know that over a period of last 1 year, our reach on various social media platforms reached from INR 4.4 crores to almost INR 10 crores and the impressions jumped from INR 12.5 crores to almost INR 51 crores. This has created a high margin and [indiscernible] cash flow business with significant operating leverage as we go ahead. One of the biggest learnings for us this year came from the performance of parks in the Tier 2 and Tier 3 towns in [indiscernible]. The response from cities such as Khurja and Muraqqabat have clearly demonstrated that there is a massive underserved demand for high-quality recreation and experiential infrastructure beyond metro cities in. During the year, we have continued to strengthen our position by opening various parks. The last park, which officially got opened was [indiscernible] at Muraqqabat by the Honorable Cabinet Minister of Uttar Pradesh. In addition, we also secured our biggest largest ever thematic park project, [ Krishnan Lok at Matra, Vindaan ], where you have a huge tourism footfall of more than, I believe, INR 8-odd crores tourist visits that city, and the project is valued at around close to INR 19-plus crores. This will be developed as a large-scale cultural and sustainable tourism destination inspired by the life and teachings of Lord Krishnan. Further strengthening our experiential portfolio, after getting the first park in Patna, we also were able to secure the second job where the work has started this quarter. Going forward, our strategy remains fairly clear. We are measuring our outcomes in a very close manner in terms of how many number of parks we can operate aggressively, how do we expand the revenue base by increasing the footfalls and also how do we increase the average revenue per user and thus probably improving our free cash flow generation as we move forward. We continue to believe that this opportunity is extremely large and still at a very early stage in India. Similarly, our engineered Infra vertical, which included geosynthetics and water vertical, we also reorganized the geosynthetics vertical into 5 different categories, which included ground improvement, hydrology, environment, rock fall protection and the core infra. This ability helps us to expand the ever-growing need of geosynthetics in India as we see more and more infrastructure development. We secured multiple significant orders during the year from names like [indiscernible] and several others. And these developments not only enhance our revenue visibility for the coming quarters, but also affirm reaffirm our strong execution capability, technical expertise and commitment towards a future-ready infrastructure creation across the country. This was possible by significantly strengthening our team in place by bringing a senior person on board who is driving this vertical, along with the infrastructure addition in terms of our execution skill set. We also are looking at higher-value projects as we move forward so that we can have expansion of the margins. We've taken several orders for the first time to probably create our necessary prequalifications. This will help us in terms of more opportunities coming from various departments like North Water Resources department in many places from the city development issues. And this will also help in terms of our wastewater recycling business as well. While these vertical may operate at a comparatively moderate margin versus the park business, it significantly strengthens our engineering capabilities, diversifies our project portfolio and provides a strong long-term order book visibility along with several recurring O&M opportunities into our wastewater recycling business. Our overall order pipeline remains robust across creative Parks and Engineered Infra segment. We continue to receive repeat orders from several government agencies and municipal corporations, which reflect the strength of our execution capabilities and strong customer relationship. We also were able to enter into new states in this financial year, and we are targeting several more new states entry as we enter into '26, '27. We have started witnessing some early international interest from several African countries, and we want to closely pursue it when the right time comes considering that right now, the geopolitical headwinds beyond India waters and all. As we move into FY '27, our focus area remains is to scale operational parks by executing them in a given time line, increase our recurring revenue contribution, maintain a very strong disciplined execution across all our business segments and also increase our balance sheet efficiencies by improving our recovery from all platforms. And thus, we probably believe that it will also help in terms of the necessary cash generation. We believe FY '27 will be an important inflection year for Z-Tech India as the operating leverage from parks and annuity revenue starts becoming more increasingly visible. With that now, I invite our CFO, Mr. Vikas Jain, to take you through the Q4 and FY '26 financial performance. Vikas, please take it.

Thank you. Now we will take you through our consolidated financial performance for Q4 and FY '26. In Q4, we have the revenue of INR 58.83 crores against INR 34.99 crores in Q4 FY '25. This is a growth of more than 68% of the revenue. And correspondingly, the EBITDA, we have achieved INR 19.34 crores in Q4 FY '26 against INR 12.86 crores in Q4 FY '25. This is again, gentlemen with more than 50% increase in the EBITDA. And through consistent and persistent cost control and cost reduction mechanisms, we are able to have the good profit after tax of INR 19.19 crores in Q4 FY '26 against INR 8.5 crores in Q4 '25. If we talk about the full year performance highlight of March '26, the total income of FY '26 stood at INR 155.79 crores against INR 94.40 crores in FY '25. This is reflecting more than 65% growth in this financial year and mainly it is due to our Creative Park businesses. And correspondingly, EBITDA is showing INR 43 crores in FY '26 against INR 27.8 crores in FY '25, again, there is a growth of 55%. And correspondingly, profit after tax is INR 35.86 crores in FY '26 against INR 19.61 crores in FY '25, more than 82% growth. With that, we are open to the floor to any questions you may have. Thank you for your time and continued support.

[Operator Instructions] First question is from the line of [ Akshat Mehta ] from Seven Rivers Holding.

My first question is on the overall revenue breakup. We've seen that the EPC segment of Geotech and Equa have grown much faster even year-on-year this quarter, more than 100% versus our parks. Why is that? I mean, when can we kind of see Parks revenue coming back to a larger share? One is that? And is that the reason that the working capital cycle overall has ballooned up at the end of the year?

No. So I think what you've seen is a typical reflection of what happens in the Geotech business into the last quarter when the weather is very, very supportive for doing many of our works. Overall, if you look at our Park business continues to have almost close to 70% of our revenue. And we expect probably the park business to probably be in that level of 70% to 80% of our revenue even going forward. And the question of ballooning in terms of the working capital is probably we track our metrics is on more around what becomes more than 180 days old. So if you see that probably most of the recoveries are less than 180 days old, and we are on track to receive that or already have started receiving in this financial year. And many times -- sometimes when we are opening these parks, the question which we have to ask ourselves is do I bring the park into the operating revenue stream or do I wait for getting all the payments on the execution front? And we have chosen the first park, then let's finish the park construction and then let's start focusing on operating revenue and the execution revenue comes from the government. There might be some delay here and there, except into one project where still there has been some land issue in Gujarat, we don't see any problem in any of those recovery fronts.

Okay. My second question is on the overall borrowing that has gone up sharply. Why has that happened? Overall borrowing or debt?

Yes. So in Geotech business, which had a very small base last year, we decided to probably increase the number of verticals which we are looking at. And one of the vertical out of stabilization businesses into mining stabilization. So we have purchased significant heavy machinery for the site deployment. And that is why that debt level has gone there.

Okay. And so we expect all of that to come down, right? The debt has [indiscernible].

Yes. Yes, absolutely. Absolutely. We don't need any further equipment to be deployed in the Geotech business. It's only the revenue which will keep adding over next 2 years.

My next question is on the park business itself. In the past, how many parks have kind of opened in FY '26? And how many has been opened in the first 2 months of FY '27? And are we sticking to the 15 park numbers that we had for FY '27?

No. So yes, absolutely, we are still on track on those numbers. So one thing which we have also learned in this category of park business, we always felt that once we execute the park, immediately, the park can move into, let's say, an operating revenue stream. But then what happens is there is a category -- for lack of a better word, I will call it more like a preopening time period because our parks are generally made for people at large, we have seen there is always an inclination that the park should have an opening by then by somebody at the political level. And sometimes these things get delayed because these are beyond our control. We expect that probably the 15 parks what we had earlier spoken about, and we intend to add 15 more parks this year. So the way I see the trajectory has evolved is that 4 parks, 11 parks and then 15 parks this year. So FY '27 end, we would have around 30 parks executed.

How many are operational or we've already done a soft launch?

So the full operational is around 9, 3 are under the soft launch, 3 are probably which will be ready by end of probably June. They are almost ready. It's just that some places, probably we are having this issue of some of the government supply, which they were supposed to come in because the park was done by some earlier vendor, and he has been delaying it, so we have to wait because of that. But otherwise, we are on stream as we had promised 15 parks, we'll be there.

So the next 15 parks you're expecting in the last Q2 to Q4, right? Will that be any at least soft launch will happen in the 3 quarters because...

So the way I have taken is that average of only 3 months of these 15 new parks at the full operational level. So I'm just taking an average. Though these 15 parks, which probably we have talked about after 4 plus 11, I have taken a run time of 6 months of the whole year. And 9 to 10 parks, we have taken it for a full year operation. And that's how we have calculated from our footfall will go from 12 lakh visitors last year to around 50 lakh visitors this year. And if you look at the number point of view, if I'm able to reach an ARPU of only INR 100 per user, probably we're looking at a revenue of almost INR 50 crores from there and on.

Okay. And this is including or excluding F&B events and other activities?

It does include a little bit of F&B this thing. It does not include the event and all that. Even just to give you a perspective about events because you mentioned, last full year, we had around 21 activations in the whole year. In first 45 days of this year -- of this financial year, we have done around 20 activations in last 45 days.

Next question is from the line of Priyanshu from Growth Infinity.

Congratulations on a good set of results. Sir, as we are at an inflection point for 2027, we are expecting a lot of revenue from the recurring income side. So in this financial year, we are also planning to launch somewhere around 15 parks as well. So sir, like can you give us the breakdown how we are expecting going forward, what will be the revenue mix for this upcoming year? And how we are positioning ourselves for the upcoming 2 to 3 years in that perspective?

So the coming financial year, we probably see our recurring revenue go from INR 8 crores to almost INR 42-odd crores, INR 40 crores, INR 42 crores. And our creative parks probably will give around INR 135 crores to INR 140 crores -- and overall, as a company, we expect to do around INR 250 crores to INR 260 crores in this financial year. And what was your other question?

So like going forward, like what we are expecting that like from -- as we are getting more and more orders. So like as of today, if we talk about what is the capability which we can deploy, we are increasing our operational efficiency and all on that?

So as I mentioned, from INR 4 crore operating revenue to we moved to INR 8 crores and probably to we are moving to almost INR 42 crores this financial year. Now we expect the team also evolved from what we had [ 1.5 ] years back around 4 people marketing team, we have almost like a 20-people marketing team at the execution level, which, in my opinion, will suffice for this financial year till probably we reach almost around 30 operational park, hopefully by end of March '27. And we feel that from our park execution capability, there is no issue. Now with the work which we did over the last almost 5 months, we feel at the operating park level also, we have built significant depth. So that also, I don't see that as a problem.

Next question is from the line of [ Panishi Gupta ] from SF Family Office.

Congratulations on the excellent set of numbers that you have reported. I would like to know in a broader sense, where do you see the company going on, let's say, from a decade here? What vision and targets do you have in mind for the company going forward?

See, we haven't looked at decades so far, but our very clear stated goal is that 3 years going forward, we want to be operating around 100 these experiential parks/destination. By virtue of reaching there, I am reasonably sure we would be the world's largest experiential destination company. And we feel that once we reach that milestone of 100, I feel that India itself probably requires one park in every district of India. Now India has around 800-odd districts. So you can understand how big the opportunity itself, it can give you that. Earlier when we started, we probably thought that this will be more of a large metro or Tier 1 phenomena. But our experience of last 1 year shows that Tier 2 and Tier 3 is also ready in terms of having these parks. And with that in mind, just to give you a perspective, after opening these 7-odd parks, which we have opened in Uttar Pradesh, we have currently active leads, which are converting into tender stages of almost 20 more parks, which means almost 20 different cities or at least 18, 19 different cities of Uttar Pradesh. Similarly, we have seen in Gujarat. Now we have been talking about other than Gandhi Nagar, Ahmedabad, we are talking about Jamnagar, Garodra, Rajkot. Similarly, we have seen in Maharashtra, all the way from [indiscernible] Domiwali, Thane, Navi Mumbai, Palar. So what I'm trying to tell you is that the things are gradually spreading very rapidly across all kinds of Tier 1, Tier 2 and Tier 3 towns. And we expect with this kind of a momentum, I have no doubt whatsoever that we would be the largest experiential park destination company in the world over the next 3 to 4 years.

Sir, how does the potential for operating leverage look like while achieving your target for 100 parks?

So if I look at -- by the time we reach 100, we would have also had significant learning all the way. I expect once we reach around 100 parks, we should be earning almost INR 3 crores to INR 4 crores minimum net profit each park, giving only the park operating revenue of some net profit of almost INR 300 crores to INR 400 crores.

Next question is from the line of [ Vatsal Rastogi ] from Mittal & Co.

Sir, my question is like if we see in [ FY '26 ] balance sheet, when we look at the intangible assets, it has risen from INR 7 crores to INR 38.88 crores. So what can be the reason for that?

It is due to the commissioning of the parks, as Sunil has confirmed. And accordingly, we have INR 31 crores of the assets, which has been capitalized to the PPP.

Okay, sir. And my next question is on the trade receivable side. If you look at FY '25, it is INR 46.88 crores. And for this FY '26, it is INR 93.97 crores when we look at the balance sheet. So can you also let me know about that as well, the reason behind this increase, it has doubled.

Yes, yes. It is doubled and the operation has also been increased up to the 70% also. And you will appreciate that. In our case, all our debtor position is INR 93 crores as on 31st of March 2026, which is almost equals to quarter turnover. And our 180 days less debt is INR 60 crores. It's good and recovering also.

Okay, sir. Sir, one more question that recently, there has been other noncurrent assets also, if you see, that increased from INR 7.79 crores to INR 22.30 crores. Can you also state the reasons for that?

Just a moment. This is due to the retentions and the security deposits also because since the operation has already been increased, there is more retention from the customers up to the 10% and withhold. The main amount of the differential of INR 15 crores is relating to that.

Okay. Okay. Sir, one last question I'm having that recently we have issued. And we have done some preference issue, and there was some report that the funds were not utilized properly. So can you give some light on that?

Ahshish, can you answer this?

Sir, pardon the question?

Sir, recently, preference issue was done, and there were some reported funds were not utilized properly. So can you give light on that?

No, sir, I think so the funds has been utilized for the debt, which we had mentioned in the offer document.

I think Ashish, what he is referring about that FDs that there was -- which money was used to make the FD. And I think that got rectified, right? Vikas Jain, you would be able to [indiscernible] this.

Yes, yes, yes. I will explain this. basically, we have -- due to the business interest, we have taken collateral against this and put this as a security to the bank guarantees. And that was the point raised by the committee of our monitoring agencies that we were not comfortable, and we have noted it down. And we -- henceforth, we are not be creating any lien on the FDs and existing lean has to be removed in the next quarter.

So what it means, sir, is that there were 2 kinds of money which we get into the company, one which came from the preference capital, preferential warrant and the other which came from the regular operations. Both we made FD out of one while they wanted us that FD should be made out of the other one, and it should not be made out of that money. So I think this was a procedural issue, which have been rectified.

Next question is from the line of [indiscernible], an individual investor.

Sir, just want to understand, since you have given this in your investor presentation data...

Sorry, can you speak a little clearer. You're not audible.

Yes. So I was asking, we have given a recurring revenue guidance that revenue -- recurring revenue of the Park business will increase from INR 8 crores to INR 42 crores. Can you also tell us what will be the EPC business of FY '27 other than the recurring?

In the range of around INR 135 crores plus plus..

Okay. And sir, earlier also we have discussed this the recurring business will have a higher EBITDA margin, something. So what could be the EBITDA margin we can think of this recurring business, which will be a ticketing and food and beverage, something?

Generally, it's like 50% to 60% is what we have seen.

Okay. And whatever the segmental reporting we are doing, so this sustainable theme of development, which we have shown is -- so is the recurring revenue is also being classified here also or it is other segment?

The way -- no, no. So the way we analyze our business is, one side is Park and other is Engineered Infra. So all the Park-related revenue is into that one head and the balance is into Engineered Infra.

So can I request in future, we can give this separate classification of segmental report basis, the EPC business separately and the recurring business separately because right now, it's a smaller section of the business. But once it grows, we can see the profitability of the different segments separately, which will help us.

No, no, sure. We do track internally through our other Excel sheet and all. And I think CFO can take note of it and probably try to figure that out. We don't have any issue on that.

Last question on my side, sir. Last year also, our CFO was negative. This year also, our CFO is negative. And considering the business, what is our business, we are doing a borrowing and we have raised capital also. So is this receivable recoverable in the next 3 months or something? Or it has already been reduced to some extent? Because we know this is your B2G business and the recovery of the receivable will be taking time. But every year in the March ending, the CFO looks negative, just creates something negative side of that.

No, I understand that. As I have mentioned in several of our calls that as a company, we have a choice to probably slow down the expansion of how many parks which we develop in a year from an EPC point to operational point of view or we take a call that let's keep the speed of more operational parks and do the execution from that point of view. And what that does is that probably it increases our number of debtor days and which affects our CFO then. And in my opinion, in the government business, typically, we will face this situation because we are in more hurry to probably get the project move into the operational stage. The government is not necessarily in a hurry. Then I have heard many times that you guys deliver really fast. We don't find contractors who do it that fast. And so our approach is always that let's finish the project fast because these are hybrid contracts, we can move on to the recurring revenue. And then while we continue to probably push the government to get our EPC revenue back. So I think...

I completely in sync with you when you grow fast, you will grow fast, the scenario will come. And further, we are dealing with the government. So there will be delays or something. I'm not denying on this. My question is on this side, the way we are growing and the pace of our growth? Yes, it is a continuation. It is a -- yes. My question is that the pace at which we are growing, and we will continue to do the B2C business. So how we will fund future? I suppose what I'm trying to say last year, our receivable was INR 50 crores. Today, our receivable was INR 94-odd crores, correct? And further, there are some retention, retention money and all, and we keep meeting a working capital requirement. And today, our balance sheet has a debt of around INR 75-odd crores, correct? Now what I heard is that you have given some target that next year, let's say, we will do a INR 250 crore revenue. I'm saying next to next year, we will have further revenue. How we will fund of this? We will fund this from debt? We will fund this from internal accrual, our receivable will improve or we will fund from the equity side and we will further dilute? That is what I...

I think we will largely -- 2, 3, 4 things will happen. One, our internal accruals will also significantly help in terms of how we go forward. Our significant security deposit retention, which starts falling due every year, which will also help the business. Number three, our plan is that going forward, once we have built a certain number of parks and with a very strong healthy order book, we will probably prioritize parks where the government is also in sync with our priority. And we will only focus on executing those projects first before we take probably projects which are on a slower cycle. This is a balancing act which we have to do it. We have no desire in terms of borrowing money for any of our park business. Neither -- even if you see the current debt is not for the park business. The debt which we have taken is also for the funding of our equipment machineries for the Geotech business so that we can probably grow that fast enough.

Yes, INR 47-odd crores is for working capital, INR 27-odd crores is the term debt?

Yes. So working capital right now includes both the businesses. In my opinion, both businesses are improving on their cycle as we go along this year. And I feel that we should be able to bring down significant debt level.

Next question is from the line of Dhairya Trivedi from DJT Investments.

Congratulations on walking the talk as far as the performance is concerned. So my first question is that while we have a blended EBITDA margin of 37% for the year, can you give me a split between the EBITDA margins of EPC and O&M?

EPC and O&M, the recurring part.

Correct, sir. O&M and EPC EBITDA margins segment-wise basically.

Vikas, can you share that, please?

Yes, yes, yes. Why not. Typically, our margins would be in the range of around 50% on the recurring. And [indiscernible], our margins would be in the range of around 35%, 37%, 38%. And our Engineered Infra is somewhere around 11%, 12% this year.

EPC would be 11%, 12%, you said, and O&M would be roughly 40%?

No. EPC of Geotech, the engineered vertical, the Parks EPC still has around 38%.

Yes. Sorry, I meant the Parks business.

Yes, yes, yes.

Okay. So parts would be 38% for EPC and O&M would be slightly higher you said, right?

O&M will be almost 50%.

Okay. And that trend is likely to continue in FY '27 as well?

Absolutely, absolutely. In fact, should get better as we get more number of parks operationally fully inhouse.

Right. And what was the Geotech revenues for Q4? I think that's not been mentioned in the presentation or the results?

INR 25 crores.

Okay. Okay. And how much is that likely going to be in FY '27?

FY '27, our engineered vertical, we are looking at growing from almost INR 43 crores to INR 75 crores.

Sure, sure. Okay. And just one last question. On Slide 25, you mentioned that there were 21 activations across parks in FY '26. So what do you mean by these activations? Can you just elaborate?

These are activations and events. So let's say, we have done bar and clubbing or we do some shows around kids shows. Events and activations play very, very important role on bringing people again and again. And that is what I was mentioning that in the -- whatever we did in the whole year, we have done almost similar in the first 45 days of this financial year.

Right, right, right. Understood. And what is the likely borrowing level for FY '27, the projected debt levels for FY '27? Currently, we are at INR 75 crores.

So I think we'll be pretty much the same. I don't see there is any need for increasing it because the debt came largely from the equipment which we bought for the geosynthetics business and the working capital. And I think the working capital cycle, we are working very strong with the government to probably see that we recover faster. And 1 or 2 of the debtors which were stuck because of the land issue are getting sorted out. So we should be getting payments. So that will be under control. We are not looking at raising any debt.

Okay. But are you looking to reduce it this year by any chance? This is just a follow-up. This is a follow-up.

Yes. But we are reasonably sure that we will be down by at least INR 5 crores to INR 10 crores.

[Operator Instructions] Next question is from the line of [indiscernible], an individual investor.

Just a couple of questions. If you consider the same tax rate as of previous year in the quarter 4 and if we exclude the other income part, our PAT comes out to be around INR 12 crores. And in the last quarter, we have guided for about INR 20-odd crores. So what's the reason for the deviation?

Vikas Jain, if you can explain the deferred tax, whatever that thing is.

I think so this year's -- this quarter's tax rate is around INR 1.49-odd crores, just less than about 5%. So if we consider 25% tax rate -- because as I have stated, we have capitalized PPP of around INR 32 crores due to the commissioning of the various parts. And we got the depreciation benefit as per the income tax amounting to the INR 7 crores in this financial year, and that is the reason for this.

Okay. And are you seeing any competition in your Zing business as of last quarter? So just wanted to ask upon -- have you seen any competition in our Zing business in this quarter?

No, we haven't actually seen any competition so far. There might be some beautification jobs, which anyway are probably being done at the local level in terms of the small [ ARPOB ], but nothing at the Zing Park level whatsoever.

Next question is from the line of Chirag Mehta from Chirag A Mehta & Company.

Congratulations on a stellar performance. And sir, I really appreciate because I am a very long-time investor in the company. And I really like the concept from making a solid waste to such a beautiful park and generating a solid revenue, helping the government and contributing to the environment. Sir, regarding the financials, I have 2 questions. One is that last 2 years, we are continuously having a negative cash flow from operations. So when can we expect that to get positive?

See, I expect, as I mentioned earlier, that by end of this financial year, then I have a base of at least 30-odd parks. A lot of the recurring revenue starts kicking in. And also, what is happening is with the expansion of the team, we expect that this year, we will have a significant order book in place for our parks business. Once we have these 2 in place, I expect that our cash flow from operations will start turning positive.

Sir, can we expect by next year, maybe '27 or '28, it can turn possible?

Can you repeat your question again, sir?

So when can we expect, sir, why 31st March '27 or '28?

No, sir, you should look at 31st March '27.

Okay. Okay. And sir, second thing is any plan for the demerger of the parks and other verticals?

Our engineered vertical, we have positioned it for a significant growth going forward. We have reorganized the business into several verticals, which have started now looking at significantly expanding our offerings and reach. We expect that in the next couple of years, there is a strong possibility that we will be able to make 2 businesses stand alone on their own in.

Next question is from the line of Ashish Soni from Family Office.

Sir, your acquisition didn't work out. So what went wrong and any other acquisition in the pipeline?

So when we were looking at -- when we started looking at this opportunity and then we subsequently decided to go forward, as I had mentioned that this technology focuses on 2 things. One is on water body rejuvenation, which is an integral part of our park offering and also the sewage treatment plant, which are required into various parks where there are NGT guidelines. So when we started implementing this into 1 or 2 of our parks, we realized that initially first 30 days, we were getting clear water in terms of these water bodies. But subsequently, it was not holding together. And it was coming back to its normal self and which showed that probably the technology at that cost structure, which we were looking at was not making sense. And as far as the sewage treatment part of the business is concerned, anywhere our rice business has the required ability to develop those things in-house. So we decided it's better to conserve money and look for something better in terms of acquisition opportunity. To answer your second question, as of now, we do not have anything on the horizon in terms of the acquisition.

Just one clarification. So you mean to say water body, the acquisition which got dropped off, you can do internally with your engineered business? Is that understanding correct, sir?

No, sir. The one part of that acquisition, we can do it internally, which is the sewage treatment plant. Water body rejuvenation, we still need to probably look for more companies and do some more long-term trials. because these are all outdoor spaces. So there is a lot of dust, dirt particles which creates high sedimentation and which the chemical-based treatment was not able to solve.

Next question is from the line of [ Nitin Varma ], an individual investor.

Congratulations on the good set of numbers. I have one question is, as I saw the segmental revenue, this time, the revenue and the profitability from other business segment has increased in a very good way. So my question is, is this sustainable? Is it going to increase going forward? How is -- how are the numbers going to look forward for the other segment, that is the Geotech and the water treatment?

So the other segments, if you look at our revenue increase. But in terms of our profitability, we still have work to do.

Okay. So I mean, how are going -- how is it going to look going ahead? I mean is it going...

The coming year, I can tell you, we are looking at moving from almost INR 43 crores this year to INR 75 crores. And we expect at least minimum 2 percentage point enhancement in this financial year.

Next question is from the line of [ Mohit Bansal ] from Sama Partners.

Okay. So my question is on the process of revenue bifurcation between you and the local government bodies on the consumer revenue that you're going to get. What is the process? Is that an escrow account? Is that a joint account, you need government authority signature before the revenue is actually divided between you 2? What is the process and how we audited?

Yes. So there are 2 things -- there are 2 kinds of a revenue stream which we have. One is where we do the ticketing parking revenue share with the government. In that sharing, there is an escrow account where all the ticketing revenue goes and probably with whatever percentage which needs to be shared between the partner, it happens through the banking channels, number one. The second model which we have is in several parks that we only have to pay a monthly rental. There we pay a monthly rental to the government, there is no sharing. The third thing which we have to probably keep in mind is that we pay for some of the covered area, which is for, let's say, retail and F&B, monthly rental. That rental can be from, let's say, INR 10 a square feet to INR 100 square feet based on the city where the parks are located. So whatever square feet which we develop, we pay them on a monthly basis.

Okay. And so there is no escrow or joint account? You don't need any significant?

No, escrow is only for the ticketing and parking revenue.

Okay. And for the other revenue you are saying you pay a rental?

You pay a rental, yes.

Okay. And how is this audited number of visitors, et cetera, by the government borrowers?

There is a software, which probably both sides have the API control and everything else. Our internal auditors and our statutory auditors, they keep checking on their own basis.

Okay. And everywhere, the same process is followed. Like this will be an escrow account and the revenue will [indiscernible]?

Everywhere is not the same, as I mentioned earlier, that in many parks, we have to only pay a monthly rental. There is no ticket revenue share. So if there is no ticket revenue share of the entire revenue comes to us.

Wherever you have a revenue share, then you only have escrows there, correct?

We only have account. We only have the escrow mechanism. No, no, no. We only have escrow mechanism.

Due to time constraints, that was the last question of the day. I now hand the conference over to Ms. Sanghamitra Borgohain, Managing Director. Over to you, ma'am.

Thank you, Ria, and thank you, everyone. So I would like to conclude this session for today. To conclude, this financial year 2026 has been a year of strong execution and platform building and strategic transformation for Z-Tech India Limited. We have strengthened our position across sustainable urban infrastructure, environmental engineering and experiential public infrastructure while simultaneously laying the foundation for long-term recurring revenue growth. We remain optimistic about the opportunities ahead and confident in our ability to continue creating sustainable long-term value for all the stakeholders. On behalf of the entire management team, I would like to thank you, all our investors, shareholders, employees, clients and partners for your continued trust and support, and we look forward for interacting with you all again in the coming next quarter. Thank you so much, and have a great day.

Thank you. On behalf of Z-Tech India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Thank you so much, Ria. Thank you.