Z-Tech (India) Q2 Results: Net Profit Rises 29.5% YoY to ₹7.9 Cr; Margins Expand to 25.8%

Key numbers

PE TTM	16.86Sector PE 33.28
Market Cap	₹604.55 CrSmall Cap
Revenue TTM	₹164.46 CrTrailing 12 Months
RSI	44.42Neutral Zone

Key highlights

• Net profit surged 97.5% sequentially to ₹7.9 crore from ₹4.0 crore in Q1-27
• Revenue from operations grew 24.9% YoY to ₹43.2 crore compared to ₹34.5 crore in Q2-26
• Operating margins improved to 25.8% in Q2-27, up from 19.2% in the preceding quarter
• Creative Park Development segment contributed ₹38.37 crore to quarterly revenue
• Board approved reallocation of proceeds from the 1st Tranche of preferential securities and warrants

Creative Park Operations Drive Revenue Growth

Z-Tech (India) has reorganised its business into two primary segments: Creative Park Development & Operations and Engineered Infra. The Creative Park division emerged as the dominant growth driver during the second quarter, contributing ₹38.37 crore to the total revenue. This segment also delivered a healthy divisional profit of ₹15.47 crore.

In contrast, the Engineered Infra segment contributed ₹4.84 crore to the revenue. The company noted that while assets and liabilities are used interchangeably between these segments, the reorganisation allows for more focused execution. The significant revenue contribution from the leisure and theme park infrastructure vertical highlights the company's shifting project mix toward higher-margin specialised construction.

Strategic Reallocation Of Preferential Issue Proceeds

• Board approved a reallocation of proceeds from the 1st Tranche of preferential securities and warrants, pending shareholder approval.
• Total unutilised funds from previous issues were reported at ₹3.00 crore as of September 30, 2026.
• A sum of ₹30.00 lakh was forfeited from 24,000 unexercised warrants and credited to the Capital Reserve during the half-year.
• The company successfully allotted 17,12,000 equity shares upon the conversion of warrants during the H1-27 period.
• The Extra-ordinary General Meeting (EGM) has been scheduled to formalise the changes in the utilization of the issue proceeds.

Valuation Context and Sequential Recovery

The company's profitability metrics showed a sharp turnaround following a slower start to the fiscal year. The operating margin expanded to 25.8% in Q2-27, a significant increase from the 19.2% recorded in Q1-27. This recovery was bolstered by total income reaching ₹44.6 crore, which included ₹1.4 crore in other income.

Z-Tech’s quarterly revenue growth of 24.9% YoY outperformed the broader construction sector's average growth of 14.78%. Currently trading at a TTM P/E of 16.86, the stock remains valued below the industry average of 29.84. With annual ROE at 16.01%, the company maintains a stable financial position despite a 27.45% decline in stock price over the last year.

What to watch next

• Shareholder approval for the reallocation of preferential issue proceeds at the upcoming EGM
• Execution progress toward management's FY27 consolidated revenue guidance of ₹250.00 crore
• Announcement of Q3 FY27 financial results expected in February 2027

Z-Tech (India) · financial snapshot

Share price	₹398
Market capitalisation	₹604.55 Cr
Revenue (annual)	₹155.79 Cr
Net profit (annual)	₹35.86 Cr
Revenue (latest quarter)	₹29.14 Cr-50.47% vs previous quarter
Net profit (latest quarter)	₹4.05 Cr-78.84% vs previous quarter
P/E (TTM)	16.86×Sector 33.28×
Promoter holding	52.05%-1.49% QoQ
FII holding	0%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.