Z-Tech September-quarter profit rises 30% to Rs 7.89 crore

Z-Tech (India) Limited reported net profit of Rs 7.89 crore for the quarter ended September 30, 2026, up 30% from Rs 6.06 crore a year earlier, while revenue from operations rose 25% to Rs 43.21 crore. Profit growth exceeded revenue growth despite higher employee, finance and depreciation costs.

How did Z-Tech perform in the September 2026 quarter?

Z-Tech increased revenue from operations to Rs 43.21 crore in the quarter ended September 30, 2026, from Rs 34.50 crore in the September 2025 quarter. Other income was broadly unchanged at Rs 1.35 crore, against Rs 1.33 crore a year earlier, taking total income to Rs 44.56 crore from Rs 35.83 crore. Profit before tax rose 46% to Rs 11.49 crore from Rs 7.89 crore.

Net profit increased by Rs 1.83 crore to Rs 7.89 crore, compared with Rs 6.06 crore in the year-earlier quarter. Basic earnings per share, not annualised, rose to Rs 5.22 from Rs 4.23. Sequentially, the September-quarter profit was above Rs 4.05 crore in the quarter ended June 30, 2026, while revenue from operations increased from Rs 29.14 crore.

What caused Z-Tech's profit to rise faster than revenue?

Z-Tech's profit rose faster than revenue because total expenses increased 18% to Rs 33.07 crore, below the 24% rise in total income to Rs 44.56 crore. Cost of materials consumed was Rs 22.43 crore, only slightly above Rs 22 crore in the September 2025 quarter, even as revenue from operations grew by Rs 8.71 crore year on year. The difference between income and expense growth lifted profit before tax by Rs 3.60 crore.

Several individual costs nevertheless rose sharply in the September 2026 quarter. Employee benefits expense increased to Rs 4.09 crore from Rs 2.88 crore, finance costs rose to Rs 1.45 crore from Rs 19 lakh, and depreciation and amortisation climbed to Rs 1.19 crore from Rs 26 lakh. Other expenses were Rs 3.91 crore, compared with Rs 2.61 crore, while total tax expense increased to Rs 3.60 crore from Rs 1.84 crore.

Which Z-Tech segment generated most September-quarter revenue?

Z-Tech's Creative Park development & Operations segment generated the largest share of operating revenue, reporting Rs 38.37 crore in the September 2026 quarter against Rs 31.23 crore a year earlier. The segment accounted for most of the company's Rs 43.21 crore revenue from operations. Its segment profit before tax, depreciation and non-controlling interest was Rs 15.47 crore, compared with Rs 7.90 crore in the corresponding quarter of 2025.

Engineered Infra reported Rs 4.84 crore of September-quarter revenue, up from Rs 3.27 crore a year earlier but down from Rs 7.35 crore in the June 2026 quarter. Its segment profit before tax, depreciation and non-controlling interest was Rs 29 lakh, compared with Rs 22 lakh a year earlier. Z-Tech said it has reorganised its business into Creative Park development & Operations and Engineered Infra, but does not provide segment assets and liabilities because those resources are used interchangeably.

What do Z-Tech's half-year results show?

Z-Tech reported revenue from operations of Rs 72.35 crore for the half year ended September 30, 2026, compared with Rs 54.98 crore in the same period of 2025. Total income increased to Rs 75.75 crore from Rs 56.41 crore, supported by other income of Rs 3.39 crore versus Rs 1.43 crore. Half-year profit before tax rose to Rs 17.53 crore from Rs 12.65 crore.

Profit for the six-month period was Rs 11.94 crore, compared with Rs 9.10 crore a year earlier, while basic earnings per share rose to Rs 8.06 from Rs 6.35. Employee benefits expense rose to Rs 8.07 crore from Rs 5.40 crore, finance costs increased to Rs 2.92 crore from Rs 28 lakh, and depreciation and amortisation reached Rs 2.37 crore from Rs 52 lakh. Materials consumed was Rs 38.61 crore, compared with Rs 33.13 crore in the prior-year half year.

What changed in Z-Tech's cash flow and financial position?

Z-Tech used Rs 58.24 crore in operating activities during the half year ended September 30, 2026, compared with Rs 9 lakh used in the year-earlier period. The outflow included a Rs 29.18 crore increase in trade receivables and a Rs 31.91 crore increase in loans, advances and other assets. These working-capital movements exceeded operating profit before working-capital changes of Rs 19.56 crore.

Financing activities generated Rs 48.91 crore during the half year, led by Rs 64.20 crore of proceeds from equity shares issued upon warrant conversion, net of upfront money received earlier. Cash and cash equivalents rose to Rs 16.62 crore at September 30, 2026, from Rs 12.59 crore at March 31, 2026. Trade receivables stood at Rs 123.16 crore, up from Rs 93.97 crore, while short-term loans and advances increased to Rs 65.72 crore from Rs 29.34 crore.

What other disclosures did Z-Tech make?

Z-Tech said it allotted 17.12 lakh equity shares during the half year after warrant holders paid the remaining 75% of the issue price, producing Rs 64.20 crore of proceeds. It also said 24,000 unexercised warrants lapsed on September 13, 2026. The Rs 30 lakh upfront amount received against those warrants was forfeited and credited to capital reserve.

Z-Tech disclosed income-tax demand notices totalling Rs 16.87 crore and said it had appealed before the Commissioner of Income Tax (Appeals). The company said it had not made a provision because management expects the demand, and any consequential interest or penalty if applicable, not to sustain after the appeal. The statutory auditor performed a limited review and said nothing had come to its attention indicating that the results contained a material misstatement.

Conclusion

Z-Tech's September-quarter figures show that revenue growth of 25% and a slower 18% increase in total expenses resulted in a 30% rise in profit for the period to Rs 7.89 crore. Creative Park development & Operations supplied Rs 38.37 crore of the Rs 43.21 crore operating revenue, while the half-year cash flow showed that receivables and advances absorbed cash despite the higher reported profit.

Next, investors can monitor the proposed shareholder approval for reallocation of proceeds raised through the preferential issue and convertible warrants, which the board considered on November 13, 2026. Z-Tech also has the Rs 16.87 crore income-tax demand under appeal, while trade receivables of Rs 123.16 crore at September 30, 2026 remain a disclosed balance-sheet item to track.