Synopsis: Z-Tech (India) has secured a contract from the Ayodhya municipal council to develop and construct the “Luv-Kush Park” – a theme park made from recycled garbage – under the Smart City Mission. The project cost is around ₹17.41 crore. Z-Tech itself invests only 10 percent in the project and earns money by operating the park for 20 years. The win is essential to the company’s rapidly expanding theme-park sector.
Shares of Z-Tech (India) Ltd, having a market capitalisation of about Rs. 841 crore traded between Rs. 581 and Rs. 595. The stock price was not much different from the last closing price of Rs 581.25. The stock opened at Rs. 583.50, had an intraday high of Rs. 595.00 and a low of Rs. 581.00 and was last quoted at Rs. 581.40, up 0.03%. It is a profitable firm with a trailing twelve-month EPS of Rs 24.95, which gives a P/E ratio of around 24, higher than the industry average P/E of 20.1.
Deal
On 10 June 2026, Z-Tech reported to the stock exchange that it had received an order from Nagar Nigam Ayodhya (the city government of Ayodhya) for the development of “Luv-Kush Park on the Waste to Wonder theme”.
The concept is really unique and attention-grabbing. The park converts discarded junk and waste materials into sculptures and art that narrate the story of Luv and Kush, the sons of Lord Rama, from the Ramayana, which will come alive in the evening through light, sound, and animation.
The park will include key zones such as the Ramayana Story Mural Zone, Luv Kush Story Zone, Adbhut Kahaniya Zone, Selfie Zone, Archery Arena, Horse Ride Area, and Valmiki Training Obstacle Course, making it engaging for children, families, tourists, and devotees.
This is the part to read carefully, because the headline number can be misleading. The overall cost of constructing the park is around Rs 17.41 crore (including GST). But Z-Tech is not footing the entire bill – the Ayodhya municipal government pays 90 percent (about Rs 15.67 crore), and Z-Tech contributes just 10 percent (approximately Rs 1.74 crore).
In return, Z-Tech will develop the park and then run and maintain it for 20 years, under a ‘revenue-sharing’ arrangement, meaning it gets a cut of what the park earns from visitors over two decades. This is not a one-time sale of Rs 17.41 crore.
Against FY26 revenue of about ₹155.79 crore, the ₹17.41 crore project is roughly 11 percent — but remember, Z-Tech books only part of that as building income, plus the 20-year visitor share. Its own cash outlay is small, around ₹1.74 crore, but future earnings will be a cash inflow to the company. So, Z-Tech makes money from this park in two ways: it makes money when it’s built, and it will make money from visitors for the next 20 years.
Financials
The audited profit-and-loss statement from the annual report shows why this business is exciting investors. In the year to March 2025, revenue grew about 40 percent to Rs 94.40 crore from Rs 67.32 crore — but profit jumped far more, with net profit rising about 132 percent to Rs 19.61 crore from Rs 8.46 crore, and earnings per share climbing to Rs 13.68 from Rs 8.99. In plain words, the company didn’t just sell more; it kept much more profit on each rupee.
That momentum continued. For the full year to March 2026, Z-Tech reported revenue of about ₹155.79 crore and net profit of ₹35.86 crore, up 83 percent resulting in earning per share of Rs 24.8, maintaining a return on equity of 18.2 percent, with the theme-park segment as the main driver.
Low capital at risk, extended earnings tail. Z-Tech spends just Rs 1.74 crore of its own and gets a twenty-year revenue claim over a park in one of India’s busiest pilgrimage cities. Construction income is almost certain; the true value depends on footfall and on-time opening – turning the deal from an order into an annuity only if execution holds.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
