Zetwerk Manufacturing Businesses IPO

Zetwerk’s revenue from operations grew by 40.43%, from ₹11,331.86 crore in FY25 to ₹15,913.32 crore in FY26. This growth shows that more customers across industries like energy, electronics, and infrastructure are relying on the company for their manufacturing needs.

As of June 30, 2026, Zetwerk’s manufacturing order book stood at ₹13,062.40 crore, up from ₹12,370.01 crore in FY26. This means the company already has a large amount of work lined up, giving it better visibility into future revenue and some cushion against changing market conditions.

In FY26, repeat customers contributed 80.15% of Zetwerk’s manufacturing revenue. Its median net revenue retention rate was 128.85% between FY23 and FY26, meaning existing customers, on average, generated more revenue over time. This reduces the need to constantly find new customers and helps lower customer acquisition costs.

Zetwerk works with 6,979 third-party suppliers across 26 countries while also running 26 of its own facilities. In FY26, third-party suppliers contributed 66.83% of its manufacturing revenue. This model allows the company to expand its manufacturing capacity without having to invest heavily in land, factories, and machinery upfront.

Recurring components accounted for 49.85% of Zetwerk’s manufacturing business volume in FY24, rising to 50.85% in FY26 and 71.20% in Q1 FY27. These are parts that customers need repeatedly, unlike one-time manufacturing projects. A greater focus on such components and original design manufacturing (ODM), where the company helps design products as well as manufacture them, can make revenue more stable and strengthen customer relationships.

Zetwerk’s in-house software platform, Zetwerk OS, manages thousands of projects at the same time, from product design to final delivery. By helping coordinate these activities and reduce delays, the platform supports more efficient operations. Its Adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation, adjusted for certain items) grew from ₹97.03 crore in FY24 to ₹421.34 crore in FY26.

Zetwerk reported a net loss of ₹964.39 crore in FY26 and ₹64.13 crore in Q1 FY27, despite growing its revenue. High borrowing costs and day-to-day operating expenses continue to weigh on profits. If these losses persist, they could put pressure on its cash reserves and long-term financial stability.

Products sourced from third-party suppliers accounted for 80.46% of segment revenue in FY26. Zetwerk generally places short-term purchase orders rather than signing long-term supply contracts. This means higher raw material prices, quality issues, or disruptions at supplier factories could directly affect its costs and profit margins.

Zetwerk’s top 10 customers contributed 35.90% of its operating revenue in FY26 and 29.39% in Q1 FY27. Since most customer agreements are short-term or do not guarantee orders, losing a major client or receiving fewer orders from existing ones could significantly affect its revenue and cash flow.

Zetwerk often has to pay suppliers well before customers pay for the finished products. This creates a gap in cash flow and ties up money in day-to-day operations. In FY26, it reported a negative operating cash flow of ₹681.53 crore, meaning its core business used more cash than it generated. As a result, the company had to rely on bank credit to manage its daily needs.

Zetwerk’s Ecosystem Business (Terra91), which buys and sells raw materials such as metals, contributed 41.09% of its operating revenue in FY26 but earned an EBITDA margin of just 1.24%. In simple words, it keeps very little profit from every rupee of revenue. Even a small change in commodity prices or a slowdown in trading volumes could put further pressure on its earnings.

Zetwerk’s total borrowings stood at ₹1,911.27 crore as of June 30, 2026, while its finance costs reached ₹366.22 crore in FY26. These interest expenses eat into the money the company earns from its operations, leaving less cash available for expansion and other business needs. Reducing its debt could help ease this pressure over time.