Zetwerk Nears Rs 16,000 Cr Gross Revenue in FY26; Reports Rs 457 Cr Positive EBITDA

Manufacturing Unicorn Rebounds Strongly Ahead of IPO as Revenue Jumps 40%

B2B manufacturing and construction marketplace Zetwerk delivered a strong financial recovery in FY26, with its gross revenue rebounding over 40% year-on-year to Rs 15,913 crore after witnessing a decline in the previous fiscal. The Bengaluru-based unicorn also reported a positive EBITDA of Rs 457 crore, marking a significant improvement in its operating performance as it prepares for its public market debut.

The company recently filed its Updated Draft Red Herring Prospectus (UDRHP) to raise Rs 2,600 crore through a fresh issue, making FY26 a crucial year ahead of its planned IPO.

According to the consolidated financial statements disclosed in the UDRHP, Zetwerk’s gross revenue increased from Rs 11,332 crore in FY25 to Rs 15,913 crore in FY26, reversing the slowdown witnessed a year earlier.

Product Sales Continue to Drive Business

Zetwerk generates revenue primarily through the sale of manufacturing products, manufacturing services, and construction and project contracts.

Revenue from the sale of products remained the company’s largest business, contributing nearly 90% of total operating income. Product revenue increased 38% year-on-year to Rs 14,367 crore during FY26.

The company’s construction and project contracts business witnessed even faster growth. Revenue from this segment jumped 81% to Rs 1,403 crore, reflecting higher execution across infrastructure and industrial projects.

Meanwhile, service revenue stood at Rs 138 crore during the fiscal year.

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Energy Business Emerges as Largest Growth Driver

Across industries, Zetwerk operates in multiple sectors including energy, electronics, aerospace, precision manufacturing, capital goods, and industrial products.

The energy segment emerged as the biggest contributor to growth during FY26.

Revenue from energy products surged 87% year-on-year to Rs 6,508 crore, accounting for approximately 41% of the company’s total operating income.

Precision manufacturing contributed Rs 1,397 crore, while capital goods generated Rs 1,464 crore during the fiscal year.

The company’s ecosystem business added another Rs 6,539 crore, reflecting the breadth of its manufacturing network.

India Remains Largest Market

India continued to dominate Zetwerk’s revenue mix.

More than 82% of total business came from the domestic market during FY26.

The United States accounted for 14.3% of revenue, while the remaining business was generated from other international markets.

Including Rs 187 crore in non-operating income, Zetwerk reported a total income of Rs 16,100 crore during FY26, compared to Rs 11,492 crore in the previous fiscal.

Expenses Rise Alongside Business Expansion

As the company expanded its operations, overall expenditure also increased significantly.

Material costs remained the largest expense, accounting for more than 86% of total expenditure. These costs increased 40% year-on-year to Rs 13,983 crore.

Employee benefit expenses rose 35% to Rs 644 crore, including Rs 87 crore in ESOP-related costs.

Subcontracting expenses climbed 51% to Rs 229 crore, while finance costs stood at Rs 366 crore.

Freight expenses more than tripled to Rs 254 crore, reflecting higher logistics activity as business volumes expanded.

Legal and professional expenses, travel costs, depreciation, amortisation, and other operating expenses pushed the company’s total expenditure to Rs 16,142 crore, compared with Rs 11,552 crore in FY25.

Operating Performance Improves Significantly

Despite higher expenses, Zetwerk’s sharp increase in revenue significantly improved its financial performance.

The company’s loss before tax and exceptional items narrowed by 33% to Rs 81 crore during FY26, compared to Rs 121 crore in FY25.

The improvement was supported by stronger operating income as well as higher non-operating income, helping offset the increase in costs.

However, after accounting for exceptional losses, including changes in the fair value of certain shareholder holdings and items related to associate entities, Zetwerk reported a net loss of Rs 1,606 crore in FY26, compared with Rs 371 crore in the previous fiscal.

The company clarified that these exceptional items are largely non-operating in nature.

Positive EBITDA Marks Key Milestone

One of the biggest highlights of FY26 was Zetwerk reporting a positive EBITDA of Rs 457 crore, translating into an EBITDA margin of 2.87%.

The company also reported a Return on Capital Employed (ROCE) of 4.3%, indicating improved operational efficiency compared to previous years.

On the balance sheet, Zetwerk strengthened its liquidity position during FY26.

Cash and bank balances increased to Rs 2,448 crore, compared with Rs 1,908 crore a year earlier. Current assets stood at Rs 9,841 crore as of March 2026.

IPO Plans Gain Momentum

Zetwerk’s financial turnaround comes at a time when several Indian B2B commerce startups are preparing to access public markets.

The company has already filed its UDRHP to raise Rs 2,600 crore through a fresh issue.

Meanwhile, rival Infra.Market is pursuing a stock market listing through a proposed reverse merger with Shalimar Paints, while OfBusiness is also expected to explore an IPO in the coming months.

With a sharp rebound in revenue, positive EBITDA, and stronger cash reserves, Zetwerk enters its IPO journey with significantly improved operating fundamentals, positioning itself as one of India’s largest manufacturing technology companies preparing for a public listing.