Zetwerk’s Revenue Surges 40% To ₹15,913 Cr In FY26 Ahead Of IPO

In the run up to its initial public offering (IPO), contract manufacturer Zetwerk’s operating revenue for the fiscal jumped 40.4% to ₹15,913.3 Cr from ₹11,331.9 Cr in FY25. Including other income of ₹187.3 Cr, total income for the fiscal stood at ₹16,100.6 Cr, up 40.1% YoY.

Zetwerk’s manufacturing business contributed to 58.9% or ₹9,374.7 Cr to the topline, while the remaining ₹6,538.6 Cr came in from its managed marketplace and digital trade platform. 

As per its UDRHP, Zetwerk also classified its “Civil Infrastructure Works” business as a discontinued operation in FY26 after the board approved its sale. The segment reported revenue of ₹81.47 Cr and a loss of ₹64.18 Cr during the year, including a ₹45.3 Cr impairment loss. The company expects the sale to be completed within 12 months.

Adjusted EBITDA for the fiscal year improved 30.6% to ₹421.3 Cr in FY26 from ₹322.6 Cr in the previous fiscal.

The startup’s net loss widened 333% to ₹1,606.2 Cr in the fiscal year 2025-26 (FY26) compared to ₹370.7 Cr loss incurred in the previous fiscal. 

The net loss included an exceptional loss from continuing operations of ₹835.8 Cr and ₹453 Cr impairment from its discontinued operations.

The company’s restated loss, excluding exceptional items and tax from continuing operations, stood at ₹41.1 Cr, down about 31% from previous fiscal year’s ₹59.8 Cr. 

Founded in 2018, Zetwerk operates a full-stack manufacturing platform catering to clients across sectors such as industrial components, electronics, renewable energy equipment and consumer hardware.  

As of March 2026, Zetwerk claims to operate more than 26 manufacturing facilities across India, the US, Germany and Spain.

The company served 1,802 customers as of March 2026, and some of its top clients include Siemens Gamesa, Acer India, boAt, NextPower, CG Power, NTPC Renewable Energy, L&T MHI Power Boiler, DRDO’s LRDE, National Aluminium Company, Indian Oil Corporation, Indian Air Force, among others.

The financial information was disclosed in Zetwerk’s UDRHP, which it filed with the markets regulator SEBI yesterday. The company pre-filed for an IPO earlier in March and received the regulator’s clearance to go-ahead with the IPO on July 10.

The company’s proposed IPO will comprise a fresh issue of shares worth ₹2,600 Cr and an offer-for-sale (OFS) component of up to 9.68 Cr equity shares. 

The startup will utilise almost 69% of its fresh issue, around ₹1,800 Cr, to repay or prepay certain borrowings. A chunk of the IPO proceeds will also be utilised to undertake acquisitions and for general corporate purposes.

Early backers, including Peak XV Partners, Lightspeed Venture Partners, Kae Capital, among others, will participate in the IPO, offloading parts of their stake in the contract manufacturer. The startup’s promoters Amrit Acharya, Srinath Ramakkrushnan as well as promoter group Creovate Innovation Private Limited will also participate in the IPO. 

To note, the startup raised over $900 Mn from institutional and angel investors till date. Its cap table also features like Khosla Ventures, Mars Growth Capital,  Steadview Capital, among others. It last raised ₹500 Cr in a pre-IPO round from Bharat Value Fund at a valuation of over $3 Bn.

Where Did Zetwerk Spend?

Zetwerk’s total expenditure for the fiscal stood at ₹16,141.7 Cr, up nearly 40% from ₹11,552 Cr in the previous fiscal. Here is a breakdown of where the startup’s spent the most:

• Purchase of Stock-in-trade: Constituting 61.2% of its overall expenses, Zetwerk’s spending under this head rose 45.3% to ₹9,879.8 Cr in the year under review from ₹6,800.3 Cr in FY25.
• Cost Of Materials Consumed: The company spent ₹3,963.7 Cr on material procurement during the fiscal, a 31% rise from the previous year’s ₹3,035.7 Cr.
• Employee Benefit Expenses: Comprising salaries, provident fund, gratuity, and others, Zetwerk’s employee costs rose 34.9% to ₹643.8 Cr in the year under review compared to ₹477.3 Cr in FY25.

The post Zetwerk’s Revenue Surges 40% To ₹15,913 Cr In FY26 Ahead Of IPO appeared first on Inc42 Media.