Zetwerk Manufacturing Businesses Limited is preparing to launch its Rs 5,012.33 crore IPO on 15 October 2026, with a price band of Rs 143 to Rs 151 per share. The Bengaluru-based manufacturing platform reported 40.43% revenue growth in FY26 to Rs 15,913.32 crore. However, its total restated loss widened to Rs 1,606.17 crore, while operating cash flow remained negative.
The Zetwerk IPO 2026 comprises a Rs 2,830 crore fresh issue and an offer for sale (OFS) of approximately Rs 2,182.33 crore. A substantial portion of the fresh proceeds is earmarked for debt repayment.
This Zetwerk IPO analysis examines the company's manufacturing operations, financial performance, revenue mix, order book, valuation, competitive strengths and risks.
Table of Contents
- Zetwerk Manufacturing Business IPO Details
- Zetwerk IPO Dates and Timeline
- About Zetwerk Manufacturing Businesses Limited
- Zetwerk Business Model and Revenue Sources
- Zetwerk Financial Performance
- Why Has Zetwerk Reported Such Large Losses?
- Zetwerk Manufacturing Order Book
- Customer Base, Supplier Network and Geographic Presence
- Zetwerk IPO Objectives and Use of Proceeds
- Zetwerk Debt, Cash Flow and Credit Rating
- Zetwerk Promoters and Shareholding
- Zetwerk IPO Valuation Analysis
- Competitive Strengths of Zetwerk
- Key Risks in the Zetwerk IPO
- What Investors Should Watch Next
- Conclusion
The Zetwerk Manufacturing Business IPO is a proposed book-built mainboard issue for listing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The offer consists of newly issued shares and shares sold by existing shareholders.
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Particulars
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IPO Details
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Company
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Zetwerk Manufacturing Businesses Limited
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IPO opening date
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15 October 2026
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IPO closing date
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19 October 2026
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Price band
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Rs 143 to Rs 151
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Face value
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Rs 1 per share
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Total issue size
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Up to Rs 5,012.33 crore
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Fresh issue
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Rs 2,830 crore
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Offer for sale
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Approximately Rs 2,182.33 crore
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OFS shares
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Up to 14,45,25,036
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Lot size
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99 shares
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Minimum retail investment
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Rs 14,949
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Maximum retail application
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13 lots, Rs 1,94,337
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Employee discount
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Rs 14 per share
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Employee reservation
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Up to 7,00,000 shares
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IPO type
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Book-built mainboard
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Proposed listing
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NSE and BSE
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Registrar
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KFin Technologies Limited
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Promoters
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Amrit Pratik Acharya and Srinath Ramakkrushnan
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Source: Supplied details attributed to the official price-band advertisement dated 11 October 2026. Investment amounts are calculated at the upper price band.
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Get the latest updates on the Zetwerk IPO, including issue details, price band, subscription dates and allocation structure.
Fresh Issue vs Offer for Sale
The Zetwerk IPO issue size includes two components with different implications for the company.
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Component
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Amount
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Fresh issue
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Rs 2,830.00 crore
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Offer for sale
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Rs 2,182.33 crore
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Total IPO size
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Rs 5,012.33 crore
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Fresh issue (56.46%): The company receives the proceeds, after issue-related expenses, to fund its stated objectives.
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Offer for sale (43.54%): Existing shareholders sell part of their holdings. These proceeds do not go to the company.
The IPO therefore combines fresh capital for Zetwerk with an opportunity for existing shareholders to reduce their stakes.
Zetwerk IPO Reservation
The offer follows Regulation 6(2) of the SEBI Issue of Capital and Disclosure Requirements Regulations.
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Investor Category
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Allocation
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Qualified Institutional Buyers
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Not less than 75% of net offer
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Non-Institutional Investors
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Not more than 15%
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Retail Individual Investors
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Not more than 10%
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Eligible employees
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Up to 7,00,000 shares reserved
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The supplied RHP information states that Zetwerk does not fulfil the requirement under Regulation 6(1)(b), making the Regulation 6(2) route relevant.
This is an IPO eligibility requirement, not an assessment by SEBI of the company's valuation or investment attractiveness.
The Zetwerk IPO date schedule includes anchor bidding on 14 October 2026, followed by public subscription from 15 October to 19 October 2026.
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Event
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Date
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Anchor investor bidding
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14 October 2026
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IPO opens
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15 October 2026
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IPO closes
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19 October 2026
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Expected allotment
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21 October 2026
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Expected refunds or UPI unblocking
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22 October 2026
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Expected demat credit
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22 October 2026
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Tentative listing
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23 October 2026
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The UPI mandate deadline is stated as 5:00 PM on 19 October 2026.
Allotment, demat credit and listing dates are tentative and remain subject to the applicable exchange and registrar processes.
Zetwerk Manufacturing Businesses Limited was incorporated in December 2017 and is headquartered in Bengaluru, Karnataka.
The company operates a technology-enabled manufacturing platform that connects industrial customers with manufacturing capabilities across its owned facilities and third-party suppliers.
Its business model combines manufacturing execution, industrial procurement, supplier coordination, quality control and logistics.
Zetwerk at a Glance
The following operating metrics describe the scale of the company's network as of 31 March 2026.
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Operating Metric
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Scale
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Customers served
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1,802
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Third-party suppliers
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6,979
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Supplier-network countries
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26
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Owned manufacturing facilities
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26
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Countries with owned facilities
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4
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Indian Fortune 500 customers served
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98
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Zetwerk's owned manufacturing facilities are located in India, Spain, Germany and the United States.
The company combines its own production capacity with outsourced manufacturing. This allows it to undertake projects across different industries without independently owning every production facility.
However, this model also requires effective supplier management, quality control and working-capital planning.
How Zetwerk OS Supports Manufacturing
Zetwerk OS is the company's proprietary technology platform for coordinating manufacturing activities.
Its functions include:
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Supplier identification, matching and procurement coordination.
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Pricing, estimation and production planning.
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Quality assurance and production monitoring.
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Logistics tracking and delivery coordination.
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Operational visibility across manufacturing projects.
The platform can simplify procurement and execution for customers dealing with multiple manufacturing requirements.
For investors, the important question is whether these operational capabilities can support higher margins, stronger customer retention and improved cash generation as the business scales.
Zetwerk operates through two reported business segments: Manufacturing Business and Ecosystem Business.
Understanding this distinction is essential because the two segments have different commercial characteristics, and reported consolidated revenue does not represent manufacturing output alone.
1. Manufacturing Business
The Manufacturing Business supplies engineered products and associated services through Zetwerk's owned facilities and third-party manufacturing network.
It operates across three major categories.
Energy Products: Products and components used in renewable energy, power transmission, distribution and other energy infrastructure applications.
Precision Products: Manufacturing solutions for electronics, aerospace, defence and other industries requiring precise engineering specifications.
Capital Goods: Fabricated structures, industrial assemblies, engineered equipment and products used in capital expenditure projects.
2. Ecosystem Business
The Ecosystem Business, associated with Terra91, focuses on sourcing and supplying industrial commodities and raw materials.
Zetwerk acts as a principal in these transactions, purchasing materials from suppliers and selling them to customers.
As a result, reported revenue includes the value of commodities sold rather than only a sourcing or facilitation fee.
This distinction matters because rapid growth in commodity transactions can increase consolidated turnover without necessarily producing a proportional increase in manufacturing margins or cash flows.
Zetwerk Revenue Mix in FY26
Manufacturing remained the largest segment for the full financial year, although the Ecosystem Business contributed more than 40% of revenue.
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Business Segment
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FY26 Revenue / Share
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Manufacturing Business
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₹9,374.68 crore (58.91%)
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Ecosystem Business
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₹6,538.65 crore (41.09%)
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Total
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₹15,913.32 crore (100%)
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Segment amounts may differ slightly from the total due to rounding.
Manufacturing revenue increased by approximately 50.02% in FY26. However, the segment mix changed further in the first quarter of FY27.
Zetwerk Revenue Mix in Q1 FY27
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Business Segment
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Q1 FY27 Revenue / Share
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Manufacturing Business
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₹1,901.88 crore (46.19%)
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Ecosystem Business
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₹2,216.00 crore (53.81%)
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Total
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₹4,117.88 crore (100%)
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For the quarter ended 30 June 2026:
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Ecosystem Business revenue increased 89.63% year-on-year, from Rs 1,168.61 crore.
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Manufacturing Business revenue increased approximately 28.43%.
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Ecosystem Business contributed around 71% of the increase in consolidated quarterly revenue.
Investor takeaway: Zetwerk's consolidated growth was increasingly driven by the Ecosystem Business in Q1 FY27. Investors should monitor manufacturing revenue separately to assess growth in the company's core industrial production activities.
Manufacturing Business Revenue Breakdown
Energy Products is the company's largest manufacturing product category.
FY25 Revenue Breakdown
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Product Category
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FY25 Revenue
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Energy Products
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₹3,481.84 crore
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Precision Products
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₹1,405.86 crore
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Capital Goods
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₹1,353.22 crore
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FY26 Revenue Breakdown
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Product Category
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FY26 Revenue
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Energy Products
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₹6,507.57 crore
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Precision Products
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₹1,397.19 crore
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Capital Goods
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₹1,464.40 crore
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The Manufacturing Business also reports other operating revenue, which is excluded from the three categories above.
Energy Products contributed approximately 69.42% of Manufacturing Business revenue in FY26.
Its revenue increased by around 86.90% year-on-year, making it the primary contributor to manufacturing growth.
Precision Products revenue remained broadly unchanged, while Capital Goods recorded moderate growth.
This shows that manufacturing expansion was concentrated in Energy Products rather than evenly distributed across all product categories.
Zetwerk reported substantial revenue growth in FY26 and Q1 FY27. However, statutory losses, adjusted EBITDA margins and operating cash flow present a more mixed financial picture.
Zetwerk Revenue and Profitability: FY24 to FY26
Zetwerk's revenue recovered in FY26 after declining in FY25, while its total restated loss rose sharply during the year.
Revenue
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Financial Year
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Revenue
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FY24
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₹12,364.37 crore
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FY25
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₹11,331.86 crore
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FY26
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₹15,913.32 crore
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Total Restated Loss
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Financial Year
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Total Restated Loss
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FY24
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₹917.95 crore
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FY25
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₹370.71 crore
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FY26
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₹1,606.17 crore
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Revenue is from continuing operations. Total restated loss includes continuing and discontinued operations.
Revenue declined approximately 8.35% in FY25 before recovering 40.43% in FY26.
Despite the revenue recovery, Zetwerk's total restated loss increased substantially in FY26, partly reflecting exceptional items and discontinued operations.
Adjusted EBITDA and Operating Cash Flow
Zetwerk's adjusted EBITDA increased from FY24 to FY26, but operating cash outflows also widened over the same period.
Adjusted EBITDA
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Financial Year
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Adjusted EBITDA
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FY24
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₹97.03 crore
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FY25
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₹322.59 crore
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FY26
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₹421.34 crore
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Operating Cash Flow
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Financial Year
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Operating Cash Flow
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FY24
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-₹281.54 crore
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FY25
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-₹386.29 crore
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FY26
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-₹681.53 crore
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Adjusted EBITDA increased across the three years. However, the improvement in absolute earnings did not translate into consistently higher margins.
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Financial Year
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Adjusted EBITDA Margin
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FY24
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0.78%
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FY25
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2.85%
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FY26
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2.65%
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The adjusted EBITDA margin declined by 20 basis points in FY26 despite revenue growth of more than 40%.
The company's contribution margin also declined from 9.09% in FY25 to 8.17% in FY26.
This suggests that the higher turnover did not produce a proportional increase in operating profitability.
Operating cash flow remained negative throughout FY24 to FY26, with the cash outflow increasing to Rs 681.53 crore in FY26.
Zetwerk Q1 FY27 Financial Performance
The quarter ended 30 June 2026 provides the latest financial comparison in the supplied disclosures.
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Financial Metric
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Q1 FY26
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Q1 FY27
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Revenue
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Rs 2,649.44 crore
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Rs 4,117.88 crore
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Adjusted EBITDA
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Rs 31.11 crore
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Rs 103.16 crore
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Adjusted EBITDA margin
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1.17%
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2.51%
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Continuing-operations loss
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Rs 880.67 crore
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Rs 64.13 crore
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Total restated loss
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Rs 1,368.47 crore
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Rs 732.98 crore
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Operating cash flow
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-Rs 796.40 crore
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-Rs 506.18 crore
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Revenue increased 55.42% year-on-year, while adjusted EBITDA rose from Rs 31.11 crore to Rs 103.16 crore.
The adjusted EBITDA margin improved by 134 basis points to 2.51%.
The loss from continuing operations also narrowed significantly. However, the previous-year quarter was affected by substantial exceptional expenses, making a direct comparison of statutory losses less representative of underlying operating improvement.
Operating cash flow remained negative at Rs 506.18 crore.
What the Financial Results Mean for Investors
Three observations are important:
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Revenue growth: Zetwerk has demonstrated the ability to increase consolidated turnover and expand its manufacturing operations.
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Profitability: Positive adjusted EBITDA has not translated into positive consolidated net earnings.
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Cash conversion: Persistent operating cash outflows indicate that reported revenue and adjusted earnings have not yet resulted in sustainable cash generation.
Future financial performance will depend on the quality of revenue growth, working-capital efficiency, financing costs and the completion of discontinued-business exits.
Zetwerk's large statutory losses are influenced by exceptional items, discontinued operations and the difference between adjusted and unadjusted operating earnings.
These factors should be examined separately.
Exceptional Items in FY26
The supplied official price-band information reports an exceptional expense of Rs 835.84 crore in FY26.
The company reported a loss before exceptional items and tax from continuing operations of Rs 80.60 crore.
After exceptional items and tax, the loss from continuing operations reached Rs 964.39 crore.
This distinction is important because exceptional expenses can distort comparisons between financial periods.
However, investors should not automatically exclude these expenses when evaluating the company's financial position. Their nature, potential recurrence and cash implications remain relevant.
Losses From Discontinued Operations
Zetwerk has classified certain activities, including its civil infrastructure operations, as discontinued.
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Period
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Discontinued-Operations Loss
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FY25
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Rs 155.64 crore
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FY26
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Rs 641.78 crore
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Q1 FY27
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Rs 668.85 crore
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Discontinued operations contributed Rs 668.85 crore to the company's total restated loss in Q1 FY27.
This explains why the total quarterly loss remained Rs 732.98 crore despite the continuing-operations loss narrowing to Rs 64.13 crore.
The key consideration is whether the company can complete the exit from these activities without additional substantial losses, liabilities or cash outflows.
Adjusted EBITDA vs Statutory Profit
Adjusted EBITDA is useful for assessing certain aspects of operating performance, but it excludes expenses and adjustments that can materially affect shareholders' earnings.
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Financial Measure
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FY26
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Adjusted EBITDA
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Rs 421.34 crore
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Unadjusted EBITDA
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-Rs 353.53 crore
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Continuing-operations loss
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Rs 964.39 crore
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Total restated loss
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Rs 1,606.17 crore
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The difference between adjusted EBITDA and unadjusted EBITDA is substantial.
Zetwerk's adjusted EBITDA calculation excludes or adjusts for items including depreciation, finance costs, share-based payment expenses and exceptional items.
For investors, adjusted EBITDA should therefore be evaluated alongside statutory earnings, operating cash flow and the company's reconciliation of adjustments.
Zetwerk's Manufacturing Business order book provides visibility into customer demand and potential future revenue.
The order book represents received purchase orders and work orders for which revenue has not yet been recognised.
Manufacturing Order Book Growth
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Reporting Date
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Manufacturing Order Book
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March 2024
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Rs 6,169.75 crore
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March 2025
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Rs 8,628.98 crore
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March 2026
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Rs 12,370.01 crore
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June 2026
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Rs 13,062.40 crore
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The manufacturing order book increased from Rs 6,169.75 crore in March 2024 to Rs 13,062.40 crore in June 2026.
The supplied disclosures indicate approximately 53.05% year-on-year growth as of June 2026.
The order book also increased between March and June 2026, indicating additional order accumulation during the latest quarter.
New Manufacturing Orders
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Period
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New Orders
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FY25
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Rs 11,327.11 crore
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FY26
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Rs 15,393.35 crore
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Q1 FY26
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Rs 2,044.70 crore
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Q1 FY27
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Rs 3,147.45 crore
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New manufacturing orders increased approximately 35.90% in FY26 and 53.93% year-on-year in Q1 FY27.
These figures suggest continuing demand for the company's manufacturing capabilities.
However, the order book is not guaranteed future revenue. The company does not have firm long-term purchase commitments with many customers, and orders may be delayed, modified or cancelled.
Investors should assess order execution, profitability and collections alongside the headline order-book value.
Zetwerk operates across several manufacturing industries and international markets. However, a large proportion of revenue continues to originate from India, while the company depends substantially on third-party suppliers.
Geographic Revenue Mix
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Geography
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FY26 Revenue Share
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India
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82.54%
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United States
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14.33%
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Other countries
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3.13%
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India contributed more than four-fifths of consolidated continuing-operations revenue in FY26.
Within the Manufacturing Business, international revenue represented 29.60% in FY26 and 35.67% in Q1 FY27.
These figures use different revenue denominators and should not be directly compared with the consolidated geographic mix.
Customer Concentration
Zetwerk serves a broad customer base, including large industrial companies.
Nevertheless, its largest customers contribute a meaningful share of revenue.
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Customer Group
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FY26 Revenue Share
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Q1 FY27 Share
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Top five customers
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26.87%
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20.75%
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Top ten customers
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35.90%
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29.39%
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Customer concentration reduced in the latest quarter.
However, the loss of a major customer, reduction in procurement spending or cancellation of large orders could still affect revenue and manufacturing capacity utilisation.
Dependence on Third-Party Suppliers
Third-party sourcing is central to Zetwerk's operating model.
In FY26, products sourced from third-party suppliers accounted for 80.46% of consolidated continuing-operations revenue. The corresponding proportion was 75.71% in Q1 FY27.
The top ten suppliers represented 38.18% of total continuing-operations expenses in FY26.
This model supports access to manufacturing capacity without requiring Zetwerk to own every facility.
However, it also exposes the company to supplier pricing, quality control, production delays, capacity shortages and logistical disruptions.
The primary stated objective of the Rs 2,830 crore fresh issue is repayment or prepayment of specified borrowings.
The remaining permitted proceeds may support acquisitions and general corporate purposes.
Proposed Utilisation of Fresh Issue Proceeds
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Objective
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Amount
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Repayment of company borrowings
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Rs 1,300 crore
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Repayment of specified subsidiary borrowings
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Rs 860 crore
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Other permitted purposes
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Balance, subject to expenses and applicable limits
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The total specified debt-repayment allocation is Rs 2,160 crore, representing approximately 76.33% of the fresh issue.
The remaining Rs 670 crore before issue expenses is intended for other permitted purposes, including potential acquisitions and general corporate purposes, subject to the offer document's conditions.
The subsidiary debt repayment is proposed through investments in nine specified subsidiaries.
Why Debt Repayment Is Important
Debt repayment could improve Zetwerk's financial position in several ways:
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Reduce eligible outstanding borrowings.
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Lower associated finance costs.
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Improve debt-protection ratios.
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Provide additional financial flexibility.
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Reduce pressure on future operating cash flows.
However, investors should not directly deduct the Rs 2,160 crore repayment allocation from the June 2026 consolidated borrowings of Rs 1,942.19 crore.
The amounts have different reporting purposes and may relate to different debt balances, subsidiaries and dates.
The actual post-IPO borrowing position will depend on debt outstanding when repayments occur and any subsequent financing activity.
Acquisitions and General Corporate Purposes
Zetwerk may use part of the remaining proceeds for potential inorganic growth.
Acquisitions could support entry into new manufacturing categories, geographical markets or customer relationships.
However, acquisitions also carry integration, valuation, financing and execution risks.
Investors should monitor the eventual deployment of funds and the returns generated from acquired businesses.
Borrowings and cash conversion are particularly relevant to Zetwerk because the company operates with relatively thin adjusted EBITDA margins and significant working-capital requirements.
Zetwerk Total Borrowings
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Reporting Period
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Total Borrowings
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March 2024
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Rs 1,232.10 crore
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March 2025
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Rs 1,746.55 crore
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March 2026
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Rs 1,936.16 crore
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June 2026
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Rs 1,942.19 crore
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Borrowings increased between FY24 and FY26 and remained close to the March 2026 level in June 2026.
The combination of higher borrowings and negative operating cash flow makes the company's financing requirements an important consideration.
CRISIL Credit Rating
According to the supplied CRISIL rating rationale dated 3 June 2026, the agency reaffirmed:
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Rating Category
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Rating
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Long-term rating
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CRISIL A-/Negative
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Short-term rating
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CRISIL A2+
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CRISIL identified adequate liquidity and a substantial net-worth base as supporting factors.
However, the agency also highlighted subdued operating profitability, working-capital intensity, limited debt-protection headroom and potential additional losses from exiting the civil EPC business.
Its estimated FY26 interest coverage ratio of approximately 1.25 to 1.30 times suggests relatively limited headroom against financing costs.
CRISIL's analytical debt calculations may differ from the RHP's reported consolidated borrowings because of differences in consolidation scope and methodology.
The rating assesses credit-related risks and is not a recommendation concerning the IPO shares.
Zetwerk Manufacturing Businesses Limited identifies Amrit Pratik Acharya and Srinath Ramakkrushnan as its promoters.
Amrit Acharya is Co-founder and Chief Executive Officer, while Srinath Ramakkrushnan is Co-founder and Chief Operating Officer. Ankit Fatehpuria serves as Chief Financial Officer.
Promoter Shareholding Before the IPO
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Promoter
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Pre-Offer Holding
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Amrit Pratik Acharya
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7.51%
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Srinath Ramakkrushnan
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8.35%
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Combined promoter holding
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15.86%
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Holdings are based on the supplied fully diluted pre-offer figures.
Both promoters are participating in the offer for sale.
Major Selling Shareholders
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Selling Shareholder
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Shares Offered
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Amrit Pratik Acharya
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Up to 1,42,30,672
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Srinath Ramakkrushnan
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Up to 1,42,30,672
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Creovate Innovation
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Up to 2,29,74,820
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Peak XV Partners Investments V
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Up to 1,76,11,820
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Lightspeed Venture Partners Select IV Mauritius
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Up to 1,35,29,722
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Kae Capital Fund II
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Up to 1,25,70,262
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Accel India V (Mauritius)
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Up to 1,20,16,622
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Other institutional shareholders are also participating in the OFS.
The IPO provides an opportunity for existing shareholders to monetise part of their holdings while the fresh issue raises capital for Zetwerk.
Post-issue shareholding will depend on the final issuance, allotment and dilution.
The Zetwerk IPO valuation requires consideration of the company's revenue scale, business mix, operating margins, losses and cash-flow position.
At the upper price band of Rs 151, the supplied price-band advertisement indicates a post-offer market capitalisation of approximately Rs 25,583.25 crore.
Zetwerk IPO Valuation at Rs 151
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Valuation Metric
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Value
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Upper IPO price
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Rs 151
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Post-offer market capitalisation
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Rs 25,583.25 crore
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FY26 revenue
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Rs 15,913.32 crore
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FY26 price-to-sales
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Approximately 1.61x
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Trailing 12-month revenue to June 2026
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Rs 17,381.77 crore
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Trailing price-to-sales
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Approximately 1.47x
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P/E ratio
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Not meaningful due to losses
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Price-to-sales ratios use post-offer market capitalisation and revenue from continuing operations.
Why the P/E Ratio Is Not Meaningful
Zetwerk reported negative earnings in FY26, including a loss from continuing operations.
Consequently, a conventional positive price-to-earnings ratio cannot be used to assess the IPO.
The supplied price-band information also states that the P/E ratio is not ascertainable because of losses.
Investors must therefore assess valuation using a broader combination of revenue, margins, cash flows, financial leverage and prospects for sustainable profitability.
Is Zetwerk's Price-to-Sales Ratio Sufficient?
At the upper band, Zetwerk's FY26 price-to-sales ratio is approximately 1.61 times.
However, this multiple has an important limitation.
The Ecosystem Business accounts for a substantial portion of consolidated turnover, and commodity sourcing revenue includes the full value of materials sold.
Manufacturing revenue and commodity-sourcing revenue may have different gross margins, working-capital requirements and operating economics.
Therefore, the consolidated price-to-sales multiple should not be treated as equivalent to that of a pure precision manufacturing or engineering business.
Price-to-Book Valuation
The supplied RHP figures indicate a net asset value of Rs 25.85 per share as of June 2026.
Comparing the upper IPO price of Rs 151 with this historical net asset value produces a multiple of approximately 5.84 times.
However, this is not the post-issue price-to-book ratio.
Fresh issue proceeds, additional shares and other changes in the balance sheet will affect post-issue net worth and per-share values.
The 5.84 times figure should therefore be treated as a historical reference only.
Peer Comparison Considerations
Zetwerk combines several business models:
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Engineering and manufacturing execution.
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Precision and electronics manufacturing.
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Industrial equipment and energy infrastructure products.
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Outsourced production coordination.
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Industrial commodity procurement and trading.
Companies operating in individual segments may offer useful comparisons, but no single traditional manufacturing peer necessarily reflects the complete business.
A meaningful comparison should consider revenue composition, adjusted and statutory profitability, working-capital intensity, debt and return on capital.
Zetwerk has several operating characteristics that could support its long-term business development, subject to successful execution and financial discipline.
1. Large Manufacturing and Supplier Network
The company operates 26 owned manufacturing facilities and works with 6,979 third-party suppliers.
This network provides access to different production capabilities, helping the company serve multiple industrial customers and manufacturing requirements.
2. Exposure to Multiple Industrial Sectors
Zetwerk serves renewable energy, power infrastructure, electronics, aerospace, defence and capital goods industries.
This provides access to different sources of industrial demand, although individual product categories can remain cyclical or concentrated.
3. Growing Manufacturing Order Book
The manufacturing order book reached Rs 13,062.40 crore in June 2026.
New order growth also indicates customer demand for the company's manufacturing services.
The financial benefit will depend on order execution, margins and collections.
4. Technology-Enabled Manufacturing Coordination
Zetwerk OS supports supplier selection, production planning, quality management and logistics coordination.
This platform may help the company manage manufacturing complexity across its distributed network.
5. Improvement in Recent Adjusted EBITDA
Q1 FY27 adjusted EBITDA increased to Rs 103.16 crore from Rs 31.11 crore in Q1 FY26.
The adjusted EBITDA margin improved to 2.51%.
The sustainability of this improvement will depend on revenue mix, direct costs, overheads, financing expenses and cash generation.
Zetwerk's growing revenue and manufacturing network are accompanied by material financial and operating risks.
1. Continued Statutory Losses
The company reported total restated losses of Rs 1,606.17 crore in FY26 and Rs 732.98 crore in Q1 FY27.
Sustained losses may affect retained earnings, financial flexibility and future capital requirements.
2. Persistent Negative Operating Cash Flow
Operating cash flow remained negative in FY24, FY25, FY26 and Q1 FY27.
The company will need stronger cash conversion to reduce its dependence on financing and external capital.
3. Thin Adjusted EBITDA Margins
The FY26 adjusted EBITDA margin was 2.65%.
Small movements in procurement costs, pricing or operating expenses could materially affect profitability.
4. Dependence on Third-Party Manufacturing
Third-party-sourced products accounted for 80.46% of FY26 continuing-operations revenue.
Supplier delays, quality failures, capacity constraints and rising procurement costs could affect execution.
5. Growing Commodity-Sourcing Revenue
The Ecosystem Business contributed 53.81% of consolidated revenue in Q1 FY27.
Its growing share makes it important to distinguish turnover expansion from value-added manufacturing growth.
6. Energy Products Concentration
Energy Products represented approximately 69.42% of FY26 Manufacturing Business revenue.
A slowdown in energy infrastructure investment or related customer spending could affect manufacturing growth.
7. Customer and Geographic Concentration
The top ten customers contributed 35.90% of FY26 revenue, while India accounted for 82.54% of continuing-operations revenue.
Weakness in major customer industries or domestic industrial demand could affect performance.
8. Discontinued-Business Exit Risk
Discontinued operations generated a loss of Rs 668.85 crore in Q1 FY27.
Further provisions, settlements or delays in exiting these businesses could affect future profits and liquidity.
9. Debt and Working-Capital Requirements
Borrowings stood at Rs 1,942.19 crore in June 2026.
CRISIL has highlighted working-capital intensity and limited debt-protection headroom.
Although IPO proceeds may reduce specified borrowings, sustained improvement will require stronger operating cash generation.
10. Audit, Legal and Regulatory Matters
The supplied RHP summary identifies emphasis-of-matter observations, certain legal and regulatory reporting modifications, and outstanding criminal, tax and regulatory proceedings involving the company and subsidiaries.
It also states that there are no examination-report auditor qualifications left unadjusted in the restated financial information.
Investors should review the full prospectus disclosures, including the nature and potential financial implications of proceedings and audit observations.
11. Valuation Risk
At the upper price band, Zetwerk's indicated market capitalisation is approximately Rs 25,583.25 crore.
With negative statutory earnings, the valuation depends substantially on expectations of future profitability, improved cash conversion and successful business execution.
For Zetwerk, the key indicators after listing will be the quality of revenue growth, manufacturing margins, cash conversion and reduction in financial risks.
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Key Factor
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What Investors Should Track
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Manufacturing revenue
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Growth independent of commodity sourcing
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Business mix
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Manufacturing versus Ecosystem revenue contribution
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Adjusted EBITDA
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Margin sustainability across quarters
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Statutory profitability
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Progress towards positive earnings
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Operating cash flow
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Reduction in cash outflows
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Manufacturing order book
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New orders, execution and cancellations
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Borrowings
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Actual debt repayment and finance costs
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Discontinued operations
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Exit completion and additional liabilities
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Customer concentration
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Dependence on major customers
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Credit profile
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Interest coverage, liquidity and rating changes
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The central test will be whether Zetwerk can convert its expanding manufacturing operations and order book into sustainable profits and positive operating cash flows.
Want to compare Zetwerk's valuation and financial performance with other upcoming public issues? Use this IPO dashboard to review issue sizes, price bands, subscription timelines and listing details across sectors.
The Zetwerk Manufacturing Business IPO provides exposure to a technology-enabled industrial manufacturing platform operating across energy infrastructure, precision engineering, capital goods and commodity sourcing.
Zetwerk reported 40.43% revenue growth in FY26, while its Manufacturing Business revenue increased approximately 50.02%. Its manufacturing order book reached Rs 13,062.40 crore by June 2026, supported by an extensive supplier network and operations across multiple industrial sectors.
However, the company continues to face substantial statutory losses, negative operating cash flow, thin adjusted EBITDA margins and working-capital requirements. The increasing contribution of commodity sourcing also makes revenue composition important when assessing the quality of growth.
The IPO's proposed debt repayment could improve financial flexibility, but the company's longer-term performance will depend on profitable order execution, cash conversion, effective supplier management and completion of discontinued-business exits.
For investors evaluating the Zetwerk IPO, the central consideration is whether the company's expanding manufacturing network and order book can translate into sustainable earnings and positive operating cash flows.
Zetwerk IPO FAQs
1. What is the Zetwerk IPO price band and issue size?
The Zetwerk Manufacturing Businesses IPO has a price band of Rs 143 to Rs 151 per share, with a face value of Rs 1. The total offer size is up to Rs 5,012.33 crore, comprising a Rs 2,830 crore fresh issue and an OFS of approximately Rs 2,182.33 crore.
2. What are the Zetwerk IPO opening date, closing date and listing date?
The Zetwerk IPO opens on 15 October 2026 and closes on 19 October 2026. Anchor investor bidding is scheduled for 14 October, while the tentative NSE and BSE listing date is 23 October 2026.
3. What is the minimum investment required for the Zetwerk IPO?
The minimum application lot is 99 shares. At the upper price band of Rs 151 per share, the minimum retail investment is Rs 14,949. The stated maximum retail application is 13 lots, costing Rs 1,94,337.
4. Is Zetwerk Manufacturing Businesses profitable, and how is its IPO valued?
Zetwerk is not profitable on a consolidated statutory basis. It reported a total restated loss of Rs 1,606.17 crore in FY26 despite revenue of Rs 15,913.32 crore. At Rs 151 per share, its indicated post-offer market capitalisation is approximately Rs 25,583.25 crore, implying an FY26 price-to-sales ratio of around 1.61 times. A conventional positive P/E ratio is not meaningful because of losses.
5. What is the Zetwerk IPO GMP, and does it indicate listing gains?
The Zetwerk IPO grey market premium (GMP) is an unofficial market quotation and is not published or endorsed by SEBI, NSE, BSE or the company. GMP quotations can vary between sources and do not reliably predict the listing price or future share performance. No verified GMP figure is included in this analysis.