Zetwerk Manufacturing Businesses IPO

Strengths · 8

• 01Revenue from operations from continuing operations grew 40.43% to Rs 15,913.32 crore in FY2026, after falling 8.35% in FY2025.
• 02The Manufacturing Business segment grew 50.02% to Rs 9,374.68 crore in FY2026 and now contributes 58.91% of revenue, against 49.19% in FY2024.
• 03The manufacturing order book was Rs 12,370.01 crore as on 31 March 2026, double the Rs 6,169.75 crore of FY2024, and new orders in FY2026 were Rs 15,393.35 crore.
• 04Gross margin improved to 12.13% in FY2026 from 7.66% in FY2024, and adjusted EBITDA rose to Rs 421.34 crore from Rs 97.03 crore over the same period.
• 05The asset-light model uses 6,979 third-party suppliers across 26 countries alongside only 26 of its own plants, which lets capacity scale without matching capital spending.
• 06Energy Products revenue nearly doubled to Rs 6,507.57 crore in FY2026 from Rs 3,481.84 crore in FY2025, serving renewables and AI infrastructure demand.
• 07Net worth was Rs 4,691.21 crore as on 31 March 2026, up from Rs 4,065.31 crore in FY2024.
• 08Manufacturing Business EBITDA was Rs 565.09 crore in FY2026 at a 6.03% margin, well above the 2.65% adjusted EBITDA margin of the group as a whole.

Risks · 10

• 01The company is loss making. The restated loss for the year was Rs 1,606.17 crore in FY2026, Rs 370.71 crore in FY2025 and Rs 917.95 crore in FY2024, and the loss from continuing operations alone was Rs 964.39 crore in FY2026.
• 02Net cash used in operating activities was Rs 681.53 crore in FY2026, Rs 386.29 crore in FY2025 and Rs 281.54 crore in FY2024, so the business has consumed cash for three straight years.
• 03Total borrowings rose to Rs 1,936.16 crore as on 31 March 2026 from Rs 1,232.10 crore in FY2024, and Rs 1,800.00 crore of the fresh issue is earmarked for repaying debt of the company and nine subsidiaries.
• 04Customer concentration is rising. The top 10 customers gave 35.90% of FY2026 revenue from continuing operations, against 22.37% in FY2024, and the company says it does not have firm long-term purchase commitments with many of them.
• 05The top 10 suppliers accounted for 38.18% of total expenses from continuing operations in FY2026, and the platform depends on third parties for manufacturing and raw materials.
• 06The Ecosystem Business, which buys and resells metals and petrochemicals, was 41.09% of FY2026 revenue, and group contribution margin was only 8.17% in FY2026 against 9.09% in FY2025.
• 07India gave 82.54% of FY2026 revenue from continuing operations and the USA 14.33%, so demand or tariff changes in these two markets flow straight to the top line.
• 08The statutory auditors included an emphasis of matter and modifications under Report on Other Legal and Regulatory Requirements in their reports for FY2026, FY2025 and FY2024.
• 09The offer for sale runs to 9,68,37,455 shares, and several selling shareholders hold at a weighted average cost as low as Rs 3.94 or Rs 6.31 per share, so their exit is at a large multiple of cost.
• 10Up to 35% of gross proceeds may go to unidentified acquisitions and general corporate purposes together, with no target named in the document.

Zetwerk Manufacturing Businesses Limited, formerly Zetwerk Manufacturing Businesses Private Limited, is a technology-led, asset-light manufacturing platform for industrial and consumer goods in India and overseas. It is based at Vaishnavi Sovereign, Green Glen Layout, Bellandur, in Bengaluru. The company aggregates manufacturing capacity across a network of third-party suppliers and its own plants into what it calls a universal factory, coordinated through Zetwerk OS, its own technology backbone. The promoters are Amrit Pratik Acharya, who is Managing Director, Chairperson and Chief Executive Officer, and Srinath Ramakkrushnan, who is Executive Director and Chief Operating Officer.

The business runs in two reportable segments. The Manufacturing Business segment supplies industrial and consumer products across three verticals, namely Energy Products, Precision Products and Capital Goods, and also offers original design manufacturing for certain components. This segment reported revenue of Rs 9,374.68 crore in FY2026, up 50.02% from Rs 6,249.10 crore in FY2025, and made up 58.91% of revenue from operations from continuing operations. Within it, Energy Products brought Rs 6,507.57 crore, Precision Products Rs 1,397.19 crore and Capital Goods Rs 1,464.40 crore in FY2026.

The second segment is the Ecosystem Business, run under the Terra91 brand. It sources industrial commodities such as ferrous and non-ferrous metals and petrochemicals and supplies them to customers as a principal. This segment reported revenue of Rs 6,538.65 crore in FY2026, which is 41.09% of revenue from operations from continuing operations, against Rs 6,282.52 crore and a 50.81% share in FY2024.

As on 31 March 2026 the company had 26 of its own manufacturing facilities across India, Spain, Germany and the USA, supported by 6,979 third-party suppliers spread over 26 countries. Customers come from utilities, renewables, consumer electronics, AI infrastructure, aerospace, space and defence, oil and gas and industrial automation. India accounted for 82.54% of FY2026 revenue from operations from continuing operations, the USA for 14.33% and the rest of the world for 3.13%.

The manufacturing order book stood at Rs 12,370.01 crore as on 31 March 2026, against Rs 8,628.98 crore a year earlier and Rs 6,169.75 crore in FY2024. New manufacturing orders in FY2026 were Rs 15,393.35 crore. Gross margin was 12.13% in FY2026 against 7.66% in FY2024, and adjusted EBITDA was Rs 421.34 crore against Rs 97.03 crore in FY2024. The company stated its growth plans as raising wallet share with existing customers, entering fast-growing industries, expanding geographically, doing more design-led manufacturing and selectively adding its own facilities.

The industry

India's manufacturing procurement of durable goods is set to expand from Rs 9.42 trillion in FY2021 to Rs 17.37 trillion in FY2026 and Rs 37.54 trillion to Rs 42.57 trillion by FY2031, helped by policy-led capacity addition, localisation and domestic demand, while the US procurement market for durable goods moves from Rs 46.01 trillion in FY2021 to Rs 53.12 trillion in FY2026 and Rs 57.92 trillion to Rs 66.97 trillion by FY2031. Manufacturing platforms act as a digital layer that connects buyers with distributed suppliers and standardises how work is specified, allocated and monitored. As of FY2026 such platforms had a total addressable market of Rs 10.26 trillion to Rs 12.57 trillion in India and Rs 2.07 trillion to Rs 6.26 trillion in the USA, expected to reach Rs 17.68 trillion to Rs 20.00 trillion in India and Rs 26.76 trillion to Rs 30.95 trillion in the USA by FY2031, as per the Redseer Report quoted in the document.

Customer concentration: The top 5 customers gave 26.87% of FY2026 revenue from continuing operations, against 17.88% in FY2025 and 14.43% in FY2024, and the top 10 customers gave 35.90% in FY2026 against 22.37% in FY2024.