B2B manufacturing or construction unicorn Zetwerk has posted robust topline growth in FY26 after shrinking in the prior year. According to its consolidated financial statements in its updated draft red herring prospectus, the company made a dramatic turnaround in operational scale. While operational savings and some key profitability markers improved, the company’s net losses despite those changes have widened significantly during the same period, due to significant exceptional charges.

Geographical market and operating performance

Zetwerk has witnessed a 40% rise in gross revenue or gross merchandise value, growing from ₹11,332 crore in FY25 to ₹15,913 crore in FY26. This performance is a result of a fall of 8% recorded in FY25. The total income, including non-operational income of ₹187 crore, saw a jump to ₹16,100 crore in FY26 from ₹11,492 crore in FY25.

On an operational front, the company managed to become EBITDA positive for FY26 at ₹457 crore with an EBITDA margin of 2.87%. The company has achieved a return on capital employed of 4.3%. Zetwerk’s loss before tax and exceptional items fell 33% to ₹81 crore in FY26 from ₹121 crore in FY25, following revenue growth and improved yields from non-operating activity.

Manufacturing is the primary driver of its revenue, accounting for 90% of total revenue in FY26, which rose by a significant 38% from FY25 to ₹14,367 crore. Revenue from construction and project contracts stood at ₹1,403 crore, an 81% increase, while revenue from services was ₹138 crore.

Analysed by sectors, energy products were the top revenue generator by a long shot, accounting for 41% of total operating income, which had grown by over 87% to reach ₹6,508 crore in FY26. 

The year’s contributions were from the various segments of precision manufacturing, capital goods, and the ecosystem business, with respective volumes of ₹1,397 crore, ₹1,464 crore, and ₹6,539 crore. 

Domestic business accounted for more than 82% of total business in FY26 geographically. Revenue from the United States market accounted for 14.3%, and the rest from other international markets.

Cost breakdown and financial dynamics

Zetwerk saw total expenses rising from ₹11,552 crore in FY25 to ₹16,142 crore in FY26. Material cost continued to be the major cost segment at over 86%, rising by 40% to ₹13,983 crore compared to ₹9,965 crore in FY25.

Employee benefit expenses rose by ₹644 crore or 35% to include ₹87 crore for ESOP. Subcontracting cost surged by 51% to ₹229 crore, while finance cost amounted to ₹366 crore. Freight cost surged by over three times to ₹254 crore. Other expenditures, including legal and professional fees and travel, as well as depreciation and amortisation, also contributed to overall expenditure growth.

Operational trends were positive, but the exceptionals had a profound effect on the net financial result. Total net loss materially increased due to accounting adjustments for fair value for players’ diluted holdings, associate entities adjustments and exceptional losses from discontinued operations.

Its total loss widened by more than four times to ₹1,606 crore in FY26 from ₹371 crore in FY25 when the exceptional charges are included. However, the balance sheet improved on the liquidity side. In FY26, cash and bank balances increased to ₹2,448 crore, from ₹1,908 crore in FY25, while total current assets surged to ₹9,841 crore in the fiscal.

The financial disclosure comes as Zetwerk has announced plans for its initial public offering. The company has submitted an updated draft red herring prospectus to list ₹2,600 crore of new shares. The filing comes as part of a larger number of B2B commerce firms following the path to public listing, including Infra.Market is moving forward with a reverse takeover of Shalimar Paints while OfBusiness is readying itself for a market entry.

Conclusion

There’s a duality in Zetwerk’s FY26 financial performance. Operational top-line recovery, expansion of energy and product segments, and a positive EBITDA of ₹457 crore signify operational momentum. Total net losses also increased due to the non-operational exceptional expenses of ₹1,420 crore. It has ₹2,448 crore cash on hand and plans to mobilise an IPO of ₹2,600 crore, presenting significant scale in the quest for further expansion.