Zetwerk is a manufacturer that works to order. A business that needs a product, such as a transformer, solar parts or heavy machinery, gives Zetwerk the order. Zetwerk then makes it, either in its own 26 plants or through 6,979 outside factories that it manages. It works like a marketplace for factory capacity, but Zetwerk stays responsible for quality and delivery.
How Zetwerk makes money
Manufacturing: 59% of sales
Zetwerk makes goods to order, such as solar parts, transformers and electronics, partly in its own 26 plants and partly through outside factories it manages. It earns about 6% operating margin.
Metals trading: 41% of sales
This is a separate trading arm. It buys and sells steel, aluminium and copper without making anything, a high-volume, low-profit business with a margin of about 1.2%.
Customers who come back
80% of manufacturing sales come from existing customers, and orders worth ₹13,062 Cr are yet to be delivered.
Key dates
Orders · Sales mix · Margins
Orders are strong, but low-margin metal trading is over half of sales
Where FY26 sales came from
Metals and raw materials
₹6,539 Cr 41.1%
Energy products
₹6,508 Cr 40.9%
Capital goods
₹1,464 Cr 9.2%
Precision products
₹1,397 Cr 8.8%
Profit margin by business, FY26
Manufacturing
6.0%
Metals and raw materials
1.2%
Whole company
2.65%
Operating profit before interest, tax and depreciation, as a share of sales.
Key takeaway
In FY26, metals made 41.1% of sales (₹6,539 Cr), energy products 40.9% (₹6,508 Cr), capital goods 9.2% and precision products 8.8%, so manufacturing was the other 58.9%. Manufacturing earns a 6.0% margin against 1.2% for metals and 2.65% for the whole company, and metals rose to 54% of April to June 2026 sales at about 1.4%, so the mix is moving toward the weaker business. The market is large, with Indian businesses buying ₹17.4 trillion of durable goods in FY26 and ₹37.5 to 42.6 trillion forecast by FY31 in a report paid for by the company, of which Zetwerk has about 1.5%. The top ten customers took 36% of FY26 sales, up from 22% in FY24.
Sales · Losses · Cash, FY24 to June 2026
Sales are rising fast, but losses and cash burn continue
Sales (₹ Cr)
Up 40% in FY26
Loss after tax (₹ Cr)
Loss in every year
Cash from operations (₹ Cr)
Negative in every year
The numbers
| FY24 | FY25 | FY26 | Apr-Jun 2026 | |
|---|---|---|---|---|
| Sales (₹ Cr) | 12,364 | 11,332 | 15,913 | 4,118 |
| Operating profit (₹ Cr) | 97 | 323 | 421 | 103 |
| Loss before one-offs and tax (₹ Cr) | -427 | -121 | -81 | -51 |
| Loss after tax (₹ Cr) | -918 | -371 | -1,606 | -733 |
| Loss per share (₹) | -5.23 | -2.03 | -11.02 | -4.82 |
Continuing businesses. April to June is three months. Sales in that quarter were 55% above a year earlier.
Key takeaway
Sales rose 40% to ₹15,913 Cr in FY26 and were up 55% in April to June 2026. The FY26 loss of ₹1,606 Cr is mostly one-off, since it includes a non-cash charge on investors’ preferred shares and the write-down of a civil construction business that is being closed. The everyday business is improving, with the loss before one-offs and tax shrinking from ₹427 Cr in FY24 to ₹81 Cr in FY26. Cash is the concern: operations used ₹682 Cr in FY26 and ₹506 Cr in April to June 2026, and cash and investments fell from ₹3,339 Cr in March to ₹2,597 Cr in June. Losses are narrowing, but Zetwerk has never made a profit and still burns cash.
Use of money · Sellers · Anchors · Price
Most of the new money repays debt, and there is no peer to value it against
What the new money is for
Repay the company’s loans
₹1,300 Cr 46%
Repay loans of subsidiaries
₹860 Cr 30%
Acquisitions and general use
₹670 Cr 24%
Debt repayment is 76% of the new money. The balance is before offer costs. Borrowings were ₹5,208 Cr on 31 August 2026.
Who sells
24 existing shareholders sell 9.59% of the company. The two founders sell about 11 to 12% of their own stakes, and the company gets none of that money. Greenoaks, the largest holder at 20%, is not selling.
The anchor book
99 anchors put in ₹2,251 Cr at ₹151. Indian mutual funds took 45.6%, foreign funds 45.0% and life insurers 7.4%. Half the anchor shares are locked in for 30 days and the rest for 90 days.
What ₹151 means
The offer document says no listed company runs a similar business, so there is no peer to compare the price with. At the ₹143 low end, the figures are 1.35x sales and 5.5x book value.
Key takeaway
At ₹151 the shares cost 1.4 times sales and 5.8 times book value, with no profit and no listed peer to compare.
Anchor price ₹151 · Auditor warnings · No listed peer
Fast growth, but big losses, auditor warnings and no peer
Fast sales growth
Up 40% in FY26 and 55% in April to June 2026.
Orders are building
Order book of ₹13,062 Cr, double March 2024.
Everyday losses shrinking
₹427 Cr in FY24 down to ₹81 Cr in FY26.
Customers come back
80% of manufacturing sales are repeat business.
Strong anchor book
₹2,251 Cr, 53% from Indian funds and insurers.
Large losses and cash burn
₹1,606 Cr loss in FY26. Operations used cash in every period.
Auditor warnings
No opinion on internal controls in FY24, a qualified opinion in FY25, and audit-trail gaps in FY26.
Legal cases
Founders are named in a fraud complaint over a road project.
Thin-margin sales rising
Metals were 54% of the latest quarter at about 1% margin.
No peer to value it against
5.8 times book value for a loss-making company.
Our opinion
Avoid this IPO
Zetwerk is having negative PAT and its auditors have warned about weak controls. A strong anchor book does not remove these flags. Do not apply for this IPO and track the performance of the company for 1-2yrs once the company is listed before buying from the secondary market.
