Key facts
- Zetwerk's FY26 operating revenue is projected at Rs 15,900 crore, up from Rs 12,800 crore in FY25.
- The company is preparing for a Rs 5,000-crore IPO, including fresh capital and an offer for sale.
- Crisil Ratings assigned an 'A-/Negative' rating to Zetwerk's proposed Rs 500-crore NCDs.
- Zetwerk's order book exceeded Rs 12,000 crore as of March 2026.
- The company's operating margin was around 2.6% in FY26, with a net loss of Rs 371 crore in FY25.
IPO-bound contract manufacturing startup Zetwerk is projected to see its operating revenue climb to Rs 15,900 crore in FY26, a significant increase from Rs 12,800 crore in FY25, according to a Crisil Ratings report. This projection surpasses the Rs 14,444 crore operating income reported in FY24. The company's revenue had dipped in FY25 as it strategically exited non-profitable segments and reduced its exposure to civil infrastructure projects.
Crisil assigned an 'A-/Negative' rating to Zetwerk's proposed Rs 500-crore non-convertible debentures (NCDs), while reaffirming the same rating on existing facilities. The negative outlook stems from potential risks associated with the company's exit from the civil EPC business, which could lead to higher-than-expected provisions or losses.
As of March 2026, Zetwerk held an order book exceeding Rs 12,000 crore, with execution expected over the next 12-18 months, providing revenue visibility ahead of its planned public listing. The company has reorganized its business into four segments: energy, precision, capital goods, and ecosystem (trading).
This financial assessment follows reports that Zetwerk has submitted confidential documents to the Securities and Exchange Board of India (Sebi) for a Rs 5,000-crore IPO, which is anticipated to include Rs 2,700-2,800 crore in fresh capital and an offer for sale from existing shareholders. Discussions are also underway to raise approximately Rs 500 crore in pre-IPO funding at a valuation of Rs 25,000-26,000 crore.
Despite the growth in scale, Zetwerk's profitability and debt-protection metrics remain a concern. Crisil noted that the operating margin, though improved, was low at around 2.6% in FY26 due to unabsorbed fixed costs. Interest coverage is expected to be between 1.25-1.3x for FY26, an improvement from 1x in FY25. The company reported a narrowed net loss of Rs 371 crore in FY25, down from Rs 918 crore in FY24.
As of March 31, 2026, Zetwerk's debt stood at Rs 2,700-2,800 crore, with an adjusted net worth estimated at Rs 4,500-4,900 crore. Cash and equivalents were between Rs 3,000-3,200 crore, of which Rs 1,800-1,900 crore was unencumbered. Crisil also highlighted the company's working-capital-intensive operations, with net-off cash gross current assets increasing to 160-170 days by March 31, 2026, from 137 days a year prior, partly due to year-end project completions and the inclusion of products like transformers.
Founded by Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma, Ankit Fatehpuria, and Vishal Chaudhary, Zetwerk facilitates connections between enterprise buyers and manufacturing suppliers. Founders and employees hold approximately 24% of the company, with the remainder owned by investors including Greenoaks, Lightspeed, Accel, Kae Capital, D1 Capital, Avenir Growth, and Khosla Ventures. The company has also expanded its manufacturing capabilities through acquisitions, such as its majority stake purchase in electrical equipment maker KRYFS Power Components.