Zetwerk's FY26 Loss Widens Significantly Amid Revenue Growth

Contract manufacturer Zetwerk reported a significant widening of its net loss to ₹1,606.2 crore (approximately $192 million USD) for the fiscal year 2025-26 (FY26). This occurred despite a 40.4% increase in operating revenue, which reached ₹15,913.3 crore (approximately $1.9 billion USD).

The substantial net loss included exceptional items, such as ₹835.8 crore from continuing operations and a ₹453 crore impairment from discontinued operations. Excluding these exceptional items and taxes from continuing operations, the restated loss stood at ₹41.1 crore, a decrease of about 31% from the previous fiscal year.

Zetwerk, which is preparing for an initial public offering (IPO) in India, disclosed these financial results in its updated draft red herring prospectus (UDRHP) filed with the market regulator. The company received clearance for its IPO earlier in July. The proposed IPO aims to raise ₹2,600 crore (approximately $310 million USD) through a fresh issue of shares and an offer-for-sale component.

The manufacturing business contributed 58.9% of the topline revenue, while its managed marketplace and digital trading platform accounted for the remainder. Zetwerk has also classified its civil infrastructure works business as discontinued, with the sale expected to be completed within 12 months.

The company plans to use approximately 69% of the IPO proceeds to repay or prepay certain borrowings. A portion of the funds will also be allocated for acquisitions and general corporate purposes. Zetwerk has raised over $900 million from investors to date, with its last pre-IPO round valuing the company at over $3 billion.