Zetwerk.
Zetwerk Financial Results: Bengaluru-based manufacturing technology company Zetwerk Manufacturing Businesses Ltd has reported strong financial and operational performance for the first half of fiscal year 2027 (H1 FY27), supported by growth across its manufacturing businesses, improved margins and a record order book.
The company reported revenue from operations of ₹8,717 crore ($917 million) for the six months, representing a 33% increase year-on-year (YoY). More importantly, profitability improved at a faster rate than revenue, with adjusted EBITDA increasing 69% YoY to ₹274 crore ($28.8 million).
Gross profit also recorded healthy growth, rising 42% YoY to ₹1,187 crore ($124.9 million). The improvement indicates that Zetwerk is not only expanding its business but is also generating better returns from its manufacturing activities.
The company attributed the improvement to a stronger revenue mix, increasing contributions from design-led products, international customers, in-house manufacturing and higher-margin product categories.
Gross margin increased to 13.6% in H1 FY27 from 12.8% in the corresponding period last year. Adjusted EBITDA margin also improved to 3.1%, compared with 2.5% in H1 FY26, reflecting better operating leverage.
“Our first half shows what we have been building towards. Gross profit grew faster than revenue driven by design-led products (ODM), international customers, in-house manufacturing and higher-margin categories,” said Amrit Acharya, Co-founder and Chief Executive Officer of Zetwerk.
He also highlighted the company’s expanding manufacturing order book, which reached an all-time high of ₹14,595 crore ($1.54 billion). Repeat customers contributed 83% of first-half revenue, indicating a strong level of recurring business.
Record order book provides visibility for future growth
One of the most significant developments in Zetwerk’s H1 FY27 performance was the expansion of its manufacturing order book.
The order book increased 67% YoY, reflecting demand across several industrial sectors and geographical markets. The company secured new orders worth ₹7,760 crore ($816.8 million) during H1 FY27, representing a 48% increase compared with the first half of the previous fiscal year.
In the second quarter alone, new order wins reached ₹4,613 crore ($485.6 million), up 44% YoY.
The order book is particularly important for a manufacturing business because it provides visibility into potential future revenue. Zetwerk said its orders typically convert into revenue over approximately two years.
The diversity of the orders also highlights the company’s strategy of building a manufacturing business that serves multiple industries rather than depending on a single sector.
Its order wins include avionics and electronics for defence public sector undertakings in India, power and distribution transformers for power plants in India and the US, and components for supercritical boilers used in thermal power plants.
Other products include wind turbine components, motherboards and printed circuit board assemblies (PCBAs) for consumer electronics manufacturers, solar trackers for US customers, cables and conductors for electricity grid operators, transformer components and solar modules.
The company has also secured business involving oil and gas machinery, process plant equipment and precision-engineered components for electric vehicles, automotive, aerospace and other industrial applications.
This broad product mix gives Zetwerk exposure to several areas of industrial investment, including electricity infrastructure, renewable energy, defence, aerospace and consumer electronics.
Second-quarter performance shows improving profitability
Zetwerk also reported positive sequential growth during Q2 FY27, the three-month period within the first half.
Revenue from operations increased 18% YoY and 12% quarter-on-quarter (QoQ) to ₹4,599 crore ($484.1 million).
Adjusted EBITDA reached ₹171 crore ($18 million), representing growth of 31% YoY and 66% QoQ.
The improvement in earnings was accompanied by a significant recovery in adjusted pre-tax profitability.
Adjusted profit before tax (PBT) turned positive at ₹28 crore ($2.9 million) in Q2 FY27, compared with a loss of ₹12 crore ($1.3 million) in the preceding quarter.
The company’s net loss also declined sharply to ₹88 crore ($9.3 million), compared with ₹733 crore ($77.2 million) in Q1 FY27. This represents a reduction of approximately 88%.
Overall pre-tax loss narrowed to ₹76 crore ($8 million) in Q2 FY27 from ₹720 crore ($75.8 million) in the previous quarter, an improvement of 89%.
These figures suggest that Zetwerk is making progress towards improving its overall financial performance, although the company continues to report a net loss.
It is important to distinguish between adjusted and reported profitability. Zetwerk defines adjusted EBITDA as earnings before interest, tax, depreciation and amortisation, adjusted for share-based payment expenses, which are non-cash expenses. Adjusted PBT is similarly adjusted for share-based payment expenses.
Manufacturing business remains the main growth driver
The Manufacturing segment continued to play a major role in Zetwerk’s financial performance.
Segment revenue increased 20% YoY to ₹4,448 crore ($468.2 million) in H1 FY27.
Gross profit grew considerably faster, increasing 41% to ₹1,092 crore ($114.9 million), compared with ₹772 crore ($81.3 million) in H1 FY26.
The gross margin for the segment improved to 24.5% from 20.9%, reflecting the growing contribution of higher-margin activities.
Zetwerk attributed the improvement to design-led manufacturing, international customers and a greater contribution from its own manufacturing facilities.
Segment EBITDA increased 37% to ₹336 crore ($35.4 million), compared with ₹245 crore ($25.8 million) in the corresponding period last year.
The segment also recorded strong sequential growth. Manufacturing revenue increased 34% in Q2 FY27 compared with the preceding quarter, while segment EBITDA rose 69% QoQ to ₹211 crore ($22.2 million) from ₹125 crore ($13.2 million).
This performance indicates that manufacturing operations are benefiting from both higher business volumes and improved operating efficiency.
Energy and Precision businesses expand
Within the Manufacturing segment, the Energy and Precision businesses recorded notable growth.
Energy revenue increased 23% YoY to ₹2,836 crore ($298.5 million) in H1 FY27.
The business is benefiting from demand for products such as transformers and grid-related equipment, supported by investment in electricity infrastructure and energy systems.
The Precision business recorded even faster revenue growth, increasing 34% YoY to ₹980 crore ($103.2 million).
Its order book has expanded 80% since March 2026 to ₹2,698 crore ($284 million).
The growth has been supported by demand from aerospace, defence and space-related customers.
Precision manufacturing involves producing components that require high levels of engineering accuracy, quality control and specialised manufacturing capabilities. These requirements can create opportunities for suppliers with the technical expertise and production systems needed to serve demanding industries.
The expansion of Zetwerk’s Precision order book therefore represents an important development in its efforts to increase exposure to higher-value manufacturing categories.
Adjusted profitability improves, but losses remain
A key aspect of Zetwerk’s H1 FY27 performance is the improvement in adjusted profitability.
Adjusted PBT stood at ₹16 crore ($1.7 million) for the first half, compared with an adjusted loss of ₹8 crore ($0.8 million) in H1 FY26.
The company also reported positive adjusted PBT of ₹28 crore ($2.9 million) in Q2 FY27, following a loss in the previous quarter.
However, the improvement in adjusted figures should be viewed alongside the company’s reported financial performance. Zetwerk continued to incur an overall pre-tax loss and reported a net loss of ₹88 crore ($9.3 million) in the second quarter.
The distinction matters because adjusted earnings exclude certain expenses and do not represent the same measure as statutory profit.
Nevertheless, the improvement in gross profit, EBITDA margins and adjusted PBT suggests that the company is making progress towards strengthening its underlying operating economics.
Understanding Zetwerk’s business model
Zetwerk operates two reportable business segments: Manufacturing and Ecosystem.
Its Manufacturing business helps customers produce industrial and consumer products through a network of third-party suppliers and its own manufacturing facilities.
The Ecosystem business, branded Terra91, focuses on aggregating and sourcing industrial commodities for customers.
The company discontinued its Civil Infrastructure Works segment in FY26 as part of a strategic realignment to concentrate on its core businesses.
Zetwerk describes its operating model as a ‘universal factory’. Instead of relying on a single manufacturing facility, it brings together production capacity across a network of suppliers and owned facilities.
This network is supported by Zetwerk OS, the company’s proprietary technology platform, which connects manufacturing operations and helps coordinate production activities.
Its customer base spans utilities, renewable energy, consumer electronics, artificial intelligence infrastructure, aerospace, space and defence, oil and gas, and industrial automation.
The company has a network of 6,979 third-party suppliers across 26 countries and 26 owned manufacturing facilities across India, the US, Spain and Germany.
This combination of supplier partnerships, owned facilities and technology infrastructure allows Zetwerk to serve customers across different industries and geographical markets.
What does the performance mean for Zetwerk’s growth strategy?
Zetwerk’s H1 FY27 results point to three important developments: expanding revenue, improving operating profitability and a growing order book.
The 33% increase in revenue demonstrates continued business expansion, while the 42% growth in gross profit suggests that the company is improving the quality of its revenue.
The 69% increase in adjusted EBITDA is another encouraging indicator, particularly as the company continues to invest in manufacturing capabilities and expand its international operations.
The record ₹14,595 crore ($1.54 billion) manufacturing order book provides additional visibility into potential business over the coming two years.
However, converting orders into revenue and earnings will remain an important challenge. Manufacturing businesses must manage production schedules, supplier networks, working capital, quality standards and delivery commitments while maintaining margins.
Zetwerk’s growing presence in areas such as defence electronics, aerospace, renewable energy, power infrastructure and precision engineering could provide opportunities for further expansion.
The company’s ability to translate this demand into consistent cash generation and sustainable profitability will ultimately determine the strength of its long-term business model.
For now, H1 FY27 represents a period of strong operational growth and improving financial performance. With a record order book, higher margins and positive adjusted pre-tax earnings, Zetwerk appears to be making progress towards its ambition of building a diversified, technology-enabled global manufacturing business.
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