Amid IPO preparations, manufacturing platform Zetwerk reported stronger revenue growth, while credit assessors highlighted profitability challenges and risks linked to business restructuring.
Bengaluru-based manufacturing platform Zetwerk reported an estimated 24 per cent increase in revenue for FY26, reaching ₹159 billion compared with ₹128 billion in the previous financial year, according to a credit rating note issued by CRISIL on 3 June 2026.
The rating agency attributed the recovery primarily to the company’s decision to exit unprofitable business segments and to reduce its exposure to the civil infrastructure vertical. Zetwerk operates across multiple sectors, including energy, precision manufacturing, capital goods and trading.
CRISIL said the company currently has an order book worth more than ₹120 billion, expected to be executed over the next 12 to 18 months. The agency estimated Zetwerk’s adjusted net worth at between ₹45 billion and ₹49 billion as of 31 March 2026, while total debt stood at approximately ₹27 billion to ₹28 billion.
Although the rating note did not disclose the company’s profit after tax, it stated that the net worth calculations incorporated expected losses for FY26. Zetwerk had reported a net loss of ₹3.71 billion in FY25, an improvement from the ₹9.18 billion loss recorded in FY24.
The company’s liquidity position remained relatively strong, with cash and cash equivalents of around ₹32 billion at the end of FY26. Of this, approximately ₹19 billion was available as unencumbered cash.
CRISIL assigned a ‘CRISIL A-/Negative’ rating to Zetwerk’s proposed ₹5-billion non-convertible debenture issue and reaffirmed the same rating on existing debt facilities. The agency said the negative outlook reflected potential losses related to the company’s exit from civil engineering, procurement and construction (EPC) operations, operating margins of about 2.6 per cent and the working-capital-intensive nature of the business.
The rating note highlighted Zetwerk’s customer network of more than 1000 companies and a supplier base exceeding 5000 vendors. Its clients include NTPC Renewables, Samsung India Electronics, NALCO and ArcelorMittal Nippon Steel India.
The disclosures come as Zetwerk advances plans for an initial public offering. The company has confidentially filed draft papers for a public issue targeting up to ₹42 billion and is currently valued at about $3 billion.
Investment banks appointed for the offering include Kotak Mahindra Capital, JM Financial, Avendus, Pantomath, HSBC, Morgan Stanley and Goldman Sachs. Founded in 2018, Zetwerk has evolved into an industrial platform managing engineering, production and logistics for customised manufacturing projects.
