Zetwerk Files UDRHP-1 for IPO, Reports Revenue Growth to INR 15,913 Crores in FY26

Technology led manufacturing platform Zetwerk has filed its Updated Draft Red Herring Prospectus 1 (UDRHP-1) with the Securities and Exchange Board of India (SEBI), moving ahead with its proposed initial public offering as the company seeks to strengthen its balance sheet and pursue further growth through its manufacturing network.

The proposed IPO comprises a fresh issue of equity shares aggregating up to INR 2,600 crore and an offer for sale of up to 96,837,455 equity shares by existing selling shareholders. Zetwerk plans to use INR 1,250 crore of the fresh issue proceeds to repay debt at the company level and another INR 550 crore towards debt repayment across its subsidiaries. The remaining proceeds are proposed to be used for unidentified acquisitions and general corporate purposes.

Zetwerk operates an asset light manufacturing model that brings together third party manufacturing capacity and its own facilities through its proprietary technology platform, Zetwerk OS. The company currently connects 26 owned manufacturing facilities across India, the US, Germany and Spain with a network of 6,979 third party suppliers across multiple countries.

The company operates two reportable business segments. Its Manufacturing Business enables customers to manufacture industrial and consumer products through its supplier network and owned facilities, while the Ecosystem Business, branded Terra91, aggregates and sources industrial commodities. Its Civil Infrastructure Works segment was discontinued in FY26 as part of a strategic realignment towards its core businesses.

Zetwerk's revenue from operations increased 40.43 percent to INR 15,913 crore in FY26 from INR 11,332 crore in the previous fiscal. The growth was driven by strong expansion in its energy business, supported by rising demand linked to the energy transition and the growing investment cycle in artificial intelligence infrastructure.

The company's operating performance has also improved significantly over the past two years. Adjusted EBITDA increased from INR 97 crore in FY24 to INR 323 crore in FY25 and further to INR 421 crore in FY26, representing a 4.3 times increase over two years. Adjusted profit before tax improved from a loss of INR 248.8 crore in FY24 to a profit of INR 45.7 crore in FY26.

However, Zetwerk reported a loss before tax of INR 1,558 crore in FY26, which the company attributed primarily to two one time, non cash adjustments made ahead of the IPO. These included a INR 796 crore management stock options equity top up and a INR 453 crore provision related to the discontinued civil infrastructure business. According to the company, the stock options related transaction involved no cash outflow and was net worth neutral.

The company's manufacturing order book doubled to INR 12,370 crore in FY26 from INR 6,170 crore in FY24, reflecting growth in customer engagements and demand across its manufacturing categories. International markets accounted for nearly 30 percent of Manufacturing Business revenue in FY26, highlighting the company's growing overseas presence.

Zetwerk has also expanded its relationships with customers from individual orders to multi year contracts across multiple product categories. Revenue from repeat customers accounted for 80.15 percent of Manufacturing Business revenue in FY26, while net revenue retention stood at 120 percent. The company's top 10 customers have been associated with it for around three years and contributed nearly 36 percent of revenue during the period.

The company said it has cumulatively delivered products and raw materials with a gross merchandise value of INR 69,588 crore. As of March 31, 2026, its customer base included eight Sensex companies, 16 Nifty 50 companies and 102 companies from India's Fortune 500 list.

Its customer portfolio spans utilities, renewable energy, consumer electronics, artificial intelligence infrastructure, aerospace, space and defence, oil and gas and industrial automation. Customers include Siemens Gamesa, Acer India, NextPower, CG Power, NTPC Renewable Energy, L&T MHI Power Boiler, DRDO, NALCO, IOCL, Mortenson, Nordex Acciona, Indian Air Force and Numaligarh Refinery Limited.

Zetwerk's hybrid manufacturing model combines the scalability of third party manufacturing capacity with selective ownership of facilities for complex and high value manufacturing. This allows the company to expand production capacity without a corresponding increase in invested capital while maintaining greater control over specialised manufacturing operations.

The company's proprietary Zetwerk OS technology platform coordinates orders across multiple facilities and automates key decisions across the manufacturing lifecycle. The platform is designed to standardise processes, reduce manual intervention and enable distributed manufacturing through a unified technology backbone.

The proposed IPO is being managed by Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities, Avendus Capital, JM Financial, HSBC Securities and Capital Markets (India) and Pantomath Capital Advisors as the book running lead managers.

Zetwerk has also been recognised as India's Fastest Growing Engineering Brand 2026 in the Strongest Indian Brands 2026 rankings published by independent brand valuation consultancy Brand Finance.