Zetwerk: B2B E-commerce Unicorn Shows Strong Recovery
B2B e-commerce unicorn Zetwerk has recently filed its UDRHP to secure Rs 2,600 crore through a fresh issue. The company demonstrated a robust rebound in its operational scale in FY26. Following a decline of over 8% in gross revenue during FY25, Zetwerk’s GMV increased by more than 40% to nearly Rs 16,000 crore in FY26, driven by significant growth in its core sectors. The firm also reported a positive EBITDA of Rs 457 crore for the year.
Revenue Growth Highlights
Zetwerk’s gross revenue soared more than 40% year-on-year, reaching Rs 15,913 crore in FY26 compared to Rs 11,332 crore in FY25, as per its consolidated financial statements extracted from its updated draft red herring prospectus (UDRHP). The company operates as a B2B manufacturing and construction marketplace, primarily generating revenue from trading manufacturing products, manufacturing services, and construction contracts. Sales from products, which represented 90% of total income, increased by 38% to Rs 14,367 crore in FY26.
Construction and Service Income
Income from construction and project contracts surged by 81% year-on-year to Rs 1,403 crore, while revenue from services amounted to Rs 138 crore during the same period.
Sectoral Analysis
Zetwerk operates across various industry segments, including energy, electronics, aerospace, precision manufacturing, and capital goods. Energy products alone contributed 41% of total operating income, growing by 87% to Rs 6,508 crore in FY26. Precision manufacturing and capital goods brought in Rs 1,397 crore and Rs 1,464 crore, respectively, with the ecosystem business adding another Rs 6,539 crore for the year.
Geographical Market Focus
India continued to be Zetwerk’s primary market, accounting for over 82% of its business in FY26. The United States contributed 14.3%, with the remaining share coming from other international markets.
Total Income and Expenses Breakdown
Including non-operating income of Rs 187 crore, Zetwerk’s total income was Rs 16,100 crore in FY26, a rise from Rs 11,492 crore in FY25. On the expenditure side, material costs comprised over 86% of the total expenses, which increased by 40% to Rs 13,983 crore from Rs 9,965 crore in FY25. Employee benefit expenses rose by 35% to Rs 644 crore, inclusive of Rs 87 crore in ESOP costs. Additionally, subcontracting expenses climbed 51% to Rs 229 crore.
Financial Performance
Finance costs were recorded at Rs 366 crore, while freight expenses more than tripled to Rs 254 crore. Legal fees, travel, depreciation and amortisation, among others, expanded the total expenses to Rs 16,142 crore in FY26 from Rs 11,552 crore the previous year. Zetwerk’s loss before tax and exceptional items narrowed by 33% to Rs 81 crore in FY26 from Rs 121 crore in FY25, supported by a strong revenue rebound and a rise in other income, which mitigated escalating expenses.
Exceptional Losses and Financial Position
It should be noted that exceptional gains or losses relating to changes in the fair value of particular shareholders’ diluted holdings and similar items from associated entities were excluded from this analysis. Zetwerk reported total losses, including exceptional losses, of Rs 1,606 crore in FY26 compared to a loss of Rs 371 crore in FY25. Despite this, the company achieved a positive EBITDA of Rs 457 crore, with an EBITDA margin of 2.87%. The ROCE was recorded at 4.3% for the year.
Balance Sheet Strength
On the balance sheet, Zetwerk’s cash and bank balances grew to Rs 2,448 crore in FY26 from Rs 1,908 crore the preceding year. As of FY26, the company held current assets worth Rs 9,841 crore.
IPO Filing and Market Development
Zetwerk’s IPO filing comes as part of an expanding effort by India’s B2B commerce startups to engage with public markets. While Zetwerk has submitted its UDRHP to raise Rs 2,600 crore through a new issue, Infra.Market is executing a public listing via a reverse merger with Shalimar Paints. OfBusiness is also anticipated to investigate a public market debut.