Zetwerk’s Impressive Recovery in FY26

Zetwerk has showcased a significant recovery in FY26, with operating revenue anticipated to increase by 24% to Rs 15,900 crore from Rs 12,800 crore in FY25, as per a recent rating rationale issued by CRISIL. This manufacturing marketplace, based in Bengaluru, faced an 11% revenue decline in FY25 compared to FY24 due to its exit from non-profitable segments and the winding down of its civil infrastructure operations. However, revenue growth has resumed in FY26, driven by execution capabilities, long-standing customer relationships, and a diversified business portfolio.

Growth Momentum and Future Prospects

According to CRISIL, Zetwerk’s growth momentum is forecasted to persist, supported by a robust order pipeline and an expanding customer base. As of March 2026, the company reported an order book exceeding Rs 12,000 crore, which is projected to be executed within the next 12 to 18 months.

Customer Network and Diverse Offerings

The rating agency noted that Zetwerk serves over 1,000 customers through a network of more than 5,000 suppliers. The company caters to clients globally, including the US and Europe, with notable customers such as NTPC Renewables Energy, Samsung India Electronics, NALCO, and ArcelorMittal Nippon Steel India.

Long-Term Agreements and Growth Visibility

CRISIL also highlighted that Zetwerk has entered into long-term agreements with distinguished customers, while simultaneously adding new products and clients across various segments. This approach provides solid visibility for future growth.

Aggressive Expansion Strategy

In recent years, the company has embarked on an aggressive inorganic expansion strategy to enhance its capabilities. According to the report, Zetwerk has successfully acquired nine companies, including joint ventures, aimed at broadening its product offerings and deepening customer relationships.

CRISIL’s Rating Insights

CRISIL reaffirmed its A-/Negative rating for Zetwerk, citing the company’s diversified operations, strong customer base, healthy liquidity, and robust order book. However, the rating is constrained by low margins, high working capital requirements, and associated execution risks linked to growth and acquisitions.

Initial Public Offering Plans

Earlier this year, in March, Zetwerk filed draft papers for an initial public offering through the confidential route, aiming to raise up to Rs 4,200 crore (approximately $450 million) via the issue.