Zetwerk Manufacturing Businesses Limited reported a 43.2% year-on-year increase in its consolidated net loss for the September 2026 quarter, even as revenue from operations grew 18.3%. The manufacturing platform posted a net loss of ₹88.1 crore in Q2 FY27, compared with ₹61.6 crore in the corresponding quarter last year.
Revenue from operations increased to ₹4,599.4 crore from ₹3,889.3 crore a year earlier. The results, announced on November 13, mark the company’s first quarterly earnings report since its stock market listing on October 23, 2026. The company also reported a record manufacturing order book, pointing to continued demand across several industrial categories.
Zetwerk Q2 FY27 Financial Results
Zetwerk’s revenue growth was accompanied by higher expenses and a wider loss from its continuing operations. Its total income, including other income, reached ₹4,652.7 crore during the quarter, compared with ₹3,936.5 crore in Q2 FY26.
The company’s consolidated financial performance is summarised below:
| Financial metric | Q2 FY27 | Q2 FY26 | YoY change |
|---|---|---|---|
| Revenue from operations | ₹4,599.4 Cr | ₹3,889.3 Cr | +18.3% |
| Total income | ₹4,652.7 Cr | ₹3,936.5 Cr | +18.2% |
| Net loss | ₹88.1 Cr | ₹61.6 Cr | +43.2% |
| Loss from continuing operations | ₹53.8 Cr | ₹20.6 Cr | Higher by 161% |
| Loss from discontinued operations | ₹34.3 Cr | ₹41.1 Cr | Down 16% |
Figures are rounded. Year-on-year comparisons are based on the company’s reported consolidated results.
The headline loss also represents a substantial improvement over the June quarter. Zetwerk’s net loss narrowed by approximately 88% from ₹733 crore in Q1 FY27. However, the previous quarter included substantial provisions associated with its discontinued civil infrastructure business, making the sequential comparison less straightforward.
Higher Employee Stock Option Costs and Finance Expenses
A major factor behind the year-on-year increase in Zetwerk’s losses was the rise in employee stock-based compensation expenses.
Employee stock-option charges increased nearly fivefold to ₹64.4 crore in Q2 FY27 from approximately ₹13 crore in the year-ago quarter. The company attributed the higher expense to one-time vesting linked to its initial public offering.
Finance costs also contributed to the pressure on profitability. Higher financing expenses, together with increased employee-related costs, affected the company’s reported bottom line even as its manufacturing operations recorded growth.
The distinction between reported and adjusted profitability is important. Share-based payment expenses are non-cash accounting costs, and Zetwerk also reports adjusted performance measures that exclude these expenses.
For Q2 FY27, adjusted EBITDA stood at ₹171 crore, increasing 31% year-on-year and 66% sequentially. Adjusted profit before tax turned positive at ₹28 crore, compared with an adjusted loss of ₹12 crore in Q1 FY27.
These figures suggest that the underlying operating performance improved during the quarter, although the company continued to report a consolidated net loss under standard accounting measures.
Discontinued Civil Infrastructure Business Continues to Affect Results
Zetwerk’s discontinued civil infrastructure business remained another source of losses during the September quarter.
The business contributed a loss of ₹34.3 crore in Q2 FY27, compared with ₹41.1 crore in Q2 FY26. This was substantially lower than the ₹668.9 crore loss recorded in the June quarter.
The previous quarter’s figure included large provisions for doubtful receivables, delayed projects and other expected losses associated with the business. These provisions had significantly increased the reported loss in Q1.
The company plans to sell the discontinued civil infrastructure business as part of its efforts to focus on its manufacturing operations. Its performance therefore needs to be assessed separately from the continuing business.
Losses from continuing operations increased to ₹53.8 crore in Q2 FY27 from ₹20.6 crore a year earlier. This indicates that the higher consolidated loss was not solely attributable to the discontinued business.
Manufacturing Order Book Reaches Record ₹14,595 Crore
Despite the increase in its reported net loss, Zetwerk reported strong order-book growth during the September quarter.
Its manufacturing order book increased 67% year-on-year to a record ₹14,595 crore. The company secured new orders worth ₹4,613 crore during Q2 FY27, representing growth of 44% compared with the same quarter last year.
For the first half of FY27, new orders totalled ₹7,760 crore, up 48% year-on-year.
The order book spans several industrial categories, including:
- Defence electronics and aerospace components
- Power and distribution transformers
- Thermal and wind power equipment
- Solar equipment and cables
- Oil and gas machinery
- Precision components for electric vehicles and automotive customers
- Consumer electronics and industrial products
Zetwerk said its manufacturing order book generally converts into revenue over approximately two years. This provides visibility into potential future business, although actual revenue recognition will depend on project execution, delivery schedules and customer requirements.
Repeat customers contributed 83% of the company’s first-half revenue, according to co-founder and CEO Amrit Acharya. A high share of repeat business can support demand visibility and customer relationships in a manufacturing business where projects often involve long production and delivery cycles.
Higher-Margin Manufacturing Products Support Profitability
Zetwerk is also focusing on improving the quality of its revenue through design-led products, international customers and greater in-house manufacturing.
For the first half of FY27, the company’s revenue from operations increased 33% year-on-year to ₹8,717 crore. Gross profit rose 42% to ₹1,187 crore, while the gross margin expanded to 13.6% from 12.8% in the year-ago period.
Adjusted EBITDA increased 69% to ₹274 crore, with the adjusted EBITDA margin improving to 3.1% from 2.5%.
The company’s manufacturing segment recorded revenue growth of 20% year-on-year to ₹4,448 crore during the first half. Within the segment, energy revenue increased 23% to ₹2,836 crore, while precision revenue rose 34% to ₹980 crore.
The precision business has also seen a significant increase in its order book, which grew 80% since March 2026 to ₹2,698 crore. Demand from aerospace, defence and space customers contributed to this expansion.
Zetwerk operates a network of 26 owned manufacturing facilities across India, the United States, Spain and Germany. Its strategy combines its own production capabilities with a wider supplier network to serve customers across multiple industries.
Zetwerk’s IPO and Post-Listing Performance
The September quarter was the company’s first earnings period following its stock market debut on October 23, 2026.
The listing brought Zetwerk’s financial performance under closer public-market scrutiny. Investors will now be able to track its revenue growth, order-book conversion, margins and cash requirements through regular quarterly disclosures.
The company also indicated that finance costs could decline following debt repayment using proceeds from its IPO. The full benefit of the repayment is expected to become more visible from the March quarter, according to the company’s commentary reported after the results.
Lower borrowing costs could support profitability, but the extent of any improvement will depend on debt levels, financing requirements and operating performance in subsequent quarters.
The Bigger Picture
Zetwerk’s Q2 results highlight the difference between growth in a manufacturing business and the profitability reported in its financial statements. Revenue increased, its order book reached a record level and adjusted operating profitability improved. Yet higher employee stock-option expenses, finance costs and losses from discontinued operations pushed its consolidated net loss higher.
The company’s first-half performance also points to improving operating efficiency. Gross profit and adjusted EBITDA grew faster than revenue, suggesting that a shift towards higher-margin products, international customers and in-house production is beginning to influence its financial profile. However, the business still needs to demonstrate that these improvements can translate into sustained reported profitability.
Looking Ahead
Zetwerk’s near-term performance will depend on its ability to convert its ₹14,595 crore manufacturing order book into recognised revenue while maintaining delivery schedules and controlling operating expenses. Its exposure to energy, defence, aerospace, power infrastructure and precision manufacturing could provide opportunities for growth, but project execution and customer demand will remain important factors.
Investors will also watch the company’s progress in exiting its discontinued civil infrastructure business, reducing finance costs and managing employee stock-based compensation. The next few quarters should provide a clearer picture of whether its improving adjusted profitability can translate into a sustained reduction in consolidated losses.
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