IPO-bound Zetwerk’s FY26 operating revenue rises to Rs 15,900 crore: Crisil

Public markets-bound contract manufacturing startup Zetwerk’s operating income is estimated to have risen to Rs 15,900 crore in 2025-26, up from Rs 12,800 crore in the previous year, according to Crisil Ratings.

The estimate for the company’s continuing business is also higher than the Rs 14,444 crore operating income Zetwerk reported for 2023-24. In 2024-25, its revenue declined as it cut back on lower-margin and riskier businesses. The ratings agency also said that Zetwerk exited non-profitable segments and began reducing its exposure to civil infrastructure projects during the year.

Crisil Ratings assigned an A-/Negative rating to Zetwerk’s proposed Rs 500-crore non-convertible debentures and reaffirmed the rating on its existing bank facilities and debt instruments. The negative outlook reflects the risk of higher-than-expected provisions or losses from the company’s exit from the civil engineering, procurement and construction business.


Zetwerk had an order book of more than Rs 12,000 crore as of March, to be executed over the next 12-18 months, giving it revenue visibility ahead of its planned initial public offering (IPO). The company has reclassified its business into four segments: energy, precision, capital goods and ecosystem, which includes trading.

The ratings note is the latest financial snapshot of Zetwerk after ET reported in March that the company had filed confidential papers with the Securities and Exchange Board of India for a Rs 5,000-crore IPO. The offering is expected to include Rs 2,700-2,800 crore in fresh capital, with the remaining component likely through an offer for sale by existing shareholders.

ET had also reported that Zetwerk was in discussions to raise about Rs 500 crore in pre-IPO funding from Bharat Value Fund and a clutch of high-net-worth individuals at a valuation of Rs 25,000-26,000 crore, around the same as its previous private valuation.

While Zetwerk scaled up in 2025-26, profitability and debt-protection metrics remained weak. Crisil said the company’s operating margin, though improved, remained low at about 2.6% due to unabsorbed fixed costs. Interest coverage is expected at 1.25-1.3 times, compared with 1 time in 2024-25.

Crisil did not disclose Zetwerk’s 2025-26 net profit or loss. In 2024-25, the company’s net loss narrowed to Rs 371 crore from Rs 918 crore a year ago.

Zetwerk’s debt stood at Rs 2,700-2,800 crore as of March 31, while adjusted net worth was estimated at Rs 4,500-4,900 crore after factoring in expected losses during the year. Cash and equivalents stood at Rs 3,000-3,200 crore, of which Rs 1,800-1,900 crore was unencumbered.

Crisil also flagged Zetwerk’s working capital-intensive operations. Net-off cash gross current assets rose to 160-170 days as of March 31, from 137 days a year earlier, partly on account of year-end project completions and the addition of products such as transformers, which have a longer working capital cycle.

Founded by Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma, Ankit Fatehpuria and Vishal Chaudhary, Zetwerk connects enterprise buyers with manufacturing suppliers. Crisil said founders and employees own about 24% of the company, with investors including Greenoaks, Lightspeed, Accel, Kae Capital, D1 Capital, Avenir Growth and Khosla Ventures holding the rest.

The company has also been using acquisitions to expand its manufacturing capabilities. In August, Zetwerk acquired a majority stake in KRYFS Power Components, a Mumbai-based electrical equipment maker with 10 plants across India.