Zetwerk Manufacturing Businesses Limited
Sector: Asset-light industrial manufacturing platform (B2B)
1. Executive Overview
Zetwerk Manufacturing Businesses Limited (incorporated December 2017; promoters Amrit Pratik Acharya and Srinath Ramakkrushnan, who met at IIT Madras and began their careers at ITC) is a technology-led, asset-light manufacturing platform for industrial and consumer goods in India and globally. It aggregates capacity across a network of 6,979 third-party suppliers in 26 countries and its 26 own manufacturing facilities in 4 countries (India, Spain, USA, Germany) into a "universal factory", orchestrated by its proprietary operating system, Zetwerk OS.
The company serves 1,802 customers (1,613 in India, 189 overseas) in FY26, from start-ups to large industrials, across utilities, renewables, consumer electronics, AI infrastructure, aerospace, space & defence, oil & gas and industrial automation. Named customers include Siemens Gamesa, Acer India, boAt, NextPower (formerly Nextracker), CG Power, NTPC Renewable Energy, L&T MHI Power Boiler, DRDO (LRDE), NALCO, Indian Oil, Mortenson, Nordex Acciona, Indian Air Force and Numaligarh Refinery. The Manufacturing platform served 8 of the Sensex, 16 of the Nifty 50 and 102 of India's Fortune 500 companies in FY26. Cumulative GMV delivered since incorporation is ₹74,374.21 Cr.
Scale and trajectory: revenue from operations (continuing) was ₹15,913.32 Cr in FY26 (+40.43% YoY) versus ₹11,331.86 Cr in FY25 and ₹12,364.37 Cr in FY24; Adjusted EBITDA rose from ₹97.03 Cr (FY24) to ₹421.34 Cr (FY26), a 2.65% margin. Q1 FY27 revenue was ₹4,117.88 Cr (+55.42% YoY). The Manufacturing Order Book stood at ₹13,062.40 Cr at June 30, 2026. The company operates two reportable segments – Manufacturing Business (58.91% of FY26 revenue) and Ecosystem Business, "Terra91" (41.09%) – after deciding to discontinue its Civil Infrastructure Works segment (Board resolutions of January 23 and March 9, 2026).
Geographically, India contributed 82.54% of FY26 revenue and the USA 14.33%. Management cites Redseer estimates of a manufacturing-platform TAM of ₹10.26–12.57 trillion in India and ₹2.07–6.26 trillion in the USA (FY26), growing to ₹17.68–20.00 trillion and ₹26.76–30.95 trillion respectively by FY31. The RHP states there are no listed companies in India or globally with a similar business model.
2. Business Model and Revenue Streams
Operating model
Manufacturing Business: customer orders are split across multiple qualified third-party suppliers and own facilities for simultaneous manufacturing; revenue is recognised on physical delivery. On average an order was allocated to 7 suppliers in FY26 (6 in FY25; 3 in FY24).
Ecosystem Business (Terra91): aggregates demand and sells ferrous/non-ferrous metals and petrochemicals (aluminium, zinc, steel, copper, lead) to customers; served 828 customers and sourced from 562 suppliers in FY26.
Contract models: mostly short-term purchase orders, plus 1–4-year product/project agreements; some customers are on multi-year take-or-pay contracts (e.g., NextPower). Supplier POs are fixed-price, with liquidated damages and risk-purchase rights.
Hybrid footprint: evolved from a pure marketplace to third-party + own assembly/finishing facilities (15 acquired, 11 greenfield); 3 facilities under construction as of June 30, 2026.
Risk management: hedges aluminium, zinc, copper and lead where exchange-traded instruments exist; USD forward contracts; price-variation clauses; back-to-back supplier warranties.
Revenue by segment (continuing operations, ₹ Cr)
| Particulars | Q1 FY27 | Q1 FY26 | FY26 | FY25 | FY24 |
|---|---|---|---|---|---|
| Segment revenue – Manufacturing | 1,901.88 | 1,480.83 | 9,374.68 | 6,249.10 | 6,081.85 |
| Segment revenue – Ecosystem (Terra91) | 2,215.99 | 1,168.61 | 6,538.65 | 5,082.75 | 6,282.52 |
| Revenue from operations | 4,117.88 | 2,649.44 | 15,913.32 | 11,331.86 | 12,364.37 |
| Manufacturing share of revenue | 46.19% | 55.89% | 58.91% | 55.15% | 49.19% |
| Manufacturing EBITDA | 124.69 | 71.58 | 565.09 | 400.25 | 345.27 |
| Manufacturing EBITDA margin | 6.56% | 4.83% | 6.03% | 6.40% | 5.68% |
| Adjusted EBITDA (company) | 103.16 | 31.11 | 421.34 | 322.59 | 97.03 |
| Adjusted EBITDA margin | 2.51% | 1.17% | 2.65% | 2.85% | 0.78% |
Ecosystem EBITDA: ₹80.80 Cr in FY26 (1.24% margin); ₹30.58 Cr in Q1 FY27 (1.38%). Manufacturing segment ROCE: 22.75% (FY26), 30.76% (FY25).
Revenue by geography (₹ Cr and % of revenue from operations)
| Region | FY26 | FY25 | FY24 | FY26 % | FY25 % | FY24 % |
|---|---|---|---|---|---|---|
| India | 13,134.63 | 8,998.37 | 9,326.55 | 82.54% | 79.41% | 75.43% |
| USA | 2,279.67 | 2,162.70 | 2,662.84 | 14.33% | 19.09% | 21.54% |
| Rest of the world | 499.02 | 170.79 | 374.99 | 3.13% | 1.50% | 3.03% |
International revenue within the Manufacturing Business: ₹2,775.36 Cr in FY26 (29.60%), ₹2,333.49 Cr in FY25 (37.34%), ₹2,832.78 Cr in FY24 (46.58%).
Customer and supplier dependence
Top 10 customers: 35.90% of FY26 revenue (26.89% FY25; 22.37% FY24; 29.39% in Q1 FY27).
Top 10 suppliers: 38.18% of FY26 total expenses (top five: 26.93%); 40.71% in Q1 FY27.
Third-party sourcing: products sourced from third-party suppliers were ₹12,803.27 Cr (80.46%) of segment revenue in FY26.
Customer stickiness: repeat-customer revenue in Manufacturing of 80.15% (FY26), 84.80% (FY25), 78.11% (FY24); median Net Revenue Retention FY23–FY26 of 128.85% (FY26: 120.24%; FY25: 87.13%). Average order value ₹9.17 Cr in FY26 (₹5.89 Cr FY25; ₹4.59 Cr FY24).
Supplier base: 6,979 suppliers in FY26 (6,731 in FY25; 6,088 in FY24).
Order visibility (Manufacturing, ₹ Cr)
| Particulars | Q1 FY27 | Q1 FY26 | FY26 | FY25 | FY24 |
|---|---|---|---|---|---|
| Order Book (period-end) | 13,062.40 | 8,534.70 | 12,370.01 | 8,628.98 | 6,169.75 |
| New Orders | 3,147.45 | 2,044.70 | 15,393.35 | 11,327.11 | 8,994.14 |
| Contribution margin | 16.04% | 12.32% | 12.40% | 13.43% | 10.80% |
| ODM share of Manufacturing GMV | 13.66% | 6.78% | 13.93% | 8.34% | 8.12% |
| Recurring-components share of GMV | 71.20% | 58.34% | 50.85% | 57.77% | 49.85% |
3. Products and Service Portfolio
Manufacturing Business – three product verticals (₹ Cr)
| Vertical | Q1 FY27 | FY26 | FY25 | FY24 | FY26 % of Mfg segment |
|---|---|---|---|---|---|
| Energy Products | 1,134.30 | 6,507.57 | 3,481.84 | 4,159.66 | 69.42% |
| Precision Products | 436.74 | 1,397.19 | 1,405.86 | 580.95 | 14.90% |
| Capital Goods | 330.34 | 1,464.40 | 1,353.22 | 1,316.04 | 15.62% |
| Other operating revenue (export incentives, rent) | 0.51 | 5.52 | 8.19 | 25.21 | 0.06% |
| Segment revenue – Manufacturing | 1,901.88 | 9,374.68 | 6,249.10 | 6,081.85 | 100.00% |
Energy Products: serves renewables (solar trackers/torque tubes, wind turbine components and FRP parts, solar modules), power transmission (transformers, CRGO laminations, cores, transformer tanks) and AI-infrastructure power equipment. A mix of one-time capex products and recurring components. Power transformer orders of ₹2,032.25 Cr in FY26; committed US delivery of 12–15 months versus an industry average of 30–36 months (India) and 36–42 months (USA) per Redseer. NextPower torque-tube sales rose from US$39.14 mn (FY24) to US$78.70 mn (FY26).
Precision Products (entirely recurring components): PCBAs, motherboards, laptops, TVs and interactive flat panels, Bluetooth audio, smartwatches, washing-machine controllers, energy meters, EV chargers and battery packs; defence and aerospace components. Key customers include Acer India; washing-machine controller defect rate of 200 ppm vs a 500-ppm benchmark.
Capital Goods (entirely capex): steel and structural fabrication, pressure vessels, process columns, reactors, heat exchangers, oil and gas storage tanks for infrastructure, oil & gas and heavy industry customers.
Ecosystem Business (Terra91): raw material aggregation and sourcing (aluminium, zinc, steel, copper, lead, petrochemicals), integrated with the ZINTO inventory and traceability system.
Zetwerk OS (technology stack)
- ProcureZ: AI-enabled supplier matching on capability, quality history, cost, geography and tariff/concentration risk.
- ZISO / ZPS: project planning, global execution management and factory-level production planning (mobile-first).
- ZAQ: quality management across the order lifecycle. ZHIP: shipping, logistics and global visibility.
Supplier first-pass rate of approximately 99% on third-party orders in FY26.
Own manufacturing facilities and capacity utilisation (selected)
| Facility / plant | Product | Installed capacity (FY26) | FY26 | FY25 | FY24 |
|---|---|---|---|---|---|
| Kryfs (Kherdi/Palghar) | CRGO laminations & cores | 40,000 MT | 74.72% | 64.34% | 68.79% |
| Kryfs (Bhopal) | Transformer tanks | 4,000 MT | 100.41% | 82.88% | 71.66% |
| Kryfs (Kherdi/Savli) | Transformers | 3,000 MVA | 61.05% | 78.94% | 59.13% |
| Zetwerk (Wardha, Bhilai, Vizag, Bhilwara) | Steel & structural fabrication | 50,100 MT | 70.22% | 64.39% | 82.85% |
| Smile Electronics (Bangalore Unit 1) | PCBAs | 13,040,000 units | 67.57% | 65.18% | 79.55% |
| ZetTown (Noida) | Bluetooth audio & wearables | 40,200,000 units | 59.74% | 74.79% | 64.73% |
| Unimacts (Las Vegas) | Torque tubes | 66,000 MT | 75.79% | 53.54% | 66.66% |
| Unimacts (Houston) | Torque tubes | 66,000 MT | 2.98% | 44.87% | 8.55% |
| Unimacts (Spain) | Wind FRP components | 1,200 units | 41.25% | 94.03% | 81.53% |
| Unimacts (Germany) | Wind turbine canopy assembly | 612 units | 60.78% | 50.76% | NA |
| JZNEE (North Houston) / Winsharp (Dharuhera) | Solar tracker parts / Smart TVs | 435,629 MT / 2,778,048 units | 4.17% / 5.59% | NA | NA |
26 own facilities as of June 30, 2026 across India, Spain, the USA and Germany; flagship sites include Wardha (121,405.69 sq.m.), Noida, Kherdi and Las Vegas. JZNEE and Winsharp were acquired recently and are in ramp-up. A solar module facility is under construction at Sangareddy, Telangana.
4. Key Business Strengths
- Multi-engine business model: India and international demand, capex and opex budgets, build-to-print and ODM — spread across 6,979 suppliers in 26 countries and 26 own facilities, which reduces dependence on any single end-market cycle.
- Zetwerk OS flywheel: proprietary platform (ProcureZ, ZISO, ZPS, ZAQ, ZHIP) where each order improves quoting, supplier matching and first-pass yield (~99%), attracting more suppliers and customers.
- Speed and cost advantage: simultaneous multi-supplier manufacturing delivers 12–15 month US transformer lead times against 30–42 months industry averages; tariff-aware supplier sourcing (e.g., Oman transformer suppliers at 10% vs 50% US tariff exposure).
- Sticky customers and strong visibility: 80.15% revenue from repeat customers (FY26), median NRR 128.85%, multi-year take-or-pay contracts and an order book of ₹13,062.40 Cr (Jun-26).
- Growing recurring and design-led mix: recurring components at 71.20% of Manufacturing GMV in Q1 FY27; ODM share up from 8.12% (FY24) to 13.93% (FY26).
- Value-added ecosystem: Terra91 adds raw-material aggregation, improving input cost and traceability and generating ₹6,538.65 Cr of FY26 segment revenue.
- Diversified, marquee customer base: 8 of Sensex, 16 of Nifty 50, 102 of India's Fortune 500 companies; 1,802 customers in FY26.
- Institutionalised risk management: commodity and FX hedging, price-variation clauses, credit underwriting, insurance and executive Risk Evaluation and Management Committees.
- Cycle-tested founders and board: IIT Madras and ITC-trained founders, with senior management and an experienced board spanning industrial, venture and policy backgrounds.
5. Future Growth Strategy
- Deepen wallet share: category expansion to full bill-of-material supply, targeting both capex and opex budgets, and converting repeat buying into multi-year take-or-pay agreements.
- Win in fast-growing industries: grid and power equipment for AI/data-centre infrastructure and precision industrial components (PCB assembly, EV components, industrial automation) facing structural supply constraints.
- Diversify ahead of demand inflections: evaluating space commercialisation, green hydrogen infrastructure and advanced manufacturing, balancing cyclical and defensive categories.
- Expand geographically: add owned capacity in the USA and Europe where tariffs or local content justify it; build multi-country supply chains (India, Mexico, Vietnam, USA) to hedge tariff and geopolitical risk.
- Scale design-led manufacturing (ODM): invest in engineers and category-specific design libraries rather than heavy assets, using the supplier network for ODM production without competing with customers.
- Expand and integrate the supplier network: onboard new suppliers, raise allocations to high performers and integrate them deeper into Zetwerk OS.
- Selective own-facility expansion: greenfield (e.g., solar and PCB manufacturing) and bolt-on acquisitions where supply-demand gaps, certifications or policy incentives (PLI/ECMS) justify ownership, while remaining primarily asset-light.
- Inorganic growth: evaluate acquisitions of proven marketplace suppliers for faster integration (a portion of IPO proceeds is earmarked for acquisitions and general corporate purposes).
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