Zetwerk, an IPO-bound manufacturing startup, reported an estimated operating revenue of ₹15,900 crore in FY26, marking a 24% increase from ₹12,800 crore in FY25, according to a CRISIL Ratings report. Despite the revenue growth, the company’s operating margin remained thin at about 2.6% during the fiscal year.
The revenue growth was supported by a robust order book exceeding ₹12,000 crore as of March 2026, expected to be executed over the next 12 to 18 months. CRISIL also highlighted Zetwerk’s strategy of inorganic growth through acquisitions, noting the company has acquired nine firms, including joint ventures, to expand its product offerings and customer base. The rating agency assigned an ‘A-/Negative’ rating to Zetwerk’s proposed ₹500 crore non-convertible debenture issue and reaffirmed the same rating on its existing ₹200 crore NCDs and ₹2,500 crore bank facilities.
Zetwerk’s liquidity profile remains adequate, with total cash and equivalents of ₹3,200 crore as of March 31, 2026, of which ₹1,900 crore is unencumbered. The management has committed to maintaining unencumbered cash of over ₹800 crore on a sustained basis. The company’s thin profitability despite strong revenue growth reflects the competitive and capital-intensive nature of the manufacturing services sector. Zetwerk’s acquisition strategy aligns with broader industry trends where startups seek inorganic expansion to diversify offerings and scale rapidly.
The company’s order book and acquisition pipeline position it for continued growth, while the ‘A-/Negative’ rating outlook highlights ongoing challenges in profitability and market conditions. The next key financial update will be the FY27 results, which will reveal whether Zetwerk can improve margins alongside revenue growth, according to CRISIL’s assessment.