B2B e-commerce unicorn Zetwerk, which recently filed its UDRHP to raise Rs 2,600 crore through a fresh issue, staged a strong recovery in its operating scale in FY26. After reporting an over 8% decline in gross revenue in FY25, the company’s GMV rebounded more than 40% to nearly Rs 16,000 crore in FY26, supported by strong growth across its core businesses. The company also reported a positive EBITDA of Rs 457 crore during the year.
Zetwerk’s gross revenue surged over 40% year-on-year to Rs 15,913 crore in FY26 from Rs 11,332 crore in FY25, according to its consolidated financial statements sourced from its updated draft red herring prospectus (UDRHP).
Zetwerk is a B2B manufacturing and construction marketplace that derives revenue primarily from trading manufacturing products, manufacturing services, and construction and project contracts. Revenue from the sale of products, which accounted for 90% of its total income, rose 38% to Rs 14,367 crore in FY26.
Income from construction and project contracts jumped 81% year-on-year to Rs 1,403 crore, while revenue from services stood at Rs 138 crore during the period.
By industry, Zetwerk operates across energy, electronics, aerospace, precision manufacturing, capital goods and other segments. Energy products accounted for 41% of its total operating income, growing 87% to Rs 6,508 crore in FY26. Precision manufacturing and capital goods contributed Rs 1,397 crore and Rs 1,464 crore, respectively. Its ecosystem business contributed another Rs 6,539 crore during the year.
By geography, India remained Zetwerk’s primary market, contributing over 82% of its business in FY26. The US accounted for 14.3%, while the remaining share came from other international markets.
Including non-operating income of Rs 187 crore, Zetwerk’s total income stood at Rs 16,100 crore in FY26, compared to Rs 11,492 crore in FY25.
On the expense side, material costs accounted for over 86% of Zetwerk’s total expenses. The cost rose 40% to Rs 13,983 crore in FY26 from Rs 9,965 crore in FY25. Employee benefit expenses increased 35% to Rs 644 crore, including Rs 87 crore of ESOP cost.
Meanwhile, subcontracting expenses grew 51% to Rs 229 crore.Finance costs stood at Rs 366 crore, while freight expenses more than tripled to Rs 254 crore. Legal and professional fees, travel, depreciation and amortisation, and other expenses took the company’s total expenses to Rs 16,142 crore in FY26 from Rs 11,552 crore in FY25.
The company’s loss before tax and exceptional items narrowed 33% to Rs 81 crore in FY26 from Rs 121 crore in FY25, as the strong rebound in revenue coupled with rise in other income, helped improve its operating performance and offset the rise in expenses.
Caveat: We have excluded exceptional gains/losses arising from changes in the fair value of certain shareholders’ diluted holdings and other items related to associate entities. We have also excluded exceptional losses from discontinued operations.
Including exceptional losses, the company’s losses stood at Rs 1,606 crore in FY26 compared to Rs 371 crore loss in FY25.
However, Zetwerk reported a positive EBITDA of Rs 457 crore in FY26, with an EBITDA margin of 2.87%. Its ROCE stood at 4.3% during the year.
On the balance sheet front, Zetwerk’s cash and bank balances increased to Rs 2,448 crore in FY26 from Rs 1,908 crore a year earlier. The company had current assets worth Rs 9,841 crore as of FY26.
Zetwerk’s IPO filing comes amid a broader push by India’s B2B commerce startups to tap the public markets. While Zetwerk has filed its UDRHP to raise Rs 2,600 crore through a fresh issue, Infra.Market is pursuing a public listing through a reverse merger with Shalimar Paints. OfBusiness is also expected to explore a public market debut.
