Financial Performance Overview

Zetwerk Manufacturing Businesses Limited reported unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026 (Q2 FY27 and H1 FY27).

H1 FY27 Performance (Year-over-Year):

  • Revenue from operations: ₹8,717 crore, up 33% YoY
  • Gross profit: ₹1,187 crore, up 42% YoY
  • Gross margin: 13.6% (vs 12.8% in H1 FY26)
  • Adjusted EBITDA: ₹274 crore, up 69% YoY
  • Adjusted EBITDA margin: 3.1% (vs 2.5% in H1 FY26)
  • Adjusted PBT: ₹16 crore profit (vs ₹8 crore loss in H1 FY26)

Q2 FY27 Performance (Quarter-over-Quarter):

  • Revenue from operations: ₹4,599 crore, up 12% QoQ and 18% YoY
  • Adjusted EBITDA: ₹171 crore, up 66% QoQ and 31% YoY
  • Adjusted PBT: ₹28 crore profit (vs ₹12 crore loss in Q1 FY27)
  • Net loss: ₹88 crore, down 88% from ₹733 crore in Q1 FY27
  • Overall pre-tax loss: ₹76 crore, narrowed by 89% QoQ from ₹720 crore

Segment Performance

Manufacturing Segment (H1 FY27):

  • Revenue: ₹4,448 crore, up 20% YoY
  • Gross profit: ₹1,092 crore, up 41% YoY
  • Gross margin: 24.5% (vs 20.9% in H1 FY26)
  • Segment EBITDA: ₹336 crore, up 37% YoY from ₹245 crore

Manufacturing Segment (Q2 FY27):

  • Revenue growth: 34% QoQ
  • Segment EBITDA: ₹211 crore, up 69% QoQ from ₹125 crore

Sub-segment Performance (H1 FY27):

  • Energy revenue: ₹2,836 crore, up 23% YoY
  • Precision revenue: ₹980 crore, up 34% YoY

Order Book and Business Development

  • Manufacturing order book: ₹14,595 crore, up 67% YoY and at all-time high
  • New orders in H1 FY27: ₹7,760 crore, up 48% YoY
  • New orders in Q2 FY27: ₹4,613 crore, up 44% YoY
  • Precision order book: ₹2,698 crore, up 80% since March 2026
  • Order conversion timeline: Typically converts to revenue over about two years
  • Repeat customer contribution: 83% of H1 FY27 revenue

Order Book Composition: The order book includes diverse products across multiple sectors:

  • Avionics and electronics for defence PSUs in India
  • Power and distribution transformers for power plants in US and India
  • Supercritical boiler components for thermal power plants
  • Wind turbine components
  • Motherboards and PCBAs for consumer electronics companies
  • Solar trackers for US customers
  • Cables and conductors for grid operators
  • Transformer components
  • Solar modules
  • Oil and gas machinery
  • Process plant equipment
  • Precision parts for EV, automotive and aerospace customers

Margin Drivers and Business Strategy

Margin expansion was driven by:

  • Better product mix with design-led products (ODM)
  • Higher share of international customers
  • Increased in-house manufacturing
  • Higher-margin categories

Business Segments and Operations

Zetwerk operates two reportable business segments:

1. Manufacturing Business: Enables customers to manufacture industrial and consumer products through supplier network and own facilities

2. Ecosystem Business (Terra91): Aggregates and sources industrial commodities for customers

Discontinued Segment: Civil Infrastructure Works was discontinued in FY26 as part of strategic realignment to focus on core segments.

Operational Network:

  • 6,979 third-party suppliers across 26 countries
  • 26 owned manufacturing facilities across India, US, Spain, and Germany
  • Serves utilities, renewables, consumer electronics, AI infrastructure, aerospace, space & defence, oil & gas, and industrial automation

Customer Base: Includes eight Sensex companies, 16 Nifty 50 companies, and 102 of India's Fortune 500 companies.

Management Commentary

Amrit Acharya, Co-founder and CEO, stated: "Our first half shows what we have been building towards. Gross profit grew faster than revenue driven by design-led products (ODM), international customers, in-house manufacturing and higher-margin categories. Our manufacturing order book is at an all-time high of Rs 14,595 cr, and repeat customers contributed 83% of first-half revenue. Our ambition is to make manufacturing boringly predictable, and we want to bring that same consistency to our shareholders."

Financial Metrics Definition

  • Adjusted EBITDA: EBITDA adjusted for share-based payment expenses (non-cash expenses)
  • Adjusted PBT: Profit before tax adjusted for share-based payment expenses

Key Financial Metrics Table

| Metric | H1 FY27 | H1 FY26 | Growth | Q2 FY27 | Q1 FY27 | Growth |

| Revenue (₹ cr) | 8,717 | - | 33% YoY | 4,599 | - | 12% QoQ |

| Gross Profit (₹ cr) | 1,187 | - | 42% YoY | - | - | - |

| Gross Margin | 13.6% | 12.8% | 80 bps | - | - | - |

| Adjusted EBITDA (₹ cr) | 274 | - | 69% YoY | 171 | - | 66% QoQ |

| Adjusted EBITDA Margin | 3.1% | 2.5% | 60 bps | - | - | - |

| Adjusted PBT (₹ cr) | 16 | (8) | Profit vs Loss | 28 | (12) | Profit vs Loss |

| Net Loss (₹ cr) | - | - | - | 88 | 733 | (88%) |

| Pre-tax Loss (₹ cr) | - | - | - | 76 | 720 | (89%) |

Note: Complete quarterly breakdown not provided for all metrics in the release