Zetwerk Manufacturing Businesses Limited – Investor Presentation Summary
Key Operational Highlights
- Revenue from Operations grew 12% QoQ to ₹4,599 Cr in Q2 FY27 and 33% YoY to ₹8,717 Cr in H1 FY27
- Gross Profit grew 39% QoQ to ₹691 Cr in Q2 FY27 and 42% YoY to ₹1,187 Cr in H1 FY27
- Adjusted EBITDA grew 66% QoQ to ₹171 Cr in Q2 FY27 and 69% YoY to ₹274 Cr in H1 FY27
- Order Backlog reached record ₹14,595 Cr, up 67% YoY, with New Orders won of ₹4,613 Cr in Q2 FY27 (46% QoQ growth)
- Repeat customers contributed 83% of H1 FY27 revenue
- Working capital days stood at 33 days in Q2 FY27 (35 days in H1 FY27)
Key drivers of operational performance: Growth in manufacturing segment revenue, expansion into higher margin products, international market penetration, and captive manufacturing model growth.
Segment-wise Performance
Manufacturing Segment:
- Revenue: ₹2,546 Cr in Q2 FY27 (34% QoQ growth), ₹4,448 Cr in H1 FY27 (20% YoY growth)
- Gross Profit: ₹649 Cr in Q2 FY27 (46% QoQ growth), ₹1,092 Cr in H1 FY27 (41% YoY growth)
- Gross Margin: 25.5% in Q2 FY27 vs 23.2% in Q1 FY27 and 22.0% in Q2 FY26
- Segment EBITDA: ₹211 Cr in Q2 FY27 (69% QoQ growth), ₹336 Cr in H1 FY27 (37% YoY growth)
- Segment EBITDA Margin: 8.3% in Q2 FY27 vs 6.6% in Q1 FY27
Ecosystem Segment (Terra91):
- Revenue: ₹2,053 Cr in Q2 FY27 (-7% QoQ), ₹4,269 Cr in H1 FY27 (50% YoY growth)
- Gross Profit: ₹41 Cr in Q2 FY27 (-24% QoQ), ₹95 Cr in H1 FY27 (53% YoY growth)
- Gross Margin: 2.0% in Q2 FY27 vs 2.4% in Q1 FY27
- Segment EBITDA: ₹20 Cr in Q2 FY27 (-34% QoQ), ₹51 Cr in H1 FY27 (141% YoY growth)
Explanation of significant changes in segment performance: Manufacturing segment growth driven by higher margin products, international expansion, and captive manufacturing model. Ecosystem segment showed strong YoY growth despite QoQ decline.
Financial Highlights
Revenue: ₹8,717 Cr (H1 FY27)
EBITDA: ₹274 Cr (Adjusted EBITDA, H1 FY27)
PAT: Not Specified
EPS: Not Specified
Margins: Gross Margin 13.6% (H1 FY27), EBITDA Margin 3.1% (H1 FY27)
YoY/QoQ comparison: Revenue grew 33% YoY in H1 FY27, Adjusted EBITDA grew 69% YoY in H1 FY27
Drivers of financial performance: Higher revenue growth, gross margin expansion through 3M approach (Mix, Market, Model), operating leverage benefits
Comparison to market estimates: Not Specified
Key Risks: Raw material price fluctuations, regulatory risks (mentioned in disclaimer)
Geographical Revenue Split
Domestic vs Export/Regional Revenue:
Manufacturing Segment - India: ₹1,409 Cr in Q2 FY27 (15% QoQ growth), International: ₹1,137 Cr in Q2 FY27 (68% QoQ growth)
Overall International contribution: 41% of manufacturing revenue in H1 FY27
Regional Breakdown: Not Specified
Balance Sheet Snapshot
Net Debt/Equity: Not Specified
Reserves: Not Specified
Current Assets/Liabilities: Not Specified
Working Capital/Leverage Metrics: Working capital days 33 days in Q2 FY27
Financial Health Insights: Operating cash flow improved by 46% YoY in H1 FY27, cash position ₹2,551 Cr as of Q2 FY27
Capex & Cash Flow Health
Capital Expenditure: ₹71 Cr in Q2 FY27, ₹135 Cr in H1 FY27
Free Cash Flow: Not Specified
Operating Cash Flow: ₹-169 Cr in Q2 FY27 (67% improvement QoQ), ₹-675 Cr in H1 FY27 (46% improvement YoY)
Net Debt Movement: Not Specified
Investment Rationale: Focus on capacity expansion through network partners and captive facilities, technology upgrades including AI integration
Strategic & R&D Initiatives
Investments in Innovation: Zeus AI Agent Platform with 12 self-serve applications shipped, ZetSpec AI-powered tender intelligence, ZHIP supply chain tracking platform
Expected impact on growth: AI tools reduced BOM generation time from 3-4 days to 10 minutes, accelerating bidding velocity
Strategic Rationale: Expanding into high-growth markets (Space, Robotics), enhancing ODM-based value proposition, embedding AI throughout business operations
Industry Trends & Business Environment
Macro/Industry Trends: Energy transition, defense localization, AI build out, space exploration, US industrialization
Impact on Company: Growing demand in Precision (Aerospace, Defense & Space) and Energy (transformers/grid products) segments, international expansion opportunities
Management Commentary & Growth Outlook
Strategic Outlook: Focus on making manufacturing 'boringly predictable' through technology and engineering excellence
FY Guidance: Historically H2 > H1; in FY26 H1 was 41% of full-year revenue and 38% of full-year adjusted EBITDA. Similar trends expected in H2 FY27
Market Share Targets: Not Specified
Risks and Opportunities: Diversification across end markets to be counter-cyclical, supply constraints due to growing order backlog