B2B manufacturing and construction marketplace Zetwerk reported a decline in scale in the financial year ended March 2025, even as the company significantly narrowed its losses a key milestone as it moves closer to a potential public listing.
According to its consolidated financial statements sourced from the Registrar of Companies (RoC), Zetwerk’s gross revenue declined 11% year-on-year to ₹12,798 crore in FY25, compared with ₹14,443 crore in FY24. Including non-operating income, the company’s total income stood at ₹12,981 crore, down from ₹14,612 crore a year earlier.
Segment-Wise Performance
Zetwerk derives revenue from trading, manufacturing services, and construction and project contracts.
- Trading revenue, which contributed nearly 58% of total income, fell 20% to ₹7,706 crore in FY25
- Manufacturing services emerged as a bright spot, growing 33.5% to ₹2,682 crore
- Construction and project contracts revenue declined 19% to ₹2,242 crore
- Other income stood at ₹535 crore
The numbers indicate a gradual shift in mix, with manufacturing services gaining traction even as trading and project-led revenues softened amid lower GMV.
Cost Control Drives Loss Reduction
Zetwerk made meaningful progress on cost optimisation during the year. Cost of materials, which accounted for over 85% of total expenses, declined 17% to ₹11,232 crore from ₹13,467 crore in FY24, in line with lower procurement volumes.
However, fixed and semi-variable costs continued to rise:
- Employee benefit expenses increased 12% to ₹517 crore
- Subcontracting expenses rose 16% to ₹250 crore
- Finance costs remained largely flat at ₹450 crore
- Other expenses totalled ₹670 crore
Overall, total expenses fell 12% to ₹13,196 crore, improving the expense-to-revenue ratio marginally to 1.03 from 1.04.
EBITDA Turns Positive; Losses Narrow Sharply
Despite lower revenue, Zetwerk reduced its net loss by nearly 60% to ₹371 crore in FY25, compared with ₹918 crore in FY24. The improvement was driven by lower procurement costs and a sharp reduction in exceptional items.
Importantly, the company reported a positive EBITDA of ₹145 crore, with its EBITDA margin improving to 1.13%, while ROCE improved to -0.68%.
Strong Cash Position Ahead of IPO
On the balance sheet, Zetwerk’s cash and bank balances rose sharply to ₹1,908 crore, up from ₹1,150 crore in FY24. The company reported current assets worth ₹7,840 crore, strengthening its liquidity position ahead of a potential listing.
IPO Watch
Zetwerk has raised $889 million to date from investors including Greenoaks, Peak XV Partners, Lightspeed Venture Partners, and Accel. In April last year, the company indicated plans to go public within 12–24 months.
The unicorn is now expected to confidentially file its draft red herring prospectus (DRHP) this year for a proposed $750 million IPO, which could rank among the largest manufacturing-led public offerings in India.
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