Zetwerk’s Q2 Loss Jumps 43% YoY To ₹88 Cr, Revenue Up 18%

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Zetwerk’s consolidated net loss jumped 43.2% YoY to ₹88.1 Cr from ₹61.6 Cr in Q2 FY26, but narrowed by 88% QoQ from ₹733 Cr in Q1 FY27
Operating revenue grew 18.3% YoY and 11.7% QoQ to ₹4,599.4 Cr
The company incurred ₹34.3 Cr in losses from discontinued operations
Zetwerk’s consolidated net loss widened 43.2% YoY to ₹88.1 Cr in the September quarter (Q2 FY27) from ₹61.6 Cr in the year-ago period. However, on a sequential basis, its net loss narrowed sharply by 88% from ₹733 Cr in the previous quarter.
The company’s net loss from continuing operations increased 161% YoY to ₹53.8 Cr, while its loss from discontinued operations declined 16% to ₹34.3 Cr.
Operating revenue grew 18.3% YoY to ₹4,599.4 Cr from ₹3,889.3 Cr in Q2 FY26. It also increased 11.7% QoQ from ₹4,117.9 Cr. Including other income of ₹53.3 Cr, total income stood at ₹4,652.7 Cr.
Zetwerk also recorded net exceptional gains of ₹1.3 Cr from continuing operations during the quarter.
Meanwhile, total expenses increased 19.6% YoY to ₹4,689.5 Cr from ₹3,919.6 Cr. On a sequential basis, expenses rose 10.6% QoQ. The company also incurred ₹11.9 Cr in tax expenses from continuing operations.
Factoring in other comprehensive loss of ₹2.9 Cr, Zetwerk reported a total comprehensive loss of ₹91 Cr for the quarter.
Despite the higher net loss, the company’s adjusted EBITDA improved 31% YoY to ₹171 Cr from ₹131 Cr in Q2 FY26. It also increased 66% QoQ from ₹103 Cr in the previous quarter.
“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,” said Zetwerk cofounder and CEO Amrit Acharya.
Diving Deeper Into Zetwerk’s Business
Zetwerk operates through two business verticals: manufacturing, which focuses on custom-made industrial products and related projects, and its ecosystem business, which supplies industrial raw materials under the Terra91 brand.
The company discontinued its civil infrastructure works business in FY26 as part of its strategy to sharpen its focus on core operations.
Its manufacturing business emerged as the stronger growth driver in Q2 FY27. Revenue from the segment grew 15% YoY and 34% QoQ to ₹2,546 Cr, while gross margins expanded to 25.5%.
Segment EBITDA grew faster than revenue, rising 22% YoY and 69% QoQ to ₹211 Cr.
Zetwerk attributed the segment’s performance to its increasing focus on higher-margin categories such as aerospace and defence, a larger share of business from international markets, particularly the US and Europe, and greater in-house manufacturing instead of relying on third-party manufacturers.
The company also expects its precision vertical, comprising electronics, mechanicals, aerospace and defence, to drive growth going forward. This marks a shift from the previous fiscal, when its energy vertical, which includes solar modules and cells, transformers, wires and cables, was the primary demand driver.
Meanwhile, revenue from Zetwerk’s ecosystem business grew 22.8% YoY to ₹2,053 Cr, but declined 7% sequentially. Segment EBITDA remained largely flat at ₹20 Cr compared with ₹21 Cr in Q2 FY26, but fell more than a third from ₹31 Cr in Q1 FY27.
Looking ahead, Zetwerk said its near-term priorities include maximising gross margins, expanding capacity to address supply constraints, and increasing its wallet share and distribution.
Over the medium term, the company plans to expand its addressable market by entering new industries, transitioning into an AI-native organisation and increasing the contribution of its original design manufacturing (ODM) products.
Shares of Zetwerk ended today’s trading session 0.49% higher at ₹184.95 apiece on the BSE.

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