Zetwerk Manufacturing Businesses Limited has announced its financial results for the half-year ended September 30, 2026. The company reported a 33% year-on-year growth in revenue to ₹8,717 crore for H1 FY27. Adjusted EBITDA saw a significant surge of 69% year-on-year, reaching ₹274 crore, driven by operating leverage and improved gross margins. The manufacturing segment also showcased strong performance with a 34% QoQ revenue growth and an expanded gross margin of 25.5%.
Zetwerk Posts Robust Financial Performance in H1 FY27
Zetwerk Manufacturing Businesses Limited disclosed its financial results for the half-year ended September 30, 2026, highlighting substantial growth across key metrics. The company achieved a revenue of ₹8,717 crore in H1 FY27, marking a significant 33% year-on-year increase. This growth was underpinned by strong performance in the manufacturing segment, which saw revenue grow 20% year-on-year in H1 FY27.
EBITDA and Margin Expansion
A key highlight of the results is the impressive growth in Adjusted EBITDA, which rose by 69% year-on-year to ₹274 crore for H1 FY27. This substantial increase was attributed to operating leverage and a consistent expansion in gross profit margins. The company’s gross profit grew 42% year-on-year in H1 FY27, leading to an expansion of gross margin to 13.6%, up from 12.8% in H1 FY26. This strategic focus aims to increase revenue from higher-margin products.
Manufacturing Segment Performance
The manufacturing segment demonstrated strong momentum, with revenue growing 34% quarter-on-quarter and 20% year-on-year in H1 FY27. Gross margins within this segment expanded to 25.5% in Q2 FY27, up from 23.2% in Q1 FY27 and 22.0% in Q2 FY26. Segment EBITDA in manufacturing grew by 37% year-on-year in H1 FY27, driven by operating leverage and improved gross margins. The order backlog for the manufacturing segment reached an all-time high of ₹14,595 crore.
Ecosystem Segment Growth
The Ecosystem segment also contributed positively, with revenue growing 50% year-on-year in H1 FY27 to ₹4,269 crore. Segment EBITDA for this segment surged by 141% year-on-year, indicating improved operational efficiency and profitability. The segment served 631 unique customers in H1 FY27, with repeat customers driving 82% of the revenue.
Strategic Outlook and Future Initiatives
Looking ahead, Zetwerk is focused on maximizing gross margins through increased exposure to international customers and captive fulfillment. The company plans to improve capacity to address its supply-constrained business model and strengthen its distribution network by engaging with more F500 customers. Medium-term strategies include maximizing surface area by exploring new industries like Space & Robotics and enhancing its ODM value proposition by strengthening its engineering capabilities. Zetwerk also aims to embed AI throughout its business, transitioning from a digitally native to an AI-native company.
Operational Highlights
The company reported that 80%+ of its revenue is from repeat customers, providing significant revenue coverage of 3.2 years as of H1 FY27. This sticky and long-tenured customer base contributes to future predictability. Operating Cash Flow saw an improvement, increasing by 46% year-on-year in H1 FY27.
Source: BSE
