Zetwerk posted an 11% decline in gross merchandise value (GMV) and a net loss of ₹371 crore in FY25, reflecting a softer industrial and infrastructure demand environment. The B2B manufacturing and supply chain platform narrowed losses sharply from the prior year while tightening costs and shifting toward higher‑margin manufacturing services.
Revenue pressure amid cautious enterprise spending
Consolidated revenue fell to ₹12,798 crore in FY25 from ₹14,443 crore a year earlier, driven by slower project execution, muted capital expenditure and volatility in global supply chains. These factors hit large procurement orders and disrupted the cadence of deliveries across key industrial segments.
The trading business, historically Zetwerk’s largest revenue contributor, faced significant headwinds as customers deferred bulk purchases and ran down inventories. Construction and project-led contracts also moderated in line with a wider slowdown in capex cycles.
Manufacturing services emerge as growth engine
Despite the top‑line contraction, Zetwerk’s manufacturing services delivered robust double‑digit growth, supported by demand in renewables, heavy engineering and industrial components. The company has been transitioning from a trading‑led marketplace to an end‑to‑end manufacturing and export‑oriented services provider, aiming for deeper, long‑term enterprise engagements.
This strategic shift is improving the company’s revenue mix and reducing reliance on low‑margin trading volumes, although the transition has temporarily constrained overall scale.
Cost controls and improved profitability metrics
Total expenses were cut by about 12% year‑on‑year as Zetwerk optimised material sourcing and procurement processes. Material costs, which account for the bulk of expenditures, were meaningfully reduced.
Employee costs rose modestly as the company continued to invest in engineering, category management and technology talent to support higher‑value manufacturing contracts. Subcontracting and other operational expenses increased selectively in line with execution requirements, while finance costs remained largely stable.
These measures helped pare the net loss by nearly 60% from FY24 levels, when losses had approached ₹1,000 crore.
Positive EBITDA and signs of operating leverage
Zetwerk reported a positive EBITDA of ₹145 crore in FY25, an important inflection toward operational sustainability. EBITDA margin improved to just over 1%, signalling early operating leverage as volumes stabilise and pricing discipline strengthens.
Strong liquidity to support strategic priorities
The company ended the year with cash and bank balances of ₹1,908 crore, bolstering its ability to manage short‑term volatility and underwrite growth initiatives. Strengthened current assets also support working capital needs for large manufacturing contracts, giving Zetwerk flexibility as demand conditions remain uncertain.
IPO preparations and long‑term outlook
Management continues to prepare for a potential initial public offering over the medium term, focusing on improving profitability metrics, cash efficiency and governance to meet public market expectations. Backed by significant capital from global investors, Zetwerk remains confident in long‑term opportunities presented by India’s manufacturing push.
Strategic recalibration during consolidation
FY25 was a year of consolidation: GMV and revenue contracted, but the company’s sharp loss reduction, positive EBITDA and improving business mix indicate a deliberate recalibration toward sustainable growth. As industrial demand gradually recovers and manufacturing services scale further, Zetwerk aims to strengthen margins and build a more resilient business model aligned with India’s manufacturing ambitions.
