Indian B2B manufacturing and supply chain platform Zetwerk witnessed a challenging financial year in FY25, reporting an 11% decline in gross merchandise value (GMV) along with a net loss of ₹371 crore. The performance reflects a broader slowdown across industrial and infrastructure-led demand, even as the company sharpened its focus on operational efficiency and margin improvement.
Despite the softer top-line, Zetwerk managed to significantly narrow its losses compared to the previous financial year, signalling improved cost discipline during a phase of market correction.
Revenue Declines Amid Weak Demand Environment
For FY25, Zetwerk’s consolidated revenue declined to ₹12,798 crore from ₹14,443 crore in FY24. The dip was primarily driven by slower project execution, cautious enterprise spending, and volatility in global supply chains that impacted large-scale manufacturing and procurement orders.
Trading, the company’s largest revenue contributor, remained under pressure throughout the year. Revenue from this segment declined sharply as customers deferred bulk purchases and optimised inventories. Construction and project-led contracts also saw moderation, reflecting slower momentum in capital expenditure cycles.
However, manufacturing services emerged as a key bright spot during the year. This segment recorded strong double-digit growth, underlining Zetwerk’s strategic shift towards higher-value, customised manufacturing and long-term enterprise engagements.
Manufacturing Services Show Strong Momentum
While overall revenue slipped, Zetwerk’s manufacturing services vertical continued to gain traction. Growth in this segment was driven by demand from sectors such as renewables, heavy engineering, and industrial components. The company has been increasingly positioning itself as more than a trading platform, focusing instead on end-to-end manufacturing solutions and export-oriented production.
This shift has helped Zetwerk gradually improve its revenue mix and reduce dependence on low-margin trading volumes, even though the transition temporarily impacted overall scale.
Cost Controls Help Cut Losses Sharply
One of the most notable aspects of Zetwerk’s FY25 performance was its improved cost structure. Total expenses declined by about 12% year-on-year as the company optimised material sourcing and streamlined procurement processes.
Material costs, which form the bulk of overall expenditure, were significantly reduced. At the same time, employee-related expenses increased moderately as the company continued to invest in engineering, category management, and technology talent to support long-term growth.
Subcontracting and operational expenses rose selectively, aligned with execution-focused manufacturing contracts. Finance costs remained largely stable during the year.
These measures helped Zetwerk reduce its net loss by nearly 60% compared to FY24, when the company had reported losses nearing ₹1,000 crore.
Positive EBITDA Signals Operational Improvement
In a key milestone, Zetwerk reported a positive EBITDA of ₹145 crore in FY25, marking a shift towards operational sustainability. While margins remain thin, the positive EBITDA highlights better pricing discipline, cost optimisation, and a growing contribution from manufacturing-led revenues.
The company’s EBITDA margin improved to just over 1%, indicating early signs of operating leverage as volumes stabilise.
Strong Cash Reserves Support Long-Term Plans
Zetwerk ended FY25 with a healthy liquidity position. Cash and bank balances rose sharply to ₹1,908 crore, providing the company with financial flexibility to manage short-term volatility and invest in growth initiatives. Current assets also strengthened significantly, supporting working capital requirements for large manufacturing contracts.
This robust balance sheet acts as a buffer as the company navigates a cautious demand environment.
IPO Plans Remain on Track
Despite near-term challenges, Zetwerk continues to work towards a potential initial public offering over the medium term. The company is reportedly preparing its internal processes and financial metrics to align with public market expectations, with profitability and cash efficiency expected to be key focus areas going forward.
Zetwerk has raised substantial capital from global investors over the years, and management remains optimistic about long-term opportunities in India’s manufacturing-led growth story.
Cautious Yet Strategic
FY25 marked a year of consolidation for Zetwerk. While GMV and revenue declined, the sharp reduction in losses, positive EBITDA, and improving business mix suggest the company is recalibrating for 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.