Zetwerk, a Bengaluru-based B2B manufacturing and supply chain platform, reported an 11% decline in gross merchandise value (GMV) in FY25 and a net loss of ₹371 crore, reflecting weaker industrial and infrastructure demand. The company narrowed losses sharply through cost controls and a strategic shift toward higher‑margin manufacturing services.
Revenue and demand trends
Consolidated revenue for FY25 fell to ₹12,798 crore from ₹14,443 crore a year earlier as project execution slowed and enterprise spending remained cautious. Volatility in global supply chains also affected large procurement and construction contracts, contributing to the softer top line.
The trading segment, historically Zetwerk’s largest revenue contributor, saw a marked decline as customers deferred bulk purchases and reduced inventories. Construction and project-led orders moderated amid slower capital expenditure cycles.
Manufacturing services drive change
Manufacturing services delivered strong double‑digit growth, driven by demand in renewables, heavy engineering and industrial components. Management has emphasised a strategic shift from low‑margin trading to end‑to‑end, customised manufacturing and export‑oriented production, which has improved the company’s revenue mix despite a temporary impact on overall scale.
Cost discipline and margin improvement
Zetwerk reduced total expenses by about 12% year‑on‑year through tighter material sourcing and streamlined procurement. Material costs, the largest expense item, were cut substantially, while employee costs rose modestly as the firm invested in engineering, category management and technology talent to support future growth.
Subcontracting and execution‑related operating expenses increased selectively in line with manufacturing contracts. Finance costs remained broadly unchanged. These measures helped the company shrink its net loss by nearly 60% from FY24 levels.
Operational progress and cash position
The company reported a positive EBITDA of ₹145 crore in FY25, with an EBITDA margin just over 1%, indicating early signs of operating leverage as volumes stabilise and pricing discipline improves. While margins remain thin, the positive EBITDA signals movement toward operational sustainability.
Zetwerk closed the year with strong liquidity: cash and bank balances rose to ₹1,908 crore, bolstering working capital for large manufacturing engagements and providing a buffer against near‑term demand volatility.
Outlook and IPO preparation
Management continues to prepare for a potential initial public offering in the medium term, focusing on profitability, cash efficiency and stronger financial reporting to meet public market expectations. Backed by substantial investor funding, the company remains optimistic about long‑term opportunities tied to India’s manufacturing push.
Strategic positioning
FY25 was a consolidation year for Zetwerk. Although GMV and revenue contracted, the sharp reduction in losses, positive EBITDA and a rising share of manufacturing services suggest the company is recalibrating toward a more resilient, higher‑margin business model aligned with the country’s industrial growth ambitions.
