Zetwerk Manufacturing Businesses Ltd Q2 FY27 Results Analysis: Revenue Jumps 18%, Loss Widens 86%
Zetwerk Manufacturing Businesses Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 4,599.36 Cr (+18.26% YoY) and PAT growth of -43.08% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 13, 2026 |
|---|---|
| Revenue (Q2) | Rs. 4,599.36 Cr (+18.26% YoY) |
| PAT (Q2) | Rs. -88.11 Cr (-43.08% YoY) |
| EBITDA margin | 2.32% (-71 bps YoY) |
| EPS (Q2) | Rs. -0.67 |
Quarter Snapshot
Zetwerk delivered 18.26% YoY revenue growth to Rs.4,599.36 cr with both segments growing, but the continuing-ops loss to owners widened 86.48% YoY to Rs.68.54 cr on share-based payments, finance costs and an inventory build. H1 operating cash flow was negative at Rs.675.23 cr and net borrowings swung to Rs.900.52 cr, though the Rs.2,830.00 cr IPO fresh issue (listed October 23, 2026) post-dates the quarter. No prior management guidance exists to score, and the first post-listing results show a growth-with-cash-burn profile pending the discontinued Civil Infrastructure sale.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "in-line to modestly soft" on the weak July–August PMI arc, September rebound a tailwind | Rs.4,599.36 cr, +18.26% YoY / +11.69% QoQ — growth ran well ahead of the "modestly soft" hypothesis | Contradicted |
| Margins | "gross-margin pressure building through the quarter" from accelerating manufactured-products WPI | EBITDA margin 2.32% — compressed YoY (3.03%) but expanded QoQ (1.74%); Manufacturing margin up YoY (5.93% vs 5.81%); Ecosystem margin down YoY (0.98% vs 1.22%) — compression visible YoY at group level and in Ecosystem… | Partially |
| Working capital & cash | "is the loss base narrowing and is growth self-funding?" | H1 CFO (Rs.675.23) cr; inventories +46.36% vs Mar-26; total loss narrowed QoQ to (Rs.88.11) cr from (Rs.732.98) cr — negative CFO and inventory build confirm the funding watch item; loss base did narrow sequentially | Played out |
| First demand disclosure / order book / FY27 guidance | "any first-time FY27 guidance" | Not in the filing — remains open for the call | Not observable |
| US Section 301 tariff read | "its read on the 10% Section 301 duty (effective July 24, 2026)" | Not addressed in the filing — remains open for the call | Not observable |
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Key Investment Insights
Key Positives
- Revenue grew 18.26% YoY and 11.69% QoQ to Rs.4,599.36 cr
- Manufacturing segment revenue grew 14.86% YoY with margin expansion to 5.93% from 5.81%; Ecosystem revenue grew 22.76% YoY
- EBITDA rose QoQ from Rs.71.46 cr to Rs.106.84 cr; ex-SBP EBITDA margin of 3.72% expanded both QoQ (2.50%) and YoY (3.36%)
- Total loss narrowed 87.98% QoQ to (Rs.88.11) cr from (Rs.732.98) cr
- Subsidiaries contributed +Rs.50.85 cr to owners in continuing operations, a swing from (Rs.35.71) cr a year ago; 19 subsidiaries posted combined PAT of Rs.113.19 cr
- Combined segment results rose 14.55% YoY to Rs.170.95 cr
- H1 operating cash outflow improved to (Rs.675.23) cr from (Rs.1,260.47) cr in H1FY26
- Discontinued Civil Infrastructure loss narrowed to (Rs.34.29) cr from (Rs.668.85) cr in Q1
Risk Factors
- Continuing-ops loss to owners widened 86.48% YoY to (Rs.68.54) cr, driven by share-based payment expense of Rs.64.38 cr (vs Rs.12.95 cr a year ago), finance costs (+32.23% YoY) and inventory build
- EBITDA margin compressed YoY to 2.32% from 3.03%; Ecosystem margin fell to 0.98% from 1.22%
- H1 CFO was negative at (Rs.675.23) cr with FCF of (Rs.812.49) cr; inventories rose 46.36% vs March, outpacing revenue growth
- Net borrowings swung to Rs.900.52 cr from net cash of Rs.507.63 cr at March 2026
- Rs.88.61 cr Teesta Solar receivable remains under Emphasis of Matter with a ~Rs.149.00 cr counter-claim in SIAC arbitration
- Standalone revenue collapsed 72.65% YoY with a standalone continuing loss of (Rs.119.39) cr
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.