Zetwerk reports Rs 88.11 cr loss as interest exceeds operating profit
Manufacturing gross margin improved to 25.5%, but interest and depreciation pushed consolidated profit before tax to a loss.
Filed 13 Nov 2026, 20:59 IST · after market close · ZETWERK (ZETWERK)
Key takeaways
- Zetwerk posted a consolidated net loss of Rs 88.11 cr as interest of Rs 132.42 cr exceeded operating profit of Rs 106.84 cr.
- Manufacturing gross margin improved to 25.5% in Q2 FY27 from 23.2% in Q1 FY27 and 22.0% in Q2 FY26.
- Manufacturing order backlog reached an all-time high of Rs 14,595 cr, up +67.00% YoY on +44.00% growth in new orders.
Interest and depreciation erased operating profit
Zetwerk’s consolidated operating profit of Rs 106.84 cr did not cover interest of Rs 132.42 cr and depreciation of Rs 64.55 cr. Other income of Rs 48.25 cr was not enough to prevent a profit-before-tax loss of Rs 41.88 cr. The Rs 11.95 cr tax charge against that loss produced a negative tax rate of -28.52%, so the tax line did not improve earnings quality.
Gross-margin progress has not yet reached the consolidated P&L
Management said manufacturing gross margin rose to 25.5% in Q2 FY27 from 23.2% in Q1 FY27 and 22.0% in Q2 FY26, indicating improvement in the manufacturing mix or economics even as consolidated operating margin was 2.32%. The company said US litigation expenses were about Rs 32 cr in H1 and were settled in September 2026. Management also reported operating cash flow of -Rs 97 cr on a TTM basis despite year-on-year improvement.
Backlog reached a record as Precision becomes the stated growth focus
Manufacturing backlog reached Rs 14,595 cr, with management attributing its +67.00% YoY growth to +44.00% growth in new orders in Q2 FY27; new orders won were Rs 4,613 cr. Management said Precision is expected to drive manufacturing growth going forward and that similar revenue and EBITDA seasonality trends are expected in H2 FY27. The company also said it is building a Universal Factory that combines engineering and a digital stack across thousands of suppliers and 25+ owned facilities.
Results were filed after market close
The consolidated results were filed at 20:59 IST on 13 November 2026, after market close. There is no post-results price move to assess yet.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹4,599 cr |
| Other income | ₹48 cr |
| Expenses | ₹4,493 cr |
| Operating profit | ₹107 cr |
| Operating margin (%) | 2.32% |
| Interest | ₹132 cr |
| Depreciation | ₹65 cr |
| Profit before tax | ₹-42 cr |
| Tax | ₹12 cr |
| Net profit | ₹-88 cr |
| EPS (₹) | ₹-0.67 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Manufacturing gross margin increased to 25.5% in Q2 FY27 from 23.2% in Q1 FY27 and 22.0% in Q2 FY26.
- Manufacturing order backlog reached an all-time high of Rs 14,595 crore in Q2 FY27.
Guidance & outlook
- The company expects Precision to drive manufacturing growth going forward.
- The company aims to maximize gross profit percentage on a TTM basis in the near term.
- The company expects similar revenue and EBITDA seasonality trends in H2 FY27.
New orders
- Manufacturing order backlog grew 67% year on year, driven by 44% growth in new orders in Q2 FY27.
- Manufacturing new orders won amounted to Rs 4,613 crore in Q2 FY27.
New initiatives
- Zetwerk is building a Universal Factory by combining engineering with a digital stack across suppliers and owned facilities.
- The company is developing AI tools such as Zeus as part of its technology capabilities.
Problems & risks
- The company says its end markets can be cyclical, with Oil & Gas indexed to crude prices.
- US litigation expenses amounted to approximately Rs 32 crore in H1 and were settled in September 2026.
- Operating cash flow remained negative at Rs 97 crore on a TTM basis despite year-on-year improvement.
What to watch
- Whether consolidated operating margin improves from 2.32%.
- Whether operating profit of Rs 106.84 cr can cover interest of Rs 132.42 cr and depreciation of Rs 64.55 cr.
- Whether manufacturing gross margin holds above 25.5% while TTM operating cash flow improves from -Rs 97 cr.