Zetwerk FY26 revenue rose 40%, while consolidated loss widened

Zetwerk reported FY26 revenue from continuing operations of Rs 15,913.32 crore, up 40.4% from FY25, but its consolidated loss widened to Rs 1,606.17 crore from Rs 370.71 crore. A smaller loss before exceptional items in continuing operations was outweighed by Rs 835.84 crore of continuing-operation exceptional items and a Rs 641.78 crore discontinued-operation loss.

How did Zetwerk FY26 revenue growth compare with its loss?

Zetwerk’s FY26 revenue growth did not result in a consolidated profit because expenses rose with income and material losses arose outside ordinary continuing operations. Revenue from continuing operations increased by Rs 4,581.46 crore to Rs 15,913.32 crore in the year ended March 31, 2026, from Rs 11,331.86 crore in FY25. Revenue had been Rs 12,364.37 crore in FY24, so FY26 also exceeded the FY24 level by Rs 3,548.95 crore.

Total income from continuing operations reached Rs 16,100.63 crore in FY26, including other income of Rs 187.31 crore, compared with total income of Rs 11,492.23 crore in FY25. Total continuing-operation expenses rose 39.7% to Rs 16,141.73 crore from Rs 11,552.03 crore. Purchases of stock-in-trade were the largest expense, rising to Rs 9,879.75 crore from Rs 6,800.34 crore, while materials consumed increased to Rs 3,963.67 crore from Rs 3,035.75 crore.

The comparison shows that revenue rose while the difference between continuing-operation income and expenses remained negative. For FY26 revenue growth to produce profitability, the operating cost base, finance costs and losses from businesses outside continuing operations would need to remain below the growth in income. The supplied financial summary reports the results as restated consolidated financial information.

Was Zetwerk’s continuing business closer to profitability?

Zetwerk’s continuing operations were closer to break-even before exceptional items and tax in FY26 than in FY25. The restated loss before exceptional items and tax from continuing operations narrowed to Rs 80.60 crore in FY26 from Rs 121.00 crore in FY25 and Rs 426.63 crore in FY24. Before the share of losses of joint ventures and associates, the continuing-operation loss narrowed to Rs 41.10 crore from Rs 59.80 crore.

The lower pre-exceptional loss was recorded despite higher recurring charges in several categories. Finance costs increased to Rs 366.22 crore in FY26 from Rs 336.87 crore in FY25, depreciation and amortisation rose to Rs 196.69 crore from Rs 161.01 crore, and employee-benefit expense increased to Rs 643.77 crore from Rs 477.33 crore. The share of loss from joint ventures and associates declined to Rs 39.51 crore from Rs 61.20 crore, reducing the loss before exceptional items.

However, Zetwerk’s loss from continuing operations after tax widened to Rs 964.39 crore in FY26 from Rs 215.07 crore in FY25. Net exceptional items in continuing operations increased to Rs 835.84 crore from Rs 83.55 crore. Current tax expense also rose to Rs 60.72 crore from Rs 7.92 crore, while deferred tax was a credit of Rs 12.77 crore in FY26 compared with a Rs 25.99 crore charge in FY25.

Which items drove Zetwerk’s consolidated loss?

Zetwerk’s FY26 consolidated loss was driven mainly by exceptional items and discontinued operations rather than by the Rs 80.60 crore continuing-operation loss before exceptional items and tax. Continuing operations recorded Rs 835.84 crore of net exceptional items, while discontinued operations recorded Rs 453.00 crore of exceptional items. The combined Rs 1,288.84 crore represented about 80% of the Rs 1,606.17 crore consolidated loss.

Discontinued operations reported a loss of Rs 641.78 crore in FY26, compared with Rs 155.64 crore in FY25 and Rs 65.42 crore in FY24. The FY26 discontinued-operation result included the Rs 453.00 crore exceptional item and a Rs 188.78 crore loss before exceptional items and tax. This distinction matters because Zetwerk’s Rs 15,913.32 crore revenue figure covers continuing operations, whereas the Rs 1,606.17 crore reported loss includes both continuing and discontinued operations.

The cash-flow reconciliation lists several FY26 adjustments relevant to the reported results, although it does not allocate them individually to exceptional-item lines in the statement of profit and loss. These included Rs 796.40 crore for the fair value of an increase in diluted holding to certain shareholders, Rs 416.00 crore of provision for unbilled revenue written off, Rs 62.26 crore of impairment of investment in a joint venture and Rs 37.00 crore of retrenchment costs. Those adjustments therefore cannot be treated as a complete exceptional-item breakdown.

Why did Zetwerk’s operating cash flow remain negative?

Zetwerk used Rs 681.53 crore in operating activities in FY26, extending operating cash outflows from Rs 386.29 crore in FY25 and Rs 281.54 crore in FY24. Operating profit before working-capital changes increased to Rs 477.74 crore in FY26 from Rs 403.73 crore in FY25. Working capital means the short-term operating assets and liabilities, including inventories, receivables, payables and acceptances, that affect the timing of cash collection and payment.

In FY26, trade receivables created a Rs 336.12 crore cash outflow and other financial assets and other current assets absorbed Rs 714.97 crore. A Rs 319.07 crore fall in acceptances, which are bank-backed payment obligations, and a Rs 76.57 crore decline in other financial and current liabilities also reduced operating cash. Those movements partly offset Rs 147.55 crore of cash released from inventories and Rs 178.38 crore generated by an increase in trade payables.

Zetwerk generated Rs 1,789.31 crore from financing activities in FY26, compared with Rs 150.64 crore in FY25. FY26 financing cash flows included Rs 1,408.40 crore of proceeds from term loans and debentures, Rs 611.97 crore from the issue of equity shares and compulsory convertible preference shares, and Rs 500.00 crore of share application money for compulsory convertible preference share capital. Investing activities used Rs 394.13 crore in FY26, including Rs 647.52 crore for acquisitions of subsidiaries and Rs 284.90 crore for property, plant, equipment and intangible assets.

Conclusion

Zetwerk’s FY26 results separate top-line expansion from reported profitability. Revenue from continuing operations rose by Rs 4,581.46 crore and the pre-exceptional continuing-operation loss narrowed by Rs 40.40 crore, but Rs 1,288.84 crore of exceptional items across continuing and discontinued operations, together with the wider discontinued-operation loss, produced a Rs 1,606.17 crore consolidated loss.

The next reported period will show whether Zetwerk can sustain the lower continuing-operation loss before exceptional items while reducing the operating cash outflow of Rs 681.53 crore recorded in FY26. The supplied summary does not disclose a timetable for resolving discontinued-operation losses or a forward profitability plan, leaving the recurrence and scale of future exceptional charges unresolved.