Zetwerk earns from manufacturing sales and Terra91 sourcing

Zetwerk earns from the sale of manufactured products through third-party suppliers and owned facilities, while its Terra91 business directly sells industrial commodities. In Fiscal 2026, Manufacturing Business segment revenue was Rs 9,374.68 crore and Terra91 segment revenue was Rs 6,538.65 crore, together accounting for continuing-operations revenue of Rs 15,913.32 crore.

How does Zetwerk earn from manufacturing sales and Terra91 sourcing?

Zetwerk recognises Manufacturing Business revenue when products are physically manufactured and delivered after it receives customer orders. The segment supplies industrial and consumer goods through a combination of third-party suppliers and its own manufacturing facilities, rather than operating solely as a fee-based order intermediary. Its three product verticals are Energy Products, Precision Products and Capital Goods.

Terra91 is Zetwerk’s Ecosystem Business, which directly sells industrial commodities and raw materials to customers, including Manufacturing Business customers and suppliers. Terra91 sells ferrous and non-ferrous metals and petrochemicals, including aluminium, zinc, steel, copper and lead. In Fiscal 2026, Terra91 served 828 customers and sourced materials from 562 suppliers, showing that the commodity activity is separately operated but linked to the broader supplier network.

Manufacturing Business revenue increased by Rs 3,292.83 crore between Fiscal 2024 and Fiscal 2026, while Terra91 revenue increased by Rs 256.13 crore. Manufacturing represented 58.91% of Zetwerk’s Fiscal 2026 revenue from continuing operations. The segment figures are disclosed under Indian Accounting Standard 108, or Ind AS 108, which governs operating-segment reporting.

Why is Zetwerk’s manufacturing model hybrid rather than purely asset-light?

Zetwerk’s model is hybrid because third-party suppliers remain the main production base but owned facilities provide a material share of manufacturing revenue. In Fiscal 2026, third-party suppliers generated Rs 6,264.63 crore, or 66.83%, of Manufacturing Business segment revenue, while Zetwerk’s own facilities generated Rs 3,110.05 crore, or 33.17%. The owned-facility share rose from 28.82% in Fiscal 2025.

The supplier-led structure remains central to the model. Zetwerk transacted with 6,979 third-party suppliers in Fiscal 2026, compared with 6,088 in Fiscal 2024, and had 26 owned facilities across four countries as of June 30, 2026. The facilities principally perform assembly and finishing for components sourced mainly from suppliers, although Zetwerk also uses them for large, complex or multi-year programmes that require more control over production and quality.

Zetwerk OS is the company’s proprietary technology layer for supplier selection, digital production recipes, project management, quality control and logistics. The system can divide one order between several suppliers and owned sites for parallel production. The average Manufacturing Business order was allocated to seven suppliers in Fiscal 2026, compared with six in Fiscal 2025 and three in Fiscal 2024, making supplier coordination a key operating requirement for the model.

Which products and demand types drive Zetwerk’s manufacturing revenue?

Energy Products were Zetwerk’s largest Manufacturing Business vertical in Fiscal 2026, producing Rs 6,507.57 crore of revenue. Precision Products generated Rs 1,397.19 crore and Capital Goods generated Rs 1,464.40 crore, while other operating revenue brought the reported Manufacturing Business segment total to Rs 9,374.68 crore. Energy offerings include transformers, solar trackers and wind assemblies, while Precision Products include electronics and engineered components.

The product mix combines capital-expenditure, or capex, projects with recurring components bought for customers’ operating requirements. Precision Products consist wholly of recurring components, Energy Products include both recurring and one-time products, and Capital Goods are entirely capex-related. Recurring components represented 50.85% of Manufacturing Business gross merchandise value, or GMV, in Fiscal 2026, compared with 49.85% in Fiscal 2024; GMV is the value of products sold through the business.

The recurring share rose more sharply in the quarterly comparison, reaching 71.20% of Manufacturing Business GMV in the three months ended June 30, 2026, from 58.34% a year earlier. Zetwerk says it expanded beyond its earlier project-based capex focus after the cyclicality of that demand became apparent. Continuation of the higher recurring mix depends on customer demand for components and on repeat orders from original equipment manufacturers, or OEMs.

How does Terra91 use Zetwerk’s manufacturing network?

Terra91 aggregates raw-material demand from Manufacturing Business activity and standalone customers, then procures and sells commodities directly. Zetwerk says combined demand can support commercial terms involving prices, delivery timelines and material quality. The model depends on volumes across commodity categories, as well as supplier availability, logistics execution and customer payment cycles.

Terra91 remained smaller than Manufacturing Business by revenue in Fiscal 2026, but its Rs 6,538.65 crore segment revenue was substantial beside Manufacturing Business revenue of Rs 9,374.68 crore. Terra91 reported earnings before interest, tax, depreciation and amortisation, or EBITDA, of Rs 80.80 crore and an EBITDA margin of 1.24% in Fiscal 2026. Manufacturing Business EBITDA was Rs 565.09 crore, with a 6.03% EBITDA margin, demonstrating different reported economics across the two segments.

The commodity segment also extends Zetwerk’s supplier proposition. Zetwerk states that suppliers can obtain raw materials at competitive prices and can receive facilitation for working capital and financing. Terra91’s stated benefits for Zetwerk include additional sales to Manufacturing Business customers, shared logistics infrastructure and market intelligence on manufacturing capacity needs. Those benefits require the platform to maintain procurement throughput and execution controls across commodity sourcing.

How diversified are Zetwerk’s manufacturing revenue and supply base?

Zetwerk’s Manufacturing Business was geographically diversified in Fiscal 2026, although India remained the larger market. India accounted for 70.40% of Manufacturing Business revenue and international markets accounted for 29.60%, compared with an international share of 37.34% in Fiscal 2025. The company’s Fiscal 2026 third-party supplier base extended across 26 countries, including India, Vietnam, Mexico and the United States.

The business also had a mix of contract types. Build-to-print contracts, under which Zetwerk manufactures to customer-provided engineering drawings and specifications, represented 86.07% of Fiscal 2026 Manufacturing Business GMV. Original design manufacturing, or ODM, under which Zetwerk is responsible for product design as well as manufacturing and related work, represented 13.93%, up from 8.12% in Fiscal 2024.

Manufacturing Business served 906 active customers in Fiscal 2026. Revenue from repeat customers was 80.15% in Fiscal 2026, after 84.80% in Fiscal 2025 and 78.11% in Fiscal 2024. Zetwerk also reported median net revenue retention of 128.85% across Fiscal 2023 to Fiscal 2026, a measure of revenue from retained Manufacturing Business customers relative to the preceding fiscal year.

Conclusion

Zetwerk’s reported model combines product sales made through a hybrid manufacturing network with direct industrial commodity sales through Terra91. Manufacturing was the larger Fiscal 2026 segment, but Terra91’s Rs 6,538.65 crore of revenue shows that raw-material sourcing is a significant second business rather than only an internal supplier-support activity.

The next disclosed development to watch is Zetwerk’s strategic realignment around these two core segments. Following board resolutions dated January 23, 2026 and March 9, 2026, and a shareholder resolution dated March 26, 2026, Zetwerk decided to discontinue and sell its Civil Infrastructure Works operations. Later reporting will show how Manufacturing Business growth, Terra91 procurement scale and the owned-facility revenue share develop after that exit.