Zetwerk Own-Facility Revenue Reaches 33% Amid Low Plant Use

Zetwerk derived 33.17% of Fiscal 2026 Manufacturing Business segment revenue from its own manufacturing facilities, up from 28.82% in Fiscal 2025. The larger owned-facility contribution coincided with low utilisation at recently added sites, including 4.17% at JZNEE, which makes solar tracker components and structural parts.

Why did Zetwerk own-facility revenue reach 33% in Fiscal 2026?

Zetwerk own-facility revenue reached 33.17% of Manufacturing Business segment revenue in Fiscal 2026 because revenue attributed to owned facilities rose faster than revenue sourced through third-party suppliers. Own facilities contributed Rs 3,110.048 crore in Fiscal 2026, compared with Rs 1,801.178 crore in Fiscal 2025, while Manufacturing Business segment revenue increased to Rs 9,374.676 crore from Rs 6,249.102 crore.

The mix changed by 4.35 percentage points in Fiscal 2026, after own facilities represented 28.82% of Manufacturing Business segment revenue in Fiscal 2025. The own-facility share was 7.10% in Fiscal 2024, based on Rs 431.761 crore of owned-facility revenue and Rs 6,081.851 crore of Manufacturing Business segment revenue. The change reflects a larger owned manufacturing base as well as revenue growth from that base.

The owned-facility contribution was higher again in the three months ended June 30, 2026, when it reached 52.58% of Manufacturing Business segment revenue, or Rs 1,000.091 crore. That compares with 31.41%, or Rs 465.189 crore, in the three months ended June 30, 2025. The quarterly mix does not change the annual position that third-party suppliers remained the larger source of Fiscal 2026 segment revenue.

Does Zetwerk still depend mainly on third-party suppliers?

Zetwerk still depended mainly on third-party suppliers in Fiscal 2026 because they generated 66.83% of Manufacturing Business segment revenue, or Rs 6,264.628 crore. Although that share declined from 71.18% in Fiscal 2025, the supplier network remained materially larger than the 33.17% contribution from owned facilities.

The hybrid model combined 6,979 third-party suppliers in 26 countries with 26 own manufacturing facilities in four countries in Fiscal 2026. Zetwerk states that third-party suppliers provide the majority of parts and components across product categories, while own facilities add selective capacity for assembly, subassembly, finishing and other controlled manufacturing processes.

Zetwerk says it will continue to primarily outsource manufacturing while selectively expanding its facilities through greenfield projects and acquisitions. The stated reasons for owned capacity include execution control, certifications, policy incentives, critical-product supply and supply gaps in nascent industries. For this model to retain its supplier-led character, third-party capacity must continue to serve the majority of Manufacturing Business revenue.

Which Zetwerk plants operated below 10% utilisation?

Several Zetwerk facilities operated below 10% utilisation in Fiscal 2026, particularly recently acquired or newly developed capacity. Capacity utilisation is actual production during the relevant period divided by aggregate installed capacity at the end of that period, meaning a low percentage indicates output was small relative to the rated plant capacity.

JZNEE in North Houston recorded 4.17% utilisation in Fiscal 2026 while producing solar tracker components and structural parts. The facility produced 18,157 metric tonnes against installed and available capacity of 435,629 metric tonnes. Its utilisation increased to 5.66% in the three months ended June 30, 2026 from 1.81% in the three months ended June 30, 2025, but remained below 10%.

Winsharp, the Dharuhera facility producing smart televisions, interactive flat-panel displays and monitors, recorded 5.59% utilisation in Fiscal 2026. It produced 155,181 units against installed capacity of 2,778,048 units, and its utilisation was 5.75% in the three months ended June 30, 2026, compared with 2.65% in the three months ended June 30, 2025.

The Houston torque-tube operation also ran at 2.98% utilisation in Fiscal 2026, producing 1,970 units against installed capacity of 66,000 units. The source attributes low utilisation at JZNEE and Winsharp to capacity developed for future business growth, while describing the Houston torque-tube facility as being in an initial ramp-up phase after it commenced operations.

How uneven was utilisation across Zetwerk’s factory network?

Zetwerk’s Fiscal 2026 utilisation was uneven because some established or acquired operations ran near capacity while newer sites had substantial unused capacity. Kryfs Bhopal, which makes transformer-related products, recorded 100.41% utilisation in Fiscal 2026 and 103.91% in the three months ended June 30, 2026.

Kryfs Bhopal exceeded rated capacity because it operated limited additional shifts and overtime to meet customer demand, according to Zetwerk. The source defines the rated figure as installed capacity, so actual production can exceed 100% when additional operating time is used. This differs from low-use facilities where installed capacity was positioned for anticipated future production.

Other facilities reported materially higher Fiscal 2026 use than JZNEE and Winsharp. Zetwerk’s Las Vegas torque-tube facility operated at 75.79%, compared with 53.54% in Fiscal 2025, while the Chennai precision facility operated at 80.19% and Kryfs Kherdi Unit 1 operated at 74.72%.

Comparisons between periods require qualification because the capacity basis changed for some locations. Capacity at Sharp Tanks, the Spain and Germany wind facilities, Houston and the Noida facility was presented on a day-and-night-shift basis as of June 30, 2026 and March 31, 2026, whereas earlier periods used day-shift operations. Fiscal 2026 capacity for acquired entities including Kryfs, Angelina, JZNEE and Winsharp was presented on a full-year basis.

What is Zetwerk doing to manage new capacity risk?

Zetwerk says it will use customer contracts, Manufacturing Business order-book visibility and identified supply-demand imbalances to determine the size of new facilities. This is the company’s disclosed mechanism for mitigating underutilisation risk before adding greenfield capacity or acquiring bolt-on manufacturing capabilities.

Manufacturing Order Book means purchase orders or work orders received for which revenue has not yet been recognised. Zetwerk’s Manufacturing Order Book was Rs 12,370.009 crore as of March 31, 2026, compared with Rs 8,628.978 crore as of March 31, 2025. Manufacturing Business new orders were Rs 15,393.351 crore in Fiscal 2026.

The order book and new orders provide a broader production pipeline but do not identify the facilities that will execute individual orders or establish a future utilisation rate for any plant. Zetwerk says the March 31, 2025 order book together with Fiscal 2026 new orders represented about 2.5 times Fiscal 2026 Manufacturing Business segment revenue.

Zetwerk had 26 facilities as of June 30, 2026, including 15 acquired sites and 11 organically established sites, and had three facilities under construction at that date. Since June 30, 2026, transformer manufacturing capacity in Savli, Gujarat, and CRGO, or cold rolled grain oriented, laminations and cores capacity in Kherdi became operational in July 2026. Zetwerk was also constructing a solar module facility in Sangareddy, Telangana, as of the red herring prospectus date.

Conclusion

Zetwerk’s Fiscal 2026 results show that owned manufacturing became more material, with the own-facility share of Manufacturing Business segment revenue reaching 33.17% from 28.82% in Fiscal 2025. The same disclosures show that the supplier network remained the majority revenue source and that capacity use ranged from 103.91% at Kryfs Bhopal in the June 2026 quarter to 4.17% at JZNEE for Fiscal 2026.

The next point to watch is whether Zetwerk’s disclosed process of sizing facilities around customer contracts, order-book visibility and supply-demand gaps raises utilisation at newer sites. The July 2026 opening of two facilities and construction of the Sangareddy solar module plant add capacity whose production ramp will depend on orders and execution under that plan.