IPO-bound Zetwerk said that its Civil Infrastructure Works business went wrong because of poor customer quality and safety concerns. As a result, the manufacturing company decided to exit the segment ahead of its public market debut, taking a sharp hit to the company's financials.
“Safety first, which is where the civil infrastructure kind of went wrong. The customer quality there was horrible,” the firm's CEO Amrit Acharya said. “In the process of building things, we have made a couple of mistakes. Those mistakes we have shut down,” he added.
As a result of the discontinued operation, the firm took provisions both last year's financials and in Q1 numbers for FY27, which means there will be no pain carried forward after listing. "We wanted to do this before we go public, so that these are things in the past, not in the future. These are both non-cash adjustments. This does not affect the operating part of the business," Acharya added.
Zetwerk’s decision to exit its Civil Infrastructure Works business led to losses from discontinued operations of Rs 641 crore in FY26, up from Rs 156 crore reported in FY25. For the quarter ended June for the current financial year, the company reported a loss of Rs 668.9 crore.
"Our restated loss for the period from discontinued operations in the three months period ended June 30, 2026 was primarily attributable to provisions for bad and doubtful debts and unbilled revenue," said the RHP.