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UNICOMMERCE ESOLUTIONS LIMITED Call Transcript 2026
59044_rns_2026-05-04_674d1b36-6bc2-4281-ac36-3301e3c1addb.pdf
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unicommerce
4th May, 2026
National Stock Exchange of India Ltd.
Exchange Plaza, C-1, Block G
Bandra-Kurla Complex, Bandra (E),
Mumbai-400 051
Symbol: UNIECOM
BSE Limited
Phiroze Jeejeebhoy Towers,
Dalal Street,
Mumbai 400 001
Scrip Code: 544227
Subject: Q4 and FY26 Earnings Conference Call-Transcript
Dear Sir/Madam,
Greetings from Unicommerce eSolutions Limited.
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith the transcript of the Q4 and FY26 Results Conference Call held on Tuesday, 28th April, 2026 at 9:00 a.m. IST for the quarter and financial year ended on 31st March, 2026.
The same is available on the website of the Company at https://unicommerce.com/
Please take the aforesaid document on record and oblige.
Thanking you,
For Unicommerce eSolutions Limited
Anil Kumar
Company Secretary
Membership No. F8023
Encl.: as above
Unicommerce eSolutions Ltd.
Registered Office: Mezzanine Floor, A-83, Okhla Industrial Area Phase-II, New Delhi 110020 India
Corporate Office: M3M Urbana Business Park, Tower B, 9th Floor, Sector 67, Gurugram 122001, Haryana, India
Tel +91-888 7790 22, email: [email protected] | Web: www.unicommerce.com
CIN: L74140DL2012PLC230932
Page 1 of 17
"Unicommerce eSolutions Limited
Q4 FY '26 Earnings Conference Call"
April 28, 2026
"E&OE - This transcript is edited for factual errors. In case of discrepancy, the audio recordings uploaded on the stock exchange on 28th April 2026 will prevail."
MANAGEMENT: MR. KAPIL MAKHIJA - MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER - UNICOMMERCE ESOLUTIONS LIMITED
MR. ANURAG MITTAL - CHIEF FINANCIAL OFFICER - UNICOMMERCE ESOLUTIONS LIMITED
STRATEGIC GROWTH ADVISORS, INVESTOR RELATIONS ADVISORS
Unicommerce
Unicommerce eSolutions Limited
April 28, 2026
Moderator:
Ladies and gentlemen, good day, and welcome to the Unicommerce eSolutions Limited Q4 and FY '26 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict.
As a reminder, all participants will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on a touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Kapil Makhija, Managing Director and CEO of Unicommerce eSolutions Limited. Thank you, and over to you, Mr. Makhija.
Kapil Makhija:
Thanks. Good morning, everyone, and thank you for joining us for the FY '26 and quarter 4 earnings call. I am joined today by Anurag Mittal, our Chief Financial Officer; along with our investor relations advisors, Strategic Growth Advisors.
I'd like to begin a little differently today and share a perspective that goes beyond this quarter and beyond this year. Think about the last time you placed an online order, you click buy now, and you are done, but behind that click, a complex chain kicks in, inventory, warehousing, shipping, delivery, all working together to get that order to you in minutes, hours or days. Behind every order sits an invisible engine. And over the last 5 years, that engine has been completely transformed. That engine is our business, and its transformation is the story of Unicommerce.
Let me give you one data point. In FY '21, our revenue was INR40 crores. In FY '26, we crossed INR204 crores. That's 5x growth in 5 years. There is another data point. This year, we delivered INR43.9 crores of adjusted EBITDA. That's higher than our entire revenue 5 years ago. Over the past 5 years, we have consistently met the Rule of 40, a key benchmark for SaaS companies where our some of revenue growth percentage and adjusted EBITDA margin percentage exceeds $40\%$ , reflecting a balanced focus on growth and financial discipline.
These numbers reflect not only our growth but also how the world we operate in has changed fundamentally. 5 years ago, our typical eCommerce business operated across 3 to 4 sales channels. Today, it is common to see 8 to 12 channels, marketplaces, own brand website quick commerce platform, B2B models and general trade. 5 years ago, typical eCommerce warehouses processed around 5,000 orders a day with 1 order being processed at a time. Today, warehouses on our platform have the capacity to handle 3 lakh to 5 lakh orders daily. 5 years ago, shipping was measured in days. Today, it is measured in minutes.
The Unicommerce platform reflects this shift. 5 years ago, we supported around 100 integrations - the digital pipes connecting ecosystem. Today, we support nearly 350 integrations across Uniware, Shipway and ConvertWay. Peak single day volume has scaled from 12 lakh units to 55 lakh units. 5 years ago, 100 clients had more than 50 users on our platform. Today, we serve clients with up to 1,000 registered users running mission-critical operations on our systems.
Put simply, even a moderately sized brand today operating across multiple channels, SKUs, warehouses and partners cannot function on fragmented tools or manual coordination. The complexity demands a tightly integrated technology backbone. Without it, accuracy drops, speed
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Unicommerce eSolutions Limited
slows and customer experience deteriorates. This structural shift has redefined our role. We are no longer just a software provider. We are the operating system for eCommerce operations. And with deep integration into client workflows, we have become the system of record for mission-critical operations.
Against this backdrop, FY '26 marks the completion of a transformative phase and the beginning of a significantly larger opportunity. FY '26 was our first full year as a multi-platform eCommerce enablement SaaS company, transitioning from a single product business. Our 3 platforms, ConvertWay, Uniware and Shipway span customer engagement, transaction processing and order fulfillment layers of the eCommerce value chain. This creates a structural advantage, a unified platform delivering ease of use and value that individual or fragmented solutions cannot replicate.
And now with AI, the next shift is underway. Software is moving from execution to decision-making. For our clients, we are their system of record because we sit at the core of operations, we see rich granular data. Through AI, we are enabling our clients to convert this data into real decisions. Uniware's UniBot is reducing time to ship and minimizing missed shipments. ShipSense AI is optimizing cost versus speed while reducing returns. Catalyst AI ConvertWay's voice bot is driving higher conversion through contextual engagement and timely customer conversations. This is already live, by the way, not theoretical. We are now an AI-first company. Platforms that enable faster, better decisions will capture disproportionate value, and we are building for that.
Now to financial performance. FY '26 was strong. Revenue grew $51.6\%$ to INR204.3 crores. Adjusted EBITDA grew $54.5\%$ to INR43.9 crores. Cash more than doubled from INR35.3 crores to INR81.3 crores, driven by INR47 crores of cash flow from operations. And importantly, we have rebuilt our cash position to pre-Shipway acquisition levels within just 5 quarters while continuing to invest in growth.
On the business side, despite a relatively subdued demand environment during parts of the year, we executed consistently on long-term priorities. We onboarded 450-plus enterprise clients, our strongest year ever. These include several well-known names such as Onida, Kenstar, Action Tesa, Nayasa, Ajanta Shoes, Lehar Footwear, Himalaya Wellness, Rupa, Lacoste, SuperYou, Trunativ, Vedantu and Allen, a good mix of established traditional retailers and new age digital-first brands across categories.
Adoption is building. Our newer modules are also showing strong early traction. $40\%$ to $45\%$ of our Uniware enterprise customers are now using quick commerce and B2B modules. $5\%$ to $6\%$ have adopted UniReco within 3 quarters of launch and $1\%$ to $2\%$ have taken up UniCapture within a quarter of its launch. Our international Uniware business turned profitable this year and is now growing faster than our India business.
Uniware delivered $11.7\%$ growth in Q4, in line with our guidance during our last earnings call and is on track to deliver double-digit growth in subsequent quarters as well. Shipway grew faster at $17.7\%$ year-on-year growth in Q4. Looking ahead, we see the opportunity to replicate the growth achieved over the last 5 years.
Our strategy for FY '27 and beyond is anchored on 4 priorities:
One, build more AI-led products and expand the use cases of existing ones to unlock new revenue streams;
Two, accelerate growth across platforms. We expect Uniware to sustain double-digit growth, while Shipway should also grow double digits year-on-year at a faster pace, given its lower penetration and a larger addressable market;
Three, looking at selective acquisitions aligned with our existing platform, profitable or have a clear path to profitability, AI relevant and available at a reasonable valuation;
Four, staying disciplined on costs, demonstrating operating leverage even as we invest for growth.
Our capital allocation is evolving accordingly. We have stepped up investments starting Q4 FY '26 focused on sales and marketing expansion, AI-led product development, strengthening mid-to senior leadership, embedding advanced AI tools across product and GTM and these investments will happen across both Uniware and Shipway. You will see the near-term financial impact of these investments in the form of lower adjusted EBITDA and PAT over the next 2 quarters.
However, we remain confident of delivering higher full year operational profitability in FY '27 compared to FY '26. To summarize, we enter FY '27 with stronger products, a broader platform and clear visibility on scale. E-commerce complexity in India will only increase. Every layer of complexity strengthens our relevance. These are powerful tailwinds, and we intend to capitalize on them with both discipline and ambition.
With that, I will now hand over to Anurag to walk you through the financials in detail.
Anurag Mittal:
Thank you, Kapil, and good morning, everyone. Let me walk you through the financial performance. Starting with FY '26, our revenue for the year stood at INR204.3 crores compared to INR134.8 crores in FY '25, a year-on-year growth of $51.6\%$ . Adjusted EBITDA for the year was INR43.9 crores, up from INR28.4 crores, a growth of $54.5\%$ . Adjusted EBITDA margin stood at $21.5\%$ , holding steady versus FY '25 despite the full year consolidation of Shipway, which operates at different margin structure.
I want to highlight one important point here that the underlying Uniware business actually expanded its stand-alone adjusted EBITDA margin from $25\%$ in FY'25 to $37.5\%$ in FY '26, reflecting the operating leverage Kapil referred to earlier. The business continues to demonstrate strong cash generation. Cash flow from operations for FY '26 was INR47 crores compared to INR28 crores in FY '25. Profit after tax for the year stood at INR20.5 crores, up from INR17.6 crores in FY '25, a growth of $16.1\%$ Y-o-Y.
Our cash and bank balance stood at INR81.3 crores as of 31st March 2026 compared to INR35.3 crores as at the end of FY '25. This is similar to our cash position prior to Shipway acquisition. Our EPS increased from INR1.58 in FY '25 to INR1.78 in FY '26. Moving to the quarterly performance for quarter 4 FY '26, our revenue stood at INR51.6 crores compared to INR45.3 crores in quarter 4 FY '25, a year-on-year growth of $14\%$ .
Unicommerce eSolutions Limited
April 28, 2026
On a sequential basis, revenue was lower than quarter 3, and I want to spend a moment on why this pattern repeats every year. Quarter 3 is a peak demand quarter for the Indian eCommerce industry. It is supported by extended festive activity, Diwali, Christmas and the holiday season, which drives higher consumption across gifting, fashion and home categories as people buy new clothes and new things for their homes.
Layered on top is the incremental winter-led demand in the northern markets. Together, these factors keep order volumes elevated through the quarter. Quarter 4 in contrast is characterized by shorter event-driven spikes such as end-of-season sales and Republic Day sales, largely discount-led and inventory clearance in nature.
As a result, overall volume naturally normalize and come in lower than quarter 3. The same trend played out last year on a stand-alone basis.
Our adjusted EBITDA for quarter 4 FY '26 stood at INR9.6 crores compared to INR8.9 crores in quarter 4 FY '25, a year-on-year growth of 7.8%. Profit after tax for the quarter stood at INR3.4 crores compared to INR3.3 crores in quarter 4 FY '25, a year-on-year growth of 1.6%.
The adjusted EBITDA and PAT for the quarter reflects the planned growth investment we have initiated for Shipway during the period, as Kapil outlined earlier. These include strengthening our sales and marketing, adding product and engineering talent focus on AI implementation and bringing on board more experienced mid-senior team members. We are also investing more this year in software and in AI tool to implement the related technologies in both our products and our go-to-market.
Overall, our year-on-year performance reflects a combination of steady revenue growth, improving profitability and strong cash generation.
In addition to the financial update, I would also like to share an important update. We are currently evaluating the initiation of our merger process between Unicommerce eSolutions Limited and Shipway Technology Private Limited. The objective of this proposed merger is to improve operational efficiency, simplify our corporate structure and reduce compliance requirements and overheads. It will also enable stronger go-to-market alignment across teams, better cross-selling across our combined customer base with lower contractual and compliance friction and make it easier to bring joint offerings to our customers. We will keep you informed in this progress -- as this process progresses.
Looking ahead, our focus remains clear. We will maintain cost discipline while supporting growth across all 3 platforms. Even as we continue to invest our growth, we are confident of delivering higher full year profitability in FY '27 compared to FY '26 through disciplined execution and operating leverage.
Over the last 5 years, we have built the infrastructure, the products and the team that the next phase of India's eCommerce needs. We have 3 complementary platforms, the strongest enterprise customer base in our history and AI capabilities that are already moving from promise into production. We are debt-free, cash generative and profitable. We are investing for the future with discipline and see the opportunity to replicate the growth achieved over the last 5 years. With that, we will now open the floor for questions. Thank you.
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Moderator:
Thank you very much. We will take the first question from the line of Sumeet Jain from CLSA. Please go ahead.
Sumeet Jain:
Congrats, Kapil and Anurag, for a good top line growth this quarter. I think it was very heartening to see a double-digit growth in the stand-alone business after almost a gap of 4, 5 quarters. So it seems like you have turned around the corner there. So can you give us some glimpse into how you are looking at the growth in FY '27 for the stand-alone business closer to mid-teens or the kind of growth rate we have seen this quarter at least?
Kapil Makhija:
Thanks for the question. As we had mentioned before that we are confident of delivering a double-digit growth in Uniware, which is coming at the back of strong client acquisition. As we have demonstrated in quarter 4, we've had one of the best -- with the highest ever client acquisition, which will translate into better revenue growth in the coming year, along with improved adoption of our new products.
Because of that, we continue to be confident of delivering a double-digit growth. I think it will be difficult for me to give a specific guidance, but we are confident on continuing with a double-digit growth trajectory for the stand-alone business.
Sumeet Jain:
Got it. That's helpful. And on the investments, I think you mentioned for how many quarters it will continue? I think you have guided for a better profitability in FY '27 -- but just to -- from the modeling standpoint for a quarter-to-quarter basis, how should one look at these increased investments?
So as we mentioned earlier in the discussion today that we will invest in the next 2 quarters. The investments have started from quarter 4 FY '26 itself because of which we anticipate that the adjusted EBITDA and PAT will be lower compared to the previous quarters. But we are also confident that we will deliver a full year profitability higher than FY '26 and FY '27.
Okay. So that implies in second half, your profitability will be far better than in a way the first half as well as in FY '26, right?
Exactly, yes. We anticipate that the operating leverage will kick in from FY '27 when we start seeing higher -- from second half of FY '27 when we see the result of our initiatives and investments that we are putting in, in these 3 quarters.
Got it. And lastly, also, you can highlight, I mean, what is the impact of AI on your business? How are you infusing maybe the latest AI models into your business solutions? What kind of go-to-market strategy are you devising on the ground to make sure that your enterprise customers are actually able to utilize these AI offerings from you? So maybe some more highlight you can please.
Sure. So as I mentioned, we've become an AI-first company. Not only are we launching AI native products, but we are also embedding AI across our go-to-market functions, including marketing, sales, onboarding, support and technology. And we have seen a phenomenal improvement in the metrics and the benefits we pass on to our customers in terms of faster onboarding, better pipe creation in marketing and also faster development of products.
This is -- all of this has demonstrated improvements in productivity, accelerated feature launches, and we expect more of that to happen as we continue to incorporate AI into more and more functions as well as more and more products. You will see us launching newer products as well as newer use cases, which are AI-first so that we can benefit the entire ecosystem. We have already launched AI-native products across the 3 domains, Catalyst in ConvertWay, UniBot in Uniware and ShipSense in Shipway. You will continue to hear more of such launches and more use cases being catered leveraging AI.
Got it. And will it be right to assume that the increase in your employee benefit expense is largely around sales and marketing team, while your R&D team or the software development team might not be increasing at the same pace because of the AI-led productivity?
See the investment, Sumeet that we are doing our to the tune of leveraging AI to be able to do better R&D. There are some investments that we're doing in terms of talent in R&D as well. There are obviously investments in sales and marketing, as you rightly pointed out. Third, we are also using more and more tools. So there is some investment towards AI tools to be able to get better productivity.
And we are also strengthening some mid- to senior talent capacity across both Uniware and Shipway. Investments are largely in these 4 buckets, using AI for R&D, more sales and marketing, getting some mid- to senior talent; and fourth, is using more and more AI tools to improve our productivity.
We will take the next question from the line of Siva from iThought PMS.
Siva:
So my first question is regarding our stand-alone business. So if you look at our growth, we've been growing at around $40\%$ , $50\%$ rate during FY '22, '23 and kind of slowed down to $15\%$ in '24 and then we went to $10\%$ and now we are at $5\%$ in FY '26. If I kind of break it down further, our client additions have been growing at a healthy $20\%$ CAGR, but our ARPA is what I think is eating up our entire growth?
So -- and again, ARPA is a function of both the pricing that we charge with our clients and the volume that is processed by our clients. And I also recall that we had a price escalation clause with our new clients. Despite having all that, our ARPA fell by $11\%$ in FY '26 higher -- slightly higher than FY '25. So I want to understand what is actually pushing this down? And what are the measures we will be taking to increase this ARPA going forward?
Sure. Thanks, Siva, for the question. As we have mentioned in the earlier calls as well, our growth is a function of growth of existing customers, addition of new clients. Since FY '21 to about FY '25, these are the 2 main factors driving the growth for us. While in FY '21, '22, we had seen the market -- e-commerce market continuing to grow fairly fast and because of which the plus, plus that we were adding on top of the market growth was coming through new client acquisition, and we were able to grow the business at $45\%$ , $50\%$ .
In FY '24, '25, as we mentioned before, we've seen the overall market not growing as fast as it grew during the pandemic. And that is when we started to invest in new products, while the overall year growth is about $5.5\%$ . But if you look at the last second half of the year, you can
see that we are -- we delivered about $8\%$ growth in the quarter 3 and now back to double-digit growth in quarter 4 of FY '26.
That is on the back of not only faster client acquisition, but also addition of new products. So now the 3 factors of our growth are market growth, new customer acquisition and adoption of new products amongst our existing customer base. Because of this, we've delivered a double-digit growth in quarter 4 and has given us the confidence that we'll continue to deliver this double-digit growth. As far as the ARPA is concerned, see, when we acquire a client, a lot of clients end up taking our software in the early phase of their journey and they continue to grow subsequently.
In the earlier years, the growth of the market, which ensured growth of our existing customers continue to be strong, which has softened a bit over the last few years because of which now to drive growth of our existing customers, we have launched new products so that as these new products continue to get adopted, we will continue to see a faster growth in our business going forward. And that's why we are confident that we'll hence be able to deliver double-digit growth in the business.
Siva:
Understood, sir. So we could also comment like because we are adding so much clients every year, our ARPA is not able to go up. Is that the right understanding?
Yes, exactly. So like we've had the highest quarter -- highest number of client acquisition in the last quarter, 149 and highest ever in the year, 450 plus. So as these clients mature, we will see a faster growth kicking in. And that's why we are guiding for a double-digit growth in the subsequent quarters, while we've only delivered in early single digits in the first half of the year.
Siva:
Yes. Understood. And my second question is for Shipway. So what was the total shipment number that we saw for FY '26? And what was the EBITDA margin that we made for the whole year? And what do you think would be the steady-state margin for this business?
See, from a shipment perspective, we had mentioned that we've crossed 1 billion-plus transactions. And honestly, as a metric, while we continue to be larger than that, as a metric, it was a metric that we had put in place to demonstrate that we are capable of handling a higher scale. The 3 metrics that really matter for our business is growth of our existing customers, addition of new customers and the profitability that we are delivering.
So as a business, we continue to track these 3 metrics. We are -- as we had mentioned in the last earnings call, we are no longer publishing the number of transactions or shipments that are getting processed through our platform because it does not necessarily give the true picture of the business as the mix of the transactions has become fairly heterogeneous over the last few quarters.
When we went public, we were only catering to B2C transactions, but now we have B2B, quick commerce transactions. We have newer products, which also add into the transaction mix because of that. That is a metric we are no longer publishing, but we continue to be north of the 1 billion-plus transactions and continue to see a strong growth in the transactions. Sorry, what was the second part of this question for you?
Siva:
So I was asking the EBITDA margin that we did for the whole year and what could be a steady-state margins?
Kapil Makhija:
So on the margin perspective, we've continued to stay consistent. We had mentioned that our stand-alone business continues to be nearly $80\%$ gross margin and Shipway demonstrates close to $20\%$ gross margin. We've stayed in the similar ballpark in these businesses, and we will continue to be in the similar ballpark going forward as well. We have not seen any structural change in the nature of the business. So we are confident of continuing to maintain this gross margin profile.
Siva:
Sorry, sir, I was talking with regards to EBITDA margin for Shipway business. Are we EBITDA positive in Shipway?
Kapil Makhija:
So as we mentioned in the last earnings call and have called out this quarter as well that we continue to invest in Shipway. We invest in sales and marketing and we invested in AI development in Shipway as it's a challenger, and we want it to grow faster to be able to capture a large market. So in this quarter, we are not EBITDA positive in Shipway because those are the investments we are doing in to drive growth. At the same time, in the stand-alone business, we have seen our adjusted EBITDA improved from $25\%$ to $37.5\%$ for the full year.
Siva:
Yes, that helps. And one last thing...
Moderator:
Please get back in the queue. Thank you very much. We will take the next question from the line of Vinod Krishna from Avendus Wealth.
Vinod Krishna:
Post-COVID, we got a huge tailwind in terms of people, all businesses supposed to take on the e-commerce bandwagon. And you said in your commentary that you would like to repeat our kind of growth 5x in 5 years. Okay. I'm not expecting that kind of growth, but at least to maintain north of $20\%$ , $25\%$ growth given our profile of our company. And given the slowdown that we had in the last 1.5, 2 years, do you think you can maintain that kind of growth rate?
And what are the factors contributing to why are you so confident that you will get the -- if not the similar, at least if not 5x in 5 years, 3 to 4x in 5 years? So if you can a little bit more elaborate because we had a huge tailwind post-COVID. Are you seeing something or you're dependent on acquisitions? Or you are confident that you will increase your market share or drop ship percentage will increase? What are the driver of that kind of growth over the next 5 years? That's my first question, sir.
Sure. So the key pillars for the growth that we are working towards in the business is, one, building more AI-led products and getting new use cases. Two is accelerate these growth platforms through product improvements, new client acquisitions and execution rigor. Obviously, inorganic and acquisitions continue to be a core part of our strategy. So we'll continue to evaluate selective M&A opportunities and we want to stay disciplined on the cost.
So in terms of driving the 5x growth, while COVID had -- pandemic had helped drive faster e-commerce adoption because of which we have seen a market growth, which has led to our growth as well. But at the same time, as I mentioned over the last few quarters, we -- obviously, we can't really control how fast the market grows, right?
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So in terms of things in our control, we are trying to do that well, which is, one, get more and more clients onto the ecosystem. Being the largest player in the ecosystem now generally tends to benefit SaaS businesses. So we are getting more and more clients added to our portfolio. Second thing in our control is to build new products, new use cases. AI is a big enabler for us. We are a system of record.
So AI is a boon for us. We store so much information for our clients that we can provide rich insights and very, very important decision-making for the clients, which otherwise would have been very difficult to achieve in a pre-AI era. As a result of that, being able to add more and more clients aggressively and being able to enable new use cases in the post- AI era, along with our ability to be -- to add new product capabilities through inorganic acquisitions, a combination of these 3 factors will help driving more growth.
We have already demonstrated a faster growth in our stand-alone business. Shipway operates in a large market and is fairly a challenger in that market. Combination of these factors gives us the confidence that we will continue to drive high growth in the business and will continue to demonstrate a fast growth going forward.
Vinod Krishna:
Second question is regarding the market share. Are we maintaining our market share in Uniware? And are you seeing any -- like if you -- like most of our customers, they use their own Excels and all. Are they using this AI to write their own products, that kind of a threat are you seeing? These 2 questions, sir. One is market share on Uniware and people vibe coding there because it's for small people instead of Excel. So adoption becomes more slower and longer for us to convert them into our products? Or am I thinking wrong there?
Yes. So for the first part of your question, see, we continue to acquire more and more customers. So we -- while a large portion continues to be on Excel, but amongst the customers who are looking for software, we continue to be a preferred choice. We are already a market leader. And as I mentioned in SaaS, we have typically seen the market leader tends to accelerate a lot more.
So a lot of new clients are coming to us. So we continue to see an increasing market share in the business. In terms of the businesses who are in Excel, can we leverage AI to build copies of Unicommerce? The answer is no because while AI can -- one, these integrations are very difficult to build, there are beyond the core marketplaces, there are -- like I mentioned, there are today, a brand is selling on 8 to 12 different channels. So one is building those integrations.
More importantly, it is about maintaining those integrations that requires consistent investment, which is not the core of the brand. The core for the brand is to build a product which is loved by the customers, think about the brand positioning and not build this tech in-house. More importantly, beyond the technical capabilities, I think the few defensibilities that we have is, one, we have built deep relationships across various ecosystem players, which is marketplaces, logistics partners.
While AI can write the code, it is very hard to replicate these relationships so much so that many of these large players today sit across the table and build the product road map jointly. It's extremely hard for now a platform or a marketplace to do this with thousands of brands, and that's why they prefer an aggregator like us where they can jointly talk about things that can benefit the overall ecosystem.
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Unicommerce eSolutions Limited April 28, 2026
Second point is that the complexity of the eCommerce ecosystem is increasing. The need for a system of record is extremely high. They need a stable and scalable system, which they can trust with their data because that is being used to make important decisions. While they can make basic use cases through AI, building a scalable and very stable system that they can trust with their business is going to be extremely hard to replicate. And because of that, it is extremely hard for a brand to build this on their own. It's not their DNA, plus they need a trusted and scalable system to be able to do that.
Vinod Krishna:
So you're confident on the growth, sir, for next year, like 20%, 25% growth at least when you say double digit, not?
Kapil Makhija:
See, we are not giving a growth guidance for the FY '27. But what I'm confident of is a double-digit growth and the fact that we want -- we are looking -- the ambition is to replicate the success we have demonstrated in the last 5 years to replicate that in a similar time frame in the coming years as well.
Moderator:
We will take the next question from the line of Majid Ahamed from PinPoint X Capital.
Majid Ahamed:
Sir, my first question that I have is what's the current NRR, as you used to mention metric for this year?
Kapil Makhija:
Yes. So NRR for the year was above -- so we have maintained that our NRR continues to be above 100%. We have -- in FY '26 as well, our NRR is above 100%, excluding the churn of this we saw in the top 10 bucket. We had mentioned about that in the last earnings call as well. The NRR continues to be subdued, as I had mentioned, because it reflects the broader e-commerce ecosystem growth.
And like I mentioned, that's not in our control. We continue to add new products and continue to add new clients to be able to drive growth in the business. -- at the same time, we've also seen that, as I mentioned, the new client acquisitions continue to be strong for us. So the contribution of new clients to our revenue continues to be in the similar ballpark of 7% to 8%, like we had mentioned in the earlier calls as well.
Majid Ahamed:
Got it, sir. And sir, this quarter, we had more sales and marketing expenditure, as you said, that had dragged our EBITDA. So what's our exact incremental sales and marketing spend for this quarter, sir?
Kapil Makhija:
So our investments have not only happened in sales and marketing. As I mentioned, we had also gotten more talent to be able to leverage AI to improve our productivity. We have gotten AI tools embedded across various business functions and also technology to be able to build faster. And we got some mid- to senior talent to be able to build execution depth.
A combination of these 4 factors have resulted in the investments because of which we've seen our EBITDA growth not being in quarter 4, slightly subdued, but these are investments where -- see, another factor is that -- in the last few quarters, we have seen as we made these investments, we have seen the business turn around and deliver higher growth. The intent is to drive higher growth in the business, and that's why we want to invest in quarter 4 and the next 2 quarters to be able to drive a consistent growth in the business and unlock value for our shareholders.
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Majid Ahamed:
Got it, sir. Sir, for Shipway, I'm seeing the pace of sales growth has slightly moderated. So going forward, how are we looking to improve the growth there in the Shipway segment?
The sequential decline in Shipway is largely because of seasonality. As Anurag mentioned that quarter 3 includes key festivals like Diwali and Christmas where people buy across categories. They buy new clothes, new things for their homes. And there are a lot of gift purchases. There is also a winter seasonality. Because of which, there is buying at the beginning of the season. While quarter 4 sales are largely event-driven like end-of-season sale or the public day sales, which are mostly discount-led and for inventory clearance.
In general, we've seen Q3 demand is higher than quarter 4. The same trend was there last year as well. So the sequential drop in Shipway is largely on account of seasonality, we continue to be confident of continue to drive growth because it's a very large market and Shipway, still a challenger in that market. Seasonality aside, the investments we have put in place for sales and marketing and for AI-led product development, we are confident of being able to deliver high growth in the business.
Majid Ahamed:
Okay, sir. Sir, finally, just want to know regarding this international market expansion and how we going around this, sir, how do we see contribution for FY '27, the international market?
So international market, as I mentioned, became profitable in this year and continues to grow stronger than the domestic business. The relative contribution is smaller. It used to be $4\%$ to $5\%$ . It has improved to about $6\%$ to $7\%$ in this year. Going forward, it's difficult to give a specific guidance for business sensitive reasons on what the contribution will be, but we continue to see a faster growth in the business going forward as well.
And the intent is to grow deeper within the geographies that we are operating in. We are operating in 7 geographies outside of India across Middle East and Southeast Asia. The idea is to grow deeper. And within these 7 geographies, the 3 geographies that are most prominent for us are Dubai, Philippines and Malaysia. The idea is to grow deeper in these geographies.
We will take the next question from the line of Pratik Banthia from Fermi325 Investment Advisers.
Pratik Banthia:
Congrats on a good set of numbers. Also great to see the fashion brand success story where we've been able to leverage all 3 of our platforms for revenue growth. So how deep of an impact we can have on our brand's success. I just wanted to understand what kind of segments are we looking at for acquisitions? What would be the ticket size over there? And how many deals are we looking for potential deals?
Sure. So, as I mentioned, inorganic is an important growth lever for us. So we continue to look at product capabilities that are making sense to our existing customers. They should be a natural extension and should make sense. From a ticket size perspective, we'll see effectively not looking at a very large business.
It's difficult to quantify our ticket size, but we are not looking at a very large business. The ideal fit for us is a business, which adds a good product capability. So it should be a good product, good team should be available at a reasonable valuation should be either profitable or have a
path to profitability. And it has to have an alignment to the existing business. So those are factors that we use to evaluate the businesses.
As you see, there are many, many businesses that we continue to be in touch with. Many of these discussions are at an initial phase, so difficult for us to talk about a specific state or specific players that we are considering. But just to give you an example is, if you look at the prepurchase journey, today, ConvertWay is our entry into the prepurchase journey. We have largely been a post-purchase player.
So that's a white space that's open. So that could be an interesting space to look at solutions, which are operating in the prepurchase journey. Similarly, on the post-purchase side, it could be on analytics, it could be on loyalty or any other area. This is not indicative of spaces that we're actively considering. But just to give you a flavor of potential spaces that are complementary to what we offer today.
Pratik Banthia:
Okay. Another question I had was can you share any cross-sell rate of existing Uniware clients who've adopted Shipway and ConvertWay.
So for us, as I have mentioned, the overlap when we acquired Shipway was about -- was less than $5\%$ . We are already at a $10\%$ plus cross-sell rate. But I also want to call out that beyond Uniware, there is a large market for Shipway, which consists of Instagram sellers, B2C brands, drop-shippers, who may not require Uniware platform.
And this large addressable market is why we continue to invest in sales and marketing to accelerate growth. So as both of the bases are growing, Uniware client basis is growing, Shipway client basis is growing from a percentage basis to continue to say $10\%$ plus and it may look static, but we continue to see a stronger overlap on both businesses.
Pratik Banthia:
Okay. And another question was share-based payment has jumped quite a bit compared to last year. I just wanted to get a sense what kind of dilution can we model into our financials going ahead? Just a bookkeeping question.
See, from an M&A perspective, we've been adding cash, we have now got our cash to pre-Shipway acquisition levels. [47.53 min inaudible] As I talked about the thesis that we use for identifying targets for acquisition. So our intent is to not look at dilution when they're acquiring, but leverage most of our cash to be able to do this. In terms of issuing ESOPs to talent, we have issued ESOPs to both existing talent as well as new incoming talent. I talked about investing to get some mid- to senior talent.
So we have also issued ESOPs to them. All of this is ensuring that the incentive for the leadership teams and the acquisition teams are aligned to the overall growth of the business. Because of that, we've seen an increase in the share-based expenses, but the intent is to ensure that we are able to unlock value for our shareholders by driving higher growth in the business.
Okay. And last question was, have you seen any slowdown in consumptions since the beginning of March since the war has started? Any signs of slowdown have you've been able to spot or not there?
Yes. So we have -- bulk of our business is focused on India. So we have rarely seen any disruption in our India business in terms of new client acquisition or existing business. In the Middle East business, which is a small contributor, even there, we have not seen any major impact or disruption in our business -- in our existing business. We have seen small impact in the sales cycles, they become slightly longer in the last few weeks, but we are seeing that also coming back to normal as the overall situation normalizes in the region.
We will take the next question from the line of Vansh Gupta from Prescient Capital.
Vansh Gupta:
Just a couple of questions from my end. So our top 10 customer revenue contribution, if you look at the absolute number, it's about -- it's grown by about $3.5\%$ since the last year. So any specific reason for why the customers -- why the revenue from top 10 customers has been growing at a slower pace versus the growth in the Uniware business?
Sure. As I mentioned in the last call as well, the growth of top 10 customers is reflective of their overall business. Because any large customer or all customers for that matter, manage $100\%$ of their eCommerce dropship business on us. So it's not as a part of the business is going somewhere else. They either maintain the full business on us or they don't maintain at all.
We've seen one of our large customers churn because of the change in the business model because of which multi-channel was no longer a use case for them. Because of which, they discontinue. So a combination of growth of the overall customers, the top 10 customers and the fact that is one of the top 10 customers stopped using the platform because of change of business use case is a result of what the numbers that you're talking about.
Vansh Gupta:
Got it, sir. So just a follow-up on that. So I believe you had mentioned in the prior few quarters that there were some price escalations that were also built into the contracts that you had signed with the customers. So both when you look at the $11\%$ , $12\%$ growth in the business as well as the $3.5\%$ growth of the top 10 customers, is the bulk of the revenue growth driven by price growth or volume growth? Both the top 10 as well for the Uniware business?
Sure. As I mentioned, price escalation, we had started to put it in the contract of new customers since last year. The benefit of that has started to already kick in. But most of our top 10 customers are our old customers. Having seen the success of price escalation being applied on the new customers, we now plan to incorporate this in our existing contracts as well.
The impact or benefit of that will be demonstrated in the subsequent years. So it's safe to assume that the growth that you're seeing in the top 10 customers is largely the transaction growth. There is no price escalation yet baked into the large customers because those are existing contracts and we haven't yet started to implement the price escalation on our existing contracts.
Got it, sir. And just one more follow-up, sir. So we have also launched a couple of products, UniReco, and we also acquired Shipway last year. So in terms of cross-sell and upselling opportunities, is there any specific reason for why UniReco has been adopted by this $5\%$ to $6\%$ of our client base or rather any contribution this $5\%$ to $6\%$ of total revenue on it? Are you seeing any momentum for the UniReco product or for other products that we've launched in the past year?
Yes, so see in SaaS or in technical products, we are generally a gestation period for adoption. When we launched B2B quick commerce, it was in the single digits and we had initially launched. And over course of time, you've seen now $40\%$ to $45\%$ of our enterprise customer base adopting B2B quick commerce use cases.
In UniReco, while we had launched with one of these cases, which has payment reconciliation across marketplaces, we continue to get feedback about newer use cases about inventory reconciliation, about order -- full order to cash cycle, et cetera. So we continue to incorporate this feedback, and that's also one of the investment areas for us to be able to make this even relevant for more and more customers within our ecosystem.
So far within the first 3 quarters itself, we've seen a $5\%$ to $6\%$ adoption. As we incorporate the feedback and this becomes relevant for more and more TAM within our customer base, you will see a higher adoption of UniReco coming forward.
And sir, in terms of competitors for the UniReco product, I believe Increff is there, but I'm not sure it offers UniReco kind of a product. But are we seeing like any loss of customers to our competitors like Increff in the standalone Uniware business as well as the UniReco product that we launched?
Very difficult to comment on such a competitor. But safe to say that, one, today, there is no competitor because as comprehensive product offering that we have. Two, the churn of customers is largely on account of them shutting down or them stopping to sell online. We've rarely seen a brand, a large brand transitioning to a different platform.
Largely, the churn happens to long-tail businesses, which is on account of either them shutting down or them not -- or deciding to stop selling online. UniReco is a unique and differentiated offering. We do have some smaller competitors who offer this as a service. But amongst the larger players and larger competitors, we don't see anybody offering a credible solution on the reconciliation space.
And as I mentioned, we are also looking to make this fairly comprehensive to make this amenable to CFOs of large organizations to be able to get a better handle on their eCommerce business. The kind of depth that we're building in UniReco, that will be unparalleled and there'll be nobody who will be able to offer comprehensive of a solution within UniReco and overall product suite as well.
So is that like a focus area for the company's growth? Are you guys trying to push UniReco and make significant product, and you expect it to become a significant contribute to your overall revenue contribution? Is that like a focus area of your overall...
So our focus is to drive newer products. UniReco is one of the new products. We have UniCapture and we have more products in the making. We've been talking about them as we launch. So the focus is definitely to drive adoption of newer products on to our customer base and to drive growth coming from these new products across the different products that we are launching. So that is one important growth lever for us.
And the growth, are we focused on domestic largely or international is also like a bigger focus for us? Do you expect the growth to come in domestic customer going forward or for international customers?
Both actually. So domestic is the largest part of our business. International still continues to be in single digits for us. So the idea is to enable some of these new products and international geographies also, but the big focus of these new products is going to be get them adopted within the Indian ecosystem. And as they mature further, then we'll look at expanding them to international geographies as well.
So incremental growth, we're focusing on domestic customers right now and with some ancillary business going to international customers. Is that right? I'm saying for the incremental growth that we're projecting for the next 1, 2 years, we're focusing on domestic customer first and then the international customers after that. Is that right?
So both are important focus areas for us. International business has grown faster than our domestic business coming at a smaller base though. So we want to grow both the businesses. The new product adoption, which is largely focused for India. And as the new products mature, we will take them to international markets as well.
We will take the next question from the line of Arvind Arora from A Square Capital.
Arvind Arora:
So we have almost closing 1.1 billion transactions that we process every year. So we have a huge data library now. And you have also mentioned that we will use this data to analyze and provide insights to customers. So what would be our revenue model on this, like and how we can expect this solution to the customer? And are we planning to develop a separate tool for this like something like a dashboard type of things? Or can you please throw some more light on that part, please?
So as you rightly pointed out, we processed a lot of transactions. We get access to very important data for our particular clients. So the idea is to build a separate product line to be able to drive richer insight for the business. This is still early stages. We are still building it out. I think it will be difficult to comment on the revenue model that will evolve as the product gets launched and as we get more feedback. But that product on these lines is in the making, and we'll be able to share more details once we are ready to launch this product.
Arvind Arora:
Any timelines on this? Because we are moving like we are targeting like it's from IT enablers, we are focusing on business solution providers. Any timelines in the mind?
So in the AI area, things are moving at a lot faster pace. I think we're hopeful we should be able to share a more complete update in the next earnings call for you. The idea is to be able to get some feedback from our customers and then do a full-fledged launch about the product.
Understood. Okay. And Kapil, we are talking in the last 2, 3 quarters about the inorganic growth. So which line of business we are thinking that we should go and acquire a customer -- sorry, go and acquire business so that we can grow in IT e-commerce?
See, as I mentioned before as well, the various factors that we look at acquiring our businesses, that is to be relevant our existing customers. There should be significant AI relevance, and it
should be available at a reasonable valuation. More importantly, it should be a good product, good team. The sales muscle is something that we have that we can grow the business.
So the idea is to look at adjacent white spaces, which add product capability and help us realize our vision of becoming a one-stop shop for e-commerce enablement. I talked about a few example white spaces in terms of expanding into the pre-purchase journey and looking at a few spaces in the post-purchase journey as well. So we will continue to -- as we speak, we continue to evaluate various white spaces and are in touch with a number of players and evaluating whether they meet the criteria that I outlined. As and when we have a complete update on this particular aspect, we'll be happy to share it with the market.
Understood. And Kapil, ground level, especially ground level, there are more SMEs that face issues in like GST recon and everything. So since we have so much good capability, so are we also planning to launch any tool on that part so that like to add more tool to help those SME and then increase our revenue?
So our focus is e-commerce. So we want to first talk about and also problems related to e-commerce, which is through with payment reconciliation, inventory reconciliation, returns, etcetera. I think that's our initial focus area, and that's what we're most focused about -- and we're getting feedback on that. As the product matures and we get this use case from our customers to have this particular thing about GST recon embedded in this solution, that's when we can incorporate. Today, we are focused on solving the eCommerce pain points our customer base.
Thank you very much. Ladies and gentlemen, due to time constraint, we will take that as the last question for today. I now hand the conference back to the management for closing comments. Over to you, sir.
Thank you, everyone. I hope we have been able to answer all the questions and give you a meaningful update on the business. In case if there are any further questions, please do reach out to Strategic Growth Advisors, our Investor Relations Advisors. Thank you, and have a good day.
Thank you members of the management. On behalf of Unicommerce eSolutions Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your lines.