Unicommerce

Unicommerce eSolutions reported a strong Q1 FY26, with consolidated revenue reaching INR 449.3 million, marking a 63.6% year-over-year increase. Adjusted EBITDA grew by an impressive 112% year-over-year to INR 94.7 million, leading to a significant expansion in Adjusted EBITDA margins from 16.3% in Q1 FY25 to 21.1% in Q1 FY26. Profit after tax (PAT) rose 10.8% YoY to INR 38.9 million, and excluding a non-cash amortization expense of INR 33.2 million, PAT would have been INR 63.7 million, an 81.5% YoY increase. EPS increased by 10.4% YoY to INR 0.34, while ROE and ROCE also saw substantial improvements.

The quarter saw several strategic achievements, including the international business turning operationally profitable across 6 countries. Uniware, the flagship platform, achieved an annual transaction run rate exceeding 1 billion order items. The quick commerce channels on Uniware reached an annualized run rate of 48 million items, up from 20 million in FY25. Shipway, the logistics technology platform, became PAT positive and, as of July, achieved its highest-ever annualized run rate of INR 80-85 crores, compared to INR 70 crores in Q1 FY26.

Uniware experienced pricing softness, with rates noted below INR 1.10 and down 50% YoY. This was attributed to a deliberate strategy of offering lower minimum guarantees to new-age brands to accelerate adoption, and a shift in the transaction mix towards lower-rate quick commerce and B2B volumes. Despite this, the company added 88 new clients in Q1 FY26 through organic growth channels (outbound, inbound, and partnerships), demonstrating continued strong sales momentum and diversification of its client base.

Shipway's revenue in Q1 FY26 saw a marginal decline due to a strategic restructuring of select low-margin accounts, aimed at enhancing profitability and enabling the platform to become PAT positive. Management highlighted Shipway's significant headroom for growth within a large Total Addressable Market (TAM) of approximately INR 4,000 crores, expecting it to be the largest growth driver among the company's new products. The valuation for the second tranche of the Shipway acquisition was INR 179 crores, higher than the first tranche (INR 160 crores), reflecting an increase in Shipway's business size.

The company emphasized disciplined execution and enhanced operational efficiency, contributing to improved profitability. Uniware's PAT margins are expected to improve further due to operating leverage, AI-driven process efficiencies, and realignment of people costs. AI is being embedded across key operational functions, including code development, ticket resolution, and client support, to drive productivity and improve service outcomes. The successful implementation of Oracle as the financial ERP platform in Q1 FY26 is expected to further strengthen internal systems and financial management from Q2 FY26.

The international business, currently contributing 4-5% of overall revenues, turned operationally profitable in Q1 FY26. The company is seeing steady traction in focused geographies like the Middle East and Southeast Asia, where e-commerce evolution is a few years behind India. While pricing in international markets is currently slightly higher than in India, it is business-sensitive and is expected to stabilize and mature as these markets evolve. The large contract secured in Southeast Asia is similar in nature to domestic contracts, linked to business expansion.

Unicommerce capitalized approximately INR 1.5 crores in Q1 FY26 for the UniShip product, with no major capitalization anticipated from Q2 FY26 onwards. The amortization expense of INR 33.2 million related to the Shipway acquisition is expected to reduce from Q2 FY26 onwards, following the successful integration of developed and acquired technologies. This reduction is anticipated to positively impact future PAT.