Unicommerce eSolutions reports strong Q2FY25 with 21% PAT growth

Unicommerce eSolutions Limited has posted a remarkable 21% increase in Profit After Tax (PAT) year-on-year for Q2FY25, reaching INR 44.7 million, while reporting a 13% revenue growth to INR 293.1 million. This performance, announced on October 28, 2024, also marks an impressive 33.5% jump in adjusted EBITDA, reflecting the company’s strategic focus on client expansion, product development, and operational efficiency. The company’s newly launched products, UniShip and UniReco, have shown strong initial traction with early adopters, with Unicommerce expecting these offerings to gain significant momentum as they mature.

Financial Upsurge Amid eCommerce Trends

India’s dynamic eCommerce sector has played a crucial role in driving Unicommerce’s growth. While the long-term outlook for the industry remains strong, recent months have seen some short-term softness outside peak festive season sales. Despite these shifts, Unicommerce’s strategy has led to the addition of over 100 enterprise clients in Q2FY25, including big names like VIP Bags and Landmark Group. This substantial client base expansion, along with a 21.9% year-on-year increase in processed order items, positions the company to continue capitalizing on the growing digital adoption in the market.

Improving Financial Metrics Indicate Operational Efficiency

Chief Financial Officer Anurag Mittal highlighted the company’s consistent revenue growth, noting that Q2FY25 saw a 13% rise in revenue year-on-year, culminating in INR 293.1 million. For the first half of FY25, revenues reached INR 567.8 million, up 11.1% from the previous year. Mittal attributed this growth to operational efficiencies and client expansion, pointing to a significant increase in adjusted EBITDA margins, up by 322 basis points to 21% in Q2FY25. He explained that Unicommerce’s scalable model and increasing transaction volume have been instrumental in enhancing profitability.

CEO’s Vision for Future Expansion

Kapil Makhija, Managing Director and CEO, discussed the company’s strategic direction, expressing optimism about India’s eCommerce future and outlining plans to deepen relationships with existing clients through cross-selling and upselling. He noted that Unicommerce’s 100%+ Net Revenue Retention in its enterprise business demonstrates the company’s ability to retain and expand its client base effectively. Makhija stated that the promising performance of new products, UniShip and UniReco, further reinforces Unicommerce’s goal to become a central force in India’s eCommerce supply chain, and as digital adoption increases, the firm is positioned for ongoing growth.