Unicommerce eSolutions (UNIECOM) Q2 24/25 earnings summary

Executive summary

• Achieved strong revenue growth of 13% year-on-year in Q2 FY25 and 11.1% in H1 FY25, with adjusted EBITDA up 33.5% and 29% respectively year-on-year.

• PAT increased by 21.1% in Q2 FY25 and 25.4% in H1 FY25 year-on-year, reflecting improved profitability.

• Added 100+ enterprise clients in Q2 FY25, including marquee names like VIP Bags and Landmark Group, indicating robust client acquisition momentum.

• Launched new products UniShip and UniReco, focused on order tracking, returns management, and payment reconciliation, both gaining traction with early adopters.

• Audited financial results for the quarter and half year ended September 30, 2024, were reviewed and approved by the Audit Committee and Board on October 28, 2024.

Financial highlights

• Q2 FY25 revenue: INR 293.1 million (up 13% YoY); H1 FY25 revenue: INR 567.8 million (up 11.1% YoY).

• Adjusted EBITDA for Q2 FY25: INR 61.7 million (up 33.5% YoY); H1 FY25: INR 106.3 million (up 29% YoY).

• Adjusted EBITDA margin rose to 21% in Q2 FY25 (up 322 bps YoY) and 18.7% in H1 FY25 (up 259 bps YoY).

• PAT for Q2 FY25: INR 44.7 million (up 21.1% YoY); H1 FY25: INR 79.9 million (up 25.4% YoY).

• Cash and bank balance as of September 2024: INR 881.9 million.

• Cash flow from operations in H1 FY25: positive INR 161 million, compared to negative INR 13.1 million in H1 FY24.

Outlook and guidance

• Management expects continued market-plus growth, leveraging new product launches and international expansion.

• New products UniShip and UniReco are expected to contribute to revenue as they mature, with commercial launches targeted by year-end or early next year.

• Focus remains on cross-sell/upsell to existing clients, new client acquisition, and continued product innovation.

• Transaction-linked revenue model expected to drive further growth as eCommerce volumes rise.

• Operating leverage is expected to further improve margins, with costs largely fixed except for inflationary increases.