Unicommerce eSolutions Ltd (NSE: UNIECOM) Q4 2026 Earnings Call dated Apr. 28, 2026
Corporate Participants:
Kapil Makhija — Managing Director & Chief Executive Officer
Anurag Mittal — Chief Financial Officer
Analysts:
Sumeet Jain — Analyst
Unidentified Participant
Vinod Krishna — Analyst
Majid Ahamed — Analyst
Pratik Banthia — Analyst
Vansh Gupta — Analyst
Arvind Arora — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Unicommerce eSolutions Limited Q4 and FY26 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 the guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines 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 it at Stone four. Please note that this conference is being recorded. I now hand the conference over to Mr. Kapil Makita, Managing Director and CEO of Unicommerce eSolutions Limited. Thank you. And over to you, Mr. Makhija.
Kapil Makhija — Managing Director & Chief Executive Officer
Thanks. Good morning everyone and thank you for joining us for the FY26 and quarter four 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’re 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 five years that engine has been completely transformed. That engine is our business and its transformation is is the story of unicommerce. Let me give you one data point. In FY21 our revenue was 40 crores. In FY26 we crossed 204 crores. That 5x growth in 5 years. Here is another data point. This year we delivered 43.9 crores of adjusted EBITDA. That’s higher than our entire revenue five years ago.
Over the past five years we have consistently met the rule of 40, a key benchmark for SaaS companies where our sum 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. Five years ago, a typical e commerce business operated across three to four sales channels. Today it is common to see eight to 12 channels, marketplaces, own brand websites, quick commerce platforms, B2B model and general trade.
Five years ago, typical e commerce warehouses processed around 5,000 orders a day with one order being processed at a time. Today, warehouses on our platform have the capacity to handle 3 to 5 lakh orders daily. Five years ago shipping was measured in days. Today it is measured in minutes. The Unicommerce platform reflects this shift. Five years ago we supported around 100 integrations the digital pipes connecting ecosystems. 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. Five years ago, hundred clients had more than 50 users on our platform. Today we serve clients with up to 1000 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 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 e commerce operations. And with deep integration into client workflows, we have become the system of record for mission critical operations. Against this backdrop, FY26 marks the completion of a transformative phase and the beginning of a significantly larger opportunity. FY26 was our first full year as a multi platform E commerce enablement SaaS company transitioning from a single product business.
Our three platforms, Convertway, Uniware and Shipway span customer engagement, transaction processing and order fulfillment layers of the E commerce 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.
Univer Unibot is reducing time to shift and maintaining and minimizing missed shipments. Shipsense AI is optimizing cost versus speed while reducing returns. Catalyst AI Convertways 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.
FY26 was strong. Revenue grew 51.6% to 204.3 crores. Adjusted EBITDA grew 54.5% to 43.9 crore. Cash more than doubled from 35.3 crore to 81.3 crores driven by 47 crores of cash flow from operations. And importantly, we have rebuilt our cash position to pre shipware acquisition levels within just five 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 Oneida, Kenstar, Accentesa, Nayasa, Ajanta Shoes, Lehair Footwear, Himalaya Wellness, rupa, Lacoste, Super U2 native, 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 have adopted Unireco within 3 quarters of launch and 1 to 2% have taken up Unicapture within a quarter of its launch.
Our international Univer business turned profitable this year and is now growing faster than our India business. Univair 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 five years. Our strategy for FY27 and beyond is anchored on four priorities.
1. Build more AI LED products and expand the use cases of existing ones to unlock new revenue streams. 2. Accelerate growth across platforms. We expect Univair to sustain double digit growth while Shipway should also grow double digit year on year at a faster pace given its lower penetration and a larger addressable market. 3. 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. 4.
Staying disciplined on cost demonstrating operating leverage even as we invest for growth. Our capital allocation is evolving accordingly. We have stepped UP Investments starting Q4 FY26 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 UNIVER and chipset. You will see the near term financial impact of these investments in the form of lower adjusted EBITDA and PAD over the next two quarters.
However, we remain confident of delivering higher full year operational profitability in FY27 compared to FY26. To summarize, we enter FY27 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 ambitions. With that, I will now hand over to Anurag to walk you through the financials in detail.
Anurag Mittal — Chief Financial Officer
Thank you Kapil and good morning everyone. Let me walk you through the financial performance starting with FY26, our revenue for the year stood at 204.3 crores compared to 134.8 crore in FY25 a year. On year growth of 51.6%. Adjusted EBITDA for the year was 43.9 crore up from 28.4 crore a growth of 54.5%. Adjusted EBITDA margin stood at 21.5% holding steady versus FY25 despite the full year consolidation of shipwreight which operates at different margin structure. I want to highlight one important point here that the underlying uniware business actually expanded its standalone adjusted EBITDA margin from 25% in FY25 to 37.5% in FY26, reflecting the operating leverage Kapil referred to earlier.
The business continues to demonstrate strong cash generation. Cash flow from operations for FY26 was 47 crore compared to 28 crore in FY25. Profit after tax for the year stood at 20.5 crore up from 17.6 crores in FY25, a growth of 16.1% YoY. Our cash and bank balance stood at 81.3 crores as of 31st March 2026 compared to 35.3 crore as at the end of FY25. This is similar to our cash position prior to shipping acquisition. Our eps increased from INR1.58 in FY25 to INR1.78 rupees in FY26. Moving to the quarterly performance for quarter four FY26, our revenue stood at 51.6 crores compared to 45.3 crores in quarter four FY25 a year.
On year growth of 14% on a sequential basis revenue was lower than quarter three and I want to spend a moment on why this pattern repeats every year. Quarter three is a peak demand quarter for the Indian e commerce industry. It is supported by extended festive activity Diwani 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 four in contrast is characterized by shorter event driven spikes such as end of season sales and recovery day sales largely discount lag and inventory clearance in nature. As a result, overall volumes naturally normalize and come in lower than quarter three. The same trend played out last year on standalone basis. Our Adjusted EBITDA for quarter 4 FY26 stood at 9.6 crore compared to 8.9 crore in quarter 4 FY25 a year on year growth of 7.8%.
Profit after tax for the quarter stood at 3.4 crore compared to 3.3 crore in Q4FY25 a year on year growth of 1.6%. The adjusted EBITDA and PAT for the quarter reflect the planned growth investment we have initiated for Shipwrecker during the period. As Kapil outlined earlier, these include strengthening our sales and marketing, adding product and engineering talent focused 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 tools to implement the latest technologies in both our product 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 a merger process between unicommerce E Solutions limited and Shipway Technology Private Limited. The objective of this proposed merger is to improve operational efficiency, simplify our corporate structure and reduce compliance requirement 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 as this process progresses. Looking ahead, our focus remains clear. We will maintain cost discipline while supporting growth across all three platforms. Even as we continue to invest for growth, we are confident of delivering higher full year profitability in FY27 compared to FY26 through disciplined execution and operating leverage over the last five years we have built the infrastructure, the product and the team that the next phase of Indian e commerce needs.
We have three 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 that future with discipline and see the opportunity to replicate the growth achieved over the last five years. With that, we will now open the floor for questions. Thank you,
Questions and Answers:
Operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants. You are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue sembles. A reminder to all you may press Star and one to ask a question. We will take the first question from the line of Sumit Jain from clsa.
Please go ahead.
Sumeet Jain
Yeah hi, thanks for the opportunity and congrats Kapil and Urag for a good top line growth this quarter. I think it was very heartening to see a double digit growth in the standalone business after almost a gap of 45 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 FY27 for the standalone 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 Univair which is coming at the back of strong client acquisition. As we demonstrated in quarter four, 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’ll be difficult for me to give a specific guidance, but we are confident on continuing with a double digit growth trajectory for the standalone 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 FY27. But just to from the modeling standpoint for a quarter to quarter basis, how should one look at these increased investments?
Kapil Makhija
So as we mentioned earlier in the discussion today that we will invest in the next two quarters, the investments have started from quarter four, FY26 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 FY26 and FY27.
Sumeet Jain
Okay, so. So that implies in second half your profitability will be far better than in a way the first half as well as in FY26. Right?
Kapil Makhija
Exactly. Yeah. We anticipate that the operating leverage will kick in from FY27 when we start seeing higher from the second half of 527 when we see the result of our initiatives and investments that we are putting in in these three quarters.
Sumeet Jain
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 bag.
Kapil Makhija
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’ve seen a phenomenal improvement in the metrics and the benefits we pass on to our customers in terms of faster onboarding, a 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 three domains, Catalyst and Convertway, Unibot in Univare and Chipsense in Shipway. You will continue to hear more of such launches and more use cases being catered. Leveraging AI.
Sumeet Jain
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 and D team or the software development team might not be increasing at the same pace because of the AI led productivity?
Kapil Makhija
See, the investments sumit that we’re doing are leveraging AI to be able to do better R and D. So there are some investments that we’re doing in terms of talent in R and D as well. There are obviously investment 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 Univer and shipwreck. So investments are largely in these four buckets.
Using AI for R and D, more sales and marketing, getting submit to senior talent and fourth is using more and more AI tools to improve our productivity.
Sumeet Jain
Got it. Got it. Now that’s, that’s very helpful and all the best team.
Kapil Makhija
Thanks Anu.
Operator
Thank you. We will take the next question from the line of SIVA from I thought pms. Please go ahead.
Unidentified Participant
Hi. Thank you for the opportunity. So my first question is regarding our standalone business. So if you look at our growth we’ve been growing at around 40 50% rate during FY22 23 and it kind of slowed down to 15% in 24 and then we went to 10% and now we’re at 5% in FY26. 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 loss with our new claims. But despite having all that, our ARPA fell by 11% in FY26 higher, slightly higher than FY25. 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.
Kapil Makhija
Sure. Thanks Eva for the question. As we had mentioned in the earlier calls as well, our growth is a function of growth of existing customers, addition of new clients since FY21 to about FY25. These are the two main driver main factors driving the growth for us. While in FY21 22 we had seen the market e commerce market crash 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 2425.
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 five and a half percent. But if you look at the last second half of the year you can see that we delivered about 8% growth in the quarter three and now back to double digit growth in quarter four of FY26. That is on the back of not only Faster client acquisition, but also addition of new products. So now the three 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 four 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 not 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 will henceforth be able to deliver our double digit growth in the business.
Unidentified Participant
So we could also term it like, because we are adding so much clients every year, ARPA is not able to go up. Is that a right understanding?
Kapil Makhija
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.
Unidentified Participant
Yeah, understood. And my second question is for shipware. So what was the total shipment number that we saw for FY26? 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?
Kapil Makhija
See, from a shipment perspective, we had mentioned that we’ve crossed a 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 three metrics that really matter for our business is growth of our existing customers, addition of new customers, and the profitability that we’re delivering. So as a business, we continue to track these three metrics.
We are, as we had mentioned in the last earnings call, we are now 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 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 billion plus transactions and continue to see a strong growth in the transactions. Sorry, what was the second part of this question for you?
Unidentified Participant
So I was asking the margin that we did for the whole year and what could be a steady state margins.
Kapil Makhija
So on the margins perspective we’ve continued to stay consistent. We had mentioned that our standalone business continues to be nearly 80% gross margin and Shipware 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.
Unidentified Participant
Sorry sir, I was talking with regards to EBITDA margin for Shipware business, are we EBITDA profit in Shipway here?
Kapil Makhija
So as we mentioned in the last earnings call and I’ve called out this quarter as well that we continue to invest in chip pay, we invest in sales and marketing and we invested in AI development in Chipway as it’s a challenger and we wanted 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 standalone business, we have seen our adjusted EBITDA improve from 25% to 37.5% for the full year.
Unidentified Participant
Yeah, that helps. And one last thing. So we…
Operator
Sorry to interrupt Siva, I would request you to kindly rejoice the queue again for more questions.
Unidentified Participant
Sure, I will get back in the queue.
Operator
Thank you. We will take the next question from the line of Vinod Krishna from Evanders Wealth. Please go ahead
Vinod Krishna
Sir. Am I audible, sir?
Kapil Makhija
Yeah, you are able
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 we 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 a north of 20, 25% growth. Given our profile of our company and given the slowdown that we have in the last one and a half two years, do you think you can maintain that kind of growth rates 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 five times in five years, three to four times in five years. So if you can little bit more elaborate because we had a huge tailwind post Covid, are you seeing something or you are dependent on acquisitions or are you 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 five years? That’s my first question, sir.
Kapil Makhija
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 core part of our strategy. So we’ll continue to evaluate M and A opportunity 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 reduction because of which we see we had seen a market growth which led to our growth as well.
But at the same time, as I mentioned over the last few quarters, honestly we can’t really control how fast the market grows. Right? 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 and 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 add new product capabilities through nargonec acquisitions. A combination of these three factors will help driving more growth.
We have already demonstrated a faster growth in our standalone business. Shipri 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
So thank you. 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 a to write their own products? That kind of a threat. Are you seeing these two questions? One is market share on Uniware and people wipe coding there because it’s for small people instead of Excel. So. So adoption becomes more slower and longer for us to convert them into products or am I thinking wrong there?
Kapil Makhija
Yes. So for the first part of your question, see we continue to acquire more and more customers 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 they leverage AI to build copies of leading commerce?
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 eight 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 build deep relationships across various ecosystem players, which is marketplaces, logistics partners. 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 roadmap 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. Second, as the complexity.
Vinod Krishna
Sorry, sorry,
Kapil Makhija
Second point is that the complexity of the E commerce 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,
Kapil Makhija
We’re not giving a group guidance for the FY27 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 five years to replicate that in a similar time frame in the coming years as well.
Vinod Krishna
Thank you sir and all the best. Thank you sir.
Kapil Makhija
Thank you.
Operator
Thank you. We will take the next question from the line of Majit Ahmed from Pinpoint X Capital. Please go ahead.
Majid Ahamed
I’m audible sir.
Kapil Makhija
Yeah, you’re.
Majid Ahamed
Hello. Yes sir. Thank you for the opportunity. Sir. My first question that I have is what’s the current NRR Nikazi used to mention heavy metric for this year?
Kapil Makhija
Yeah. So NRR for the year was above. So we have maintained that our NRR continues to be above 100%. We have in FY26NY as well. Our NRR is above 100% excluding the churn of this we saw in the top 10 bucket. We mentioned about that in the last earnings call as well. The NRR continues to be subdued as I mentioned because it reflects the broader E commerce ecosystem growth and like I mentioned that’s not in our control. So we continue to add new products and continue to add new clients to be able to drive growth in the business.
Majid Ahamed
So what do you think at the same time?
Kapil Makhija
At the same time we’ve also seen that as I mentioned, the new client acquisitions continued 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
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 incremental sales and marketing spend for this quarter? Sir,
Kapil Makhija
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 emitted 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 four factors have resulted in the investments because of which we’ve seen our EBITDA growth not being in quarter four slightly subdued, but these are investments we see.
Another factor is that in the last few quarters we’ve 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 four and the next two quarters to be able to drive a consistent growth in the business and unlock value for our shareholders.
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?
Kapil Makhija
The sequential decline in Shipway is largely because of seasonality. As Anurag mentioned that quarter three includes peak 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 four sales are largely event driven like kind of season sale or Republic day sales which are mostly discount led.
And for inventory clearance in general we have seen Q3 demand is higher than quarter four. The same trend was there last year as well. So the sequential drop in shipwrecker is larger on account of seasonality. We continue to be confident of shipwreck continue to drive growth because it’s a very large market and Shipway is still a challenge in that market. So 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 higher growth in the business.
Majid Ahamed
So finally, just want to know regarding this international market expansion and how we are going around that. Sir, how do you see a contribution FY27, the international market?
Kapil Makhija
International market as I mentioned became profitable in this year and continues to grow stronger than the Zoom State business. The relative contribution is smaller. It used to be 45%. It has improved to about 60 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 seven geographies outside of India, across Middle east and Southeast Asia. The idea is to grow deeper and within these seven geographies, the three geographies that are most prominent for us are Dubai, Philippines and Malaysia. The idea is to grow deeper in these geographies.
Majid Ahamed
Thank you sir, all the very best.
Kapil Makhija
Thank you.
Operator
Thank you. We will take the next question from the line of Pratik bhantea from Fermi T325 Investment Advisors, please go ahead.
Pratik Banthia
Hi, congrats on a good set of numbers. Also great to see the fashion brand success story wherein they’ve been able to leverage all three of our platforms for revenue growth. Shows how deep of an impact we can have on a brand’s success. I just wanted to understand what kind of segments are we looking at, you know, for acquisitions, what would be the ticket size over there and how many deals are we looking, you know, for potential deals?
Kapil Makhija
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 seem effectively not looking at a very large business, difficult to quantify a 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 with existing business.
So those are the factors that we use to evaluate the businesses as we speak. 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 space or specific players that we are considering. But just to give you an example, if you look at the pre purchase journey, so today convertways are entry into the pre purchase journey. We have largely been a post purchase pair, so that’s a byte space that’s open.
So that could be an interesting space to look at solutions which are operating in the pre purchase 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 you know of existing uniware clients who’ve adopted shipway and convertway.
Kapil Makhija
So for us as I mentioned the overlap when we required 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 univer there is a large market for shipway which consists of Instagram sellers, D2C brands, dropshippers who may not require univair 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. Univair client base is growing. Ship based client base is growing.
From a percentage basis we continue to say 10% plus and it may look static but we continue to see a stronger overlap on both the businesses.
Pratik Banthia
Okay, and another question was the share based payment has jumped quite a bit compared to last year. I just wanted to get a sense see what kind of dilution can we model into our, you know, financials going ahead. Just a basic bookkeeping question I think.
Kapil Makhija
See from A M and a perspective we’ve been adding cash. We have now got our cash to pre shift to acquisition levels that used for cash is mla. I’ve talked about the cases that we use for identifying targets for acquisition. So our intent is to not look at dilution when we’re requiring but leverage most of our cash to be able to do this. In terms of issuing ESOPs to talent, we’ve. 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 incentives 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.
Pratik Banthia
Okay, and last question was have you seen any slowdown in consumption since the beginning of March or since, you know the war has started? Any signs of slowdown? Have you been able to spot or. It’s not there.
Kapil Makhija
Yeah, 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.
Pratik Banthia
Okay, thank you so much and all the best.
Kapil Makhija
Thank you.
Operator
Thank you. We will take the next question from the line of Vanj Gupta from Prescience Capital. Please go ahead.
Vansh Gupta
Hi sir. Thank you for the opportunity. Am I audible?
Kapil Makhija
Yeah, you’re audible. Hello.
Vansh Gupta
Thank you sir. Yeah, right. Thank you sir. Just a couple of questions from my uncle. So top 10 customer revenue contributions, 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 universe business?
Kapil Makhija
Sure. As I mentioned in the last call as well, the growth of top 10 customers is reflective of their overall business because because any large customer or all customers for that matter manage 100% of their E Commerce dropship business on us. So it’s not as if 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 customer churn because of the change in their business model because of which multi channel was no longer a use case for them because of which they discontinued.
So combination of growth of the overall customers, the top 10 customers and the fact that this 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 to follow up on that, so I believe you have mentioned prior few quarters that there were some price escalations that were also built into the contract that you had signed with the customers. So both when you look at the 1112% growth in the Univa 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 for the top 10 customer as well as for the unive business?
Kapil Makhija
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 group.
There is no price escalation yet being paid into the large customers because those are existing contracts and we haven’t yet started to implement the price escalation on our existing contracts.
Vansh Gupta
Got it sir. And just one more follow up sir. So we have also launched a couple of products, Unireco and we also acquired Chefs last year. So in terms of cross sell and upselling opportunities, is there any specific reason for why Unireco has been adopted by just 5 to 6% of our client base or rather its revenue contribution is just 5 to 6%? Are you seeing any momentum for the product that we’ve launched in the past year?
Kapil Makhija
Yes. So see in SaaS or in technical products it’s generally a gestation period for adoption. When we launched B2B Quick Commerce it was in the single digits when we had initially launched and over course of time we have seen now 40 to 45% of our enterprise customer base adopting B2B and quick commerce use cases. In Unireco valve we had launched with one of the use cases which was payment reconstruction. Across marketplaces we continue to get feedback about newer use cases, about inventory reconciliation, about order, full order to cash cycle, etc.
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 three quarters itself we’ve seen a 5 to 6% reduction. As we incorporate this feedback and this becomes relevant for more and more time within our customer base you will see a higher adoption of unireco coming forward.
Vansh Gupta
And so in terms of competitors for the Unireco product, I believe in CREP is there but I’m not sure if it offers a unireco kind of a product. But are we seeing like any loss of customers to our competitors who like competitors like Inkrs in the standalone uniwear business as well as the Uni Record product that we launched?
Kapil Makhija
Very difficult to comment on a specific competitor, but safe to say that one today there is no competitor which is as comprehensive a product offering that we have. 2 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 e commerce business. The kind of debt that we’re building in Uniraco that will be unparalleled and there’ll be nobody who will be able to offer cash comprehensive solutions within Uniroco and overall product suite as well.
Vansh Gupta
So is that like a focus area for the company’s growth. Are you like trying to push email like a city Mexican product and you expect it to become a significant contributor to your overall revenue contribution? Is that like a focus?
Kapil Makhija
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’ll be talking about them as we launch. So the focus is definitely to drive adoption of newer products onto our customer base and to drive growth coming from the new products across the different products that we’re launching. That is one of important growth levers for us.
Vansh Gupta
And the growth are we focusing on domestic largely or international is also like a bigger focus for us. Do we expect the growth to come large from domestic customers going forward or from international customers?
Kapil Makhija
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 for 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 look at expanding them to international geographies as well.
Vansh Gupta
So incremental growth, we’re focusing on domestic customers right now and with some ancillary business going to international customers, is that right?
Kapil Makhija
Sorry, I couldn’t understand that question.
Vansh Gupta
I’m saying for the incremental growth that we projecting for the next 12 years, we’re focusing on domestic customers first and then the international customers after that. Is that right?
Kapil Makhija
So both are important focus areas for us. International business is growing faster than our domestic business coming at a smaller base though. So we want to grow both the businesses. The new product adoption will be largely focused for India and as the new products mature we will take them to international markets as well.
Operator
Sorry to interrupt once. I would request you to kindly rejoin the queue again for more questions. Thank you. We will take the next question from the line of Arvind Arora from A Square Capital. Please go ahead.
Arvind Arora
Hello. Thank you for the opportunity. So Kabil, we have already like we are almost closing 1.1 billion transaction that we process every year. So we have huge data library now and you have also mentioned that we will use this data to analyze and provide insight to customer. 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?
Kapil Makhija
So as you rightly pointed out, we process a lot of transactions. We get access to very important data for a particular client. So the idea is to build a separate product line to be able to drive richer insights for the business. This is still early stages, we are still building it out. So 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 timeline from this because we are moving like we are targeting like it’s like from IT enablers we are focusing on business solution providers.
Kapil Makhija
Sorry I couldn’t understand the last part of the question.
Arvind Arora
I’m saying any timelines that in the mind.
Kapil Makhija
So in the AI era 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 the next earnings call for you. The idea is to be able to get some feedback from some alpha customers and then do a full fidget launch about the product
Arvind Arora
And Kapil we are Talking in last 2 3/4 about the inorganic growth. So which line of business we are thinking that we should go and acquire a customer sorry business so that we can grow in it E commerce.
Kapil Makhija
See as I mentioned before as well the various factors that we look at acquiring a business is and that it should be relevant to 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 few example white spaces in terms of expanding into the pre purchase journey and looking at few spaces in the post purchase journey as well. So we will continue to as we see we continue to evaluate various various white spaces and are in touch with number of players and evaluating whether they meet the criteria that I outlined as and when we have a complete update on this particular asset we’ll be happy to share it with the market
Arvind Arora
And Kapil especially down level more SME that face issues in like GST Rico and everything. So since we have so much good capability are we also planning to launch any tool on that part so that or like to add more tool to help those SME and then increase our revenue.
Kapil Makhija
So see our focus is E commerce so we want to first talk about and solve for problems related to E Commerce, which is to do with payment reconciliation, inventory reconciliation, returns, etc. 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 GSTREK also embedded in the solution, that’s when we can incorporate. Today we are focused on solving the E Commerce pain points of our customer base.
Arvind Arora
Okay. Okay. All the best, Kapil. Thank you.
Kapil Makhija
Thank you.
Operator
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.
Kapil Makhija
Thank you everyone. I hope, we 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 feel free to reach out to Strategic Growth Advisors, RMS Relations Advisors Advisors. Thank you and have a good day.
Operator
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.