Ladies and gentlemen, the conference call for Unicommerce eSolutions Limited will begin shortly. Thank you for your patience, and please continue to stay connected. Ladies and gentlemen, good day, and welcome to the Unicommerce eSolutions Limited Q1 FY 2027 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 the date of this call. These statements do not guarantee the future performance of the company and may involve risks and uncertainties which 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 your touchtone phone. Please note that this conference is being 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. Thank you. Good morning, everyone, and thank you for joining us for the Quarter One FY 2027 Earnings Call. I am a little under the weather today, so please bear with me if I take a few pauses as I go through my remarks. I am joined today by Anurag Mittal, our Chief Financial Officer, along with our investor relations advisors, strategic growth advisors. Before I get into the quarter, let me start with where we stand as a company today. Yesterday marked two years since our listing. In these two years, we have doubled both our revenue and adjusted EBITDA. Looking back further, we have grown the business 5x over the last five years, and our FY 2026 adjusted EBITDA alone is now higher than our total revenue from five years ago. Our focus now is to build on this performance. As we enter the next phase of growth, we will continue to be guided by the three core principles that have shaped our journey so far. First is a tech-first mindset. We lead through product innovation to create value for our clients. Today, that increasingly means embedding AI into our platforms so customers can achieve more with lesser effort. Second, we invest with discipline. We take selective bets and assess investments based on the size of the opportunity, the value created for customers, and their priority related to other growth opportunities. For example, over the last five years, we invested in building our e-commerce WMS and omni-channel product suite, building these through incremental iterations. Both products now operate at a large scale. Third, we build patiently. Enterprise software requires sustained product development, customer feedback, and validation, as well as an evolving go-to-market approach through different stages of scale. Our modules or features often begin with focused use cases and become stronger over time as we add depth of features around workflows for different types and scale of customers. This allows us to serve a larger and more diverse set of clients. In a complex industry like e-commerce, the product maturity cycle can extend over 18- 24 months. These principles have shaped how we have built the business over the years, and they continue to guide how we allocate our resources today. As we enter FY 2027, we do so with a broader product portfolio, a larger customer base, and multiple growth opportunities across our platforms. Against this backdrop, let me turn to our performance in quarter one, FY 2027. We are pleased to begin the financial year with a strong first quarter. Revenue grew 14.3% year-on-year to INR 51.4 crore, supported by continued double-digit growth across both Uniware and Shipway. To capture the opportunity ahead, we have consciously increased our investments during FY 2027. These investments will be funded through a portion of the earnings we generate while we continue to add cash to our balance sheet. Our investments for the year are focused on three areas. The first is AI-led product innovation. Product development has been a critical driver of our revenue growth in the past. We began by building Uniware to address complex operational workflows and went deep in developing a highly flexible platform that can cater to hundreds of workflow variations across clients. Today, our platforms are moving into the next phase of this evolution. From being a system of record before AI existed, to AI-led systems of intelligence in the first AI generation and now moving to proactive agentic systems that can guide action. Our aim is to create value for clients and help them focus more on solving business problems and less on managing operational processes. The second area of investment is talent and capability addition. Over the last few quarters, we have selectively strengthened leadership across functions and added talent with AI capabilities. These investments will support faster execution, stronger customer relationships, and more scalable systems and processes. The third area is go-to-market expansion. We are expanding sales capacity and investing in marketing initiatives to accelerate customer acquisition, improve onboarding, and continue adoption of new products and modules. Let me now take you through the performance of our individual businesses. Uniware delivered another strong quarter, with revenue growth of 12.8% year-on-year. This was the fourth consecutive quarter of improving growth and demonstrates the traction from the initiatives executed over the last year. The underlying performance was stronger than the reported figures. Excluding the impact of a former top 10 customer that discontinued operations in quarter three, FY 2026, Uniware delivered year-on-year growth of more than 15%. As quarter four, FY 2027 will be the first full quarter of like-for-like comparison following this client exit, we are confident of delivering growth of over 15% from quarter four, FY 2027 onwards in Uniware. We also saw healthy customer acquisition momentum. During the quarter, we added 115 enterprise customers, up 30.7% compared to 88 in the same quarter last year. These additions include both traditional enterprises and digital-first brands. Some of the marquee customers added during the quarter include Amul, Haldiram's, Studds, Pigeon, Mahindra Logistics, and The Sleep Company, in addition to Snoonu and Namshi in international markets. Our newer modules continue to see strong traction. 40%-45% of our Uniware enterprise customers are now using Quick Commerce and B2B modules. 6%-7% have adopted UniReco within a year of launch, and 3%-4% have taken up UniCapture within two quarters of its launch. We are encouraged by the early response, particularly to UniCapture, as video evidence is becoming increasingly important for claim management while implementation required limited incremental effort. As is typical for B2B enterprise software, these products have longer maturity cycles, and we expect them to become stronger growth contributors over the next 18- 24 months. Turning to Shipway. Revenue grew 16.8% year-on-year in the quarter. Our confidence in the opportunity continues to strengthen. We believe that accelerating growth at this stage can help Shipway build a larger and more scalable business over time. Accordingly, after operating the business near breakeven for part of FY 2026, we have decided to increase investment in Shipway during FY 2027. These investments will be directed primarily towards sales and marketing capacity, platform enhancements, and deeper AI-first workflows. Shipway has continued to show 15%+ year-on-year growth over the last two quarters. This gives us the confidence that as the impact of some of these investments materialize, we would be able to drive 20%+ growth year-on-year by the end of the year. That is quarter four FY 2027 onwards. ConvertWay continues to perform steadily as we enhance the product for a wider set of use cases and larger enterprise customers. We plan to invest this year to support our growth initiatives. Most of these investments will be front-loaded in H1 FY 2027, with benefits expected to build through growth and operating leverage, leading to an improving profitability trajectory in H2 FY 2027 and beyond. We have built a strong foundation over the past several years. Our focus now is to build on that foundation by expanding our market opportunity, broadening our platform, and increasing the scale and profitability of the business. We are investing for the next phase of growth with a clear focus on creating a larger and more valuable Unicommerce over the years ahead. With that, I will hand it over to Anurag, who will take you through more details. Thank you. Thank you, Kapil. Good morning, everyone. I will now walk you through our financial performance for the quarter. We opened FY 2027 with revenue of INR 51.4 crore, up by 14.3% year-on-year from INR 44.9 crore in quarter one FY 2026. Our growth was supported by continued momentum across the platforms. Adjusted EBITDA for the quarter was INR 8.1 crore, 14.5% lower compared to INR 9.5 crore in quarter one FY 2026, primarily due to our planned growth investments. Profit after tax increased by 20.2% to INR 4.7 crore, compared with INR 3.9 crore in the same quarter last year. The increase in PAT is due to tax benefit recognized during the quarter. As Kapil outlined, investments this year are intended to position us for the next phase of growth. Our experience with Uniware has shown how sustained investment in product technology, team capability, sales and marketing can build larger and more profitable business over time. We are applying the same approach across our platforms with investments in three areas. One, AI-led product development. Two, talent capability building, and three, sales and marketing expansion. Uniware continues to scale well. Its standalone adjusted EBITDA increased from INR 9.1 crore in quarter one FY 2026 to INR 11 crore in quarter one FY 2027, despite continued investment in the platform. This reflects the operating leverage that will emerge as our platform grow, particularly for Shipway. As most of these investments will be front-loaded in the first half of FY 2027, with benefits expected to build through growth and operating leverage, leading to an improved profitability trajectory in H2 FY 2027 and beyond. Further, our capability to generate cash on a continued basis gives us the flexibility to fund these investments. Our cash and bank balances increased from INR 53.8 crore at end of the quarter one FY 2026 to INR 92.6 crore at the end of quarter one FY 2027, with the growth of 72.1% YoY. As we execute our plan, we will continue to be guided by the three principles that have kept us focused on the long-term growth. We will stay technology first, invest with discipline, and build patiently. With that, I would now like to open the floor for questions. Thank you. Thank you. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets when asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Ankit Kanodia with Zen Nivesh. Please go ahead. Thank you for taking my question, and congratulations on good set of numbers in terms of growth [inaudible]. I am sorry to interrupt, Ankit, you are not audible. Your voice is muffled. Could you please use your phone on the handset mode in case if it is on hands-free? No, I am using my phone only. Is it better now? Yes, it is better now. You may go ahead. Thank you. Yeah. Thank you for taking my question, and congratulations on good set of numbers. Sir, my first question is related to the Shipway acquisition-related amortization and synergy. Roughly, can you give us any timeline as to by when the synergies will start playing out in terms of margins and the amortization cost will be completely absorbed? Any idea on that? Ankit, sorry, I could not understand the question. Could you please repeat that? What sort of synergies are you asking about? Where the kind of initiative which we are taking in terms of we are adding more teams, we are expanding on our go-to-market strategy. We have acquired Shipway in the last year, and then when we have integrated Shipway in our company, there would be some amortization related to that acquisition, which would still be hitting the P&L if I am not wrong. Just wanted to understand from you, from a financial perspective, when do you see these numbers helping us improve our EBITDA margins going forward? Right now, even though we are growing well, even though we are cash flow positive, our reported EBITDA is going down. I am asking especially from that perspective. I hope I could clarify my question. Yeah, Ankit, it is clear now. As you mentioned that the adjusted EBITDA decline is largely because of thoughtful investments that we are doing in the business to be able to accelerate the growth. The results of these investments should be visible from H2 of this year itself, because we are front-loading the investments in the first half of the year. This should also translate into higher growth in the business. As we mentioned, Uniware, we are anticipating to grow at 15%+ from quarter four FY 2027, and Shipway is operating at 15%+ growth today. We anticipate with the investments playing out and materializing, we anticipate Shipway to grow at 20%+ from quarter four FY 2027. We are hopeful that some of these investments that we are making will start demonstrating results in the second half of FY 2027, and the growth improvement will start be visible from quarter four of FY 2027. You will definitely see an improvement in profitability in the second half of the financial year. Great. Yeah, that was very helpful. My second and the last question is related to Mahindra Logistics. If you can just throw some more color as to what is our relationship with them in this space, and a broader view of how do you see the logistics space in India, and do we see any more customer onboarding on any angle? I am not asking from the point of view of giving me the logos, but in general, how do you see this logistics space for us as an area to tap into? Yeah. The partnership of Mahindra Logistics is with Uniware business. They have onboarded the OMS and WMS. Typically, the logistics players offer e-commerce fulfillment, which is e-commerce warehousing. As they offer e-commerce related warehousing, they need an end-to-end e-commerce stack, which is to do an OMS which connects to multiple marketplaces, warehouse managing system to manage inventory within the warehouse, and other solutions like UniCapture for recording videos, UniReco for doing payment reconciliation. The partnership of logistics players with the Uniware ecosystem is largely when they are offering e-commerce fulfillment to their brands. With Shipway, the relationship is more about partnerships wherein they integrate deeply into the Shipway tech stack, and we offer an end-to-end product suite as far as logistics management is concerned with Shipway. We are offering both Uniware and Shipway to Mahindra Logistics, right? It is the Uniware Mahindra Logistics partnership. Shipway largely deals with the logistics partners, such as likes of Blue Dart Delivery, et cetera, where they are offering last-mile delivery for brands. Okay. Thank you so much, and all the best. Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Siva with iThought PMS. Please go ahead. Hi, sir. Good morning. Firstly, on the EBITDA margin side, our adjusted EBITDA was around 15.8% for this quarter, and our EBITDA margin was 10.6%, meaning ESOPs were 5% of sales. To put it the other way, ESOP used to be less than 5% of our total employee benefit expense, but now it is 12%-15% of that expense. This has been the case for the past four quarters now. When do we expect this to normalize? Siva, in fact, we grant ESOPs to the high-performing employees of the company based on our regular appraisal cycle that we have in the organization, plus the management to whom we issue the ESOPs. The ESOPs we granted last year, that is the reason we could able to see the expense in the P&L. In this quarter, we have seen near about INR 2.5 crore of ESOP expense in this quarter. As per the amortization cycle of the ESOPs, we expect the ESOPs to get amortized over a period of four years from the date of grant. We granted these ESOPs sometime last year. Over the period of next year, the spend would be trending in the similar range of INR 2.5 crore per quarter. Understood, sir. Sir, with regards to Shipway sales, they have been stuck at around INR 20 crore for the past four to five quarters now. Why is this the case. When are we expecting this to ramp up, and how soon can we turn EBITDA breakeven there? Siva, your first part was not very clear. Could you please repeat the question? Sir, I was just saying that on Shipway, our sales have been stuck at around INR 20 crore for the past four to five quarters now. I was asking why is this the case, and when are we expecting this to ramp up? Sorry, still not clear, Siva. I could hear the INR 20 crore figure. I am not able to understand the context of the INR 20 crore. Am I audible? [crosstalk] Hello, am I audible now? [inaudible] Yeah, you are audible. Yeah. Sir, I was asking, for Shipway, we have been stuck at around INR 20 crore revenue mark for the past three to four quarters now. I was asking when can we see a significant improvement from this INR 20 crore revenue mark? Sure. Like I mentioned that we are investing in the business. The business has grown 15%+ for the last two quarters. We've demonstrated that already. With the investments that we're making, we're anticipating that this growth will improve to 20%+ from quarter four FY 2027. Progressively, you should see it improving the revenue trajectory as well. I think the second part of the question was, when do we see it back to breakeven again? Like I mentioned, we are front-loading the investments in the first half of the year. Second half of the year, we should be able to see Shipway becoming breakeven. The idea is to continue to grow the business at a breakeven mode, where we'll continue to reinvest the profits, whatever we are generating in the business, reinvest those profits back for growth. Understood, sir. That was clear. One last question. One of Shipway's competitor is now getting listed next week, and I noticed that there were a few big clients coinciding with Uniware and them. What do you think is the reason for those clients to prefer the other player over Shipway? What are we lacking? I think the other player which is getting listed is a market leader. They have been in the ecosystem for a long time. By virtue of them being the largest player in the aggregation space, and Uniware being the largest player in the order orchestration, OMS, WMS space, it's natural that we'll have an overlap between the two organizations. Having said that, we see that as a large opportunity for us, and that's one of the reasons we acquired Shipway, to be able to offer an end-to-end e-commerce enablement solution. Slowly and steadily, we'll see more and more customers of Unicommerce being onboarded on Shipway. Like I mentioned, enterprise softwares have a long evolution cycle. The ecosystem also needs to be comfortable with a solution, like being there, being used by a large case. The other player is the market leader, so it's a natural choice today. Given the strong trajectory that we have demonstrated over the last few quarters and are hopeful of improving it further, you will see more and more overlap of large names across both Unicommerce and Shipway. Right, sir. In our top 10 clients who are using Uniware, has anyone started using Shipway yet? See, the Shipway service is relevant for brands which have meaningful presence on their website, because the marketplace volumes do not require logistics to manage by themselves. It is just taken care of by the marketplaces itself. Top 10 customers of Unicommerce may or may not have a strong website presence because they could be a large player by just selling on marketplaces alone. Today, the overlap is, as you mentioned before as well, is 10%+. We continue to see an improvement in the number of brands which are using Shipway. Number of brands of Unicommerce which are using Shipway. As a base of both Unicommerce and Shipway is expanding, the relative share continues to be 10%+, but in absolute terms, the number continues to increase. Sure. I understand. Thank you for your answer. Participants, please press star and one to ask a question. The next question comes from the line of Vivek Kumar with Bestp als Advisory. Please go ahead. Sir, am I audible, sir? Yes. Yeah. Can you go deeper on Shipway growth or market share, and what kind of investments, and why are you confident that the second half will return to growth, and if you can talk about opportunity in Shipway. Shipway, as we've mentioned multiple times before, operates in courier aggregation, which is a large market opportunity. As per our estimates, it's INR 4,000+ crore market, where we are a relatively early-stage player with single-digit market share today, with a significant headroom for growth. That's why last year, when we had acquired the business, the first year, we were focused on integrating the business well. If you recall, when we acquired the business, the business was loss-making. W e turned the business profitable. A fter operating the business at a break-even mode for a few quarters, we realized that there is a large opportunity ahead. Hence, we decided it would be prudent to invest in the business to be able to accelerate the growth and improve our share in the INR 4,000 crore market. The investments, as we mentioned, are largely threefold. One is sales and marketing capacity addition. Second part of development is largely making it enterprise-grade. Third is addition of critical talent at senior and middle management level to be able to execute faster. We have demonstrated 15%+ growth already for two quarters. With these investments, we are hopeful that we'll be able to improve this further. We are also aware of the quantum of investments we are making, which gives us the confidence that we need it only for the first six months. We are frontloading majority of those investments in H1 of FY 2027, and as these investments materialize, as the growth increases, we are confident that the business will again become break-even. We're targeting to make Shipway break-even in quarter three itself. With the investments playing out, we are confident of delivering a 20%+ growth from quarter four FY 2027 onwards. Sir, how should we think about market penetration in general, not just ours, but market penetration Uniware and what is the probability that small businesses can wipe code this software? I do not know how to think about it, but please, if you can explain what is stopping small businesses from writing their own Uniware in these softwares with large LLMs becoming advanced by the day. If you can talk about the market penetration. At what levels of market penetration is Uniware software in general for the whole market? Sure. In our experience, AI typically disrupts shallow SaaS, which is generic or easy to replicate tools. For a software like ours, which is a system of record and drives deep productivity improvements for brands, it actually strengthens. There are three modes that we have, which are difficult for anybody to come in and wipe code. First is that it is hard to replicate the relationships or automate the relationships. We have decade plus relationships with the ecosystem players, marketplaces, logistics players, et cetera. For someone to come in and replicate those relationships is extremely hard. Switching cost for a brand is extremely high. It is today a backbone for any brand e-commerce operations. For them to trust a wipe-coded software for something which is mission-critical for them is extremely hard. A wipe-coded software may work for a certain scale, but for an enterprise-grade offering that a brand needs, particularly in a complex e-commerce industry that a brand operates today, where they have to deal with tens of marketplaces, logistics players, they are selling on quick commerce, B2B, general trade, modern trade. There are multiple sales touchpoints for them to be able to do this over and over again, and it is also not static. It keeps evolving on a regular basis. Newer use cases keep emerging in e-commerce very frequently. It is a very high maintenance cost as well even if someone were to wipe code it. More importantly, as I mentioned, this is a mission-critical software, so much so that many brands tell us that today auditors ask for Unicommerce data to audit the books of a brand. That is the level of credibility that Unicommerce system carries. For a well-coded software to carry that level of sophistication and credibility will take a long time. Having said that, we are also investing in AI. We are making the platform now AI first, wherein a lot of effort that the brands were earlier putting in running the operational processes, we are taking away that effort and helping them make better decisions and focus on growing the business rather than focusing on these mundane operational processes. The market penetration, sir, of Uniware in general, how do you think? See, we are a market leader already by a huge margin, but we feel that e-commerce is still fairly under-penetrated. A large portion of the e-commerce growth or within e-commerce, the drop ship model growth has started to happen post-pandemic. It's only been five years of this market growing. A lot of early-stage brands still use Excel to manage their e-commerce operations. As some of these brands grow, as the complexity in their operations increase, they would want to use a software, and that's when we become a natural choice because we are a market leader. When they look around, seven out of 10 of their peers would be using Unicommerce, and that's when we become a natural choice. While we are a market leader, there is still a lot of room for growth because more and more brands are looking to move from Excel to software, and which is evident in the quantum of the number of new clients that we are onboarding. We continue to see a healthy improvement in the number of clients. When we listed, we were acquiring 85- 90 clients a quarter. This quarter, we added 115 customers. Quarter four, we added nearly 149 customers. We continue to see an improvement in the customer addition. On top of that, for our growth, we have now added newer product modules such as UniCapture, UniReco. We've got 1,100+ enterprise base today who will need these solutions to be able to further strengthen their management of e-commerce operations. As more and more of such enterprise brands take our new solutions, we will see even more growth coming in. The growth levers for Uniware are threefold. One is obviously the market growth on which we have limited control. The other two are addition of new customers and upselling or cross-selling of our new modules to the existing enterprise base. Thank you, sir, and all the best. Thank you. The next question comes from the line of Sumeet Jain with CLSA. Please go ahead. Yeah. Hi. Thanks for the opportunity. Firstly, wanted to understand, Kapil, in terms of the competitive intensity on both Uniware and Shipway, how are you seeing, particularly on the pricing side, are you able to maintain your pricing or are you able to take it up? Can you give some color? It's heartening to see that the year-over-year growth in your standalone entity has been improving for the last four quarters. I wanted to understand, apart from the investment in the senior folks and then increase in enterprise customers, what are other reasons behind this improvement in growth? Hi, Sumeet. Sumeet, I will talk about the growth levers first. As we had mentioned last year as well, until last year, we were largely dependent on the market growth only, coupled with new customer additions that we were doing. That is when we realized that we will need to build new products and modules because now we had a good set of enterprise customers to which we could upsell and cross-sell. Some of that motion has started to play out, which is why we are seeing an improvement in our growth over the last few quarters. The momentum of new customer acquisition continues to be healthy, as I just described in the earlier question, that compared to when we were listed, we are now seeing anywhere between 30%-50% improvement in the number of clients being acquired. We are also seeing good attach rates of UniReco and UniCapture. UniReco is now at nearly 7% of attach rate. UniCapture is at nearly 3%-4% of attach rate within two quarters of launch. We are seeing positive momentum as we are building and enhancing these products further based on customer feedback. The gestation period is 18-24 months as I described, and we have seen this in our only channel product launch as well as our WMS. It takes 18-24 months for a product to get to a certain level, where it is fully mature and starts contributing meaningfully to the revenue growth. With the early promising signs, that gives us the confidence that we will continue to show improvement in the growth trajectory. We are already at a 15%+ growth in Uniware net of this top 10 client exit that happened because of their own business compulsions and their to stop being multi-channel. That is why that gives us the confidence that Uniware will demonstrate 15%+ growth from quarter four FY 2027 onwards. On the competitive intensity, we continue to be a market leader on the Uniware side. We continue to be a premium player, so we continue to hold that position even now. The brands and the ecosystem values us for the stability and the scalability of the platform, and that they know that they can trust this platform with the entire e-commerce operations. As we are adding more product offerings into our portfolio, their trust on the platform is increasing even further, and they realize that working with Unicommerce gives them the peace of mind that they can have just one vendor take care of everything as far as e-commerce is concerned, and they can focus on growing their business. No, got it. That is helpful. Secondly, can you also help us understand in this more than 15% growth, what you are flagging by 4Q onwards, how should we look at your top 10 client revenue bucket? Because given the fact you said that there are a lot of cross-sell opportunity across your product base, so ideally, one should expect that your top 10 client revenue should also go up. I s it that the growth will be coming more from additional of new set of enterprise clients, where I remember, I think there is a huge amount of enterprise clients yet to join in. H ow should we look at it? These top 10, while it is contributing meaningful to the revenue, it is a very small number of customers compared to the 1,100-customer base that we have. Top 10 customers by virtue of their size, their growth is broadly reflective of the market growth. While there are some upsell and cross-sell that is happening for the large customers as well, we are not only restricting it to the top 10 customers, we are doing it across the board. We see opportunities of UniReco, UniCapture, and other offerings that are in the making, being relevant for across all our base. Hence, we will not restrict our cross-sell efforts to just the top 10 clients. The growth that you see of the top 10 clients, as I said, is largely reflective of the market. Got it. Lastly, given we are in aggressive investment phase right now, what should be the steady state EBIT margins one should assume for your standalone business and for Shipway? What are the targets you are having in mind, maybe next one to two year out, given that you are still building these businesses in a very early stage. A ny thoughts you can share? See, Uniware, even with investments, continues to be in the 32%. It has grown from 32% to 35% from adjusted EBITDA run rate perspective. We have always maintained that Uniware as a business has a very strong operating leverage. We will continue to demonstrate that further. Last year it had gone to the 40% adjusted EBITDA margin levels as well. It should stay in similar ballpark, as we continue to see improvement in profitability in second half of the year. While on Shipway, as we have maintained even before, that we want to continue growing the business for the next couple of years at least, we want to operate it at a breakeven level. We are investing in the business today for the next. For the H1 of FY 2027, we will see it operating below adjusted EBITDA breakeven. I n H2, from Q3 onwards, we want to operate it at breakeven. Even if we make profits, and we can make profits in Shipway as well, but the conscious call is to reinvest the profits back for growing the business. Got it. That is all from my end. All the best. Thank you. The next question comes from the line of Prince Choudhary with PINC Wealth. Please go ahead. Yeah. Hi, thank you for the opportunity. I would like to understand more from the KPI metrics. What were the NRR for this quarter? Is it above 100% or below? What is the visible trend for this full year? We publish NRR every year. I think the data is less mature if you look at a quarterly level. We had published it for last year; it was 100%+ net of that top 10 client exit. It has always been 100%+ over the last few years and continues to be. Given the product is extremely sticky, we rarely see brand moving out to different competitors for lack of features or anything. What we have largely seen is the biggest reasons of churn in our software, at least on the Uniware side, is when the brands are shutting down because e-commerce is a volatile industry, or the use case or subscription model is no longer relevant for them. The NRR continues to be healthy for the business. It will be hard for us to tell the number right now, but it is for the last many years has maintained 100%+, and we are confident that it will maintain 100%+ even for this year as well. As you have mentioned, since the economy or the e-commerce is a very volatile industry, and many e-commerce companies get shut down in a short time span. Do we have to reduce ARPA? What is the visible trend over here as well? See, normally we've seen the mortality being high for long-tail brands who have not hit a certain scale. After a brand hits a certain scale on e-commerce, typically they tend to survive and grow the business. That's why, while in terms of number of logos, we may see a higher churn because of the mortality of those brands. I n terms of the GRR and NRR, it does not impact the metric because the brands that hit a certain scale tend to grow reasonably fast, which ensures that our NRR continues to be 100%+. Our ARPA has stayed broadly similar. We've always maintained that the average realization from Uniware enterprise customer is about INR 1 lakh a month. It has continued to be in the similar ballpark. Understood. When we talk about the cross-selling opportunity in the Shipway for our existing plan, can you talk about what is the current percentage and what is the exit date by this Q4? I'm assuming you're asking about the overlap. The overlap of Shipway in the e-commerce ecosystem continues to be 10%+. While we have maintained this 10%+ number for the last couple of quarters, the number may seem stagnant, but actually, the absolute overlap of clients between Shipway and Unicommerce continues to increase because the client base is increasing at both Uniware and Shipway end. One of the growth levers for Shipway is the cross-selling piece, but there's a large portion, a large market opportunity outside of Uniware base also for Shipway, likes of Instagram sellers, social media sellers, or let's say brands focused just on their website who may not need a Uniware system, but they will still need Shipway to be able to ship the goods to the end customer. The idea for Shipway growth is to target after such communities, such emerging brands, to make sure that we are able to lock them in early and continue a long-term partnership with them. Understood. Thanks. I will get back into queue. The next question comes from the line of Pratik Banthia with Fermi325 Investment Advisers. Please go ahead. Yeah. Hi. Congratulations on adding a strong set of new plans as well. I have two questions. The first part of the question was, can you quantify the additional investments that you are doing in the three stated areas on an annualized basis, so if you could get an estimate of that? The investments are. Sorry about that. Investments are largely in the area of sales and marketing, related product development, as well as adding some select talent capabilities. The investment in terms of absolute is in the range of few crores, and will continue for the current quarter, post which we anticipate some of these investments to start demonstrating results and show improvement in our growth percentage as well. Okay. The second question I had was, like you said, for smaller brands, as their e-commerce operations become more complex, they tend to choose the market leader, which is Uniware in this case, in their OMS and WMS system. A similar trend could be seen in logistics management, right? In logistics aggregation. What gives us the edge over the market leader in that segment that we would be able to capture these clients under Shipway? Yeah. On the Uniware side, because we are the OMS, we are a very sticky software. OMS runs the backbone of the entire e-commerce operations of a brand. By very design, 100% of the e-commerce volumes of a brand run on an OMS. They cannot use multiple OMS systems. In courier aggregation, the good part is, and that is the benefit of a challenger, that courier aggregator is not very sticky. The switching costs are fairly low. Also, by design, a brand prefers to work with multiple courier aggregators or multiple logistics partners to diversify their risk. That is the nature of the market. There is always a fight of share of wallet in that space. Given that we have a sticky OMS system already, which none of the other players in the courier aggregators industry have, gives us a unique advantage that we can actually cross-sell Shipway to our existing base. It will become a lot easier than for a competitor in courier aggregator to cross-sell any third-party OMS, because the switching cost of an OMS is extremely high. Okay. Got it. Nothing from my side. Thank you so much. The next question comes from the line of Arvind Arora with A Square Capital. Please go ahead. Hello. Am I audible? Yes, Arvind. Hi. My question is regarding the Opptra partners deal that we announced. Is it more like a strategic deal or it is a normal routine deal? Also, are we through this deal, we are venturing into data analytics service, something like this? If you can throw some light on that. Okay. The deal with Opptra was essentially, we've onboarded them as a customer to manage. They're using a software to manage the Southeast Asia and GCC operations of the brands that they're onboarding as a service provider. It's very similar to many other customers that we onboard, just like we onboarded Amul, start Mahindra Logistics in this quarter. We do provide dashboards and analytics on our software already. We are not venturing into providing analytical service in our ecosystem. We are an e-commerce enablement software. We'll continue to offer solutions and software as part of the software itself. Okay, understood. Kapil, you mentioned in a couple of calls that Uniware is like a marriage for life. Correct? Since the stickiness of the clients with us and the ample amount of cross-selling opportunity we have. W hy we are not aggressively launching the product or so on that part? Because if you see, even CapEx that we are incurring for growth, it's also less than INR 20 crores, that what I can see from last two years. W hy we are not going aggressively considering the TAM is so high and then we can cross-sell? We do also have option to raise fund from the market now since we are listed. I'm not sure I understood the question fully. You are saying that why isn't the growth faster than what it is today? No, I'm asking why we are not going aggressively to capture the market more and to cross-sell since we are seeing we have a good stickiness of the clients with us, okay? We have ample amount of cross-sell opportunity to them. Okay? There are certain sections where we are not there today, like the checkout things where we are not there. W hy we are not going aggressively and launching our product that we are planning to launch in next, say, two years, something like that. W hy we are not aggressively implement those things now today? Sure. Arvind, as I described at the start of the call itself, our tenets of building the business is one, that we invest with discipline. We take selective bets, and then we go deep in those. In terms of our pace of development, if you look at over the last five years, five, seven years, we built two product modules, which is WMS and omnichannel. Over the last 12- 18 months, we've already launched three modules, which is UniCapture, UniReco, Unibot, and continue to add even more offerings. Our pace of shipping has accelerated significantly. In the post-AI era, we are able to ship a lot faster. We carefully evaluate different spaces, including, let's say, checkout that you mentioned. A t an opportune time, we would enter into those areas. The second tenet of building our business is to build patiently. We want some of the current investments to fructify, start giving meaningful results. T ypically, every product development cycle has 18- 24 months gestation period. H ence, we want to now see some of these investments play out. A s I mentioned, we are also frontloading some of the investments, and few of those investments are into AI-led product development. Y ou will see some of launches coming in that area as well. We want to ensure that we continue to grow increasingly. I f you look at the Uniware trajectory from single-digit growth, we've now demonstrated two quarters of double-digit growth, and we're talking about improving this growth further to 15%. Eventually, we want to move this to late teens, go beyond 20%+ as well. Similarly, Shipway also we want to go on increasing growth trajectory. A s I said, one of the tenets of building the business we operate is to build with patience. W e want to do this progressively with calibrated investments, rather than doing a lot of things together and not, like taking up a lot of things together and not doing a good job of any of it. We value focus a lot. W e want to take two or three bets, do a good job of it, as we have done over the last decade, and continue building on that further. I'm personally a big believer of compounding. I feel growing steadily and consistently over a long period of time leads to compounding results for the company as well as the shareholders, and that's how we are building the business today. Understood. T he last one, is there any M&A opportunity that is under pipeline that is materialized now and you can... Is there anything which you can like to discuss? Yeah, I was just completing that. In terms of newer product opportunities, like, for example, checkout that you mentioned or any other area, we continue to evaluate inorganic opportunities. We continue to explore startups in respective areas which could be adjacent to us. The three criteria that we look for inorganic are: one, it should make sense for existing customers. Two, it should be a good product, good team. Three, it should be available at the right valuation. Fourth, one more, is that it should either be profitable or should have a path to profitability. We have a few startups that we are actively evaluating, which meet these criteria, but they are still at an early stage. Once we are able to advance these discussions, we will be happy to share it with you. Okay. Where we are in terms of stage, it is under advanced stage or it is just evaluation things that is going on? Right now, it is at an exploratory phase. Whenever something materializes or advances to an advanced stage, we will be happy to share more details. Okay. Any plan to raise the fund? We are adding cash to our balance sheet on a regular basis. Cash balances increased to INR 92 crores, 70% growth over last year. We will potentially use this cash for M&A, but we don't foresee the need of doing a fundraise because we are adding cash to our balance sheet on a regular basis. Ladies and gentlemen, due to time constraints, we take that as the last question for today. I would now like to hand the conference over to the management for the closing remarks. Thank you everyone for joining the call today. We hope we have been able to address your queries. Should you have any further queries or clarifications, please feel free to reach out to us, our strategic growth advisors, our investor relations advisors. Thank you, and have a good day. Thank you, sir. Ladies and gentlemen, on behalf of Unicommerce eSolutions Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.