Shiprocket Emerging revenue rises 61% as margins improve

Shiprocket’s Emerging business generated Rs 212.2 crore of revenue from operations in Q2 FY27, 61% more than a year earlier, while its adjusted EBITDA margin improved by about 1,000 basis points to negative 21.2%. Growth was led by Fastrr and omnichannel, while merchants served through Emerging Business rose 75% to 62,025.

How did Shiprocket Emerging revenue change in Q2 FY27?

Shiprocket’s Emerging business revenue from operations rose to Rs 212.2 crore in Q2 FY27 from Rs 131.9 crore in Q2 FY26, an increase of 61%, and from Rs 180.4 crore in Q1 FY27, an 18% sequential increase. Q2 FY27 revenue was therefore Rs 80.3 crore above the comparable quarter a year earlier and Rs 31.8 crore above the immediately preceding quarter.

The segment also increased contribution margin to Rs 32.7 crore in Q2 FY27, compared with Rs 13.3 crore in Q2 FY26 and Rs 27.7 crore in Q1 FY27. Shiprocket reported year-on-year contribution-margin growth of 147% and quarter-on-quarter growth of 18%, meaning contribution expanded faster than revenue on a year-on-year basis.

What drove Shiprocket Emerging business growth?

Shiprocket reported that Martech, now rebranded as Fastrr, grew revenue by 102% year on year in Q2 FY27, the fastest rate among the three disclosed Emerging revenue lines. Fastrr had trailing-twelve-month gross merchandise value, or GMV, of Rs 9,140 crore and combines advertising and checkout products intended to help merchants advertise and convert shoppers.

Omnichannel revenue grew 79% year on year in Q2 FY27, compared with 9% growth for Cross Border revenue. Shiprocket describes its omnichannel quick-commerce service as appointment-based delivery, where a merchant warehouse sends a purchase-order-matched load to a booked dock slot, with real-time purchase-order visibility before stock is allocated to dark stores.

Fastrr’s disclosed merchant adoption differs by product. Shiprocket reported 20,000 Checkout merchants, including merchants using Engage, on a trailing-twelve-month basis, while Ads had fewer than 250 merchants. The company also said fewer than 10% of Shiprocket merchants used one Martech product, identifying an adoption gap without providing a revenue forecast from it.

How did Shiprocket Emerging margins move?

Shiprocket’s contribution-margin percentage reached 15.4% in Q2 FY27, versus 10.1% in Q2 FY26 and 15.3% in Q1 FY27. That was a 5.3-percentage-point year-on-year increase and a 0.1-percentage-point sequential increase, alongside contribution margin rising from Rs 13.3 crore to Rs 32.7 crore over the year.

Adjusted EBITDA remained negative at Rs 44.9 crore in Q2 FY27, compared with negative Rs 41.6 crore a year earlier and negative Rs 43.8 crore in Q1 FY27. Its margin nevertheless improved to negative 21.2% from negative 31.5% in Q2 FY26 and negative 24.3% in Q1 FY27; Shiprocket described the year-on-year improvement as about 1,000 basis points, where 100 basis points equal one percentage point.

Shiprocket defines adjusted EBITDA, a non-GAAP measure, as revenue from operations less specified merchant-solution costs, traded-goods costs, employee benefits excluding share-based payment expense, other expenses and certain rent expenses under Ind AS 116 leases. Contribution margin excludes a narrower set of direct costs, including communication, payment-gateway, promotional, performance-marketing and fulfilment-centre costs, plus specified sales salaries, so the two measures are calculated differently.

Is Shiprocket expanding adoption of Emerging products?

Shiprocket reported that 9.3% of Core Business merchants used Emerging products in Q2 FY27, up from 7.9% in Q2 FY26 and 8.8% in Q1 FY27. The 140-basis-point year-on-year increase and 50-basis-point sequential increase show that cross-sell rose in both comparisons.

Merchants served via Emerging Business reached 62,025 in Q2 FY27, compared with 35,454 in Q2 FY26 and 48,406 in Q1 FY27. Shiprocket reported growth of 75% year on year and 28% quarter on quarter, and defines this measure as a merchant identified by a unique mobile number that used an Emerging business service at least once during the trailing-twelve-month period.

The 9.3% cross-sell measure and the fewer-than-10% Martech adoption disclosure are different indicators. The first covers Core Business merchants using Emerging products in Q2 FY27, while the second refers to Shiprocket merchants using one Martech product; the presentation does not provide a merchant count that directly reconciles those two measures.

Conclusion

Shiprocket’s Q2 FY27 disclosures show an Emerging business that increased revenue, contribution margin and merchant reach at the same time. Revenue rose to Rs 212.2 crore, contribution margin reached 15.4%, and merchants served reached 62,025, while Fastrr’s 102% revenue growth and omnichannel’s 79% growth exceeded Cross Border’s 9% increase. Adjusted EBITDA margin narrowed materially year on year, although adjusted EBITDA remained negative at Rs 44.9 crore.

The next disclosed issues to watch are whether the 9.3% Emerging-product cross-sell rate continues to rise and whether Fastrr’s stated fewer-than-10% merchant adoption level changes. The presentation identifies these adoption measures and reports a negative 21.2% adjusted EBITDA margin, but does not disclose a date-specific profitability target or a segment-level Emerging Business revenue target.