Shiprocket Q2 profit hits Rs 60 lakh as revenue rises 35%

Shiprocket Limited reported profit after tax of Rs 60 lakh in Q2 FY27, versus a Rs 20.3 crore loss in Q2 FY26, as revenue from operations increased 35% year on year to Rs 673.6 crore. The presentation attributes the Rs 20.9 crore change in profit after tax to higher adjusted EBITDA, lower share-based payment expense, higher other income and other movements.

How did Shiprocket return to profit in Q2 FY27?

Shiprocket returned to profit through a Rs 9.9 crore increase in adjusted EBITDA, Rs 5 crore of lower share-based payment expense and Rs 5.5 crore of higher other income. Together with Rs 40 lakh of other movements, these items moved profit after tax from a Rs 20.3 crore loss in Q2 FY26 to a Rs 60 lakh profit in Q2 FY27.

The improvement also occurred sequentially. Shiprocket recorded a Rs 13.7 crore loss in Q1 FY27, making the Q2 FY27 profit-after-tax movement Rs 14.3 crore quarter on quarter. The profit-after-tax margin was 0.1% in Q2 FY27, compared with negative 3.9% in Q2 FY26 and negative 2.3% in Q1 FY27.

Adjusted EBITDA, a management-defined non-GAAP measure, rose to Rs 14.2 crore in Q2 FY27 from Rs 4.3 crore in Q2 FY26 and Rs 8.9 crore in Q1 FY27. This represented 231% year-on-year growth and 59% quarter-on-quarter growth, while the adjusted EBITDA margin increased from 0.9% a year earlier and 1.5% in Q1 FY27 to 2.1%.

What drove Shiprocket revenue growth in Q2 FY27?

Shiprocket reported Rs 673.6 crore of revenue from operations in Q2 FY27, up 35% from Rs 500.2 crore in Q2 FY26 and 14% from Rs 592.1 crore in Q1 FY27. The presentation reported 33% year-on-year growth in gross merchandise value, or GMV, and 34% growth in transactions as the platform expanded.

On a trailing 12-month basis at Q2 FY27, Shiprocket processed 23.3 crore transactions, recorded GMV of Rs 37,398.7 crore and had 236,116 active merchants. The company reported 8% merchant growth and 25% growth in average revenue per user, or ARPU; an active merchant is identified by a unique mobile number and must have used Shiprocket services at least once in the relevant period.

Revenue growth was accompanied by a larger contribution margin in rupee terms. Contribution margin is another management-defined non-GAAP measure that deducts merchant-solution costs, communication costs, payment-gateway charges, promotional cashback and incentives, performance marketing costs, fulfilment-centre costs and specified employee costs from revenue.

Contribution margin rose 43% year on year to Rs 130 crore and 13% sequentially from Rs 115.1 crore. Its margin reached 19.3% in Q2 FY27, 108 basis points above 18.2% in Q2 FY26, but 10 basis points below the 19.4% reported in Q1 FY27; one basis point equals one-hundredth of a percentage point.

Which Shiprocket segment generated adjusted EBITDA?

Shiprocket's Core Business generated Rs 59.1 crore of adjusted EBITDA in Q2 FY27, while its Emerging Business reported a Rs 44.9 crore adjusted EBITDA loss. The difference between the two segment results resulted in consolidated adjusted EBITDA of Rs 14.2 crore for the quarter.

Core Business revenue rose 25% year on year to Rs 461.5 crore in Q2 FY27, from Rs 368.3 crore in Q2 FY26, and increased 12% from Rs 411.7 crore in Q1 FY27. Its adjusted EBITDA increased 29% year on year from Rs 45.9 crore and 12% quarter on quarter from Rs 52.7 crore, with the margin widening from 12.4% to 12.8% and remaining at 12.8% sequentially.

Core contribution margin was Rs 97.2 crore, up 25% from Rs 77.8 crore a year earlier and 11% from Rs 87.4 crore in Q1 FY27. Its contribution margin percentage was 21.1% in Q2 FY27, matching Q2 FY26 and slightly below 21.2% in Q1 FY27, while Core transactions grew 31% year on year.

Emerging Business generated Rs 212.2 crore of revenue in Q2 FY27, growing 61% year on year, but its adjusted EBITDA margin was negative 21.2%. Management describes Core as its profit engine and Emerging as its growth engine; Core's Rs 461.5 crore of revenue and positive 12.8% adjusted EBITDA margin contrasted with Emerging's Rs 212.2 crore revenue and loss-making margin.

Did Shiprocket cash generation improve in H1 FY27?

Shiprocket reported net cash from operations of Rs 55.1 crore in H1 FY27, compared with Rs 23.8 crore in H1 FY26. The Rs 31.3 crore increase covers the first half rather than Q2 alone, and therefore is distinct from the quarter's Rs 14.2 crore adjusted EBITDA and Rs 60 lakh profit after tax.

The presentation says adjusted EBITDA and contribution margin are non-GAAP measures used by management to evaluate operating performance. They are not measures under Indian Accounting Standards, or Ind AS, are not uniformly defined and should not be considered substitutes for Ind AS measures.

Shiprocket's financial information for the quarter and half year ended 30 September 2026 is unaudited and prepared under Ind AS 34, Interim Financial Reporting. The company said its statutory auditors conducted a limited review under Regulation 33 of the Securities and Exchange Board of India listing regulations, rather than an audit of the Q2 FY27 figures.

Conclusion

Shiprocket's Q2 FY27 result combined 35% revenue growth, a Rs 14.2 crore adjusted EBITDA result and a Rs 60 lakh profit after tax after a Rs 20.3 crore loss a year earlier. Core supplied Rs 59.1 crore of adjusted EBITDA, while the Rs 44.9 crore Emerging Business loss reduced the consolidated result to Rs 14.2 crore.

What to watch next is whether the Emerging Business changes its disclosed negative 21.2% adjusted EBITDA margin while retaining its 61% year-on-year revenue growth. The presentation provides no Emerging Business profitability target or timetable, while the H1 FY27 net cash-from-operations figure of Rs 55.1 crore establishes a separate cash measure for subsequent disclosures.