Shiprocket Achieves Profitable Growth in FY25 with 24% Revenue Surge and EBITDA Turnaround

Shiprocket has demonstrated a strong financial turnaround in the fiscal year 2025 (FY25), achieving profitable growth. The company's total revenue grew by 24% year-on-year, reaching ₹1,632 crore compared to ₹1,316 crore in FY24. Chief Financial Officer Tanmay Kumar described FY25 as a "year of structural change" focused on sustainable profitability, highlighting that growth was achieved without increasing costs, but through margin expansion.

The core business, including domestic shipping and tech offerings, saw over 20% year-on-year growth to ₹1,306 crore, contributing ₹157 crore in Cash EBITDA with margins expanding to around 12%. This indicates strong operating leverage in its established operations.

Shiprocket's emerging businesses, such as Cross Border, Marketing, and Omnichannel solutions, were the primary growth drivers, surging by 41% year-on-year. These now constitute 20% of total revenue, up from 11% two years ago, serving as growth engines reinvested with profits from the core business.

Operationally, the company reported a positive Cash EBITDA of ₹7 crore, a significant improvement from a burn of ₹128 crore in FY24. Net losses also dramatically reduced to ₹74 crore from ₹595 crore in the previous year, even after accounting for ₹91 crore in ESOP expenses. Total expenses were kept flat year-on-year, showcasing disciplined cost management.

The merchant base expanded to around 4 lakh served, with 1.8 lakh active users, fueled by India's booming e-commerce sector and growth in Tier 2 and Tier 3 cities, which now account for 66% of deliveries.

Impact: This news is highly positive for Shiprocket and the Indian logistics and technology sectors. It signals strong operational execution, efficient cost management, and a clear path to sustainable profitability for a key player in India's digital commerce ecosystem. This can boost investor confidence in tech-enabled logistics companies and the broader e-commerce enablement space in India. Rating: 7/10

Difficult Terms: Cash EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization, adjusted for cash flow. It measures operational performance and cash generation ability, excluding non-cash items and financing costs. ESOP: Employee Stock Option Plan, a benefit where employees are granted the right to buy company shares. Omnichannel: A retail strategy combining online, mobile, and physical stores for a unified customer experience. Core Business: A company's primary, established operations that generate most of its revenue and profits. Emerging Businesses: Newer, high-growth segments within a company that are not yet as established as the core business. Total Addressable Market (TAM): The entire market demand for a product or service. Bharat: A Hindi term for India, often used to refer to its rural and semi-urban population and culture. Tier 2 and Tier 3 cities: Cities in India ranked below major metropolitan areas (Tier 1) in population and economic activity.