Shiprocket IPO

Its core shipping business is both profitable and easy to scale. Core revenue grew to ₹1,485.41 crore in FY26, generating ₹186.64 crore in Adjusted EBITDA. This gives the company a steady cash engine that can help fund its newer growth initiatives.

Shiprocket has an impressive negative cash conversion cycle of 10.34 days (-10.34 days) in FY26. Since merchants pay upfront through closed wallets, the company collects cash quickly while still having enough liquidity to pay its suppliers.

Shiprocket has a highly digital customer onboarding process, with 96.73% of merchants joining organically without help from its support team in FY26. This self-serve model helped bring its core customer acquisition cost down to ₹2,829.31 per merchant.

Its huge transaction volume gives Shiprocket stronger bargaining power with logistics partners. It processed 202.08 million unique transactions in FY26, up from 132.28 million in FY24. This scale helps it negotiate better rates with logistics suppliers.

Its asset-light software model means it does not need to spend heavily on physical infrastructure. Gross additions to Property, Plant, and Equipment were just 0.88% of revenue in FY26. This allows Shiprocket to handle more transactions without tying up large amounts of money in assets.

Shiprocket is getting merchants to use more services across its platform. In FY26, 58.32% of its Power Merchants used more than three products. This deeper engagement helped push its net revenue retention rate to a healthy 107.81%, meaning existing merchants generated more revenue over time.

Despite strong revenue growth, Shiprocket is still not profitable, reporting a restated loss of ₹79.25 crore in FY26. High ongoing costs for employees, marketing, and technology continue to hold back its path to overall profitability.

Its Emerging Business is a major cash drain, reporting an Adjusted EBITDA loss of ₹168.99 crore in FY26. Newer areas such as same-day delivery and cross-border shipping still need heavy and continuous investment as they are yet to prove their profitability.

Shiprocket depends heavily on a small group of logistics partners. In FY26, its top five courier partners handled 84.50% of its total shipment volumes. Any major issue with these partners or sharp increases in their prices could seriously affect its operations.

The business has high direct costs, with the Cost of Merchant Solutions accounting for 69.39% of total expenses in FY26. This high variable-cost structure leaves Shiprocket more exposed to higher vendor prices and rising fuel costs.

Shiprocket has already taken large losses on acquisitions that did not perform as expected. In FY24, it recorded a goodwill impairment of ₹176.74 crore, meaning it had to reduce the value of an acquired business on its books. Goodwill still makes up 36.54% of its total assets, so further weak performance from acquisitions could lead to more significant write-downs.

Its operating cash flows have been uneven over the years. In FY24, it reported negative cash flow from operating activities of ₹215.99 crore. If its investment-heavy Emerging Business fails to scale profitably, operating cash flows could come under pressure again.