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What has to happen in Alibaba E-commerce Group

Model as of

This page changes Alibaba E-commerce Group inside the complete BABA model. Every other vertical, corporate programme and valuation assumption stays in the selected portfolio case.

BABA forward model
Horizon
Consolidated fair value $111.68 all other verticals held in this portfolio case
Final-quarter revenue $35.02B 60% of company revenue
Explicit segment contribution $92.24B EBITDA less segment capex, before corporate items

Alibaba E-commerce Group

Basis quarter$30.34B
Final quarter$35.02B
Implied CAGR+3%
Final revenue mix60%

The cash engine, and the only part of the group generating any. One reported segment since the June 2026 recut, combining the old Alibaba China E-commerce Group, AIDC, Freshippo and certain Cainiao commerce businesses. It earned RMB39,749 million of adjusted EBITA on RMB205,862 million of revenue - 19.3% - and it is what funds the AI build. Its problem is mix: China e-commerce, the highest-margin part, fell 8% year over year, while China quick commerce, the lowest-margin part, grew 45%.

Last four quarters
2026 Q2 $30.34B Reported
China E-commerce - customer management (CMR)China E-commerce - direct sales, logistics and othersChina Quick Commerce (Taobao Instant Commerce, Freshippo, Tmall Supermarket on-demand)International E-commerce (AliExpress, Trendyol, Lazada)Global Wholesale (1688, Alibaba.com)
Sequential growth +1.0%/qtr decaying toward +0.5% 1% a quarter, about 4% annualised, against the 3.6% year-over-year the restated segment just printed.
Alibaba E-commerce Group

Latest: $35.02B (2031Q2E)

Period Value
2026Q2 $30.34B
2026Q3E $30.64B
2026Q4E $30.93B
2027Q1E $31.21B
2027Q2E $31.48B
2027Q3E $31.75B
2027Q4E $32.00B
2028Q1E $32.24B
2028Q2E $32.48B
2028Q3E $32.71B
2028Q4E $32.94B
2029Q1E $33.16B
2029Q2E $33.38B
2029Q3E $33.59B
2029Q4E $33.81B
2030Q1E $34.01B
2030Q2E $34.22B
2030Q3E $34.42B
2030Q4E $34.62B
2031Q1E $34.82B
2031Q2E $35.02B

Assumptions & reasoning

  • Alibaba discloses this segment's adjusted EBITA margin (19.3%) but not its EBITDA margin. The 20.5% used here is the disclosed EBITA margin plus 20% of group depreciation of RMB11,814 million. The 20% share is an assumption.
  • The five sub-lines above ARE separately disclosed for June 2025 and June 2026 and could each be a vertical, but adjusted EBITA is not disclosed below the segment, so a sub-line split would have to assume every margin. Nothing beneath the five is disclosed at all: Freshippo and the transferred Cainiao businesses are not broken out.
  • No operational volume metric survives this recut - no GMV, no order count, no take rate, no average order value - which is why this vertical uses a growth driver rather than a unit or capacity one. The one volume figure disclosed is 88VIP membership, at approximately 64 million as of 30 June 2026, still growing double digits.
  • Customer management revenue carries an accounting change: platform subsidies under the new business development programme are recorded as contra revenue rather than as sales and marketing expense. That is why reported CMR is -7% while the release's own like-for-like figure is +1%. The reported number is the one modelled.
  • Restated June 2025 revenue was RMB198,812 million, so the year-over-year growth behind the 1% quarterly rate is 3.55%. Sub-line rates that quarter: China e-commerce -8%, quick commerce +45%, international -1%, global wholesale +7%.
  • Capex intensity of 2.63% is 8% of the disclosed group capital expenditure line divided by this segment's revenue. Alibaba discloses no capital expenditure by segment; the 8% share is a judgement, and it is deliberately small because the build is a cloud build.
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