Unnati won 21-18, 21-11 to be crowned the Odisha Open champion for the first time.
The 14-year-old Unnati pipped Malvika 24-22, 24-22 in a nail-biting 50-minute semifinal clash
The other men's singles semi-final match on Saturday will be played between Priyanshu Rajawat and Kaushal Dharmamer.
Tasnim Mir, who earlier this month became the first Indian to claim world number one status in the U-19 category, beat Keyura Mopati 13-21, 21-14, 21-19 to set up a second round clash against Malvika Bansod.
Two-time Olympic medallist P V Sindhu stormed into the second round of the women's singles in the Syed Modi International Super 300 badminton tournament after a dominating victory over compatriot Tanya Hemanth, in Lucknow, on Wednesday.
Star India shuttlers P V Sindhu and Kidambi Srikanth notched up comfortable victories but it was young Mumbai player Harsheel Dani who hogged the limelight at the Syed Modi Grand Prix Gold when he stunned H S Prannoy in straight games to storm into the quarter-finals in Lucknow on Thursday.
She was travelling in an Ola cab when unknown persons stopped the vehicle, pulled her out and thrashed her.