Shadowfax Technologies Limited announced robust financial results for the second quarter of FY27, reporting a 57% year-on-year revenue increase to INR1,538 crore. The company achieved its first-ever adjusted EBITDA margin of 5%, amounting to INR77 crore, while profit after tax stood at INR67 crore. Key growth drivers included the Express Parcel business and a significant scaling of its Hyperlocal and D2C segments, alongside strategic capacity expansions and the introduction of micro-fulfillment centers.
Shadowfax Technologies Reports Strong Q2 FY27 Performance
Shadowfax Technologies Limited has announced exceptional financial results for the second quarter ending September 30, 2026 (Q2 FY27). The company achieved a revenue of INR1,538 crore, marking a substantial 57% year-on-year growth. This marks the sixth consecutive quarter of growth exceeding 55%. For the first half of the financial year, revenue reached INR2,896 crore, up 60% year-on-year. The company also reported a record adjusted EBITDA margin of 5%, totaling INR77 crore, and a profit after tax of INR67 crore.
Key Growth Drivers and Segment Performance
The Express Parcel business was a significant contributor, generating INR1,096 crore with a 55% year-on-year growth and 10% sequential growth. Volumes in this segment were up 72% year-on-year. Shadowfax also highlighted strong performance in its Hyperlocal segment, which saw revenue grow 88% year-on-year and 26% sequentially to INR341 crore, driven by quick commerce expansion into Tier 2 cities. The company is also focusing on its D2C brands and SMEs, with its D2C business doubling year-on-year and its market share increasing to over 14%. The self-serve platform, Shadowfax 360, has already onboarded over 6,700 sellers.
Strategic Expansion and Future Initiatives
In preparation for the festive season, Shadowfax undertook a significant capacity expansion, increasing its total operating space from 53 lakh square feet to 69 lakh square feet. The middle mile footprint expanded from 24 lakh square feet to over 34 lakh square feet. The company also ramped up its delivery partner network by 31% to 3.8 lakh partners. Looking ahead, Shadowfax is venturing into micro-fulfillment centers (MFCs) to bridge the gap between large warehouses and quick commerce dark stores, aiming to offer 8 to 12-hour delivery promises.
Technology and AI Integration
Shadowfax is leveraging AI to optimize its network and replan freight movements daily, ensuring speed and efficiency. The company also noted the growing influence of AI in consumer purchasing decisions, with AI agents potentially driving faster sales for sellers who offer superior speed and price. Shadowfax aims to be the crucial last-mile delivery partner for these AI-driven transactions.
Financial Outlook and Guidance
While acknowledging the shift of the sales season to Q3, the company maintained a long-term guidance of 27% to 30% growth cumulatively. They are closely monitoring the performance of Q3 before revising near-term guidance. The company is confident in its strategy of building a network based on speed and continuing to gain market share across various segments, including D2C, SMEs, and quick commerce.
Source: BSE
