Shadowfax Technologies posted a strong Q2 FY27 performance with revenue at Rs 1,538 crore, up 57% year-on-year. The company reported a net profit of Rs 67 crore and expanded its operational capacity significantly to 69 lakh sq ft, signaling robust growth in its parcel and hyperlocal logistics segments.
Shadowfax Technologies Reports Strong Q2 Performance
Revenue grew by 57% YoY to Rs 1,538 crore, while Profit After Tax reached Rs 67 crore.
Reader Takeaway: Strong top-line growth and aggressive capacity expansion are driving scale, though rental costs are slightly elevated.
What just happened
Shadowfax Technologies released its Q2 FY27 financial results, reporting revenue of Rs 1,538 crore, a 57% increase compared to the same period last year. Total shipments reached 27.1 crore, marking a 70% volume growth. The company achieved an adjusted EBITDA of Rs 77 crore and a net profit of Rs 67 crore. The Express Parcel segment remains the primary revenue engine at Rs 1,096 crore, while the Hyperlocal segment showed explosive growth of 88% YoY.
Why this matters
The company has successfully expanded its footprint, increasing its total operating space to 69 lakh square feet, the largest expansion in its history. This move, combined with a 31% increase in its delivery partner network to 3.8 lakh, positions Shadowfax to handle rising e-commerce demand. Management also highlighted a reduced reliance on its largest client, noting a 3 to 4 percentage point drop in revenue dependency, which suggests a more diversified and stable client base.
Strategic Developments
Shadowfax is entering the micro-fulfillment center (MFC) business to capture the 8 to 12-hour delivery market. These facilities are designed to co-locate multiple brands for efficient prime-style logistics. Additionally, the company has launched 70 dark stores as part of a 100-store annual target.
Risks to watch
Rental costs have ticked up from 3.2% to 3.5% of revenue, reflecting heavy investment in infrastructure. Furthermore, integration with major partners like Amazon is in a ramp-up phase, with management stating that significant financial impacts from this collaboration are expected to materialize in the next fiscal year.
What to track next
Investors should monitor Q3 performance to gauge the impact of the festive season. The company maintains a long-term revenue CAGR guidance of 27% to 30% and intends to keep capital expenditure within 3.8% to 4% of total revenue.