Shadowfax earns Rs 68 crore in September quarter as orders jump nearly 70%
By Arjun MehtaSenior Business Editor, Peepals Business
Representative image: Tho-Ge / Pixabay
Shadowfax's Q2 FY27 net profit rose 421.9% to about Rs 68 crore and revenue 56.6% to Rs 1,538 crore, per results approved on October 29, 2026.
What Happened
Shadowfax Technologies, the logistics company that delivers parcels for e-commerce and quick-commerce platforms, reported a consolidated net profit of about Rs 68 crore for the July-September quarter, up 421.9% from Rs 13 crore a year earlier. Revenue from operations rose 56.6% to Rs 1,538 crore from Rs 982 crore, according to unaudited results approved by its board on Thursday, October 29, 2026. Profit was also slightly higher than the Rs 65 crore earned in the April-June quarter.
Key Facts
- Net profit (Q2 FY27, consolidated): about Rs 68 crore, up 421.9% year on year from Rs 13 crore; Rs 65 crore in Q1 FY27.
- Revenue from operations: Rs 1,538 crore, up 56.6% from Rs 982 crore a year earlier.
- Adjusted EBITDA, a measure of operating profit, rose 177%, with a margin of about 5%, reports said.
- Total order volumes rose 69.7%, one report said.
- Total expenses rose about 53-54%, driven mainly by employee costs and depreciation.
- Cash and cash equivalents fell to Rs 256 crore at end-September from Rs 284 crore at end-March; Criticalog India became a wholly owned subsidiary.
Why It Matters
Shadowfax works behind the scenes of India's online shopping boom. When a customer orders a phone, a pair of shoes or groceries from an app, companies like Shadowfax often handle the last mile: picking up the parcel and delivering it to the door. Its results are therefore a useful reading of how fast India's e-commerce and quick-commerce deliveries are growing.
The numbers point to strong demand. Order volumes up nearly 70% and revenue up more than half in a year show that online orders, and the number of businesses outsourcing delivery, are still rising quickly. Importantly for a logistics start-up, profit is rising faster than revenue. Delivery is a low-margin business with heavy costs for riders, vehicles and warehouses; an adjusted EBITDA margin of about 5% is thin in absolute terms, but its sharp rise suggests the company is getting more efficient as volumes grow.
There are points to watch. Expenses are still growing almost as fast as revenue, mainly because of staff costs and depreciation on new facilities. Cash fell over six months, and one analysis flagged continuing dilution for shareholders from employee stock options (ESOPs), which give staff shares and slightly reduce existing holders' stakes. The results are unaudited, so the final audited figures could differ slightly. During the quarter, the company also completed a step in its expansion: Criticalog India became its wholly owned subsidiary, which will now be counted in its consolidated accounts.
For young founders and investors, Shadowfax is an example of a start-up in a tough, capital-heavy business showing steady profits at scale. The quick-commerce race, in which apps promise deliveries in minutes, has created large demand for this kind of logistics capacity.
| Measure (Q2 FY27) | Figure | Year earlier |
|---|---|---|
| Revenue from operations | Rs 1,538 crore | Rs 982 crore |
| Net profit | About Rs 68 crore | Rs 13 crore |
| Profit growth | 421.9% | - |
| Adjusted EBITDA growth | 177% | - |
| Cash and equivalents (end-Sept) | Rs 256 crore | Rs 284 crore (end-March) |
Impact
Short-term: The results give investors evidence of profitable growth, and the share price reacted after the announcement, reports said. Customers on the platforms Shadowfax serves benefit from added delivery capacity in the festive season.
Long-term: If margins keep improving as volumes grow, Shadowfax could fund expansion from its own profits. Rising staff costs and competition in delivery services will test whether that holds.
Who is affected: Online shoppers; e-commerce and quick-commerce platforms; delivery riders and warehouse workers; Shadowfax shareholders; and investors looking at logistics start-ups.
Key Takeaway
Shadowfax's Q2 FY27 profit rose about five-fold to Rs 68 crore on 56.6% revenue growth to Rs 1,538 crore, a sign that India's e-commerce delivery boom is turning into profit for logistics players.
Questions and Answers
What were Shadowfax's Q2 FY27 results?
Consolidated net profit was about Rs 68 crore, up 421.9% from Rs 13 crore a year earlier, and revenue from operations rose 56.6% to Rs 1,538 crore, according to unaudited results approved on October 29, 2026.
Why did Shadowfax's profit rise so sharply?
Reports linked it to a 69.7% rise in order volumes and better operating efficiency; adjusted EBITDA rose 177%.
What does Shadowfax do?
It is a logistics company that handles deliveries, especially last-mile deliveries, for e-commerce and quick-commerce platforms.
Are there concerns in the results?
Expenses rose about 53-54%, cash fell to Rs 256 crore from Rs 284 crore in March, and one analysis flagged dilution from employee stock options.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Arjun Mehta, Senior Business EditorCovers Start-ups & Opportunities and more for Peepals Business. All stories by Arjun Mehta
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Arjun Mehta is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
