Shadowfax Technologies reported a sharp improvement in its financial performance for the September quarter, with net profit rising more than fivefold YoY to ₹67.95 crore in Q2 FY27. Revenue from operations grew 56.6% to Rs 1,537.7 crore, compared with ₹982.1 crore in the same period last year.
The Bengaluru-based logistics company, led by co-founder and Managing Director Abhishek Bansal, crossed the ₹1,500 Crore quarterly revenue mark for the first time. Its adjusted EBITDA stood at ₹77 crore, translating into a margin of 5%, which the company described as a first.
Shadowfax’s Revenue Growth Outpaces Expense Increase
Shadowfax’s total expenses increased 53.7% to around ₹1,490 crore during the quarter, slower than its revenue growth. Employee benefit expenses rose to ₹138 crore from ₹89 crore, while depreciation and amortisation increased 65.4% to ₹46.3 crore. Finance costs more than doubled to approximately ₹10 crore.
Other expenses remained the largest cost category, at around ₹1,296 crore. These costs include the operating expenses associated with running a large logistics network, although the company’s reported category covers multiple items.
The gap between revenue and expense growth helped lift profitability. Net profit increased from ₹13.02 crore in Q2 FY26 to ₹67.95 crore in Q2 FY27. However, the sequential increase was more modest, with profit rising from ₹65.4 crore in the June quarter.
H1 FY27 Revenue Climbs 60%
The company also maintained strong growth in the first half of FY27. Revenue from operations rose 60.4% YoY to ₹2,896 crore, while profit increased to ₹133.35 crore from ₹21.03 crore in the corresponding period last year.
During the earnings call, Bansal said the September quarter did not include the festive sale season, which shifted into October this year. Even without that seasonal boost, revenue grew 13% sequentially.
Shadowfax delivered 27.1 crore orders during Q2, up nearly 70% YoY. Its express parcel business generated Rs 1,096 crore in revenue, while hyperlocal services contributed ₹341 crore, supported by growth in quick commerce deliveries.
D2C and Small Sellers Emerge as Growth Drivers
A notable part of Shadowfax’s strategy is its push beyond large e-commerce platforms. The company said its D2C business more than doubled year-on-year, while its self-serve platform, Shadowfax 360, crossed 6,700 sellers within 200 days of launch.
The company also expanded its operating space from 53 lakh square feet to 69 lakh square feet ahead of the festive season. Its delivery partner network increased to 3.8 lakh in Q2 from 2.9 lakh in the previous quarter.
For investors, the latest results point to two important developments: Shadowfax is scaling its delivery network while improving operating profitability, and its growth is increasingly supported by D2C brands, SMEs and quick commerce.
The next test will be whether the company can sustain these margins as festive-season volumes arrive and the expanded infrastructure is put to work. Its ability to convert higher shipment volumes into consistent profits will remain central to the business.
