IPO-Bound Shadowfax’s Profit Surges 114% To INR 21 Cr In H1 FY26

IPO-bound logistics company Shadowfax’s consolidated net profit surged nearly 114% to INR 21 Cr in the first six months of the ongoing financial year (H1 FY26) from INR 9.8 Cr in the same period last year, on the back of a strong revenue growth. 

As per Shadowfax’s updated DRHP, operating revenue zoomed 68.4% to INR 1,805.4 Cr in H1 FY26 from INR 1,072 Cr in the first six months of FY25.  

Founded in 2015 by Abhishek Bansal and Vaibhav Khandelwal, ShadowFax provides last-mile delivery services for ecommerce platforms and D2C brands. The company offers additional services such as reverse logistics, parcel exchanges, and quick delivery options. It counts the likes of Mamaearth, Nykaa, Flipkart, and Meesho among its clients.

Shadowfax segregates its logistics and delivery services into three segments – express, hyperlocal and other logistics services.

• Express: This service manages shipments from ecommerce and D2C brands, moving orders from warehouses or sellers to customers. It offers forward parcel delivery, reverse pickups with product exchanges, and premium time-sensitive prime delivery for faster shipments. The segment generated a revenue of INR 1,238.7 Cr in H1 FY26, up 57.3% from INR 787.2 Cr in the year-ago period.

• Hyperlocal: It caters to the demand for fast deliveries, supporting quick commerce and on-demand marketplaces, including pharma, QSR, and ONDC clients. The company operates in three main hyperlocal delivery lines: food and on-demand delivery, quick commerce, and passenger mobility. The hyperlocal vertical’s revenue stood at INR 359.3 Cr in H1 FY26, up 82.5% INR 196.8 in the year-ago period.

• Other Logistics Services: Shadowfax offers additional logistics solutions like critical logistics, strategic insourcing of services, and dark store operations under this. These tailored services enhance efficiency across supply chains to meet diverse client needs.

The segment contributed INR 207.5 Cr to revenue during the period under review, up 136% from INR 88 Cr in H1 FY25. 

According to Shadowfax’s updated DRHP, its public offering will comprise a fresh issue of equity shares worth up to INR 1,000 Cr and an offer-for-sale (OFS) component of up to INR 1,000 Cr. 

The company intends to utilise the proceeds from the fresh issue for capital expenditure requirements, lease payments, and branding. The remaining amount will be used for inorganic acquisitions and general corporate purposes.

The company received SEBI’s approval for its IPO in October. 

As per the updated draft IPO papers, Shadowfax posted a profit of INR 6.4 Cr in FY25 as against a loss of INR 11.8 Cr in the previous year. Its revenue from operations rose 31.8% to INR 2,485.1 Cr during the year from INR 1,884.8 Cr in FY24. Now, let’s take a look at the breakdown of Shadowfax’s expenses in H1 FY26.

Where Did Shadowfax Spend?

The company’s total expenditure grew nearly 67% to INR 1,798.7 Cr during the period from INR 1,079.3 Cr in H1 FY25.

Employee Benefit Expenses: The company’s employee costs, which include salaries, wages and incentives, gratuity, and more, rose 40% to INR 171.8 Cr from INR 122.5 Cr in H1 FY25.

Partner Expenses: This includes payments made to delivery partners and contract labour facilitating last-mile and middle-mile operations. Shadowfax’s spending under this head surged 69% to INR 956.1 Cr in H1 FY25 from INR 565.3 Cr a year ago. 

Transportation Charges: it includes rent for the use of trucks, LCVs, and air haul movements. The company rents trucks, including drivers, from national and regional transportation vendors on both fixed and ad-hoc routes. Its spending on transportation rose 52.8% to INR 325.2 Cr from INR 212.8 Cr in H1 FY25.