Quick Take
- Shadowfax earned Rs 112 Cr net profit in FY26, up 17x year-on-year.
- Full-year revenue hit Rs 4,202 Cr, up 69.1% YoY, with record Q4 results.
- Shadowfax targets 100 dark stores in FY27, up from 15 operational today.
Shadowfax posts Rs 112 Cr ($13.3 Mn) net profit for the full year FY26, a nearly 17x jump, as revenue climbed 69.1% to Rs 4,202 Cr ($500 Mn).
Shadowfax, a Bengaluru-based 3PL (third-party logistics, where an external firm manages delivery for brands) company, became a listed entity on Indian stock exchanges in FY26. Its Q4 FY26 was its best-ever quarter, with revenue of Rs 1,237 Cr ($147 Mn) and profit of Rs 55.8 Cr. EBITDA margin (operating profit as a share of revenue) expanded to 4.7% in Q4, from just 0.7% a year earlier.
html
StartupFeed Insight
The real signal here is not the profit figure but the margin trajectory. EBITDA margin went from 0.7% to 4.7% in one year. At this scale, every percentage point of improvement adds hundreds of crores to annual earnings. Logistics investors and rival operators should take note. When a company doubles order volumes and still improves per-shipment economics, the cost curve is bending in its favour. Shadowfax should cross Rs 6,000 Cr in revenue by FY27, with EBITDA margin nearing 6%. This assumes its 100-dark-store push delivers meaningful volume from H2 FY27, StartupFeed Desk.
Shadowfax Posts Rs 112 Cr: FY26 Financial Summary
| Metric | Detail | Notes |
|---|---|---|
| Revenue (FY26) | Rs 4,202 Cr ($500 Mn) | +69.1% year-on-year (YoY); FY25 was Rs 2,485 Cr |
| Net Profit (FY26) | Rs 112 Cr ($13.3 Mn) | ~17x jump; FY25 profit was Rs 6.4 Cr |
| Q4 FY26 Revenue | Rs 1,237 Cr ($147 Mn) | +73.6% YoY; best-ever quarter in company history |
| Q4 FY26 Net Profit | Rs 55.8 Cr ($6.6 Mn) | vs a loss of Rs 9.9 Cr in Q4 FY25 |
| Adj. EBITDA (FY26) | Rs 159 Cr | More than doubled YoY; Q4 EBITDA margin expanded to 4.7% |
| Operating Cash Flow (FY26) | Rs 350 Cr | Cash on balance sheet: Rs 1,574 Cr; near-zero long-term debt |
The company’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for FY26 grew more than 2x year-on-year. With Rs 1,574 Cr in cash and nearly no debt, Shadowfax enters FY27 with significant capacity to invest.
About Shadowfax
Shadowfax Technologies, founded in 2015 by Abhishek Bansal and Vaibhav Khandelwal, is a Bengaluru-based last-mile and hyperlocal logistics provider. It runs India’s largest crowdsourced delivery network, serving ecommerce platforms, D2C (Direct-to-Consumer) brands, and quick-commerce players. The network covers 15,656 pin codes with 2.6 lakh quarterly delivery partners. The company listed in FY26 and holds a market capitalisation of Rs 9,822 Cr ($1.17 Bn). Key pre-IPO backers included SoftBank Vision Fund 2 and Mirae Asset.
Is Shadowfax Profitable Now?
Yes. Shadowfax posts Rs 112 Cr in annual net profit for FY26. This follows a first annual profit of Rs 6.4 Cr in FY25, up from a loss of Rs 11.8 Cr in FY24. The turnaround is not an accident: partner expenses fell from 56.4% of revenue in Q4 FY25 to 52.2% in Q4 FY26, as higher order density lowered the cost per delivery.
Abhishek Bansal, Cofounder and CEO of Shadowfax, said at the post-earnings call:
“FY26 has been a defining year for the company as we strengthened the business across scale, profitability, and infrastructure. During the year, we invested Rs 185 crore in capex, primarily into sort centres, automation, and last-mile infrastructure. Q4 was also the strongest quarter in the company’s history across revenue, EBITDA, and PAT (Profit After Tax).”
Abhishek Bansal, Cofounder and CEO, Shadowfax Technologies.
The company delivered 22.6 crore orders in Q4 FY26 alone, up 100.8% YoY. Express delivery revenue more than doubled to Rs 925 Cr in Q4, from Rs 419 Cr a year ago. Hyperlocal revenue also grew 32.1% YoY to Rs 232 Cr in the same quarter.
How Does Shadowfax Compare to Its Rivals?
India’s 3PL sector is consolidating around scale players. Shadowfax’s estimated market share in express delivery climbed from roughly 8% in FY22 to 27-29% in Q4 FY26. Its closest listed rival, Delhivery, reported Q4 FY26 profit of Rs 72.4 Cr on revenue growth of about 30%. Shadowfax’s revenue grew more than twice as fast in the same period.
| Company | Q4 FY26 Revenue Growth (YoY) | Net Profit Status | 3PL Market Share |
|---|---|---|---|
| Shadowfax | +73.6% | Rs 55.8 Cr (profitable) | 27-29% (express segment) |
| Delhivery | ~30% | Rs 72.4 Cr (flat YoY) | Larger overall network |
| XpressBees | Not disclosed (private) | Not disclosed | Strong in tier-2 cities |
What separates Shadowfax is its fully crowdsourced last-mile network. Delivery partners work per order, not as a fixed employee fleet. This makes the cost structure flexible, unlike most fixed-fleet rivals.
What’s Next
Shadowfax’s roadmap for FY27 is packed. It targets 100 dark stores (small local warehouses for rapid order fulfilment), up from 15 today. It plans to launch Prime Large, a new heavy-goods delivery service. Management also expects EBITDA margins to improve by 100-120 basis points annually through FY28. Will Shadowfax hit Rs 6,000 Cr in revenue before its next set of annual results?
Frequently Asked Questions
How much profit did Shadowfax post in FY26?
Shadowfax posts Rs 112 Cr in net profit for the full year FY26, a nearly 17x jump from Rs 6.4 Cr in FY25. Revenue hit Rs 4,202 Cr ($500 Mn), growing 69.1% year-on-year. Q4 FY26 alone contributed Rs 55.8 Cr in profit, against a loss of Rs 9.9 Cr in Q4 FY25.
What does Shadowfax do?
Shadowfax Technologies is a Bengaluru-based logistics company handling last-mile delivery for ecommerce platforms, D2C brands, and quick-commerce players. It operates India’s largest crowdsourced delivery network across 15,656 pin codes and 4,778 delivery touchpoints. The company was founded in 2015 by Abhishek Bansal and Vaibhav Khandelwal and listed on Indian stock exchanges in FY26.
What is Shadowfax’s growth strategy for FY27?
Shadowfax plans to expand its dark store network from 15 to 100 locations in FY27 to capture growing demand from quick-commerce and niche-category brands. It will also launch Prime Large, a dedicated heavy-goods logistics service. Management expects EBITDA margins to improve by 100-120 basis points annually through FY28.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. StartupFeed and its authors are not SEBI (Securities and Exchange Board of India)-registered investment advisors. The analysis above is based on publicly available information and should not be the sole basis for any investment decision. Please consult a SEBI-registered financial advisor before making investment decisions.
