Shadowfax Technologies Reports 65% Revenue Growth in Q3 FY26 First Earnings Call
Shadowfax Technologies delivered exceptional Q3 FY26 results in its first post-listing earnings call, with 65% YoY revenue growth to ₹1,160 crores and 20.6 crore orders delivered. Adjusted EBITDA surged to ₹49 crores from ₹18 crores last year, achieving 4.3% margin with 170 bps improvement. Express parcel business grew 72% YoY comprising 75% of revenues, while hyperlocal segment expanded 43%. The company reported ₹35 crores net profit and has been EBITDA positive for 11 consecutive quarters, targeting 25-30% annual growth with continued margin expansion.
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Shadowfax Technologies Limited marked a significant milestone with its first earnings conference call as a publicly listed company, delivering robust Q3 FY26 financial results that exceeded internal expectations. The technology-led third-party logistics company reported exceptional growth across key business segments while maintaining strong profitability metrics.
Strong Revenue Performance Across Business Segments
The company achieved remarkable 65% year-on-year revenue growth in Q3 FY26, reaching ₹1,160 crores while delivering 20.6 crore orders to end customers across hyperlocal and e-commerce logistics. This performance continues the company's exceptional growth trajectory, with each of the last three quarters recording 65% plus year-on-year growth.
| Business Segment | Revenue Share | YoY Growth | Key Details |
|---|---|---|---|
| Express Parcel | 75% | 72% | E-commerce intercity parcels, same-day delivery |
| Hyperlocal | 17% | 43% | Quick commerce, food delivery services |
| Other Logistics Services | 8% | 65% | Critical logistics, experimental services |
The express parcel business, which includes e-commerce intercity parcels, same-day delivery, reverse logistics, and exchange services, demonstrated the strongest growth at 72% year-on-year. Management attributed this performance to active market consolidation and rapid market share gains.
Significant Margin Expansion and Profitability
Shadowfax reported substantial improvement in profitability metrics, with adjusted EBITDA reaching ₹49 crores compared to ₹18 crores in the same quarter last year. The company achieved a 4.3% adjusted EBITDA margin, representing a 170 basis points improvement year-on-year.
| Profitability Metric | Q3 FY26 | Q3 FY25 | Improvement |
|---|---|---|---|
| Adjusted EBITDA | ₹49 crores | ₹18 crores | +172% |
| Adjusted EBITDA Margin | 4.3% | - | +170 bps |
| Ind AS EBITDA Margin | 5.7% | - | - |
| Net Profit (PAT) | ₹35 crores | - | - |
| PAT Margin | 3.0% | - | - |
The company has maintained adjusted EBITDA positivity for 11 consecutive quarters, demonstrating consistent operational efficiency. Management emphasized that profitability includes costs for ongoing expansion, with 80-100 last mile facilities launched monthly.
Strategic Market Position and Growth Drivers
Shadowfax operates as a category-agnostic, platform-agnostic logistics provider serving various industries requiring doorstep delivery. The company has built competitive advantages through value-added services including reverse logistics, same-day delivery, and hyperlocal solutions.
Key growth drivers identified by management include:
- Pin code expansion: Currently serving 15,000 pin codes out of India's 19,000 total pin codes
- D2C and SME customer acquisition: Triple-digit growth in D2C segment with 20-25% higher yields
- New service lines: Volumetric shipments and white goods delivery planned for FY27
- Market share expansion: Expected to continue for next 6-8 quarters due to industry consolidation
Operational Infrastructure and Investment Strategy
The company follows a "right asset strategy," investing in assets that provide control over customer experience and operational efficiency. Shadowfax currently leases and operates 4.5 million square feet of real estate across sort centers and last mile facilities.
| Investment Area | Details |
|---|---|
| Capex Intensity (9 months) | 4.5% of revenues |
| Expected Full Year Capex | ~4% of revenues |
| Historical Capex | 2-2.5% of revenues |
| Long-term Target | 2-2.5% of revenues |
Management indicated that capex intensity increased this year due to rapid growth requirements and capacity building ahead of demand. The company expects to invest 2.8-3% of revenues over the next two years before normalizing to 2-2.5% long-term.
Market Outlook and Strategic Initiatives
Shadowfax successfully completed its IPO in January 2026, raising ₹1,000 crores in primary capital. The company onboarded a large marketplace customer across both e-commerce and quick commerce segments, with integrations completed and scaling underway.
The hyperlocal and quick commerce segments continue showing strong momentum, with the company serving as the largest third-party operator in this space. Management highlighted opportunities in emerging vertical quick commerce categories spanning baby wear, apparel, and gourmet food.
Looking ahead, management expressed confidence in maintaining 25-30% year-on-year growth over the next few years while continuously expanding margins. The company targets steady-state early teen EBITDA margins, with gradual margin expansion of 1-1.2% annually over the next two years before accelerating post-FY28.
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