The India-based logistics services firm Shadowfax Technologies Limited, founded in 2015 by Abhishek Bansal and Vaibhav Khandelwal, is gearing up for a public listing — and the numbers from the first half of FY26 demonstrate why.
Stellar First Half (H1 FY26) Performance
In the six months ended September 30, 2025 (H1 FY26), Shadowfax achieved an operating revenue of ₹1,805.4 crore, marking a growth of 68.4% from ₹1,072 crore in H1 FY25. Meanwhile, net profit surged nearly 114% to ₹21 crore from ₹9.8 crore during the same period last year. Outlook Business+3Moneycontrol+3Business Today+3
These numbers suggest improved scale, stronger margins and faster order processing — all favourable signals ahead of the planned IPO.
Business Model & Market Position
Shadowfax specialises in last-mile delivery and value-added logistics solutions for e-commerce, direct-to-consumer (D2C) brands, quick commerce and hyperlocal services. Among its services are express parcel delivery, reverse logistics (returns and exchanges) and on-demand dispatch solutions. Business Today+1
The company counts major clients such as Nykaa, Mamaearth, Meesho and Flipkart among its customer base — underlining its tie-ups in the e-commerce ecosystem.
With a delivery network spanning over 14,700 pin-codes across India (as of September 2025), Shadowfax now claims one of the widest footprints among logistics players. Business Today+1
IPO Details & Use of Funds
Shadowfax has filed an updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) for an IPO sized at up to ₹2,000 crore, composed of up to ₹1,000 crore fresh equity issuance and up to ₹1,000 crore via an Offer for Sale (OFS) by existing shareholders. Business Today+2Outlook Business+2
The proceeds will be used for:
- Expanding and leasing new first-mile, last-mile and sort-centres (including network infrastructure)
- Branding, marketing and communication initiatives
- Possible inorganic acquisitions and general corporate purposes The New Indian Express+1
Prominent backers include Flipkart Internet Private Limited, TPG Growth, Eight Roads Ventures and Nokia Growth Partners, underscoring investor confidence in the business model. Free Press Journal+1
Why This IPO Matters
- Strong growth trajectory: Revenue growth of ~68% YoY in H1 gives tangible proof of momentum.
- Breathing space for profitability: While logistics is capital-intensive and traditionally margin-thin, the jump to ₹21 crore profit is a positive signal.
- Logistics tailwinds: With e-commerce flourishing in India, demand for robust last-mile & value-added logistics continues to rise.
- Network scale: A wide pin-code reach can be a differentiator in the logistics landscape, especially in Tier 2/3 markets.
- Visibility via IPO: Listing will provide Shadowfax a public benchmark, access to capital and enhanced brand visibility.
Risks & Considerations
- Margin pressures: Growth is good, but sustaining profitability in logistics requires operational efficiency, cost control and scale.
- Competitive landscape: The space is crowded (players like Delhivery Limited, Shiprocket, etc) — differentiation is key.
- Execution risk: Network expansions, leasing commitments, new hubs all require capital and timing — missteps could dent returns.
- Macro & regulatory risk: Logistics cost inflation (fuel, labour), regulatory changes, labour-compliance may impact margins.
Conclusion
Shadowfax is riding on the wave of digital commerce, expanding scale rapidly and showing early signs of profitability just ahead of its public listing. For investors and market watchers, the upcoming IPO offers a window into India’s fast-evolving logistics infrastructure story. However, as with all high-growth listings, validating after-listing execution will be critical.
