Shadowfax, the Indian logistics firm specializing in last-mile delivery, registered a more than fivefold increase in net profit to ₹68 crore in Q2 FY27, alongside a record ₹1,537.7 crore operating revenue amid sustained strong growth across its core business verticals.
- Net profit rose over 5X YoY to ₹68 crore in Q2 FY27
- Operating revenue hit a record ₹1,537.7 crore, up 57% YoY
- AI-driven network optimization enhances delivery capacity
What happened
Shadowfax reported a net profit of ₹68 crore for the September quarter (Q2 FY27), marking an increase of more than five times compared to ₹13 crore in the same quarter last year. This profit also reflects a 3.9% sequential rise from ₹65.4 crore in the previous quarter. The company’s operating revenue surged by 57% year-on-year and 13% quarter-on-quarter, reaching an all-time high of ₹1,537.7 crore.
This quarter marks the sixth consecutive quarter of revenue growth exceeding 55% year-on-year, despite the traditional sale peak shifting to the following quarter. Adjusted EBITDA rose 177.4% to ₹77 crore, with the margin expanding from 2.8% to 5%. Total expenses increased by 53% year-on-year to ₹1,490.2 crore.
Why it matters
The explosive profit and revenue growth demonstrate Shadowfax’s solid foothold in India’s logistics sector. The strong year-over-year growth in both profit and revenue highlights efficient operational scaling amid intensifying competition. The company’s AI-driven route planning system optimizes its national network of over 3,600 trucks and 5,500 touchpoints, boosting capacity and delivery efficiency ahead of the festive season.
Shadowfax also benefits from expanding business lines, notably a hyperlocal delivery segment that posted an 87.7% revenue increase YoY and a growing small seller platform with more than 6,700 active users. These strategic expansions diversify revenue streams and position Shadowfax to capitalize on the ongoing rise in e-commerce and direct-to-consumer brands in India.
What to watch next
Investors and market watchers will focus on how Shadowfax sustains high growth rates as it enters the critical festive selling period and continues to scale its AI-based logistics network. The success of its micro-fulfillment centres and expansion of the self-serve platform for small sellers could serve as key growth drivers going forward, enhancing delivery speed and customer reach without requiring significant brand investments in physical warehousing.
Performance through Q3 FY27, when the sale season concentrates, will reveal the durability of Shadowfax’s business model in a competitive 3PL space and its ability to maintain margin expansion while managing rising expenses. The company’s public market performance and adoption of advanced technology will continue defining its leadership role in India’s logistics ecosystem.