Shadowfax's Q2 profit jumps five times to Rs 68 Cr as hyperlocal deliveries grow 88%

Shadowfax Technologies, the Bengaluru last mile delivery company that listed in January, reported a consolidated net profit of Rs 68 crore for the September quarter (Q2 FY27), against Rs 13 crore a year earlier and Rs 65.4 crore in the June quarter, according to Inc42 and Entrackr. Operating revenue rose 56.6% year on year and 13.2% from the previous quarter to Rs 1,537.7 crore. Including other income, total income was Rs 1,558 crore, The Economic Times reported.

The company said it was the sixth quarter in a row of revenue growth above 55%, even though the festive sale season shifted into the December quarter this year, Inc42 reported. Total expenses rose 53% to Rs 1,490.2 crore, slower than revenue, and adjusted EBITDA grew 177% to Rs 77 crore, lifting the margin to 5% from 2.8%. Entrackr noted that employee costs rose more than 55% to Rs 138 crore. For the first half of FY27, operating revenue was Rs 2,896 crore and profit Rs 133.35 crore, up from Rs 21.03 crore.

Express parcels remain the core, bringing in Rs 1,096 crore, up 55.2%, while revenue from hyperlocal deliveries grew 87.7% to Rs 341 crore, according to Inc42. Shadowfax handled 27.1 crore orders in the quarter, up 69.7%, of which 21.7 crore were express parcels and 5.4 crore hyperlocal.

The company is also leaning on software. It said Shadowfax 360, its self serve shipping platform for small sellers, crossed 6,700 transacting sellers within two quarters of launch, with two thirds signing up without a salesperson, and that it is launching micro fulfilment centres so D2C brands can deliver within 8 to 12 hours without their own regional warehouses. Ahead of the festive season it deployed an in-house AI system that replans every day how more than 3,600 trucks connect across over 5,500 touchpoints, Inc42 reported. Shadowfax was founded in 2015 by Abhishek Bansal and Vaibhav Khandelwal and raised Rs 1,907 crore in its IPO, including a Rs 1,000 crore fresh issue.