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    Shadowfax Technologies Q1 FY27 earnings call

    SHADOWFAX
    Services·31 Jul 2026
    Management Summary

    Shadowfax Technologies Limited reported a strong Q1 FY27, with revenue growing 65% YoY to ₹1,358 crores and adjusted EBITDA margins expanding to 4.9%. The company achieved record PAT of ₹65 crores despite a challenging macro environment marked by fuel price hikes and labor disruptions. Management revised its FY27 revenue growth guidance upwards to 38-40%, maintaining its disciplined path to profitability, driven by market share gains in Express Parcel, rapid expansion in quick commerce, and strategic investments in network and technology.

    Highlights

    5

    • Revenue grew 65% year-on-year to ₹1,358 crores, marking the fifth consecutive quarter of 65%+ growth.

    • Adjusted EBITDA rose to ₹67 crores, with margins expanding to 4.9% from 4.7% last quarter.

    • Profit after taxes reached a record ₹65 crores, making it the most profitable quarter in the company's history.

    • FY27 revenue growth guidance was revised upwards from 27-30% to 38-40%, indicating strong confidence in future performance.

    • Lost shipment debit cost reduced to 5.5% of revenue from 6.1% in Q4, driven by technology like AI co-pilot for riders.

    Concerns

    4

    • The quarter was complex due to diesel price increases, gas crisis, and elections in large states, impacting logistics operations.

    • Transportation costs slightly increased from 18.7% to 18.8% due to fuel hikes.

    • Partner expenses slightly increased due to supply squeeze and hyper-local growth.

    • Minimum wage hikes in four states resulted in an impact of ₹2-2.5 crores per month.

    Key financials

    Single quarter

    06 metrics
    1. 01Revenue₹1,358 Cr+65%YoY
    2. 02Adjusted EBITDA₹67 Cr
    3. 03Adjusted EBITDA Margin4.9%
    4. 04PAT₹65 Cr
    5. 05Order Volumes₹25 Cr+83%YoY

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    M&A

    CriticaLog

    acquisition · integrated

    Guidance & targets

    5
    CategoryTargetPriority
    Revenue
    FY27 Revenue Growth
    38-40%
    		High
    Profitability
    Margin Trajectory
    unchanged
    		High
    Cost
    Lost Shipment Debit Cost
    3.5-4%
    		Medium
    Capacity
    Prime Large Pin Codes
    12,000
    		High
    Capacity
    Dark Stores
    100
    		High

    What to watch in Q2 FY27

    5

    FY27 Revenue Growth

    next quarter
    Current65% YoY in Q1 FY27
    TargetPerformance aligned with revised 38-40% FY27 guidance

    Why it matters

    To verify if the company can sustain the accelerated growth implied by the upwardly revised FY27 revenue guidance.

    We are now revising our FY27 revenue growth guidance from 27% to 30% that we had given earlier to 38% to 40%.

    Risks & concerns

    3
    RiskSeverity

    Macroeconomic headwinds (diesel prices, gas crisis, elections)

    Early Q1 FY27 saw diesel price increases, gas crisis, and elections in large states, making it a complex quarter for logistics. — Management acknowledged

    medium

    Manpower/labor impact and supply squeeze

    Manpower impact affects operations, and there was a supply squeeze leading to slightly higher partner expenses. — Management acknowledged

    medium

    Minimum wage hikes

    Minimum wage hikes in four states resulted in a ₹2-2.5 crores per month impact, though not all costs transfer directly to P&L due to existing incentive structures. — Management acknowledged

    low

    Q&A highlights

    8

    “Today we can proudly say that we have a fair degree of visibility and high degree of confidence on the numbers that we are projecting, and hence we are revising our estimates from a growth standpoint. Typically, all of our large enterprise customers give us forward projections so that those capacities can be created in due time.”

    Analyst questioned the basis for the significant upward revision in growth guidance, and management clarified it's based on strong visibility with enterprise clients and new customer growth.

    asked by Gaurav from Morgan Stanley

    3 min read7 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview

    Shadowfax Technologies Limited delivered a robust Q1 FY27, with revenues growing 65% year-on-year to ₹1,358 crores, marking the fifth consecutive quarter of such high growth. Order volumes increased by 83% year-on-year, reaching nearly 25 crores. The company achieved its most profitable quarter to date, with adjusted EBITDA rising to ₹67 crores and margins expanding to 4.9% from 4.7% in the previous quarter, and profit after taxes reaching a record ₹65 crores.

    02

    Revised FY27 Guidance and Profitability Stance

    Management announced a significant upward revision to its FY27 revenue growth guidance, from the earlier 27-30% to a new range of 38-40%. Despite this accelerated growth target, the company emphasized that its margin trajectory remains unchanged, indicating a commitment to disciplined profitability. This confidence stems from strong visibility with enterprise customers and successful execution on strategic initiatives.

    03

    Express Parcel Business Dynamics

    The Express Parcel segment continues to be a major revenue driver, shaped by industry consolidation and Shadowfax's market share gains. The company expanded its geographical coverage, adding 716 new pin codes in the quarter to reach 16,372. The Prime and D2C business, offering same-day and next-day delivery, accelerated its year-on-year growth to 2.7 times this quarter, serving over 400 D2C customers. The recently launched Shadowfax 360 platform for smaller SMEs already has over 1,200 transacting sellers.

    04

    Quick Commerce and Dark Store Expansion

    The quick commerce segment, including hyperlocal, grew by 53% year-on-year and 17% quarter-on-quarter, driven by the overall category expansion and partnerships with major players like Amazon Now. Shadowfax is a leading 3PL in this space, powering growth for multiple quick commerce companies. The company made significant progress on its dark store initiative, with 47 of the targeted 100 dark stores for FY27 already live and another 20 in progress, primarily in six metro cities.

    05

    Operational Efficiency and Cost Management

    Despite macro challenges🌐 like fuel price hikes and labor supply squeeze, Shadowfax maintained strong operational efficiency. The lost shipment debit cost reduced to 5.5% of revenue from 6.1% in Q4, aided by technology like the AI co-pilot 'Delivery Partner Buddy' which resolves 97% of rider queries. Transportation costs saw a marginal increase from 18.7% to 18.8%, and consumable costs rose by 0.1%, but overall cost management mitigated external pressures🌐.

    06

    Strategic Capital Investments

    The company continues to make long-term capital investments, with 77% of capex directed towards network and automation, including sortation centers and IT infrastructure. These investments are front-loaded in the first two quarters of the fiscal year to prepare for peak sales seasons and are expected to yield benefits over 5+ years. The Prime Large business, focusing on heavier deliveries, expanded its pin code coverage to 10,000, hitting its FY27 target early and subsequently raising it to 12,000 pin codes.

    07

    CriticaLog Integration and Cross-Selling

    The integration of CriticaLog, acquired approximately 1.5 years ago, is largely complete. Management views CriticaLog as a value-added services capability that enhances offerings to existing customers. Cross-selling efforts are underway, with an active conversation that could potentially increase CriticaLog's revenue by mid-teen percentage points, leveraging trust built with existing Shadowfax clients for high-value shipments.

    This is an AI-generated summary of a publicly available earnings call transcript.