Shadowfax Technologies has reported a strong financial performance in the first half of FY26, highlighting steady expansion and improving profitability. The Bengaluru-based logistics startup recorded revenue of around ₹1,806 crore during the six-month period, marking a 68% increase compared to the same period last year. Alongside revenue growth, the company also posted a profit of approximately ₹21 crore, more than double the profit figure recorded in H1 FY25. This performance shows that Shadowfax is scaling in a healthy direction, sustaining growth while gradually improving efficiency.
Understanding Shadowfax’s Core Business
Shadowfax specializes in logistics and last-mile delivery services across India. The company helps deliver parcels, groceries, medicines, restaurant food orders and more. It does this through a widespread and flexible network of over 1.25 lakh delivery partners, reaching more than 14,000 pin codes. The company works closely with e-commerce marketplaces, quick-commerce grocery platforms, and major retail brands that rely on fast and reliable delivery to keep customers satisfied. Over the years, Shadowfax has positioned itself as a strong and dependable logistics partner that focuses on both speed and cost efficiency. Its asset-light model allows it to scale delivery operations quickly without owning large fleets of vehicles.
Revenue Breakdown and Business Growth
The growth in Shadowfax’s revenue comes from multiple service segments, each contributing differently. The largest portion of revenue comes from the regular parcel delivery business, which involves moving packages between warehouses and homes across cities. This segment continues to grow steadily as online shopping becomes a daily habit for many consumers in India. The company has also seen significant growth in the hyperlocal and quick-commerce delivery space, where deliveries need to be completed within minutes or hours. This segment has grown rapidly due to increasing demand for instant groceries and pharmacy deliveries. Shadowfax has also expanded into broader logistics support services for large enterprises, adding stability to its income mix.
Cost Structure and Profit Improvement
Along with revenue growth, Shadowfax’s expenses also increased as delivery volumes expanded. The company spent a large share of its budget on payouts to delivery partners, transportation, staffing and operational support. One of the notable increases came from the cost of lost or damaged shipments, which rose significantly. Still, what stands out is that the company’s profit continued to grow despite these rising costs. This suggests better route optimization, improved technology use, and stronger demand from large clients. The company’s operational margins are improving gradually, showing signs of maturity and disciplined financial management.
Preparing for the IPO
Shadowfax has taken steps toward becoming a publicly listed company by filing for an IPO. The company plans to raise fresh capital to strengthen its logistics network, upgrade technology systems, and reduce some outstanding liabilities. Entering the public market will not only give the company access to growth capital but also place it among India’s major logistics players. As e-commerce and quick-commerce continue to expand in India, the demand for reliable delivery networks is only expected to grow.
Shadowfax’s H1 FY26 performance reflects strong momentum, strategic scaling, and better profitability. If the company maintains operational control while expanding, it is well positioned to become a leading logistics brand in India’s fast-growing digital economy.