B2B logistics company Shadowfax reported a strong performance in Q2 FY27, with the logistics and last-mile delivery firm recording 57% year-on-year growth in operating revenue. Its profit also increased more than fivefold to Rs 68 crore during the quarter.

The company’s revenue from operations surged to Rs 1,537.7 crore in the July-September quarter from Rs 982.1 crore in the same quarter last year, according to its investor presentation. Sequentially, it increased 13% from Rs 1,358.1 crore in Q1 FY27.

Founded in 2015, Shadowfax operates in the last-mile and hyperlocal logistics segment, catering to e-commerce marketplaces, D2C brands, and quick commerce platforms. The company competes with Delhivery, XpressBees, Ecom Express, and eKart in a highly competitive market.

The logistics firm listed on stock exchanges in January this year after raising Rs 1,910 crore through an initial public offering.

Shadowfax also recorded Rs 20.4 crore in other income, taking its total income to Rs 1,558.1 crore in Q2 FY27. Total expenses grew 54% YoY to Rs 1,490.2 crore, driven by other expenses and employee benefit expenses.

The company’s net profit increased more than fivefold to Rs 68 crore in Q2 FY27 from Rs 13 crore in the year-ago quarter, as revenue growth continued to outpace the rise in its expenses. Sequentially, profit rose 4% to Rs 65.4 crore.

Hyperlocal business gains momentum

Express parcel remains Shadowfax’s mainstay business, contributing Rs 1,096 crore, or 71% of revenue. Its hyperlocal commerce arm, under which Shadowfax provides last-mile delivery services to food delivery and quick commerce platforms, witnessed robust growth. Revenue from this vertical jumped 88% YoY to Rs 341 crore. This means the hyperlocal business now accounts for roughly 22% of the company’s revenue.

Other logistics revenue rose 7% YoY to Rs 100 crore.

Shadowfax delivered 27.1 crore orders during the July-September quarter. Express orders stood at 21.7 crore, while hyperlocal orders came in at 5.4 crore.

“Shadowfax is growing faster than the blended quick commerce industry. Zero commission low-value food delivery models such as Toing (Swiggy) and Ownly (Rapido) lifting industry order growth in food delivery,” the company said.

Shadowfax launches micro-fulfilment centers for D2C brands

According to Shadowfax, speed remains the core differentiator. The company claims to be the only national-scale third-party logistics (3PL) provider offering same-day delivery across more than 120 cities.

Shadowfax outlined several growth initiatives:

  • Launching micro-fulfilment centers for D2C brands and verticals to facilitate deliveries within 8-12 hours, without brands having to invest in regional warehouses.
  • Enabled same-day / next-day delivery for smaller marketplace sellers. Under this model, Shadowfax picks up from a seller’s location and delivers.
  • Shadowfax 360, the company’s self-serve shipping platform for small sellers, has scaled to over 6,700 transacting sellers within 2 quarters of launch, with two-thirds onboarding directly without a salesperson. Its franchise-led channel partner network for offline SMEs has crossed 500.
  • Ahead of the festive season, Shadowfax deployed an AI system, built in-house, that connects over 3,600 trucks across 5,500 touchpoints. The model is trained on Shadowfax’s own proprietary data.

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