Shadowfax Business Model for Parcel and Quick Commerce Delivery
How a third party logistics company earns from parcels and hyperlocal orders.
Key Takeaways
- FY26 revenue from operations was ₹4,202 crore, up 69.1% on FY25.
- Express parcel made up ₹1,096 crore of Q2 FY27 revenue of ₹1,537.7 crore.
- Hyperlocal revenue was ₹341 crore in Q2 FY27, up 87.7% year on year.
- Its network reached 16,372 pin codes with 5,095 touchpoints in Q1 FY27.
Table of Contents 12 sections
- Shadowfax at a glance
- What Shadowfax does
- How Shadowfax makes money across three segments
- How revenue has moved quarter by quarter
- The network behind the Shadowfax business model
- How the Shadowfax model works
- Shadowfax's Business Model Canvas
- Shadowfax's journey so far
- Who Shadowfax competes with
- Margin and costs at Shadowfax
- Conclusion on the Shadowfax business model
- FAQs
The Shadowfax business model is built on third party logistics, where the company delivers parcels, quick commerce orders and other consignments for business clients and earns revenue from those services. In FY26 its revenue from operations was ₹4,202 crore, up 69.1%, with a net profit of ₹112 crore.
The latest quarter, Q2 FY27 (July to September 2026), brought revenue from operations of ₹1,537.7 crore and a net profit of ₹68 crore. This guide explains the segments behind those numbers, the network that serves them and the IPO.
Shadowfax at a glance
| Fact | Detail |
|---|---|
| What it does | Third party logistics for parcels, quick commerce and other deliveries |
| Founded | 2015, Bengaluru |
| Co-founder and CEO | Abhishek Bansal |
| FY26 revenue from operations | ₹4,202 crore |
| FY26 net profit | ₹112 crore |
| Q2 FY27 revenue from operations | ₹1,537.7 crore |
| Q2 FY27 net profit | ₹68 crore |
| Orders in Q2 FY27 | 27.1 crore |
| Listing | NSE and BSE, January 2026 |
What Shadowfax does
Shadowfax was founded in 2015 and is based in Bengaluru. Today it describes itself as a technology led third party logistics company. It offers express parcel delivery, hyperlocal delivery and other logistics services.
Shadowfax also runs Shadowfax 360, a self-serve digital shipping platform for small and medium sellers. More than 6,700 sellers were transacting on it by Q2 FY27.
How Shadowfax makes money across three segments
The Shadowfax revenue model has three segments, express parcel, hyperlocal and other logistics services. In Q2 FY27 express parcel earned ₹1,096 crore, hyperlocal ₹341 crore and other logistics services ₹100 crore, which together make up about ₹1,537.7 crore of revenue from operations.
Express parcel was about 71.3% of Q2 FY27 revenue, hyperlocal about 22.2% and other logistics services about 6.5%. Orders in the quarter were 27.1 crore across express parcel and hyperlocal, up 69.7% on the same quarter a year earlier.
Shadowfax revenue model by segment
Hyperlocal is the fastest growing segment by year on year growth in Q2 FY27. Its revenue of ₹341 crore in Q2 FY27 was up 87.7% year on year. Express parcel revenue was up 55.2% and other logistics services up 6.6% over the same period.
How revenue has moved quarter by quarter
Revenue from operations rose from ₹824 crore in Q1 FY26 to ₹1,537.7 crore in Q2 FY27. The quarterly figures were ₹982 crore in Q2 FY26, ₹1,160 crore in Q3 FY26, ₹1,237 crore in Q4 FY26 and ₹1,358 crore in Q1 FY27.
Comparing Q1 FY26 with Q1 FY27, revenue grew 64.9%, orders delivered grew 83.3% to 24.7 crore, and net profit rose about eightfold to ₹65 crore.
Adjusted EBITDA was ₹77 crore in Q2 FY27, a margin of 5.0%. In Q1 FY27 it was ₹67 crore, a margin of 4.9%.
The network behind the Shadowfax business model
In Q1 FY27 Shadowfax reached 16,372 pin codes through 5,095 touchpoints and more than 53 lakh square feet of operating space. The company invested about ₹60 crore of capex in the quarter in last mile expansion, sort centre automation and capacity.
How the Shadowfax model works
Shadowfax connects trucks and touchpoints, and delivery partners complete the last mile. Shadowfax earns revenue from express parcel, hyperlocal and other logistics services.
Shadowfax's Business Model Canvas
Shadowfax's journey so far
| When | What happened |
|---|---|
| 2015 | Shadowfax is founded in Bengaluru |
| FY25 | Revenue from operations of ₹2,485 crore |
| January 2026 | ₹1,907.3 crore IPO and listing on NSE and BSE |
| FY26 | Revenue of ₹4,202 crore and net profit of ₹112 crore |
| July 2026 | Q1 FY27 revenue of ₹1,358 crore and net profit of ₹65 crore |
| October 2026 | Q2 FY27 revenue of ₹1,537.7 crore and net profit of ₹68 crore |
Shadowfax IPO
The Shadowfax IPO was priced in a band of ₹118 to ₹124 per share and was worth ₹1,907.3 crore, made up of a ₹1,000 crore fresh issue and an offer for sale of about ₹907.3 crore. The shares listed on the NSE and BSE in January 2026.
Who Shadowfax competes with
Shadowfax's offer document names Delhivery and Blue Dart as its listed peers.
Margin and costs at Shadowfax
Adjusted EBITDA margin was 5.0% in Q2 FY27. In Q1 FY27 the company said its margin expanded while absorbing fuel and wage inflation alongside geographic expansion.
Conclusion on the Shadowfax business model
Shadowfax earns revenue from moving parcels and orders for business clients, through express parcel, hyperlocal and other logistics services. It does this with a network of pin codes, touchpoints, trucks and delivery partners.
FY26 revenue from operations was ₹4,202 crore with a net profit of ₹112 crore. Q2 FY27 revenue from operations was ₹1,537.7 crore with a net profit of ₹68 crore.
