Financial Analysis
Financial Performance Overview
Shadowfax has demonstrated a remarkable turnaround from losses to profitability. Revenue grew at a 32.5% CAGR from FY23 to FY25, reaching ₹24.85 billion in FY25. More importantly, the company swung from a ₹1.43 billion loss in FY23 to a ₹64.3 million profit in FY25 — marking its first profitable full year. Adjusted EBITDA margin improved dramatically from -7.18% (FY23) to +1.96% (FY25) and further to +2.86% in H1 FY26. The asset-light model delivers the highest capital turnover ratio (3.96x) among 3PL peers, demonstrating superior capital efficiency.
Analyst View
FY25 Revenue: ₹24.85B (+31.9% YoY).
H1 FY26: ₹18.06B (+68.4% vs H1 FY25).
CAGR (FY23-25): 32.5%.
Hyperlocal fastest growing at 102% YoY (FY25).
| Segment | FY23 | FY24 | FY25 | H1 FY26 | FY25 Mix |
|---|---|---|---|---|---|
| Express Revenue (₹M) | 10,353.53 | 14,945.90 | 17,160.86 | 12,387.31 | 69.0% |
| Hyperlocal Revenue (₹M) | 2,551.85 | 2,538.95 | 5,132.42 | 3,593.47 | 20.6% |
| Other Logistics (₹M) | 1,245.86 | 1,363.37 | 2,558.03 | 2,075.66 | 10.4% |
| Total Revenue (₹M) | 14,151.24 | 18,848.22 | 24,851.31 | 18,056.44 | 100% |
| YoY Growth (%) | 42.8% | 33.2% | 31.9% | 68.4% | - |
Analyst View
FY25: First profitable year (₹64.3M PAT).
EBITDA margin: -7.18% → +2.86% (FY23 to H1 FY26).
H1 FY26: ₹210.4M profit (+114% vs FY25 full year).
Operating leverage driving margin expansion.
| Metric | FY23 | FY24 | FY25 | H1 FY26 | Trend |
|---|---|---|---|---|---|
| Revenue from Operations (₹M) | 14,151.24 | 18,848.22 | 24,851.31 | 18,056.44 | ↑ |
| Adjusted EBITDA (₹M) | (1,016.47) | 192.93 | 486.69 | 515.64 | ↑ |
| Adjusted EBITDA Margin (%) | -7.18% | 1.02% | 1.96% | 2.86% | ↑ |
| Profit/(Loss) for Period (₹M) | (1,426.38) | (118.82) | 64.26 | 210.37 | ↑ |
| Net Profit Margin (%) | -10.1% | -0.6% | 0.26% | 1.16% | ↑ |
Path to Profitability
Shadowfax achieved profitability through operating leverage (fixed costs spread over higher volumes), improved network utilization, and technology-driven cost optimization. The 100% variable gig-based last mile model ensures costs scale proportionally with revenue, enabling rapid margin expansion as volumes grow.
Partner Expenses (Gig-based Delivery Partners)
Partner expenses include payments to gig-based delivery partners, franchisee partners, and contract labour for last-mile and middle-mile operations. The last mile fleet is entirely crowdsourced — India's largest among 3PL e-commerce players.
| Partner Expenses | FY23 | FY24 | FY25 | H1 FY25 | H1 FY26 |
|---|---|---|---|---|---|
| Amount (₹M) | 7,687.35 | 9,630.11 | 13,502.65 | 5,653.91 | 9,561.03 |
| % of Revenue | 54.32% | 51.09% | 54.33% | 52.74% | 52.95% |
Transportation Charges (Linehaul)
Transportation charges comprise rent for trucks, LCVs, and air haul movements. All trucks are rented from national and regional vendors on fixed and ad-hoc routes. Cost efficiency improved through operating leverage and network optimization.
| Transportation Charges | FY23 | FY24 | FY25 | H1 FY25 | H1 FY26 |
|---|---|---|---|---|---|
| Amount (₹M) | 2,904.67 | 3,945.37 | 4,641.64 | 2,128.40 | 3,252.19 |
| % of Revenue | 20.53% | 20.93% | 18.68% | 19.85% | 18.01% |
Employee Benefit Expense
Employee benefits improved as a percentage of revenue through enhanced operating leverage, maintaining efficiency while expanding the workforce. Permanent employee count: 4,472 (H1 FY26) vs 3,163 (H1 FY25).
| Employee Benefits | FY23 | FY24 | FY25 | H1 FY25 | H1 FY26 |
|---|---|---|---|---|---|
| Amount (₹M) | 2,137.36 | 2,115.58 | 2,655.81 | 1,224.86 | 1,718.38 |
| % of Revenue | 15.10% | 11.22% | 10.69% | 11.43% | 9.52% |
Rent Expenses
Rent as a percentage of revenue declined from 3.58% to 1.33% through improved utilization of facilities and strategic lease arrangements. All facilities operate on a 100% leased model.
| Rent Expenses | FY23 | FY24 | FY25 | H1 FY25 | H1 FY26 |
|---|---|---|---|---|---|
| Amount (₹M) | 506.80 | 616.71 | 472.96 | 279.00 | 239.28 |
| % of Revenue | 3.58% | 3.27% | 1.90% | 2.60% | 1.33% |
Lost Shipments
Lost shipment costs are influenced by the nature of service lines. Hyperlocal deliveries have lower lost shipment costs due to reduced TAT and fewer handling touchpoints. Express service (particularly reverse pickup logistics) sees higher shipment loss incidences. A multi-layered security protocol including X-ray screening, doorstep open-box deliveries, and AI-driven image-based QC mitigates losses.
| Lost Shipments | FY23 | FY24 | FY25 | H1 FY25 | H1 FY26 |
|---|---|---|---|---|---|
| Amount (₹M) | 946.24 | 1,410.33 | 1,482.48 | 473.55 | 677.16 |
| % of Revenue | 4.79% | 5.02% | 5.68% | 4.42% | 8.21% |
Operating Leverage Driving Margin Expansion
- Partner expenses remain the largest cost component (~53% of revenue), reflecting the 100% gig-based delivery model
- Transportation costs declined from 20.53% to 18.01% through network optimization and higher vehicle utilization
- Employee costs reduced from 15.10% to 9.52% through operating leverage despite workforce expansion (+41% YoY)
- Rent expenses dropped significantly from 3.58% to 1.33% via improved facility utilization
- Adjusted EBITDA margin improved ~10 percentage points from (7.18)% to +2.86% over 3 years
| Metric | FY23 | FY24 | FY25 | H1 FY26 | Trend |
|---|---|---|---|---|---|
| Total Orders (M) | 259.11 | 350.32 | 436.36 | 294.45 | ↑ |
| Revenue per Order (₹) | 54.6 | 53.8 | 56.9 | 61.3 | ↑ |
| Adj. EBITDA per Order (₹) | (3.92) | 0.55 | 1.12 | 1.75 | ↑ |
| Express Revenue per Order (₹) | 49.4 | 49.4 | 50.2 | 54.2 | ↑ |
| Hyperlocal Revenue per Order (₹) | 51.6 | 53.1 | 54.1 | 54.4 | ↑ |
Unit Economics Chart
Highest Capital Turnover Among 3PL Peers
Shadowfax achieved a capital turnover ratio of 3.96x in FY25 — the highest among 3PL peers in India. This superior capital efficiency stems from the asset-light operating model: 100% leased facilities, 100% gig-based last-mile fleet, and leased linehaul trucks. The company retains ownership only of automation equipment and machinery for operational control.
Capital Efficiency Metrics
| Metric | Shadowfax FY25 | Delhivery FY25 | Implication |
|---|---|---|---|
| Capital Turnover Ratio | 3.96x | ~1.5x | Higher asset efficiency |
| Asset-Light Model | 100% leased | Mixed | Lower capital intensity |
| Last Mile Fleet Model | 100% Gig | Mixed | Variable cost structure |
| Ownership | Automation only | Assets + Automation | Flexibility |
Asset-Light Operating Model
Facilities & Infrastructure
All sort centers, first-mile, and last-mile facilities operate on a fully leased model. 3.5M+ sq ft of operational space without ownership burden.
Last Mile Fleet
205,864 delivery partners operate as gig workers on variable payout structure. Costs scale proportionally with volumes.
Linehaul Network
3,000+ trucks deployed daily, all on leased/contracted basis. No vehicle ownership overheads.
Income Statement Summary
| Particulars (₹ Million) | FY23 | FY24 | FY25 | H1 FY26 |
|---|---|---|---|---|
| Revenue from Operations | 14,151.24 | 18,848.22 | 24,851.31 | 18,056.44 |
| Express Logistics | 10,353.53 | 14,945.90 | 17,160.86 | 12,387.31 |
| Hyperlocal | 2,551.85 | 2,538.95 | 5,132.42 | 3,593.47 |
| Other Logistics | 1,245.86 | 1,363.37 | 2,558.03 | 2,075.66 |
| Other Income | 188.26 | 220.94 | 305.27 | 195.51 |
| Total Income | 14,339.50 | 19,069.16 | 25,156.58 | 18,251.95 |
| Freight, Handling & Servicing | 11,847.72 | 15,543.74 | 20,420.54 | 14,636.66 |
| Employee Benefits | 1,806.34 | 1,883.24 | 2,203.06 | 1,392.38 |
| Other Expenses | 1,260.06 | 1,145.88 | 1,397.46 | 945.15 |
| EBITDA | (574.62) | 496.30 | 1,135.52 | 1,277.76 |
| Depreciation & Amortization | 461.27 | 505.47 | 569.31 | 330.67 |
| Finance Costs | 343.94 | 205.03 | 243.32 | 188.49 |
| Profit/(Loss) Before Tax | (1,379.83) | (214.20) | 322.89 | 758.60 |
| Tax Expense/(Credit) | 46.55 | (95.38) | 258.63 | 548.23 |
| Profit/(Loss) After Tax | (1,426.38) | (118.82) | 64.26 | 210.37 |
Key Financial Ratios
| Ratio | FY23 | FY24 | FY25 | H1 FY26 |
|---|---|---|---|---|
| Revenue Growth (%) | 42.8% | 33.2% | 31.9% | 68.4% |
| Gross Margin (%) | 16.3% | 17.5% | 17.8% | 18.9% |
| EBITDA Margin (%) | -4.1% | 2.6% | 4.6% | 7.1% |
| Adj. EBITDA Margin (%) | -7.18% | 1.02% | 1.96% | 2.86% |
| Net Profit Margin (%) | -10.1% | -0.6% | 0.26% | 1.16% |
| Capital Turnover Ratio | 3.21x | 3.58x | 3.96x | - |