Shadowfax Deep Dive Report
Executive Summary
Shadowfax Technologies Limited is India's fastest-growing third-party logistics (3PL) company of scale, having expanded its e-commerce shipment market share from ~8% in FY22 to ~23% in H1 FY26. The company uniquely serves both end-to-end e-commerce delivery AND last-mile delivery for quick commerce, food delivery, and hyperlocal services — making it the only 3PL of scale with this dual capability. With 436M orders processed in FY25, 205K+ gig delivery partners, 14,758 PIN codes served, and a turnaround from -7.18% EBITDA margin (FY23) to +2.86% (H1 FY26), Shadowfax offers a compelling growth-at-profitability story in India's booming digital commerce logistics market.
Key Strengths
- Fastest Growing 3PL: Market share ~8% → ~23% in 3 years, outpacing all peers
- Quick Commerce Leader: #1 3PL for quick commerce, same-day delivery, reverse pickup
- Asset-Light Model: 3.96x capital turnover — highest among listed logistics peers
- Path to Profitability: Adj. EBITDA margin +2.86% (H1 FY26) vs -7.18% (FY23)
Key Risks
- Client Concentration: Top 10 clients contribute 60%+ of revenue
- Gig Worker Regulation: Potential reclassification could impact costs
- Competition: Well-funded peers (Delhivery, Ecom Express) and in-house logistics
- Thin Margins: Logistics industry structurally low-margin business
Analyst Insights
Quick commerce is the growth engine: Q-commerce market to grow from ₹0.53T to ₹4-6T by FY30. Shadowfax is the #1 3PL provider — a structural beneficiary.
Technology moat deepening: SF Maps, Frodo, and SF Shield create proprietary advantages in route optimization and fraud prevention that competitors cannot easily replicate.
Network effects compounding: 205K+ gig partners create density advantages. More partners → faster delivery → more clients → more orders → higher partner earnings → more partners join.
Company Snapshot:
Founded: 2015 | HQ: Bengaluru
India's fastest-growing 3PL of scale.
Network: 14,758 PIN codes | 4,299 touchpoints
Partners: 205,864 gig delivery partners
Three Business Segments
Key Milestones
Analyst View
Fastest share gains: ~8% to ~23% in 3 years — outpacing all peers.
Quick commerce tailwind: #1 position in fastest-growing segment.
Reverse pickup dominance: #1 in returns logistics — high-margin service.
Same-day leadership: #1 in same-day delivery by order volume.
Analyst View
Scale achieved: 436M orders in FY25 — ~1.2M orders per day.
Consistent growth: 17.9% YoY growth in FY25.
Network expansion: 14,758 PIN codes served across India.
Partner scaling: 205K+ gig partners supporting volume growth.
Analyst View
Strong CAGR: 32.5% revenue CAGR over FY23-25.
Express dominates: 69% of revenue from e-commerce logistics.
Hyperlocal growing: 21% from quick commerce — fastest segment.
H1 FY26 run-rate: Tracking to ₹28B+ for full year.
Analyst View
Turnaround achieved: -7.18% to +2.86% EBITDA margin in 3 years.
Scale benefits: Operating leverage kicking in at volume.
Asset efficiency: 3.96x capital turnover — best in class.
Path to 5%+: Management targeting margin expansion through FY28.