Shadowfax Applied sciences Ltd – IPO Evaluate

Firm Overview

Shadowfax Applied sciences Ltd (STL), integrated in 2016, is a Bengaluru-based, technology-enabled, asset-light third-party logistics (3PL) platform centered on last-mile, hyperlocal, and categorical supply options throughout India. The corporate has constructed a scalable digital logistics platform connecting enterprises, marketplaces, and gig-based supply companions to allow quick, dependable, and cost-efficient fulfilment.

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Shadowfax operates throughout a number of service traces together with categorical e-commerce parcel supply, fast commerce and hyperlocal supply, meals and on-demand logistics, reverse logistics, and choose mobility options. Its platform helps main digital commerce ecosystems resembling e-commerce marketplaces, D2C manufacturers, fast commerce platforms, meals aggregators, and on-demand mobility gamers.

As of September 30, 2025, the corporate serviced 14,758 pin codes, operated 4,299 touchpoints throughout first-mile, type centres, and last-mile infrastructure, and had entry to ~2.06 lakh common quarterly distinctive transacting supply companions throughout greater than 2,300 cities. Shadowfax follows a totally asset-light working mannequin, leasing logistics amenities and linehaul capability whereas proudly owning automation and proprietary expertise.

The corporate has demonstrated fast scale-up in volumes and community attain, supported by robust progress in India’s e-commerce and fast commerce ecosystem.

Promoters & Shareholding

Public Problem Particulars

• Supply Kind: Recent Problem + Supply for Sale (OFS)
• Problem Dimension: ₹1,907 crore (Recent Problem ₹1,000 crore; OFS ₹907 crore)
• Worth Band: ₹118 – ₹124 per share
• Face Worth: ₹10 per share
• Put up-Problem Market Capitalisation: ₹6,870 – ₹7,169 crore
• Supply Interval: January 20 – January 22, 2026
• Itemizing Date: January 28, 2026 (tentative)
• Problem Allocation: QIB 75%, NII 15%, Retail 10%
• Lot Dimension: 120 shares and multiples thereof

Objects of the Supply

• Community Infrastructure Capex – ₹423.4 crore
  Funding capital expenditure associated to growth and strengthening of first-mile, last-mile, and kind centre infrastructure to help rising order volumes.
• Lease Funds – ₹138.6 crore
  Funding lease funds for brand spanking new first-mile centres, last-mile centres, and kind centres throughout key consumption hubs.
• Branding, Advertising & Communication – ₹88.6 crore
  Enhancing model visibility, service provider acquisition, and platform positioning in a extremely aggressive logistics and fast commerce panorama.
• Inorganic Acquisitions & Basic Company Functions
  Supporting selective acquisitions and common company necessities (topic to regulatory limits).

Professionals

• Expertise-led, asset-light 3PL mannequin with excessive scalability.
• Robust income progress  (CAGR of ~32% over FY23–FY25).
• In depth nationwide attain throughout 14,758 pin codes and 4,299 touchpoints.
• Largest crowdsourced last-mile supply companion community amongst friends.
• Diversified service choices throughout categorical, hyperlocal, fast commerce, and reverse logistics.

Dangers

• Excessive income focus with high shoppers.
• Skinny profitability with modest EBITDA and PAT margins.
• Aggressive depth from well-capitalised logistics and platform gamers.
• Dependence on gig-based supply companions with restricted exclusivity.
• Operational dangers associated to cash-on-delivery dealing with and repair high quality.

Trade Outlook

India’s on-line retail and digital commerce ecosystem continues to broaden quickly, supported by growing smartphone penetration, rising city consumption, and evolving client preferences. E-commerce (excluding grocery) shipments are anticipated to develop at 15–20% CAGR, whereas fast commerce shipments are projected to develop at 50–60% CAGR via FY30.

India’s per-capita cargo depth stays considerably decrease than international friends, indicating long-term structural headroom for logistics progress. Asset-light, tech-enabled 3PL gamers with dense last-mile networks are well-positioned to profit from growing outsourcing of logistics by platforms and types.

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Monetary Snapshot (₹ Crores)

Valuation

On the higher worth band of ₹124, Shadowfax Applied sciences Ltd is valued at ~2.4x FY25 EV/Gross sales and ~106.5x FY25 EV/EBITDA. Whereas the corporate has delivered robust topline progress and is witnessing enhancing working leverage, these multiples counsel that a big a part of the near-term progress optimism is already mirrored within the provide worth.

On an earnings foundation, valuations seem notably stretched. Primarily based on FY25 reported earnings, the difficulty implies a P/E of ~1,127x, reflecting the corporate’s very low revenue base regardless of scale-up in revenues. Even on a forward-looking foundation, utilizing annualised H1FY26 earnings, Shadowfax is valued at a P/E a number of of ~155x–170x, derived from H1FY26 internet revenue of ₹21 crore, annualised to roughly ₹42 crore, and in contrast towards the post-issue valuation on the higher worth band.

Our View

In comparison with listed friends, Shadowfax trades at a major premium to Blue Dart Specific (50.7x P/E) whereas remaining beneath Delhivery (195x P/E)based mostly on extrapolating H1FY26 information, indicating that the market has already priced in elevated progress expectations for scalable, asset-light 3PL platforms. Nevertheless, given the corporate’s still-nascent profitability, excessive shopper focus, and aggressive depth in last-mile logistics, the valuation leaves restricted room for execution slippage regardless of beneficial long-term trade tailwinds.

Shadowfax provides publicity to India’s quickly increasing digital commerce logistics ecosystem via a technology-driven, asset-light platform with robust community attain and demonstrated scale advantages. Whereas income progress and working metrics have improved meaningfully, profitability stays modest and near-term outcomes are prone to hinge on sustained execution self-discipline and margin growth. As such, the difficulty could also be higher fitted to long run traders who’re comfy with valuation threat, whereas others might want to look at efficiency put up itemizing earlier than contemplating.

Traders are suggested to seek the advice of their monetary advisors earlier than making any funding selections. This view doesn’t represent funding recommendation.

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