Shadowfax lists 9% below issue price, client concentration, thin margins weigh on sentiment

According to the company's red herring prospectus, Shadowfax's largest client, accounted for approximately 49% of revenue in H1 FY26. Profitability also remains thin.

Written by Anees Hussain

January 29, 2026 14:53 IST

Net profit margin stood at 0.3% for the fiscal.

Shares of Shadowfax Technologies made a weak stock market debut on Wednesday, listing at Rs 112.60 on the National Stock Exchange (NSE), a discount of 9.19% to the issue price of Rs 124. The stock opened at Rs 113 on the BSE, down 8.87%.

The losses extended through the session, closing at Rs 109.18 on the NSE—11.95% below the issue price.

IPO Offering Details

The Rs 1,907.27 crore IPO comprised a fresh issue of Rs 1,000 crore and an offer for sale of Rs 907.27 crore by existing investors including Flipkart Internet, Eight Roads Investments, and Qualcomm Asia Pacific.

The QIB portion was subscribed 3.81 times, while retail investors bid 2.31 times.

Thin Profitability Margins

Market analysts pointed to high client concentration as a key overhang. According to the company’s red herring prospectus, Shadowfax’s largest client, accounted for approximately 49% of revenue in H1 FY26. Profitability also remains thin.

While revenue expanded at a 32.5% CAGR between FY23 and FY25 to reach Rs 2,485 crore, Shadowfax turned adjusted EBITDA positive only in FY25 with a margin of 1.96%. Net profit margin stood at 0.3% for the fiscal.

Express logistics accounts for 69% of revenue, while the hyperlocal segment, serving quick commerce platforms, contributes 21% and grew 82.6% year-on-year in H1 FY26.

This article was first uploaded on January twenty-nine, twenty twenty-six, at fifty-three minutes past two in the afternoon.