The company’s ₹1,907 crore initial public offering (IPO) commenced for investors today, January 20, and will conclude on January 22.
The firm has experienced revenue growth of approximately 32.5% annually from fiscal year 2022-23 (FY23) to 2024-25 (FY25), posting a remarkable 68% increase in the first half of the current year. Bansal noted that this recent growth was aided by a rebound in consumption, increased digital adoption, and consolidation within the logistics sector.
“We expect growth in the range of 23% to 25% on a compounded annual growth revenue (CAGR) basis,” he stated, emphasizing that Shadowfax will maintain its focus on increasing market share.
The company’s market share has risen from approximately 8% in 2021-22 (FY22) to nearly 23% in the current financial year. Bansal mentioned this was a result of a strategy emphasizing value-added services like same-day delivery, omnichannel logistics, and reverse logistics, which now contribute 40–45% of total revenue.
Also Read | Shadowfax IPO: CEO on what’s sustaining the company’s profitability
“Value-added services are a critical component,” he remarked, indicating that these offerings are more challenging to replicate and enhance profitability.
Quick commerce now constitutes about 20% of the company’s business and is expected to outpace the overall business growth, while e-commerce logistics continues to present opportunities for further market share expansion.
Regarding profitability, Bansal shared that the company has progressed from negative margins in 2022-23 (FY23) to earnings before interest, taxes, depreciation, and amortization (EBITDA) break-even, subsequently achieving positive EBITDA and net margins last year, along with positive free cash flow this year. “We are seeing a sustained trend of improvement,” he noted, adding that margins should increase further as network utilization rises.
In response to regulatory concerns regarding gig workers, Bansal indicated that average earnings in major cities fall between ₹110 and ₹120 per hour, and he welcomed the government’s initiative to establish a gig welfare fund, calling it “a highly progressive” move.
He also mentioned that client diversification from large customers is largely complete and that the market is now more stable. The company’s top 10 clients represent about 74% of total revenue.
For the complete interview, watch the accompanying video
Stay updated with the latest from the stock market here
Catch the latest Budget 2026 expectations updates here
Stay informed about the latest updates from the Q3 earnings here
