Shadowfax shares jump 10.32% despite operating margin at 6.79%
The standalone quarter benefited from zero tax, while management flagged diesel and minimum-wage costs alongside continued expansion spending.
Filed 31 Jul 2026, 12:13 IST · Shadowfax Technologies Ltd (SHADOWFAX)
Key takeaways
- Standalone operating margin was 6.79%, 15.67 percentage points below the 22.46% median of 14 Services peers.
- Net profit of Rs 66.20 cr was helped by a 0.00% tax rate, while other income contributed Rs 21.03 cr to pre-tax profit.
- The stock rose 10.32% on the results day, with traded volume at 6.41 times its average.
Price around the results
A low-margin quarter with a sharp market response
Shadowfax reported standalone operating profit of Rs 89.86 cr on revenue of Rs 1,323.85 cr, leaving operating margin at 6.79%. The stock gained 10.32% on the results day, and volume reached 6.41 times its average. The response was positive even though the company ranked fourth from the bottom among 14 Services peers by operating margin.
Zero tax lifted reported profit
Net profit was Rs 66.20 cr, equal to profit before tax because the reported tax rate was 0.00%. That makes the quarter's earnings conversion dependent on the tax line, rather than operating profit alone. Other income of Rs 21.03 cr also contributed to pre-tax profit, while interest and depreciation were reported at Rs 7.26 cr and Rs 37.43 cr respectively.
Expansion is widening the operating footprint
Management said the company added more than 300 last-mile nodes and now has over 53 lakh square feet of operating space. It also said higher-than-anticipated growth is requiring continued capex investments, while automation is being used to support sustainable unit economics. Management identified diesel and minimum-wage effects in the cost structure.
Prime Large coverage reached 10,000 pincodes
The company said Prime Large reached 10,000 pincodes in Q1 FY27, achieving its full-year target. Management revised its FY27 coverage target to 12,000 pincodes and said it adds approximately 200–250 new pincodes each month. The company also said white-goods shipments are scheduled to go live by Q2 FY27.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹1,324 cr |
| Other income | ₹21 cr |
| Expenses | ₹1,234 cr |
| Operating profit | ₹90 cr |
| Operating margin (%) | 6.79% |
| Interest | ₹7 cr |
| Depreciation | ₹37 cr |
| Profit before tax | ₹66 cr |
| Tax | ₹0 cr |
| Net profit | ₹66 cr |
| EPS (₹) | ₹1.13 |
Operating margin of 6.79% compares with a Services sector median of 22.46% across 14 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +10.32% | +10.05% |
| Next session | +9.36% | — |
Volume on the results session was 6.41× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Prime Large reached 10,000 pincodes in Q1 FY27, achieving its full-year target.
Guidance & outlook
- The company revised its FY27 Prime Large coverage target to 12,000 pincodes.
- The company adds approximately 200–250 new pincodes every month.
Planned next quarter
- White goods shipments are scheduled to go live by Q2 FY27.
Expansion
- The company added more than 300 last-mile nodes and has over 53 lakh square feet of operations space.
New initiatives
- Automation is being used to drive sustainable unit economics.
- The company is building a D2C founder community through meet-ups in Tier 1 and Tier 2 cities.
Problems & risks
- The company identified diesel and minimum-wage impacts in its cost structure.
- Higher-than-anticipated growth is requiring continued capex investments.
What to watch
- Whether standalone operating margin moves above 6.79%.
- Progress toward the company-stated FY27 Prime Large target of 12,000 pincodes.
- Whether white-goods shipments go live by Q2 FY27 as stated by the company.