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ICICI Securities raises Shadowfax target price to ₹330 from ₹280 on Amazon share gains and quick commerce delivery demand

ICICI Securities expects Shadowfax Technologies' express parcel revenue to grow 48.7% year-on-year in Q2 FY27 and hyperlocal revenue to grow 78.4%. It cites Amazon market-share gains and quick commerce demand for 3PL deliveries, and retains its 'Add' rating.

More on Shadowfax Technologies

  1. Shadowfax Q1FY27 revenue jumps 65% to ₹1,358 crore, , Mint
  2. Kotak initiates Shadowfax with Add rating, sees 10% upside on e-commerce logistics growth, , NDTV Profit

07:30 IST · 10 moves · what each means · free

The numbers

Figures from Mint,

Express parcel revenue CAGR, FY26-FY28: 35.1%
Hyperlocal revenue CAGR, FY26-FY28: 59.7%
Adjusted EBITDA margin expected by FY28: 6.5%
Adjusted EBITDA margin, Q2 FY27: 4.9%

Why it matters to operators and investors

Retailers and brands that depend on third-party last-mile delivery should note that Amazon share gains and quick commerce demand are expected to lift Shadowfax's Q2 FY27 express parcel revenue 48.7% and hyperlocal revenue 78.4% year-on-year, so rider capacity and pricing terms may tighten.

What to watch next

  • Q2 FY27 express parcel revenue growth versus the 48.7% year-on-year estimate
  • Q2 FY27 hyperlocal revenue growth versus the 78.4% estimate
  • Adjusted EBITDA margin versus the 4.9% estimate, and any guidance toward 6.5% by FY28
  • Share price against the ₹330 target, and whether other brokerages raise or cut their targets
  • Management disclosure on Amazon's share of volumes and on quick commerce client concentration

Likely next moves

Our read of what comes next — analysis, not reported by the source.

  • Shadowfax management is likely to use Q2 FY27 commentary to stress express parcel and hyperlocal momentum, and to frame margin progress from 4.9% toward the 6.5% FY28 level as the main earnings story.
  • Other brokerages covering Shadowfax are likely to revisit their targets after the ICICI Securities move, with upgrades more probable if hyperlocal growth holds near 78.4%.
  • Amazon is likely to keep routing more parcel volume to third-party logistics partners such as Shadowfax while its own delivery network keeps expanding, which sustains the share-gain thesis.
  • Quick commerce platforms may widen their rider and delivery partner pools to meet demand, which would put pressure on Shadowfax's pricing and fleet availability.
  • Rival logistics players such as Delhivery are likely to defend express parcel share with sharper pricing and service offers, which could slow Shadowfax's growth after the near-term gains.

The source

Source Read the source at Mint Published

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