SHADOWFAX Q2 FY27 Results Analysis: PAT Surges Over 5x, EBITDA Margin Expands 276 bps

SHADOWFAX reported Q2 FY27 numbers with revenue of Rs. 1,537.70 Cr (+56.57% YoY) and PAT growth of +421.89% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Shadowfax delivered 56.57% YoY revenue growth to Rs.1,537.70 Cr and over 5x PAT growth to Rs.67.95 Cr, running well ahead of its raised FY27 revenue guidance of 38-40%. Ind AS EBITDA margin expanded 276 bps YoY to 6.75% while the wage/diesel headwind was absorbed, and cash conversion was clean at 1.22x CFO/PAT on a debt-free balance sheet. Key watch items are the 30% of PBT from treasury other income, the zero tax rate flattering PAT, and D&A/finance costs outpacing revenue during the front-loaded festive capex cycle.

Key Investment Insights

Key Positives

• Revenue grew 56.57% YoY to Rs.1,537.70 Cr (+13.22% QoQ), a new quarterly high; H1FY27 revenue of Rs.2,895.82 Cr is up 60.38% YoY
• PAT grew 421.89% YoY to Rs.67.95 Cr; H1 PAT of Rs.133.35 Cr is up 534.1% YoY
• Ind AS EBITDA of Rs.103.79 Cr with margin at 6.75%, up 276 bps YoY from 3.99%
• H1 CFO of Rs.163.05 Cr was 1.22x PAT; FCF of Rs.16.83 Cr despite Rs.146.22 Cr capex
• Company is effectively debt-free (borrowings Rs.0.16 Cr) with Rs.1,562.25 Cr in cash, bank balances and investments
• Trade receivables of Rs.593.81 Cr grew 15.5% vs Mar-26, slower than revenue growth
• Wage/diesel headwind absorbed: employee costs at 8.98% of revenue (from 9.10% QoQ)

Risk Factors

• Other income of Rs.20.44 Cr is 30.08% of PBT, largely treasury income on parked IPO proceeds that will fade as deployment completes
• Zero effective tax rate flatters PAT; a future normal ETR will compress PAT margin
• Finance costs (+143.55% YoY) and D&A (+65.43% YoY) outpace revenue growth (+56.57% YoY) on the front-loaded capex cycle
• Lease liabilities rose to Rs.364.15 Cr from Rs.246.80 Cr at Mar-26, with H1 lease interest of Rs.17.52 Cr
• QoQ PAT growth of +3.90% lags revenue growth of +13.22% due to D&A and finance cost step-up