Why did Shadowfax Technologies shares crash by 6% today? Check the reason

Synopsis: Shadowfax will unlock 35 million shares after three months, increasing supply in the market and potentially affecting the stock price based on demand.

This Small-cap Stock, engaged in providing end-to-end logistics, last-mile delivery, and supply chain solutions for e-commerce, quick commerce, and retail businesses across India, is down 6.36 percent after the company’s 3-month lock-in period ends today.

With a market capitalization of Rs. 9,252.29 crores, the share of Shadowfax Technologies Limited has reached an intraday low of Rs. 148.80 per equity share, down nearly 6.36 percent from its previous day’s close price of Rs. 158.90. Since then, the stock has retreated and is currently trading at Rs. 157.80 per equity share. 

Reason Behind the Fall

Shadowfax Technologies Limited’s shares become available for sale after the anchor investor lock-in period ends. Around 35 million shares, which are about 6 percent of the total outstanding shares worth more than Rs. 552.30 crore and will be unlocked after 3 months. This may increase the number of shares in the market and could affect the stock price depending on investor demand.

Capital Expenditure

Shadowfax Technologies Limited’s total capital expenditure (capex) for the first nine months of FY26 is around Rs. 140 crore. Most of this spending, about 67 percent, has gone into network and automation, showing a strong focus on improving operations and efficiency. Other investments include technology development (13 percent), geographic expansion (15 percent), and a smaller share in administrative areas (5 percent).

Most of the FY26 capex was spent early in the year, mainly in the first three quarters. Capex stood at 4.7 percent of revenue during the first nine months, and the company expects this to slightly reduce to around 4 percent for the full year FY26, indicating more controlled spending ahead.

Company Overview

Shadowfax Technologies Limited is a fast-growing logistics company that provides end-to-end delivery services across India. It has a wide network with over 4,500 touchpoints, covers more than 15,000 pin codes, and operates in more than 45 lakh square feet of space. The company handles mid-mile and last-mile deliveries using more than 3,000 trucks daily and works with many delivery partners.

The company supports different sectors like e-commerce, quick commerce, food delivery, and online retail. It has a strong workforce with over 4,800 permanent employees and nearly 18,000 contract workers. This large network helps Shadowfax deliver products quickly and efficiently across the country.

Recent Quarter Results

Coming into financial highlights, Shadowfax Technologies Limited’s revenue has increased from Rs. 701 crore in Q3 FY25 to Rs. 1,160 crore in Q3 FY26, which has grown by 65.48 percent. The net profit has also grown by 483.33 percent from Rs. 6 crore in Q3 FY25 to Rs. 35 crore in Q3 FY26.

In terms of return ratios, the company’s ROCE and ROE stand at 4.38 percent and 2.25 percent, respectively. Shadowfax Technologies Limited has an earnings per share (EPS) of Rs. 0.42, and its debt-to-equity ratio is 0.98x.

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