Shares of Shadowfax Technologies have surged 137% from their initial public offering price, according to livemint.com. ICICI Securities has raised its target price for the stock to ₹330 from ₹280 while maintaining an ‘Add’ rating. The brokerage attributes this to strong momentum in Shadowfax’s express parcel business and faster-than-expected growth in hyperlocal deliveries.
ICICI Securities projects Shadowfax’s express parcel revenue to grow 48.7% year-on-year in the second quarter of fiscal 2027, driven by market-share gains from Amazon’s e-commerce business, expansion into new pincodes, and initiatives like Prime and Prime Large. The brokerage also highlights customer additions among MSMEs and SMEs as key growth contributors. A strong festive season in the third quarter could further boost parcel volumes and support sustained market-share gains.
The brokerage expects Shadowfax’s express parcel revenue to grow at a compound annual growth rate of 35.1% between fiscal years 2026 and 2028. Additionally, the hyperlocal segment is forecasted to grow 78.4% year-on-year in the second quarter of fiscal 2027, potentially exceeding earlier expectations. Competitive intensity in quick commerce and Amazon Now’s outsourcing strategy are seen as factors supporting demand for third-party logistics hyperlocal deliveries, with improving gross margins across players.
ICICI Securities’ channel checks indicate that the hyperlocal business could emerge as an incremental growth driver for Shadowfax. The brokerage’s updated target price and positive outlook reflect confidence in the company’s ability to capitalize on expanding e-commerce and quick commerce markets in India.