Shadowfax IPO: Over 1,000x P/E Valuation Raises Concerns Against Peers

• Shadowfax Technologies' IPO opens January 20th with a P/E valuation of 1,018x FY25 earnings, deemed exorbitant by analysts.
• The company is a key player in India's 3PL e-commerce market, alongside Blue Dart Express and Delhivery.
• Shadowfax claims to be the fastest-growing 3PL company by order volume (FY22-FY25) and has India's largest crowdsourced last-mile delivery fleet.
• Despite high revenue growth (68% YoY), Shadowfax's profitability (Rs 21 crore H1FY26) is lower than Blue Dart (Rs 130 crore) and Delhivery (Rs 41 crore).
• A major risk is high revenue concentration, with its top five customers contributing 74.6% of revenue in FY25.

Why It Matters: Shadowfax's IPO valuation is extremely high compared to peers, despite strong growth but lower profitability and high client concentration.