Shadowfax Technologies Q1 FY27 Results Analysis: PAT Jumps 715%, EBITDA Margin Expands 370 bps

Shadowfax Technologies Ltd reported Q1 FY27 numbers with revenue of Rs. 1,358.12 Cr (+64.91% YoY) and PAT growth of +715.46% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Shadowfax delivered a massive revenue beat, growing 64.91% YoY against 25-30% guidance, with PAT up 715% and EBITDA margin expanding 370 bps. The strong Q1 run-rate makes the full-year guidance easily achievable, confirming the company's execution strength and demand tailwinds.

Key Investment Insights

Key Positives

• Revenue grew 64.91% YoY to Rs.1,358.12 Cr, beating management's guidance of 25-30% YoY growth.
• PAT grew 715.46% YoY to Rs.65.40 Cr, with PAT margin expanding to 4.82% from 0.97% in Q1FY26.
• IndAS EBITDA margin expanded 370 bps YoY to 6.76%, a new sequential high.
• Revenue growth accelerated sequentially to +9.78% QoQ from +6.7% QoQ in Q4FY26.
• All cost lines grew slower than revenue on a YoY basis, demonstrating operating leverage.

Risk Factors

• Subsidiary Criticalog, contributing Rs.34.27 Cr revenue, remains loss-making, dragging consolidated PAT by Rs.0.80 Cr.
• Other income at Rs.21.06 Cr (32.2% of PBT) is elevated due to interest on parked IPO proceeds and may not recur at the same level once deployed.
• Finance costs and depreciation grew faster than revenue (119% and 82% YoY respectively) due to capex, though they remain small relative to revenue.