Shadowfax Leads New-Age Tech Stocks This Week, Pine Labs Slides On Q1 Earnings
With the Q1 FY27 earnings season in full swing, quarterly results remained the biggest driver of investor sentiment for listed Indian new-age tech companies this week.
While logistics company Shadowfax emerged as the top gainer following its strong Q1 performance, fintech major Pine Labs came under pressure after reporting a sequential decline in profit despite healthy revenue growth.
Overall, 38 of the 59 listed new-age tech stocks under Inc42’s coverage ended the week higher, posting gains ranging from 0.06% to 13.5%.
Shadowfax led the pack, surging 13.51% to close the week at ₹243.30 after its earnings announcement during the market hours yesterday. The stock also touched a fresh all-time high of ₹253.35 during the intraday trade yesterday.
Kissht, E2E Networks, Lenskart, and Nykaa also touched fresh record highs during the week.
In contrast, IndiaMART, Go Digit and Turtlemint slipped to fresh all-time lows. Overall, 21 stocks declined during the week, with losses ranging from 0.18% to 10.9%. Zappfresh was the biggest loser, ending the week 10.9% lower at ₹75.43.
The combined market capitalisation of the 59 listed new-age tech companies stood at $136.91 Bn at the end of the week, down from $138.25 Bn a week earlier.
Here’s a look at some of the financial disclosures this week:
Now, let’s take a look at this week’s top developments in the new-age tech space:
Zepto Puts IPO On Hold: Quick commerce startup Zepto has paused its IPO by at least two to three quarters amid a widening valuation gap with prospective public market investors. Mutual funds were valuing the startup at $2.5 Bn-$3 Bn, well below its last private valuation of $7 Bn. The company is now planning a ₹1,000 Cr pre-IPO funding round.
Leadership Changes At Nykaa, Swiggy: Beauty and personal care company Nykaa appointed former Swiggy Instamart COO Ankit Jain to head its quick commerce business, Nykaa Now, as competition intensifies in the segment. Meanwhile, Swiggy announced that former Myntra CEO Nandita Sinha will take over as CEO of Instamart from Amitesh Jha on August 3.
Kissht Turns Focus On Quality Over Quantity: Recently listed NBFC Kissht said it is prioritising borrower quality over aggressive loan growth as it looks to improve profitability. The startup expects lower borrowing costs, operating leverage and growth in its loan against property (LAP) business to support earnings going forward. The strategy is already showing results. Kissht reported a 59% YoY jump in Q1 FY27 net profit to ₹95.1 Cr, while credit costs declined during the quarter.
Ola Electric, Ather Lose Momentum: Electric two-wheeler startups Ola Electric and Ather Energy reported weaker demand in July, with registrations declining 19.5% and 9.2% month-on-month, respectively.
Klassroom Opens IPO: Edtech startup Klassroom Technology opened its SME IPO yesterday after raising more than ₹11 Cr from anchor investors. The issue was subscribed 73% on Day 1, receiving bids for 12.92 Lakh shares against 17.58 Lakh shares on offer
Peak XV Trims Go Digit Stake Again: Peak XV Partners sold Go Digit shares worth nearly ₹139 Cr in a block deal, marking its second partial exit from the insurtech company in two months. The transaction comes amid pressure on Go Digit’s stock following weaker Q1 FY27 earnings and a ₹384.4 Cr tax demand notice.
With that, let’s recap the broader market performance this week.
Markets Recover As Earnings, FII Buying Lift Sentiment
Indian equity markets rebounded this week, reversing last week’s losses as strong corporate earnings, sustained foreign institutional investor (FII) buying, and easing macroeconomic concerns improved investor sentiment.
The Sensex rose 2.68% to close at 78,094.64, while the Nifty50 gained 2.59% to settle at 24,383.60. Both benchmark indices also logged their second consecutive monthly gain in July.
Corporate earnings remained the biggest catalyst for stock-specific moves during the week, with investors rewarding companies that reported resilient growth despite an uncertain macroeconomic environment.
Foreign portfolio investors (FPIs) also remained supportive, pumping more than ₹20,000 Cr into Indian equities during July, according to NSDL data. Debt inflows also remained healthy, reflecting improving overseas investor sentiment towards Indian markets.
Among sectors, information technology stocks led the gains on optimism around global technology spending, while auto, pharma and metal stocks also witnessed healthy buying. FMCG and energy stocks, meanwhile, underperformed the broader market.
Looking ahead, investors will closely track the RBI Monetary Policy Committee’s decision next week, the ongoing Q1 FY27 earnings season, July GST collections and PMI data, along with global macroeconomic developments.
Now, let’s take a closer look at this week’s biggest gainer Shadowfax and Pine Labs.
Shadowfax Charges Ahead On Strong Q1
Shadowfax delivered one of the strongest quarterly performances among listed new-age tech companies this earnings season, reporting an eightfold jump in consolidated net profit to ₹65.4 Cr. Operating revenue surged 65% YoY to ₹1,358.1 Cr.
Following the strong performance, the logistics company raised its FY27 revenue growth guidance to 38%-40% from the 28%-30% projected just three months ago, while reiterating its profitability roadmap.
Management attributed the stronger outlook to sustained momentum across its express, hyperlocal and D2C logistics businesses. The company also expects recently onboarded enterprise clients, rising quick commerce demand, including from Amazon Now, and continued expansion of its D2C customer base to support growth through the rest of the financial year.
Its Prime Large business, which caters to shipments above 15 kg, emerged as a key growth driver during the quarter. Revenue from the segment grew 170% YoY, taking its annual recurring revenue (ARR) to about ₹75 Cr.
Shadowfax also achieved its target of expanding the service to 10,000 pincodes during the first quarter itself and has now revised its FY27 target upwards to 12,000 pincodes.
Overall, the company expanded its logistics network to 16,372 pincodes during the quarter while continuing to strengthen its same-day delivery capabilities. Its quick commerce business also scaled up, with 47 of the planned 100 dark stores operational by the end of Q1.
Separately, Shadowfax disclosed that its chief product officer Nitesh Lohiya has resigned, citing personal reasons.
Pine Labs Slides As Margin Pressure Overshadows Revenue Growth
Pine Labs’ shares came under pressure this week after investors focused on a sequential decline in profitability and margins, overshadowing another quarter of healthy revenue growth.
For Q1 FY27, the fintech company reported a more than fourfold jump in net profit to ₹19.6 Cr on a yearly basis. However, profit declined 67% sequentially. Operating revenue rose 20% YoY and 5% QoQ to ₹736.9 Cr, while gross transaction value (GTV) increased to ₹4.22 Lakh Cr during the quarter.
The company attributed the margin pressure to higher investments in AI capabilities, cloud infrastructure, network upgrades, international expansion, and technology enhancements.
Management said these investments weighed on adjusted EBITDA during the quarter but reiterated that margins are expected to improve over the course of FY27 as infrastructure costs normalise and transaction volumes increase.
Pine Labs also expects rising adoption of UPI and credit-based payment products to support payment volumes in the coming quarters. In addition, the company said the potential launch of Apple Pay in India could provide an incremental boost to credit card transactions on its platform.
Alongside this, Pine Labs Pine Labs continues to strengthen its international business, expand its enterprise sales team, and integrate ecommerce SaaS company Shopflo following its ₹88 Cr acquisition. The company expects these investments to contribute more meaningfully in the second half of FY27.
For investors, however, near-term margin pressure outweighed the company’s long-term growth investments, resulting in a muted market reaction.
Edited by Vinaykumar Rai
Creatives by Varshita Shrivastava and Abhyam Gusai
