Shadowfax Technologies Limited

Started in 2008, Shadowfax Technologies Limited is a software-as-a-service ('SaaS') company that connects media companies to their audiences through cloud-native technology. The platform helps content providers and distributors upload and deliver video over the internet (commonly known as streaming) through smart televisions, smartphones and applications, instead of traditional cable or set top box services. They also help monetize such content through targeted advertising services for advertisers. Their technology has enabled the streaming of marquee events, such as the 2024 Paris Olympics, Union of European Football Association ('UEFA') football tournaments, Oscars Awards, and the 2024 U.S. Presidential debates. Company's cloud-based platform is designed to help media companies respond to the operational and business challenges of the new video economy. This platform integrates production, preparation, distribution and monetization workflows into a single window, allowing customers to reduce complexity, improve operational efficiencies and increase their content revenue. The platform addresses customer requirements through the following:1. Manage fragmentation through a unified platform: The platform enables media companies to manage their entire video workflow through a single window. This includes uploading, organizing, scheduling, broadcasting and delivering content across multiple distribution platforms. By integrating unified streaming workflows, customers can reduce their reliance on manual workflows, shorten turnaround times, and lower their cost of multi-platform distribution.2. Enable globalization through broad distribution reach: They support expansion beyond home countries by offering preconfigured delivery formats to over 350 distributors across more than 40 countries as of September 30, 2025, and enable content to be adapted for local cultural, compliance and regulatory requirements. This helps customers scale their content distribution and enter new markets more efficiently.3. Improve advertising outcomes through improved targeting: They enable advertisers to deliver relevant, contextual advertisements to different audience segments and provide data to monitor and improve advertising performance, targeted to result in increase of revenue from ad supported content. They address the requirements of three main categories of customers:A. Content Providers, including television networks, movie studios, production companies, sports leagues, and other media creators. They help these customers manage real-time (or live), scheduled (or linear) and viewer-selected (or on-demand) content through a single platform. Their technology supports global content distribution and advertising - supported monetization. B. Distributors, such as over-the-top ('OTT') platforms, telecom operators, and smart television manufacturers. They help these customers aggregate content from multiple content providers and enable delivery to multiple devices and geographies.C. Advertising platforms and advertisers, including demand-side platforms, ad agencies, brands and technology providers that facilitate digital advertising transactions. They provide these customers with tools to enable targeted advertising to viewers, enhance ad inventory yield and measure performance. As of September 30, 2025, they served over 400 content providers, over 350 distributors and over 75 advertisers across more than 40 countries. As of September 30, 2025, they worked with more than 45% of the top 50 listed 'media and entertainment' companies by revenue (which comprise companies with a presence in streaming and broadcasting and excluding companies which are exclusively only into print media, outdoor advertising and content creation). The customers include global media companies such as Vevo, Lionsgate Studios, DAZN, E.W. Scripps, Sinclair Inc., VIZIO, Roku, The Trade Desk, JioAds and the Tennis Channel. Company's business is organized across three key divisions: Cloud Modernization, Streaming Unification, and Monetization and Marketplace. Their platform benefits from the network effects. As they onboard more content providers, the content distribution network expands, making more content available to more viewers. This increases viewership engagement on the distributors' platforms and attracts more engagement from advertisers. The resulting increase in advertising revenue can be reinvested by content providers and distributors in content creation, creating a cycle of growth. In the six months ended September 30, 2025 and the Financial Year 2025, the customers monetized 18.23 billion and 26.12 billion advertising impressions, respectively. As per financial performance, Shadowfax Technologies Limited  has posted total income / net profits of Rs 1,422.89 Cr / Rs (142.63) Cr (FY23), Rs 1,896.48 Cr / Rs (11.88) Cr (FY24), Rs 2,514.65 Cr / 0.64 Cr (FY25) and Rs 1,819.80 Cr / 21.03 Cr (upto Q2 FY26). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs (0.59) and average RoNW of (13.94)% for last three fiscals. Issue is priced at a P/BV of 9.21 as per NAV of Rs 13.46/- as on 30.09.25. If we attribute latest earnings of FY24, FY25, TTM and annualised FY26 on equity post issue, then asking price is at a P/E of around (603.34), 1115.60, 406.70 and 170.39 respectively. As per RHP, there are no listed peers in the Indian market. On BRLM's front, ICICI Securities Limited, Morgan Stanley India Company Private Limited, JM Financial Limited are associated with this IPO, and has handled 148 IPOs in last three fiscal years. ( As on 16.01.26 ) As per financials, Shadowfax Technologies Limited has shown steady growth, RoNW is (13.49)% and P/E is (603.34), 1115.60, 406.70 and 170.39 respectively as per FY24, FY25, TTM and annualised FY26 earnings. So issue looks aggressively priced. Company is a software-as-a-service ('SaaS') company that connects media companies to their audiences through cloud-native technology. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Abhishek Bansal
• 2 Vaibhav Khandelwal