Urban Company Reports Q2 Loss of Rs 182.5 Crore Amid Revenue Growth
Urban Company faces a widening net loss in Q2 FY27 despite a significant revenue increase driven by diverse service segments.
Net loss of Rs 182.5 crore in Q2 FY27, up from Rs 59.3 crore last year.
Revenue rose 41% YoY to Rs 537.3 crore, supported by growth in multiple sectors.
Company plans to raise Rs 2,500 crore through a qualified institutional placement.
Urban Company, a leading home services provider, reported a substantial net loss of Rs 182.5 crore for the second quarter of the financial year 2026-27 (FY27). This figure marks a significant increase from the loss of Rs 59.3 crore recorded during the same period last year, as per the company's regulatory filings. The losses are attributed to ongoing investments in its quick services vertical, InstaHelp, amidst rising competition in the market. In the previous quarter, the company had reported a loss of Rs 92 crore.
The Gurugram-based firm experienced a 41% year-on-year increase in revenue, reaching Rs 537.3 crore, up from Rs 380 crore in the corresponding quarter last year. This growth was bolstered by expansions across various segments, including domestic, international, and smart home products. Furthermore, the revenue showed a slight increase from Rs 528.3 crore in the previous quarter, indicating consistent growth.
Urban Company also disclosed that its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss for the quarter stood at Rs 144 crore, following a Rs 174 crore investment in InstaHelp. When excluding the impact of InstaHelp, the adjusted EBITDA was reported at Rs 30 crore, reflecting a remarkable 213% increase compared to the same quarter last year. The company is actively seeking to raise up to Rs 2,500 crore through a qualified institutional placement (QIP) to enhance its strategic flexibility.
In a letter to shareholders, Urban Company emphasized its commitment to achieving its financial targets, stating that the capital raise would allow for significant investments across various segments, solidifying its leadership in InstaHelp while exploring selective inorganic growth opportunities. The company aims for an adjusted EBITDA breakeven by the third quarter of FY28 and targets an adjusted EBITDA of Rs 1,000 crore by FY31. Total expenses for the quarter surged by 61% to Rs 745.7 crore, compared to Rs 639.9 crore in the previous quarter and Rs 462 crore a year ago.
Additionally, the Net Order Value (NOV) for InstaHelp decreased from Rs 138 to Rs 114, attributed to increased competitive pressure and lower introductory pricing for new users. On October 16, Urban Company's shares rose by 2.11%, trading at Rs 157.50 per share on the Bombay Stock Exchange (BSE).
