Urban Company Reports 41% Growth in Revenue Despite Losses
Urban Company begins by announcing a 41% year-on-year increase in its operating revenue for Q2 FY27. However, the company’s losses expanded threefold as it continued to heavily invest in its fast home services platform, InstaHelp. This segment specifically recorded an adjusted EBITDA loss of Rs 174 crore for the quarter.
Revenue Growth
The operating revenue of Urban Company rose to Rs 527 crore in Q2 FY27, an increase from Rs 380 crore during the equivalent quarter in the previous year. This information is based on the unaudited financial results released by the National Stock Exchange (NSE).
Core Business Contributions
Urban Company’s India Consumer Services segment, which excludes InstaHelp, has been the primary contributor to its revenue, comprising over 62% of the total operating revenue. This specific segment’s revenue saw a significant rise of 28% year-on-year, reaching Rs 336.4 crore in Q2 FY27.
Performance of Native Brands and International Business
The Native brands division reported a substantial 40% increase in revenue, amounting to Rs 105.4 crore, up from Rs 75.4 crore in the same quarter last year. Additionally, the international segment surged by 82%, generating Rs 75 crore.
InstaHelp Performance
InstaHelp, Urban Company’s quick-service housekeeping platform, achieved Rs 20.37 crore in revenue, reflecting an 82% increase compared to the previous quarter, facilitated by 6.2 million orders in Q2 FY27. This translated into an average revenue of approximately Rs 33 per order.
Challenges Faced
However, the net order value fell to Rs 114, down from Rs 138 in the preceding quarter, largely due to fierce competition and promotional pricing for new users. The adjusted EBITDA loss per order for InstaHelp improved from Rs 346 in Q1 to Rs 279 in Q2 FY27.
Rising Employee Expenses
Employee benefits expenses surged by 60% year-on-year to Rs 182 crore in Q2 FY27, as opposed to Rs 114 crore in the same quarter last year. The overall expenditures for Urban Company escalated by 62%, totalling Rs 746 crore during the quarter.
Impact of Growing Expenses on Losses
As the expenses outpaced revenue growth and substantial investments in InstaHelp persisted, Urban Company experienced a threefold increase in losses year-on-year, amounting to Rs 182 crore in Q2 FY27. Nevertheless, it is noteworthy that the core India Consumer Services business continued to maintain EBITDA profitability.
Industry Highlights
The significant losses underscore the cash-intensive nature of the fast home services sector, where companies are investing substantially to scale. Competitor Snabbit reported Rs 12.25 crore in operating revenue alongside a Rs 168 crore net loss in FY26, indicating a remarkable 75X growth in daily jobs throughout the year, while Pronto is also on a growth trajectory.
Market Performance
At the conclusion of Friday’s trading session, Urban Company’s shares saw a 2.47% increase, closing at Rs 158.12 compared to the prior close, which elevated the company’s total market capitalisation to Rs 24,385 crore ($2.56 billion).