Urban Company Q2 results: Loss widens to ₹182.5 crore despite 41% revenue growth

Urban Company reported a widened net loss of ₹182.5 crore for Q2 FY27, despite a 41.4% revenue increase to ₹537.3 crore, driven by aggressive investments in its InstaHelp business. The board also approved a fundraise of up to ₹2,500 crore.

Home services platform Urban Company reported a consolidated net loss of ₹182.5 crore for the second quarter of FY27, compared with a loss of ₹59 crore in the year-ago period. However, its revenue grew 41.4% year-on-year to ₹537.3 crore from ₹380 crore in Q2 FY26.

EBITDA loss widened to ₹187.6 crore from ₹68.4 crore a year ago, as the company continued to invest aggressively in its InstaHelp business.

The company said its core business combined continued growth momentum with margin expansion, while unit economics improved at InstaHelp even as the business scaled rapidly.

The company's board has approved a fundraise of up to ₹2,500 crore through equity and convertible securities. It has also granted in-principle approval to explore residential air conditioners as a new category under its Native brand.

Urban Company said it remains on track to achieve adjusted EBITDA breakeven by Q3 FY28 and adjusted EBITDA of ₹1,000 crore by FY31.

InstaHelp scales up as unit economics improve

InstaHelp order volumes rose 63% quarter-on-quarter to 6.2 million in Q2 FY27. Net transaction value (NTV) increased 34% sequentially to ₹71 crore.

The adjusted EBITDA loss per order improved to ₹279 from ₹346 in Q1 FY27. However, InstaHelp reported an adjusted EBITDA loss of ₹174 crore during the quarter.

Across the company, orders delivered increased 103% year-on-year to 15.1 million, while annual transacting users grew 35% to nearly 10 million.

India consumer services business expands margins

India Consumer Services, excluding InstaHelp, recorded NTV ( Net Transaction Value) growth of 26.3% year-on-year to ₹963 crore. The company said this growth came against a tougher base than in Q1 FY27, with Q2 FY26 growth at 19%. The festive season also falls entirely in Q3 this year.

Annual transacting users in the segment grew 22.4% year-on-year to around 8.6 million. First-time users increased approximately 28% to 0.76 million, while NTV per annual transacting user rose 3.2%.

NTV in Tier 2 cities grew around 37% year-on-year, outpacing growth in the top eight cities.

Average monthly net earnings in hand for active service professionals reached ₹30,708 in H1 FY27, up around 10% from ₹27,950 in H1 FY26. This was based on approximately 97 hours of work per month, including transit time.

International business and Native report growth

Urban Company's international business recorded NTV growth of 66% year-on-year to ₹267 crore, or 52% in constant currency. Net revenue rose 82% to ₹75 crore, or 66% in constant currency.

Margins expanded 190 basis points year-on-year to 2% of NTV, with the UAE and Singapore businesses delivering another quarter of growth and profitability. The company said its UAE business had recovered from the disruption caused by the conflict earlier in the year.

In Saudi Arabia, its joint venture Yammak, with SMASCO, recorded NTV growth of 153% year-on-year to ₹93 crore. Its adjusted EBITDA loss narrowed to ₹16 crore from ₹20 crore a year ago.

The Native business recorded NTV growth of 35% year-on-year to ₹132 crore, while net revenue rose 40% to ₹105 crore. Its adjusted EBITDA loss narrowed to 6.8% of NTV from 9% a year ago, an improvement of 220 basis points.

The company said the launch of its RO Water Purifier M3 Pro contributed to a 4.3% quarter-on-quarter rise in average selling prices for RO products, while filter attach rates remained around 75%.

With festive-season e-commerce sales shifting to Q3 FY27, Urban Company expects combined Q2 and Q3 FY27 NTV growth of 50-55% year-on-year for the Native business.

Urban Company shares closed 1.74% higher at ₹157 on October 16, ahead of the company's Q2 FY27 earnings announcement.