Urban Company Q2 net loss widens to Rs 182 cr
The company's loss before tax widened to Rs 175.29 crore in Q2 FY27 from Rs 59.33 crore in Q2 FY26.
Net transaction value (NTV) increased 39% YoY to Rs 1,432 crore, while the number of orders delivered more than doubled to 15.1 million, registering a growth of 103% YoY.
The company's adjusted EBITDA loss stood at Rs 144 crore in Q2 FY27, reflecting an investment of Rs 174 crore in its InstaHelp business. Excluding InstaHelp, adjusted EBITDA rose 213% YoY to Rs 30 crore, indicating improved profitability in its core operations.
Urban Company's core India Consumer Services business recorded NTV growth of 26.3% YoY to Rs 963 crore. Adjusted EBITDA for the segment stood at Rs 34 crore, equivalent to 3.5% of NTV, compared with 2.4% in the corresponding quarter last year. The company's annual transacting users in India Consumer Services increased 22.4% YoY to approximately 8.6 million.
The international business reported a 66% YoY increase in NTV to Rs 267 crore, while net revenue grew 82% YoY to Rs 75 crore. The segment's margin improved by 190 basis points to 2% of NTV. Meanwhile, the Native business recorded 35% YoY growth in NTV to Rs 132 crore, while net revenue increased 40% to Rs 105 crore. With festive-season e-commerce sales shifting to Q3 FY27, the company expects combined NTV growth of 50?55% YoY for Q2 and Q3 FY27.
InstaHelp continued to scale up during the quarter, with fulfilled orders rose 63% sequentially to 6.2 million and NTV increased 34% quarter-on-quarter to Rs 71 crore. The adjusted EBITDA loss per order narrowed to Rs 279 from Rs 346 in Q1 FY27, reflecting improvements in network density.
The company reiterated its target of achieving adjusted EBITDA breakeven by Q3 FY28 and adjusted EBITDA of Rs 1,000 crore by FY31.
Meanwhile board approved a proposal to raise up to Rs 2,500 crore through the issuance of equity shares and/or securities convertible into equity shares, including warrants, fully convertible debentures and convertible preference shares, or a combination thereof. The proposed fundraise may be undertaken through preferential allotment, private placement and/or one or more qualified institutions placements (QIPs), subject to applicable approvals.
Further, the board also approved exploring residential air conditioners as a new business category under the Native segment. The commercial launch and any associated capital expenditure will be subject to further evaluation and specific board approval.
Urban Company is a technology platform connecting consumers with professionals offering home and beauty services, including cleaning, repairs, salon and wellness services.
The counter added 2.63% to end at Rs 158.30 on the BSE.
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