Urban Company Q2 results: Loss widens to Rs 59 crore, revenue up 37% YoY

Urban Company Q2 results: Loss widens to Rs 59 crore, revenue up 37 percent YoY

Urban Company slipped into the red in its first quarterly results post-IPO, reporting a net loss of Rs 59.3 crore in the second quarter (Q2) of financial year 2025-26 (FY26), compared with a profit of Rs 6.9 crore in the previous quarter. The company had posted a loss of Rs 1.82 crore in the same period last year, according to regulatory filings.

The Gurugram-based firm said the swing back into the red was driven by heavy upfront investments in Insta Help, its newly launched daily housekeeping vertical, which offset otherwise strong growth in its core services and products businesses.

Urban Company’s revenue from operations rose 37 percent year-on-year to Rs 380 crore, from Rs 277 crore last year, supported by growth across India, international, and smart home products segments. This also compares with Rs 367 crore of revenue in the previous quarter, reflecting steady sequential growth.

Costs surge on new bets

Total expenses climbed to Rs 462 crore in the quarter, up from Rs 384 crore in the previous quarter, as the company stepped up spending on partner training, onboarding, and customer acquisition to scale Insta Help. As a result, adjusted EBITDA turned negative at Rs 35 crore, compared with a profit of Rs 21 crore in Q1.

Excluding Insta Help, Urban Company said it generated an adjusted EBITDA profit of Rs 10 crore, or 0.9 percent of net transaction value (NTV), indicating that the core business remains profitable. Insta Help alone accounted for an EBITDA loss of Rs 44 crore during the period.

“Early indicators for Insta Help are encouraging, with strong consumer adoption and repeat usage,” the company said in its shareholder letter. “We view this category as a significant long-term opportunity and believe these investments are important to sustaining market leadership.”

Core services and international growth hold steady

Urban Company’s India Consumer Services (excluding Insta Help) business reported revenue of Rs 262 crore, up 24 percent year-on-year, driven by new user acquisition and steady retention in categories such as cleaning, beauty, and home repairs. Adjusted EBITDA for this segment stood at Rs 18 crore, or 2.4 percent of NTV, compared to 3.1 percent in the same quarter last year, reflecting higher spending on training, audits, and fulfilment.

Its smart home products vertical, Native, which sells water purifiers and electronic door locks, recorded revenue of Rs 75 crore, up 179 percent YoY, while losses narrowed to 9 percent of NTV from 30 percent a year earlier. Meanwhile, the international business (UAE and Singapore) achieved EBITDA breakeven, with revenue of Rs 41 crore, up 66 percent YoY, supported by improved customer retention and repeat rates.

Urban Company’s net transaction value (NTV) stood at Rs 1,030 crore, up 31 percent year-on-year, reflecting broad-based expansion across categories. Its annual transacting users rose to 7.4 million, while monthly active service professionals increased to 57,251 during the quarter.

“Investing for the long term”

Co-founder and CEO Abhiraj Singh Bhal said the company remains focused on sustainable, long-term growth even as near-term profitability remains under pressure.

“We will continue to make choices that serve our customers’ long-term interests, even at the cost of near-term profitability,” Bhal said. “Our goal is to build a platform that maximizes long-term free cash flow per share.”

Strong cash position

Urban Company closed the quarter with Rs 2,136 crore in cash and equivalents, up from Rs 1,664 crore in the previous quarter, bolstered by proceeds from its recent IPO. The company said it expects adjusted EBITDA losses to continue in the near term as it invests further in Insta Help, though its core India and international businesses will remain profitable and cash-generating.