Urban Company shares drop 7% as Q2 net loss widens to ₹59 crore, revenue surges 37% YoY

In the corresponding period of the previous financial year, it had clocked a net loss of ₹1.82 crore, the firm said in a regulatory filing dated Saturday.

The stock was trading 2.38% lower at ₹153.99 per equity share, at around 9:50 am.

The app-based services and solution provider, however, witnessed a 37% year-on-year (YoY) surge in its revenue from operations to ₹380.03 crore during the quarter under review, compared to ₹277.74 crore in the September quarter of FY25.

The increase in revenue was bolstered by broad-based growth across all segments, it said.

The company’s net transaction value (NTV) stood at ₹1,030 crore in Q2FY26, marking a 31% YoY jump.

At an operational level, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) loss was ₹35 crore, driven by an adjusted EBITDA loss of ₹44 crore in its new vertical, Insta Help. The EBITDA loss also reflected the early-phase investments in supply onboarding, training, and network densification.

However, excluding the Insta Help segment, the business generated an adjusted EBITDA profit of ₹10 crore, it added.

The firm said that earlier this year, it launched Insta Help as a high-frequency vertical offering daily housekeeping services, adding that in just eight months since its launch, Insta Help has scaled rapidly to 468K orders in October, despite limited geographic coverage.

“Customer retention and repeat rates are strong, though steady-state behavior will take time to mature,” it added.

Its revenue from its Indian consumer services business, excluding Insta Help, grew by 24% YoY to ₹262 crore during the September quarter of the current fiscal year. Its NTV from the segment advanced 19% YoY to ₹762 crore, supported by new user growth, steady revenue retention, and good traction in core categories.

During the quarter, Urban Company’s native revenue grew by 179% YoY to ₹75 crore. Furthermore, its native segment’s NTV was up by 164% YoY to ₹97 crore as the water purifiers and electronic door locks portfolio grew well, it said.

Its international segment’s revenue soared 66% YoY to ₹41 crore. Additionally, its international NTA rose 73% YoY to ₹160 crore, driven by strong growth across the UAE and Singapore markets.

The international market revenue and NTA figures are ex KSA, as the company has deconsolidated its operations in the Kingdom of Saudi Arabia (KSA) following the transition from a wholly owned subsidiary to a 50:50 joint venture, effective January 1, 2025.

Furthermore, as Urban Company Arabia, its step-down subsidiary, is no longer operational, UC’s board also approved its voluntary winding up and closure. It will be liquidated or dissolved within approximately five to six months.

Incorporation of step-down subsidiary in the UAE

The board of directors of Urban Home Experts Pte Limited, Singapore, a wholly owned subsidiary of the firm, at their meeting on Saturday, approved the incorporation of a wholly owned subsidiary in the United Arab Emirates (UAE) with an initial investment of ₹3 crore (in one or more tranches).

The entity will carry on the business of general trading activities, including selling products to aggregators or third-party service providers who offer services on the UC platform in the UAE, as well as the sale of Native products in the country.