Urban Company shares fall over 9% intraday as Q2 net loss widens to ₹182.4 crore

Urban Company shares came under selling pressure today as the company’s stock tumbled 9.3% today reacting to weak quarterly earnings. Urban Company stock was the top NIFTY500 loser today as shares opened at ₹149.05 apiece on NSE and declined to a day low of ₹143.2, with market capitalisation of ₹22,355 crore.

Home services platform Q2FY27 consolidated net loss widened to ₹182.48 crore compared to net loss of ₹59.33 crore during the same quarter last year. Meanwhile, revenue during the September quarter rose 41.4% YoY to ₹537.29 crore. Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) basis also widened to ₹187.6 crore loss from ₹68.36 crore in the year-ago period.

Urban Company’s net transaction value (NTV) grew 39% YoY to ₹1,432 crore during the quarter, while delivered order reached 15.1 million, up 103% YoY.

InstaHelp reports higher losses

Higher losses for Urban Company was mainly driven by mounting losses in its quick household help vertical, InstaHelp, which reported adjusted EBITDA loss of ₹174 crore.

InstaHelp segment revenue grew to ₹20.5 crore from ₹1.4 crore in a year ago period, while orders rose 63% YoY to 0.62 crore, while adjusted loss per order was around ₹279 due to introductory pricing and intense competition from Snabbit and other household help platforms.

Urban Company plans to raise ₹2,500 crore

The company’s board has approved the proposal to raise up to ₹2,500 crore to boost its balance sheet and to invest across its businesses. The company is looking to expand into a new category like residential air conditioners as a new business under its consumer appliances brand Native, whose portfolio currently comprises water purifiers and smart locks.

Urban Company’s Native brand is seen positive growth with net transaction value (NTV) rising 35.4% YoY in Q2FY27, while operating revenue rose 40% to ₹105 crore. However, the segment remained loss-making on an adjusted EBITDA basis, reporting a loss of ₹9 crore. However, loss as a percentage of NTV declined to 6.8% from 9% a year ago.