Shares of home services company Urban Company slumped 9.5% to ₹143.30 apiece on the BSE during early trading today, following its Q2 FY27 results and board approval for a fundraise of up to ₹2,500 Cr.
At 12:10 IST, the stock was trading 8.56% lower at ₹144.75 on the BSE. The company’s market capitalisation stood at ₹22,323 Cr (about $2.7 Bn) at the time.
Urban Company reported a consolidated net loss of ₹182.5 Cr for Q2 FY27 on Friday (October 16) as against a loss of ₹59.3 Cr a year earlier and ₹92.1 Cr in the preceding quarter.
Operating revenue rose 41% to ₹537.3 Cr from ₹380 Cr in Q2 FY26. However, total expenses increased 61.5% to ₹745.7 Cr, driven largely by higher spending on its quick household help business, InstaHelp.
The company reported an adjusted EBITDA loss of ₹144 Cr, including what it described as a “deliberate” ₹174 Cr investment in InstaHelp. Excluding the vertical, adjusted EBITDA stood at ₹30 Cr.
The company’s board also approved a proposal to raise up to ₹2,500 Cr through equity shares and/or convertible securities via preferential allotment or private placement.
Urban Company said the proceeds would strengthen InstaHelp’s market leadership, support investment across its three businesses, and fund potential acquisitions.
It is also exploring entry into the residential air conditioner market under its consumer appliances brand ‘Native’, which currently sells water purifiers and smart locks. Management said it could meet its profitability targets without additional capital, although InstaHelp’s losses limited its financial flexibility.
Despite the rise in its loss, Emkay Global Financial Services maintained its ‘Buy’ rating for Urban Company and raised its target price to ₹200 from ₹190, citing growth opportunities across its segments and the strength of its core business.
The brokerage highlighted low penetration of its core services, expansion into Tier II cities, improving international profitability, and the Saudi Arabia business’ progress towards breakeven. It also identified Native as a growth opportunity and said InstaHelp was driving higher customer engagement.
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