Urban Company reported a consolidated net loss of ₹182.5 crore for Q2 FY27, widening from ₹59.3 crore in the corresponding quarter last year and ₹92 crore in the preceding June quarter, as investments in its quick home services business, InstaHelp, weighed on profitability. Revenue from operations rose 41.4% year-on-year to ₹537.3 crore from ₹380 crore in Q2 FY26.
The Gurugram-headquartered company’s total expenses climbed 61% year-on-year to ₹745.7 crore during the quarter, compared with ₹462 crore a year earlier. Expenses were also higher than the ₹639.9 crore recorded in Q1 FY27. Sequentially, revenue increased from ₹528.3 crore in the June quarter, indicating continued growth despite mounting competitive pressures in quick home services.
InstaHelp investment weighs on profitability
InstaHelp remained a significant drag on the company’s bottom line as Urban Company continued investing in the business amid intensifying competition. The company reported an adjusted EBITDA loss of ₹144 crore for the quarter after investing ₹174 crore in InstaHelp. Excluding the quick services vertical, adjusted EBITDA stood at ₹30 crore, up 213% from the year-ago period, highlighting the difference between the performance of its established operations and its newer business.
The competitive environment also affected InstaHelp’s Net Order Value (NOV), which declined to ₹114 from ₹138. The company faced heightened competition and lower introductory prices offered to attract new users. While aggressive pricing can help acquire customers, it can also put pressure on transaction values and near-term profitability as the business scales up.
Company plans ₹2,500 crore fundraise
Alongside its quarterly results, Urban Company outlined plans to raise up to ₹2,500 crore through a qualified institutional placement (QIP). The proposed fundraising is expected to provide financial flexibility as the company invests across its businesses, strengthens InstaHelp’s market position and evaluates selective inorganic opportunities.
The company reiterated its target of achieving adjusted EBITDA breakeven by Q3 FY28 and generating adjusted EBITDA of ₹1,000 crore by FY31. Meeting these targets will depend on its ability to scale newer offerings while improving profitability and sustaining growth in its established operations.
Urban Company is a technology-driven home services platform that connects customers with trained professionals for services such as cleaning, beauty and wellness, appliance repair, plumbing and electrical work. Its business model combines an online marketplace for service bookings with standardised service delivery, while InstaHelp extends its offering to on-demand domestic assistance.