Synopsis: The recently listed stock turned volatile as continued investments in new verticals overshadowed robust revenue growth and improving global traction.
A tech-enabled services stock came under pressure after reporting a wider loss for the September 2025 quarter, despite healthy top line growth. The company’s continued investments in new verticals weighed on profitability, though strong year-on-year revenue momentum and business expansion kept investor sentiment watchful.
Urban Company Limited, a recently listed player in the online home and beauty services space, opened at Rs. 147.65 after a previous close of Rs. 157.55, touching an intraday low of Rs. 147.50, a decline of 6.38 percent. The stock’s market capitalization stood at Rs. 21,796.99 crore.
Financial Snapshot – Q2FY26
Quarter-on-Quarter (QoQ): Urban Company’s revenue from operations rose 3.5 percent sequentially to Rs. 380 crore from Rs. 367 crore. The company’s operating loss widened sharply to Rs. 79 crore compared to Rs. 13 crore in the previous quarter, as the operating margin contracted to negative 21 percent from negative 4 percent.
Profit before tax turned to a net loss of Rs. 59 crore from a profit of Rs. 6 crore in the preceding quarter. The company reported a net loss of Rs. 59 crore, against a net profit of Rs. 7 crore in the previous period. Earnings per share stood at negative Rs. 0.41, compared to Rs. 0.14 in the prior quarter. Other income increased 6.5 percent, reaching Rs. 33 crore from Rs. 31 crore.
Year-on-Year (YoY): Revenue grew 37.2 percent year-on-year to Rs. 380 crore from Rs. 277 crore in the same quarter last year. Operating loss increased to Rs. 79 crore from Rs. 16 crore, while operating margin fell to negative 21 percent from negative 6 percent. The company reported a net loss of Rs. 59 crore, widening from Rs. 2 crore in the corresponding quarter last year. Earnings per share stood at negative Rs. 0.41, improving from negative Rs. 93.43. Other income rose 22.2 percent year-on-year to Rs. 33 crore from Rs. 27 crore.
Urban Company continued investing in its long-term initiatives (Insta Help and Native). The company reported an adjusted EBITDA loss of Rs. 35 crore, driven by a Rs. 44 crore loss in Insta Help. Excluding Insta Help, adjusted EBITDA stood at Rs. 10 crore profit, marking a Rs. 15 crore improvement year-on-year.
The company’s Net Transaction Value (NTV) grew 34 percent YoY to Rs. 1,030 crore (excluding Kingdom of Saudi Arabia), supported by broad-based strength across segments. Core India operations remained profitable at the adjusted EBITDA level, while UAE and Singapore markets achieved breakeven. Cash and cash equivalents stood at Rs. 2,136 crore at quarter-end.
Operational Highlights
India Consumer Services (excluding Insta Help): The segment’s Net Transaction Value (NTV) rose 19 percent year-on-year to Rs. 762 crore, supported by new user growth, steady revenue retention, and healthy traction in core categories. Revenue from operations increased 24 percent year-on-year to Rs. 262 crore. Adjusted EBITDA stood at Rs. 18 crore, or 2.4 percent of NTV, compared to 3.1 percent in the same period last year. The slight margin moderation was attributed to higher investments in training, audits, user acquisition, customer support, and team expansion, all aimed at positioning the business for long-term growth.
Native: The Native vertical recorded a sharp 164 percent year-on-year increase in NTV to Rs. 97 crore, driven by robust growth in the water purifier and electronic door lock categories. Revenue surged 179 percent year-on-year to Rs. 75 crore. Adjusted EBITDA improved, reporting a loss of Rs. 9 crore, translating to negative 9 percent of NTV, compared to negative 30.1 percent in the prior year.
International: The international business, excluding the Kingdom of Saudi Arabia, registered 73 percent year-on-year NTV growth to Rs. 160 crore, led by strong performance in the UAE and Singapore markets. Revenue from operations increased 66 percent year-on-year to Rs. 41 crore. The segment achieved adjusted EBITDA breakeven across both geographies.
Insta Help: Introduced earlier this year, Insta Help is designed as a high-frequency vertical offering daily housekeeping services, aimed at deepening Urban Company’s footprint in repeat use categories. Within just eight months of launch, the vertical scaled rapidly to 4.68 lakh orders in October, supported by strong customer retention and repeat usage trends. It reported an adjusted EBITDA loss of Rs. 44 crore in Q2 FY26, reflecting upfront investments in supply onboarding, training, and network densification.
About the Company
Incorporated in December 2014, Urban Company Limited operates a full-stack, technology-driven online marketplace connecting customers with trained service professionals across home and beauty care. The platform spans over 50 cities in India, the UAE, and Singapore, excluding its Kingdom of Saudi Arabia joint venture. Through its app and website, users can book services such as cleaning, plumbing, electrical work, appliance repair, beauty treatments, and massages. The company recently expanded into home solutions under its Native brand, offering water purifiers and electronic door locks. Urban Company supports its professionals with tools, training, insurance, and financing to ensure consistent quality and earnings growth.
-Manan Gangwar
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