Urban Company Ltd, the home services platform, reported a consolidated net loss of ₹182.48 crore for the second quarter of FY27, widening from a year earlier despite a 41.4% increase in revenue, as the company stepped up investments in its instant home services business, InstaHelp.
Revenue from operations rose 41% year-on-year (YoY) to ₹537 crore, while net transaction value (NTV) increased 39% to ₹1,432 crore during the quarter. The company delivered 15.1 million orders, more than double the year-earlier level, marking a 103% increase. Its annual transacting user base grew 35% to nearly 10 million.
The company’s adjusted EBITDA loss stood at ₹144 crore in Q2 FY27, reflecting a ₹174 crore investment in InstaHelp, which offers on-demand home services. Excluding InstaHelp, adjusted EBITDA was positive at ₹30 crore, up 213% YoY, indicating stronger operating performance in its established businesses.
Urban Company’s board has approved a fresh capital raise of up to ₹2,500 crore, subject to shareholder approval, to fund growth across its businesses and provide flexibility for potential acquisitions.
The company held ₹1,901 crore in cash and treasury investments as of September 30, 2026.
InstaHelp investment weighs on profitability
Urban Company said its core businesses continued to deliver growth and margin expansion even as it invested aggressively in InstaHelp to strengthen its position in the rapidly evolving instant home services segment.
The ₹174 crore investment in InstaHelp was the principal factor behind the consolidated adjusted EBITDA loss during the quarter.
However, the company reported improving unit economics in the business as order volumes increased. Its loss per InstaHelp order declined approximately 19% sequentially to ₹279 from ₹346 in the previous quarter.
The company is prioritising market expansion and leadership in InstaHelp, which it considers strategically important, even as the business remains at an earlier stage of maturity than its established operations.
Core businesses report margin improvement
Excluding InstaHelp, Urban Company’s adjusted EBITDA increased to ₹30 crore in Q2 FY27 from the year-earlier period, representing 213% growth.
The company generated ₹119 crore in adjusted EBITDA from businesses excluding InstaHelp over the first nine months of the relevant reporting period, according to its statement.
Its India Consumer Services business improved its margin by 110 basis points year-on-year to 3.5%, while the international business expanded its margin by 190 basis points to 2%.
The Native business also reduced its loss margin by 220 basis points, reflecting improving operating performance.
Urban Company attributed the gains to stronger customer acquisition, repeat usage and greater service density, which it said were helping make services faster, cheaper and better.
Growth accelerates across markets
The company said consolidated NTV had grown approximately 40% year-on-year for three consecutive quarters, exceeding its pre-listing growth trajectory.
New user acquisition increased 46% year-on-year over the period, supported by repeat customer behaviour and growing service density.
Urban Company said penetration in its largest service categories across the top eight Indian cities remained below 10%, leaving room for further expansion. Tier 2 cities, meanwhile, were growing at approximately 37% year-on-year and emerging as another growth driver.
Its international business grew 66% year-on-year, with the company seeing a growth opportunity similar to that in India in terms of market penetration.
The Native business is also preparing for the next phase of growth during the festive quarter.
₹2,500 crore fundraise to support expansion
Urban Company’s proposed capital raise of up to ₹2,500 crore is intended to provide financial flexibility as the business expands across multiple segments.
The company said its operations had grown substantially since its stock market listing and that its three established businesses, India Core, International and Native, had demonstrated viable economics.
The proposed funds could support continued growth in the core business, expansion of Native, further investment in InstaHelp and selective inorganic opportunities.
The company said it expects its established businesses to scale further with continued investment and execution, while InstaHelp would require additional funding to strengthen its competitive position.