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What is the story about?
Urban Company reported a setback in its first quarterly earnings after going public, slipping into a loss of ₹59.3 crore for the second quarter of this fiscal. This compares with a profit of ₹6.9 crore in the preceding quarter and a loss of ₹1.82 crore in the base quarter.
The Gurugram-headquartered platform attributed the loss to substantial upfront spending on its new daily housekeeping vertical, Insta Help, which overshadowed otherwise strong performance in its core services and smart home products businesses.
Its revenue rose 37% year-on-year to ₹380 crore, up from ₹277 crore a year earlier and slightly higher than ₹367 crore in the previous quarter.
Operating expenses rose to ₹462 crore during the quarter, compared to ₹384 crore in Q1, driven by higher partner training, onboarding, and customer acquisition costs linked to scaling Insta Help.
Consequently, adjusted EBITDA slipped into the red at ₹35 crore, against a profit of ₹21 crore in the prior quarter.
Excluding the new vertical, Urban Company reported an adjusted EBITDA profit of ₹10 crore, or 0.9% of net transaction value (NTV). Insta Help alone recorded an EBITDA loss of ₹44 crore in the quarter.
The company noted early signs of traction for Insta Help, citing strong customer adoption and repeat usage. "We view this category as a major long-term growth lever, and the ongoing investments are essential to strengthen our market leadership," Urban Company said in its shareholder communication.
NTV for the quarter stood at ₹1,030 crore, a 31% year-on-year rise, with growth seen across categories. The platform's annual transacting users touched 7.4 million, while monthly active service professionals increased to 57,251.
Co-founder and CEO Abhiraj Singh Bhal said the company will continue to prioritise sustainable expansion despite near-term margin pressures.
"We'll keep making decisions that best serve our customers' long-term interests, even if that means short-term profitability challenges. Our aim is to maximise long-term free cash flow per share," Bhal added.
Urban Company ended the quarter with ₹2,136 crore in cash and equivalents, up from ₹1,664 crore in the previous quarter, aided by proceeds from its IPO.
The company expects adjusted EBITDA losses to persist in the short term as it scales Insta Help but reiterated that its core India and international operations remain profitable and cash-generating.
The Gurugram-headquartered platform attributed the loss to substantial upfront spending on its new daily housekeeping vertical, Insta Help, which overshadowed otherwise strong performance in its core services and smart home products businesses.
Its revenue rose 37% year-on-year to ₹380 crore, up from ₹277 crore a year earlier and slightly higher than ₹367 crore in the previous quarter.
Operating expenses rose to ₹462 crore during the quarter, compared to ₹384 crore in Q1, driven by higher partner training, onboarding, and customer acquisition costs linked to scaling Insta Help.
Consequently, adjusted EBITDA slipped into the red at ₹35 crore, against a profit of ₹21 crore in the prior quarter.
Excluding the new vertical, Urban Company reported an adjusted EBITDA profit of ₹10 crore, or 0.9% of net transaction value (NTV). Insta Help alone recorded an EBITDA loss of ₹44 crore in the quarter.
The company noted early signs of traction for Insta Help, citing strong customer adoption and repeat usage. "We view this category as a major long-term growth lever, and the ongoing investments are essential to strengthen our market leadership," Urban Company said in its shareholder communication.
NTV for the quarter stood at ₹1,030 crore, a 31% year-on-year rise, with growth seen across categories. The platform's annual transacting users touched 7.4 million, while monthly active service professionals increased to 57,251.
Co-founder and CEO Abhiraj Singh Bhal said the company will continue to prioritise sustainable expansion despite near-term margin pressures.
"We'll keep making decisions that best serve our customers' long-term interests, even if that means short-term profitability challenges. Our aim is to maximise long-term free cash flow per share," Bhal added.
Urban Company ended the quarter with ₹2,136 crore in cash and equivalents, up from ₹1,664 crore in the previous quarter, aided by proceeds from its IPO.
The company expects adjusted EBITDA losses to persist in the short term as it scales Insta Help but reiterated that its core India and international operations remain profitable and cash-generating.
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