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Urban Company Q2 FY27 results: net loss widens to ₹182.48 crore, revenue up 41.4%
Urban Company Limited reported consolidated Q2 FY27 revenue of ₹537.29 crore, up 41.4% from Q2 FY26, while its EBITDA loss widened to ₹187.64 crore and net loss to ₹182.48 crore. Against Q1 FY27, revenue rose 1.7%, but EBITDA loss increased by ₹95 crore and net loss by ₹90.36 crore.
Key points
- Consolidated Q2 FY27 revenue was ₹537.29 crore, up 41.4% from ₹380.03 crore in Q2 FY26 and 1.7% from ₹528.34 crore in Q1 FY27.
- The company reported an EBITDA loss of ₹187.64 crore and an EBITDA margin of -34.9%, against a loss of ₹68.36 crore and margin of -18.0% in Q2 FY26.
- Net loss was ₹182.48 crore and basic EPS was -₹1.2, compared with a net loss of ₹59.33 crore and EPS of -₹0.4 in Q2 FY26.
- For H1 FY27, revenue rose 42.6% to ₹1,065.63 crore, while net loss widened to ₹274.6 crore from ₹52.39 crore.
- The board approved a proposal to raise up to ₹2,500 crore, subject to shareholder approval by postal ballot.
How did Urban Company perform in Q2 FY27?
Urban Company reported consolidated revenue of ₹537.29 crore for Q2 FY27, up ₹157.26 crore or 41.4% from ₹380.03 crore in Q2 FY26. Revenue was also up ₹8.95 crore or 1.7% from ₹528.34 crore in Q1 FY27. Total income was ₹578.45 crore, up 40.2% year on year and 2.2% sequentially.
The company reported an EBITDA loss of ₹187.64 crore in Q2 FY27, compared with an EBITDA loss of ₹68.36 crore in Q2 FY26 and ₹92.64 crore in Q1 FY27. EBITDA margin was -34.9%, against -18.0% a year earlier and -17.5% in the previous quarter. Loss before tax was ₹167.22 crore, while net loss was ₹182.48 crore and basic EPS was -₹1.2.
On a standalone basis, revenue was ₹367.47 crore and the company reported a loss before tax of ₹187.55 crore, compared with a loss before tax of ₹49.29 crore in the year-ago period. The standalone revenue growth rate was 36.3%.
| ₹ crore | Q2 FY27 | Q1 FY27 | Q2 FY26 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 537.29 | 528.34 | 380.03 | +41.4% | +1.7% |
| Other income | 41.16 | 37.83 | 32.63 | +26.1% | +8.8% |
| Total expenses | 745.67 | 639.88 | 461.73 | +61.5% | +16.5% |
| EBITDA | −187.64 | −92.64 | −68.36 | ||
| EBITDA margin | -34.9% | -17.5% | -18.0% | −16.9 pp | −17.4 pp |
| Profit before tax | −167.22 | −78.98 | −49.07 | ||
| Tax | 7.19 | 8.37 | 0 | −14.1% | |
| Net profit | −182.48 | −92.12 | −59.33 | ||
| EPS (₹) | −1.20 | −0.60 | −0.40 |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in Urban Company's costs and profit?
Total expenses rose to ₹745.67 crore in Q2 FY27 from ₹461.73 crore in Q2 FY26, an increase of ₹283.94 crore or 61.5%. Employee cost increased by ₹68.17 crore or 59.9% to ₹181.92 crore, while other expenses rose by ₹177.66 crore or 70.0% to ₹431.29 crore. Depreciation increased by ₹7.05 crore and finance costs by ₹0.35 crore.
Other income rose by ₹8.53 crore or 26.1% to ₹41.16 crore, but this was lower than the rise in expenses. Tax was ₹7.19 crore, against no tax in Q2 FY26. There was no exceptional item in Q2 FY27; Q1 FY27 included an exceptional charge of ₹5.27 crore. The filing did not state why the cost lines increased.
Against Q1 FY27, total expenses increased by ₹105.79 crore or 16.5%. Employee cost rose by ₹30.77 crore and other expenses by ₹61.44 crore, while depreciation rose by ₹1.67 crore and finance costs by ₹0.17 crore. Other income increased by ₹3.33 crore, tax fell by ₹1.18 crore, and the exceptional charge of ₹5.27 crore was not repeated.
| ₹ crore | Q2 FY27 | Q2 FY26 | Change | Change % |
|---|---|---|---|---|
| Cost of materials | 0 | 0 | 0 | |
| Employee cost | 181.92 | 113.75 | +68.17 | +59.9% |
| Finance costs | 3.28 | 2.93 | +0.35 | +11.9% |
| Depreciation | 17.46 | 10.41 | +7.05 | +67.7% |
| Other expenses | 431.29 | 253.63 | +177.66 | +70.0% |
| Total expenses | 745.67 | 461.73 | +283.94 | +61.5% |
| Other income | 41.16 | 32.63 | +8.53 | +26.1% |
| Tax | 7.19 | 0 | +7.19 |
Source: Company's results filing (XBRL).
How did the first half of FY27 go?
For the first half of FY27, Urban Company reported consolidated revenue of ₹1,065.63 crore, up ₹318.33 crore or 42.6% from ₹747.3 crore in H1 FY26. Total income increased by ₹333.47 crore or 41.1% to ₹1,144.62 crore from ₹811.15 crore.
Loss before tax widened to ₹246.2 crore in H1 FY27 from ₹34.83 crore in H1 FY26. Net loss was ₹274.6 crore, compared with ₹52.39 crore in the year-ago period, while basic EPS was -₹1.8 against -₹0.36.
| ₹ crore | H1 FY27 | H1 FY26 | Change |
|---|---|---|---|
| Revenue from operations | 1,066 | 747.30 | +42.6% |
| Profit before tax | −246.20 | −34.83 | |
| Net profit | −274.60 | −52.39 | |
| EPS (₹) | −1.80 | −0.36 |
Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
At 30 September 2026, total assets were ₹2,653.95 crore, down from ₹2,702.31 crore at 31 March 2026. Total equity fell to ₹1,979.84 crore from ₹2,143.59 crore, while cash rose to ₹121.31 crore from ₹119.69 crore. The company reported no borrowings at either balance-sheet date.
Inventories increased to ₹123.25 crore from ₹73.74 crore, trade receivables rose to ₹44.32 crore from ₹37.78 crore, and trade payables increased to ₹232.89 crore from ₹178.66 crore. In the first half of FY27, operating cash flow was negative ₹135.95 crore, compared with negative ₹17.9 crore in H1 FY26. Investing cash flow was ₹158.04 crore, against negative ₹343.57 crore, while financing cash flow was negative ₹20.74 crore, against ₹500.25 crore. Capital expenditure was ₹32.39 crore, compared with ₹16.39 crore.
| ₹ crore | As of 30 September 2026 | As of 31 March 2026 |
|---|---|---|
| Total assets | 2,654 | 2,702 |
| Total equity | 1,980 | 2,144 |
| Borrowings | 0 | 0 |
| Cash and equivalents | 121.31 | 119.69 |
| Inventories | 123.25 | 73.74 |
| Trade receivables | 44.32 | 37.78 |
Source: Company's results filing (XBRL).
| ₹ crore | H1 FY27 | H1 FY26 |
|---|---|---|
| Cash from operations | −135.95 | −17.90 |
| Cash from investing | 158.04 | −343.57 |
| Cash from financing | −20.74 | 500.25 |
| Capital expenditure | 32.39 | 16.39 |
Source: Company's results filing (XBRL).
How has Urban Company done over the last 5 quarters?
Revenue increased across the reported five-quarter period, rising from ₹380.03 crore in Q2 FY26 to a peak of ₹537.29 crore in Q2 FY27. The sequential direction continued upward, with revenue moving from ₹528.34 crore in Q1 FY27 to ₹537.29 crore in Q2 FY27.
The net loss varied across the five quarters and was lowest in Q3 FY26 at ₹21.26 crore before widening to ₹161.16 crore in Q4 FY26, narrowing to ₹92.12 crore in Q1 FY27, and widening again to ₹182.48 crore in Q2 FY27. EBITDA margin was highest in Q3 FY26 at -9.2% and lowest in Q2 FY27 at -34.9%. Q2 FY27 revenue was the period peak, while net loss and EBITDA margin were both at their lowest.
Which businesses drove the quarter?
India consumer services excluding InstaHelp reported revenue of ₹336.38 crore and EBIT of ₹43.39 crore in Q2 FY27, with an EBIT margin of 12.9%. Comparable year-ago revenue, EBIT and growth figures were not provided.
Native reported revenue of ₹105.37 crore, up 39.7% from ₹75.41 crore in Q2 FY26. EBIT was a loss of ₹7.95 crore, compared with a loss of ₹10.94 crore in the year-ago quarter, and the EBIT margin was -7.5%. International business revenue rose 82.1% to ₹75.0 crore from ₹41.19 crore, while EBIT increased to ₹5.74 crore from ₹0.43 crore and the margin was 7.7%.
InstaHelp reported revenue of ₹20.54 crore and an EBIT loss of ₹173.12 crore in Q2 FY27, with an EBIT margin of -842.8%. Comparable year-ago revenue, EBIT and growth figures were not provided for the segment.
| Segment | Revenue | Revenue YoY | EBIT | EBIT margin |
|---|---|---|---|---|
| India consumer services (excluding InstaHelp) | 336.38 | 43.39 | 12.9% | |
| Native | 105.37 | +39.7% | −7.95 | -7.5% |
| International business | 75 | +82.1% | 5.74 | 7.7% |
| InstaHelp | 20.54 | −173.12 | -842.8% |
Source: Company's results filing (XBRL segment data).
What else did the company announce?
On 16 October 2026, the board approved a proposal to raise funds through equity shares and other securities convertible into equity shares, with an aggregate amount not exceeding ₹2,500 crore. The proposal covers preferential allotment, private placement, qualified institutional placement and other permissible modes, in one or more tranches, subject to shareholder approval and regulatory requirements.
The board also approved a postal ballot notice for the proposed fundraising through remote e-voting. The voting period was scheduled from 17 October 2026 to 15 November 2026, with the result to be announced by 17 November 2026. It granted in-principle approval to explore residential air conditioners as a new line of business under the Native segment, while noting that commercial launch and related capital expenditure require further evaluation and Board approval. No dividend or appointment was reported in the provided same-day filings.
What did Urban Company's management say?
Management said consolidated net transaction value grew 39.1% year on year to ₹1,432 cr, orders more than doubled to 15.1 million and annual transacting users increased 34.5% to almost 10 million. It said orders delivered more than doubled and highlighted faster user acquisition, repeat behaviour and micro-market densification as the sources of structural growth.
CEO and co-founder Abhiraj Singh Bhal said adjusted EBITDA excluding InstaHelp was ₹30 cr, up 213% year on year, while the ₹174 cr InstaHelp investment was deliberate: “I don't think the losses are high because of competitive intensity. The losses are high because we are choosing to keep them high, and we are choosing to invest from a position of strength, because we have a certain view on the TAM, the opportunity, and how we would like to play it.”
Management maintained its adjusted EBITDA breakeven target for Q3 FY28 and its ₹1,000 cr adjusted EBITDA goal for FY31. It also targeted roughly 100 bps of quarterly improvement in India Consumer Services adjusted EBITDA margin towards a 9-10% range. For InstaHelp, management said break-even is targeted by FY31, with steady-state pricing needing to reach about ₹200/hour against net order value of about ₹300.
Management said the proposed raise of up to ₹2,500 cr would provide strategic flexibility for inorganic opportunities, InstaHelp leadership and organic investment. It identified InstaHelp’s addressable market, competitive intensity, the festive-season shift into Q3 and InstaHelp’s declining net order value as risks. Bhal said: “I want to underscore that we believe we are firmly on track to achieving our adjusted EBITDA breakeven goal by Q3 FY28, and we are very confident, now more than ever before, of achieving the ₹1,000 crores adjusted EBITDA goal that we set out for FY31.”
How did Urban Company shares react?
Urban Company’s shares were down 0.9% after five minutes, down 0.5% after 15 minutes and down 2.0% after 30 minutes from the price when the filing appeared. On the reaction day, the stock closed 9.8% below its previous close of ₹157.0. By the next day’s close, it was down 12.7% from that pre-results close, and by the fifth session it was down 8.5%.
The E-Retail/ E-Commerce peer group’s median move was down 1.6% on the reaction day, down 4.4% by the next day and down 4.1% by five days. Urban Company underperformed the industry median by 8.2 percentage points on the reaction day, 8.3 percentage points by the next day and 4.3 percentage points by five days. Earlier reaction-day moves were up 12.3% on 31 July 2026 and down 5.9%, 3.6% and 4.0% on 8 May 2026, 23 January 2026 and 1 November 2025, respectively.
| After the filing | Stock | E-Retail/ E-Commerce median |
|---|---|---|
| 5 minutes | −0.9% | |
| 15 minutes | −0.5% | |
| 30 minutes | −2.0% | |
| Reaction day | −9.8% | −1.6% |
| Next day | −12.7% | −4.4% |
| 5 days | −8.5% | −4.1% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 31 July 2026 | +12.3% |
| 8 May 2026 | −5.9% |
| 23 January 2026 | −3.6% |
| 1 November 2025 | −4.0% |
Source: MarketPing price-reaction measurement.
How did other E-Retail/ E-Commerce companies do?
Eight E-Retail/ E-Commerce companies that had filed for the quarter were compared with Urban Company, and their median revenue growth was 23.1%. Seven peers grew more slowly than Urban Company, while one grew faster. Six peers reported higher profit, out of the six peers for which profit was compared.
| Urban Company revenue growth (YoY) | +41.4% |
|---|---|
| Median of 8 other E-Retail/ E-Commerce companies | +23.1% |
| Companies with slower revenue growth than Urban Company | 7 of 8 |
| Companies with faster revenue growth than Urban Company | 1 of 8 |
| Companies whose net profit rose | 6 of 6 |
Source: Filed results (XBRL) of the industry's companies.
Quick answers
What was Urban Company's revenue in Q2 FY27?
Revenue from operations was ₹537.29 crore, up 41.4% from ₹380.03 crore in Q2 FY26 (consolidated).
Did Urban Company make a profit in Q2 FY27?
No. It reported a net loss of ₹182.48 crore, against a net loss of ₹59.33 crore in Q2 FY26.
What was Urban Company's EPS in Q2 FY27?
Basic loss per share was ₹1.20, against a loss of ₹0.40 in Q2 FY26.
How did Urban Company shares react to the Q2 FY27 results?
On the reaction day the stock moved −9.8% from the previous close; the median E-Retail/ E-Commerce stock moved −1.6%.
When did Urban Company announce its Q2 FY27 results?
On 16 October 2026, in a filing to the NSE.
Sources
- Board Meeting Intimation for To Consider And Approve The Unaudited Standalone And Consolidated Financial Results Of The Company For The Quarter And Half Year Ended September 30, 2026. (BSE, 9 October 2026) · PDF
- Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation (BSE, 9 October 2026) · PDF
- Outcome of Board Meeting (NSE, 16 October 2026) · PDF
- Outcome of Board Meeting (NSE, 16 October 2026) · PDF
- The earnings call (17 October 2026)
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
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