Urban Company’s Q2 revenue surges 41%

The company reported a loss of Rs 182.5 crore

by e4m Staff
Published: Oct 16, 2026 6:39 PM | 2 min read

Urban Company reported a net loss of Rs 182.5 crore in Q2 FY27, more than tripling from Rs 59.3 crore in the same quarter last year, primarily due to investments in its new quick-service vertical, InstaHelp.
Revenue from operations increased by over 41% year-on-year to Rs 537.3 crore, but total expenses surged by 61% to Rs 745.7 crore, leading to significant cash burn.
InstaHelp generated Rs 20.54 crore in revenue but incurred losses of Rs 173.12 crore, contributing to an adjusted EBITDA of negative Rs 144 crore for the company.
Excluding InstaHelp, Urban Company's core home services business showed strong performance with an adjusted EBITDA of Rs 30 crore and a segment profit of Rs 43.39 crore, prompting the board to approve a fundraise of up to Rs 2,500 crore for further expansion.

Home services major Urban Company reported a rise in second-quarter losses, posting a loss of Rs 182.5 crore in Q2 FY27 as it continued to invest in its new quick-service vertical.

The Gurugram-based unicorn’s net loss has more than tripled from the Rs 59.3 crore deficit reported in the same quarter last year, according to its latest regulatory filings. However, a closer look at the balance sheet reveals a deliberate, high-stakes corporate transition: the company is using a maturing, highly profitable core business to bankroll a costly turf war in the cash-intensive quick-services ecosystem.

Despite the widening bottom-line deficit, Urban Company’s top-line growth remained robust. Revenue from operations surged by over 41% year-on-year to hit Rs 537.3 crore, up from Rs 380 crore in Q2 FY26.

But that revenue growth was swallowed by a massive 61% jump in total expenses, which ballooned to Rs 745.7 crore.

The ‘InstaHelp’ Drain

The primary culprit for the cash burn is InstaHelp, the firm's new quick-services arm. Urban Company poured Rs 174 crore into the vertical during the quarter. While InstaHelp managed to generate Rs 20.54 crore in revenue, the segment’s losses widened dramatically to Rs 173.12 crore—up sharply from Rs 42.91 crore a year ago.

This aggressive capital deployment dragged the company’s overall adjusted EBITDA to a negative Rs 144 crore.

Core Business in the Green

Yet, stripping away the massive investments in InstaHelp paints a vastly different picture of the company's financial health.

Urban Company noted that its legacy home services business—its core operations—is not just stable, but increasingly lucrative. Excluding the quick-services vertical, the company posted an adjusted EBITDA of Rs 30 crore, a massive 213% improvement over the same period last year.

Its India consumer services segment (minus InstaHelp) generated Rs 336.38 crore in revenue and posted a segment profit of Rs 43.39 crore—more than quadrupling its profit from a year earlier. Furthermore, its international operations nearly doubled, with revenue hitting Rs 75 crore compared to Rs 41.19 crore last year.

The Q2 numbers highlight a clear management playbook: harvest the cash generated by the established home-service model to subsidize heavy customer acquisition in the highly competitive quick-service market. The filings come shortly after the company's board approved a massive fundraise of up to Rs 2,500 crore to bolster its war chest for this expansion.