Urban Company posts 44 per cent revenue growth, slips to Rs 92 crore Q1 loss

New Delhi: Urban Company is finding plenty of customers, but profits remain a house in need of repair. The home services marketplace reported robust revenue growth in the first quarter of FY27, although rising costs and losses from newer businesses pushed it deeper into the red.

According to the company’s financial results filed under the SEBI Listing Regulations, consolidated revenue from operations rose 43.86 per cent year on year to Rs 528.34 crore for the quarter ended June 30, compared with Rs 367.27 crore in the corresponding period last year.

Including other income of Rs 37.83 crore, total income for the quarter stood at Rs 566.17 crore.

Despite the strong top-line performance, Urban Company reported a consolidated net loss of Rs 92.12 crore, compared with a profit of Rs 6.94 crore a year earlier. Total comprehensive loss narrowed to Rs 86.88 crore, while basic and diluted earnings per share stood at negative Rs 0.60.

The company’s core India consumer services business remained its strongest performer. The segment generated revenue of Rs 356.42 crore, including Rs 290.23 crore from services and Rs 66.19 crore from product sales to professionals. It delivered a segment profit of Rs 82.02 crore.

The Native business also continued to scale, with revenue increasing to Rs 95.28 crore, although it reported a segment loss of Rs 7.75 crore.

Urban Company’s international operations generated Rs 65.42 crore in revenue and recorded a modest segment profit of Rs 3.16 crore.

The biggest drag on performance came from InstaHelp, the company’s daily housekeeping business. While the segment generated revenue of Rs 11.22 crore, it reported a steep segment loss of Rs 131.58 crore, offsetting gains made by the core marketplace.

Overall, consolidated segment losses stood at Rs 54.15 crore.

Expenses climbed sharply during the quarter, rising to Rs 639.88 crore from Rs 384.25 crore a year earlier.

Employee benefit expenses increased to Rs 151.15 crore, including Rs 38.49 crore in share-based payments. Purchases of stock-in-trade stood at Rs 110.82 crore, while depreciation and amortisation expenses totalled Rs 15.79 crore. Finance costs came in at Rs 3.11 crore, and other expenses rose to Rs 369.85 crore.

The quarter also included a one-time exceptional item following the closure of Urban Company Arabia for Information Technology, the company’s Saudi Arabian step-down subsidiary, on May 24. The closure resulted in Rs 5.27 crore being reclassified from the foreign currency translation reserve to the profit and loss account.

In addition, Urban Company recorded a Rs 4.77 crore share of loss from its joint venture and a tax expense of Rs 8.37 crore.

On a standalone basis, the parent company reported revenue from operations of Rs 375.54 crore and total income of Rs 418.70 crore. However, it posted a net loss of Rs 84.28 crore against a profit of Rs 25.01 crore in the year-ago quarter.

Compared with the previous quarter, Urban Company reduced its consolidated net loss from Rs 161.16 crore in the March quarter to Rs 92.12 crore, indicating sequential improvement even as it remained loss-making.

The company’s paid-up equity share capital stood at Rs 147.26 crore following the allotment of more than 1.03 crore shares through its ESOP Trust.

While Urban Company continues to benefit from growing demand for home services and adjacent businesses, the latest results highlight the challenge of balancing rapid expansion with profitability, particularly as it invests in newer verticals such as InstaHelp.