IPO-Bound Urban Company Swings Into Profit On Rs 211-Crore Deferred Tax Credit

Accel-backed home services provider Urban Company posted a consolidated net profit of Rs 240 crore in fiscal 2025, on the back of a one-time deferred tax writeback of Rs 211 crore.

The firm, which has filed draft papers for an initial public offering, saw its topline expand 38% to Rs 1,144 crore from Rs 828 crore a year ago, the company's annual report said.

Urban Company also managed to narrow its Ebitda loss by over four times to Rs 32 crore from an Ebitda loss of Rs 147 crore in the previous fiscal.

"Profit before tax stood at Rs 28.6 crore, our first full year of profitability. Cash generated from operating activities stood at Rs 54.6 crore," chief executive Abhiraj Singh Bhal wrote on LinkedIn.

Profitability also improved due to operational leverage in fixed costs and driving efficiency across other costs, Urban Company said. "We continue to focus on delivering delightful consumer and partner experiences across existing and new categories."

India consumer services segment for Urban Company saw a 24% revenue jump to Rs 881 crore in fiscal 2025. In the international business segment, the revenue increased to Rs 147 crore, marking a 64% jump on a year-on-year basis.

"Our revenue from international business contributed towards 12.85% of our revenue from operations during the year ended March 31, 2025," the company wrote.

Urban Company FY25 (Consolidated, Year-On-Year)

• Revenue rose 38% at Rs 1,144 crore from Rs 828 crore.

• Ebitda loss narrowed to Rs 32 crore from Ebitda loss of Rs 147 crore.

• Net profit rose to Rs 240 crore from loss of Rs 93 crore.

Urban Company filed draft papers for its initial public offering worth up to Rs 1,900 crore in April. The offer will be a combination of a fresh issue and a stake sale by existing investors.

The technology platform, which is backed by Elevation, Accel and Prosus, will be looking to raise up to Rs 429 crore through a primary issuance of shares. This is lower than the Rs 528-crore fresh issue that shareholders of the company had earlier approved.

The company might also consider a pre-IPO placement of up to Rs 86 crore, which will then lead to a reduction in the fresh issue size.

In addition, existing stakeholders will be looking to offload shares worth up to Rs 1,471 crore. Accel India will be selling a stake worth up to Rs 433 crore, Bessemer India up to Rs 173 crore and Elevation Capital up to Rs 346 crore. Tiger Global affiliate Internet Fund V and Vy Capital are also looking to sell shares worth up to Rs 303 crore and Rs 216 crore, respectively.

On a fully diluted basis, Accel, Bessemer, Elevation, Internet Fund and Vy Capital hold 10.5%, 6.5%, 10.8%, 4.7% and 9.2% stakes, respectively in the company.

Urban Company plans to utilise the fresh issue funds to pay for technology development and cloud infrastructure, lease payments for its offices, marketing activities and general corporate purposes.

Kotak Mahindra Capital Co., Morgan Stanley India Co., Goldman Sachs India Securities Pvt., and JM Financial Ltd. are the lead bankers for the deal.