Urban Company reported strong revenue growth in Q2FY27, but its net loss widened as heavy spending on its instant household-help service, InstaHelp, weighed on profitability.
The home services platform posted a consolidated net loss of Rs 182 crore, compared with a loss of Rs 59 crore in the year-ago quarter.
The company's revenue increased 41.3% year-on-year to Rs 537.3 crore, from Rs 380 crore. The EBITDA loss also widened to Rs 188 crore from Rs 68.7 crore.
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InstaHelp Remains The Biggest Drag
The segment breakdown highlights the difference in profitability across Urban Company's businesses. India consumer services, excluding InstaHelp, generated Rs 336.38 crore in revenue, with a segment profit of Rs 43.39 crore, compared with Rs 10.13 crore a year earlier.
International business revenue rose to Rs 75 crore from Rs 41.19 crore, while its segment profit improved to Rs 5.74 crore. Native, the company's home-products business, reported revenue of Rs 105.37 crore but a segment loss of Rs 7.95 crore.
InstaHelp remained the largest drag on earnings. Its revenue reached Rs 20.54 crore, but its segment loss widened sharply to Rs 173.12 crore from Rs 42.91 crore in Q2FY26.
It reflects the cost of expanding on-demand household help, where Urban Company faces competition from rivals such as Snabbit and Pronto.
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Rs 2,500 Crore Fundraise, Residential AC Plans
Urban Company is considering raising up to Rs 2,500 crore through equity, debt and other routes to support its business plans. The proposed fundraising comes as the company invests in InstaHelp and explores further expansion.
The company is also exploring residential air conditioners as a new business line, potentially extending its presence beyond services into home-related products.
The main challenge is to sustain revenue growth while controlling losses. The established India services and international businesses are profitable at the segment level, but InstaHelp's rapid expansion remains a major cost to absorb.
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