Urban Company Q2 FY27: InstaHelp Losses Weigh on Revenue Growth

Urban Company reported 41% year-on-year growth in operating revenue in Q2 FY27, with revenue from operations rising to Rs 527 crore from Rs 380 crore in the same quarter last year. The growth came alongside a sharp widening in losses, which tripled year-on-year to Rs 182 crore as expenses grew faster than revenue.

The company’s overall expenses increased 62% to Rs 746 crore during the quarter, while employee benefits expenses rose 60% year-on-year to Rs 182 crore. For readers tracking startup profitability, the key takeaway is that top-line growth is being accompanied by heavy investment-led pressure on margins.

Urban Company’s India Consumer Services business, excluding InstaHelp, remained its largest revenue contributor and accounted for over 62% of operating revenue. The segment’s revenue grew 28% year-on-year to Rs 336.4 crore in Q2 FY27.

The Native brands business grew 40% year-on-year to Rs 105.4 crore, compared with Rs 75.4 crore in the year-ago quarter. The international business grew 82% to Rs 75 crore, showing that revenue expansion was spread across multiple segments even as profitability pressure centered on newer investments.

InstaHelp, Urban Company’s quick-service housekeeping vertical, generated Rs 20.37 crore in revenue in Q2 FY27, up 82% quarter-on-quarter, on 6.2 million orders. That translated to average revenue of nearly Rs 33 per order.

The vertical reported an adjusted EBITDA loss of Rs 174 crore during the quarter. Net order value declined to Rs 114 from Rs 138 in the previous quarter amid intense competition and introductory prices for new users, while adjusted EBITDA loss per order improved to Rs 279 from Rs 346 in Q1.

The results highlight the cash-intensive nature of quick home services, where platforms are spending heavily to scale. Urban Company’s core India Consumer Services business remained EBITDA profitable, making the contrast with InstaHelp’s investment phase especially important.

At the end of Friday’s trading session, Urban Company’s shares closed 2.47% higher at Rs 158.12, taking the company’s total market capitalisation to Rs 24,385 crore ($2.56 billion). The next read-through will be whether InstaHelp can keep improving per-order losses while scaling revenue and order volume.