Urban Company Q2 Results: Consolidated Net Loss Reaches Rs 59 Crore, Revenue Soars 37%
Urban Company has reported its financial results for the second quarter of FY25, revealing a consolidated net loss of Rs 59 crore—significantly higher than the Rs 2 crore loss recorded in the same period last year. Despite this setback, the company’s revenue from operations surged by an impressive 37% year-on-year, climbing to Rs 380 crore, up from Rs 277 crore in Q2FY25.
Revenue Growth Highlights
– Overall Revenue: Rs 380 crore for Q2FY26, a 37% YoY increase.
– Adjusted EBITDA: Recorded a loss of Rs 35 crore, primarily due to a Rs 44 crore loss in its new vertical, Insta Help.
– Excluding Insta Help: The adjusted EBITDA profit stood at Rs 10 crore, accounting for 0.9% of Net Transaction Value (NTV).
Geographical Performance in India
– India Consumer Services (excluding Insta Help):
– NTV rose by 19% YoY to Rs 762 crore.
– Growth driven by new user acquisitions, consistent revenue retention, and increased engagement in core service categories.
Segment Performance Insights
– Live Events: Revenue from operations up 24% YoY to Rs 262 crore, with an adjusted EBITDA of Rs 18 crore, or 2.4% of NTV. A decline in EBITDA margin resulted from increased investments in customer support and service quality.
– Native Products: Noted a remarkable 164% YoY growth in NTV, reaching Rs 97 crore, driven by demand in categories like water purifiers and electronic door locks, with revenue surging 179% YoY to Rs 75 crore.
– International Markets:
– NTV increased 73% YoY to Rs 160 crore, with revenue up 66% YoY to Rs 114 crore, achieving adjusted EBITDA breakeven in the UAE and Singapore markets.
Urban Company stated in an exchange filing, “While we achieved strong growth across all segments this quarter, strategic investments in building the Insta Help category resulted in a shift from Adjusted EBITDA profitability to a loss. We anticipate sustained consolidated Adjusted EBITDA losses in the near term as we prioritize investments in this new area.”
Additionally, Urban Company announced the establishment of a wholly owned subsidiary in the UAE, aimed at enhancing product sales for aggregators and third-party service providers.
In conclusion, Urban Company’s second quarter results showcase a dynamic growth trajectory despite the widening net loss. With strategic investments in new ventures and a strong performance across various service segments, the company remains committed to strengthening its market position. On Friday, shares closed 1.8% higher at Rs 157.55 on the BSE.