Urban Company Q2 FY27: Revenue grows 41% to ₹537 Cr, plans ₹2,500 Cr fundraising
Urban Company reported Q2 FY27 results with revenue up 41% YoY to ₹537 Cr and NTV up 39% YoY to ₹1,432 Cr. The company plans to raise up to ₹2,500 Cr in fresh capital. Adjusted EBITDA (ex-InstaHelp) grew 213% YoY. They are targeting EBITDA breakeven by Q3 FY28.
The announcement includes strong financial performance, significant YoY growth across key metrics, and a substantial planned fundraising of ₹2,500 crore. These factors are material and are expected to have a significant impact on the company's growth trajectory and market position.
The company reported strong YoY growth in revenue and NTV, improved operational leverage with significant EBITDA growth in the core business, and a clear plan for future fundraising to support growth initiatives. The positive outlook and strategic investments contribute to a positive sentiment.
Urban Company Limited reported strong performance for the second quarter of fiscal year 2027 (Q2 FY27). Consolidated Net Transaction Value (NTV) grew by 39% year-on-year (YoY) to ₹1,432 crore, while revenue from operations increased by 41% YoY to ₹537 crore. The number of orders delivered reached 15.1 million, a 103% increase YoY, and annual transacting users grew by 35% YoY to nearly 10 million.
The company's core business demonstrated significant operational leverage, with Adjusted EBITDA (excluding InstaHelp) at ₹30 crore, a 213% increase YoY. This growth was driven by improved margins in India Consumer Services (up 110 bps YoY to 3.5%) and International operations (up 190 bps YoY to 2.0%).
InstaHelp, a key growth driver, saw order volumes increase by 63% quarter-on-quarter (QoQ) to 6.2 million. While Net Order Value (NOV) decreased to ₹114 from ₹138 due to competitive intensity and introductory pricing, the loss per order improved from ₹346 to ₹279. The total Adjusted EBITDA loss for the quarter was ₹144 crore, primarily due to a ₹174 crore investment in InstaHelp.
Looking ahead, Urban Company has received Board approval to raise fresh capital of up to ₹2,500 crore, subject to shareholder approval. This fundraising is intended to provide strategic flexibility, allowing the company to invest across its core business, InstaHelp, and Native, and to pursue inorganic opportunities. The company remains on track to achieve Adjusted EBITDA breakeven by Q3 FY28 and ₹1,000 crore in Adjusted EBITDA by FY31.
Segment-wise performance showed India Consumer Services (excluding InstaHelp) NTV growing 26.3% YoY to ₹963 crore, with a 3.5% Adjusted EBITDA margin. International business NTV grew 66% YoY to ₹267 crore, with margins expanding to 2.0%. Native's NTV grew 35% YoY to ₹132 crore, with loss margins narrowing. The KSA joint venture (Yammak) saw strong NTV growth of 153% YoY to ₹93 crore, with losses narrowing.
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Urban Company Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Urban Company Limited. Read the original for the full detail.