Urban Company shares declined more than 7.5% on Monday, Oct 19, after the home services platform reported a sharp increase in its September quarter losses despite strong revenue growth.
The stock emerged as the biggest loser on the Nifty 500 during the session.
The company's consolidated net loss widened to ₹182.48 crore in the second quarter of FY27, compared with ₹59.33 crore in the corresponding period last year.
Its earnings before interest, tax, depreciation and amortisation (EBITDA) loss increased to ₹187.6 crore from ₹68.36 crore.
However, quarterly revenue rose 41% year-on-year to ₹537.29 crore, reflecting continued growth across its operations.
InstaHelp Losses Surge
Urban Company's core services business recorded 28% revenue growth during the quarter.
Earnings before interest and tax (EBIT) increased more than fourfold, while margins improved to 12.9% from 3.9% a year earlier.
The company's Native business also reported 40% revenue growth, accompanied by a marginal reduction in its EBIT loss.
However, InstaHelp remained a major drag on overall profitability.
Revenue from the segment jumped to ₹20.5 crore from ₹1.4 crore, but its EBIT loss widened sharply to ₹173 crore from ₹43 crore.
The segment's operating economics also remained weaker than those of rival Snabbit.
InstaHelp recorded an adjusted EBITDA loss of ₹174 crore, compared with ₹145 crore for Snabbit.
Despite similar average order values of ₹114 and ₹113, respectively, InstaHelp's loss per order stood at ₹279 against Snabbit's ₹225.
Analysts Remain Divided
Nine analysts currently cover Urban Company, reflecting mixed expectations for the stock. Four recommend selling, three advise buying and two maintain hold ratings.
The share price weakness highlights investor concerns about widening losses, particularly at InstaHelp, despite improving performance in Urban Company's established services business.
