Urban Company Q2 FY27 Results (NSE: URBANCO)
Signal: Loss widened
The read
The trajectory is deteriorating despite 41.4% YoY revenue growth: consolidated segment margin fell to -24.6% as InstaHelp generated a ₹173.12 crore loss, while employee costs rose 60.0% and share-based payments rose 122.2%; the key inflection is that scale is not yet translating into operating profit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹537.29 Cr | +41.4% | +1.7% |
| Net profit | ₹-182.48 Cr | -207.5% | |
| EPS | ₹-1.2 | -200.0% | |
| EBIT margin | -24.6% |
P&L walk
Revenue increased to ₹537.29 crore, +41.4% YoY and +1.7% QoQ, but segment operating loss widened to ₹131.94 crore from ₹43.29 crore as InstaHelp losses and higher employee/share-based costs overwhelmed India consumer-services profitability.
Segments
InstaHelp is the decisive drag: revenue rose to ₹20.54 crore from ₹1.43 crore, but its segment loss widened to ₹173.12 crore from ₹42.91 crore, overwhelming India consumer services' ₹43.39 crore profit and international business' ₹5.74 crore profit.
Key positives
- Revenue reached ₹537.29 crore, up 41.4% YoY and 1.7% QoQ, with India consumer services contributing ₹336.38 crore and ₹43.39 crore of segment profit.
- International business turned profitable at ₹5.74 crore versus ₹0.43 crore a year earlier, while revenue grew 82.1% YoY to ₹75.00 crore.
- Property, plant and equipment increased to ₹54.83 crore from ₹36.17 crore as depreciation rose 67.7% YoY to ₹17.46 crore, a clean depreciation-to-capex cross-check.
- The balance sheet held ₹1,394.92 crore of investments and ₹121.31 crore of cash and cash equivalents at September 30, 2026.
Key concerns
- InstaHelp loss widened to ₹173.12 crore from ₹42.91 crore despite revenue increasing to ₹20.54 crore from ₹1.43 crore, making it the dominant consolidated earnings drag.
- Employee benefits expense rose 60.0% YoY to ₹181.92 crore, faster than revenue growth, and increased to 33.9% of revenue from 30.0%.
- Share-based payment expense rose 122.2% YoY to ₹55.70 crore, materially increasing the gap between segment operating result and reported loss.
- H1 operating cash burn widened to ₹135.95 crore from ₹18.50 crore despite revenue rising 42.6% to ₹1,065.63 crore.
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