Urban Company Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 537.29 Cr (+41.38% YoY) and PAT growth of -207.57% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 16, 2026 |
|---|
| Quarter | Q2 FY 2026-2027 |
|---|
| Revenue (Q2) | Rs. 537.29 Cr (+41.38% YoY) |
|---|
| PAT (Q2) | Rs. -182.48 Cr (-207.57% YoY) |
|---|
| EBITDA margin | -36.43% (-1574 bps YoY) |
|---|
| EPS (Q2) | Rs. -1.20 (-200.00% YoY) |
|---|
| Market cap | Rs. 24,394.45 Cr |
|---|
| CMP | Rs. 158.12 |
|---|
Quarter Snapshot
Revenue grew 41.38% YoY to Rs.537.29 Cr with India Consumer Services PBIT margin expanding to 12.90% and International turning profitable at Rs.5.74 Cr PBIT, but consolidated loss after tax widened 207.57% to Rs.(182.48) Cr as InstaHelp's quarterly PBIT loss reached Rs.(173.12) Cr. H1 free cash flow was Rs.(168.34) Cr against cash and investments of Rs.1,768.65 Cr, and the board approved raising up to Rs.2,500 Cr. Core segments are tracking management's long-term margin targets, with consolidated Adj. EBITDA breakeven guided for Q3 FY28.
Key Investment Insights
Key Positives
- Revenue grew 41.38% YoY to Rs.537.29 Cr; H1FY27 revenue grew 42.60% YoY to Rs.1,065.63 Cr
- India Consumer Services PBIT rose 328% YoY to Rs.43.39 Cr, with margin expanding to 12.90% from 3.87%
- International revenue grew 82.08% YoY to Rs.75.00 Cr; segment PBIT of Rs.5.74 Cr vs Rs.0.43 Cr a year ago, with H1 PBIT of Rs.8.90 Cr vs a Rs.(1.52) Cr loss
- InstaHelp revenue grew to Rs.20.54 Cr from Rs.1.43 Cr YoY and crossed 100,000+ daily orders on August 2, 2026; loss-to-revenue ratio improved to −8.4x from −30.0x
- Native PBIT loss narrowed to Rs.(7.95) Cr (−7.54% margin) from Rs.(10.94) Cr (−14.51%) on 39.73% revenue growth
- Cash and investments of Rs.1,768.65 Cr with no traditional debt; board approved fund-raise of up to Rs.2,500 Cr
- Insurance claim of Rs.7.68 Cr received in full and final settlement of the May 2025 Bhiwandi warehouse fire
Risk Factors
- Loss after tax widened 207.57% YoY to Rs.(182.48) Cr as total expenses grew 61.49% YoY against 41.38% revenue growth
- InstaHelp PBIT loss widened 303% YoY to Rs.(173.12) Cr in Q2, exceeding the Rs.(131.58) Cr loss in Q1FY27
- P&L-derived EBITDA margin deteriorated 1,574 bps YoY to −36.43%
- Employee benefits expense grew 59.93% YoY (including Rs.55.70 Cr share-based payment expense, more than doubled YoY) and other expenses grew 82.39% YoY
- H1FY27 operating cash outflow of Rs.(135.95) Cr vs Rs.(18.50) Cr in H1FY26; free cash flow of Rs.(168.34) Cr
- Bessemer India Capital Holdings II Ltd cut stake from 5.54% to 3.42% and Accel India IV from 6.14% to 4.84% via open-market sales