Urban Company Q2 FY27: Core profits rise as InstaHelp scales

On a consolidated basis, net transaction value grew 39% year-on-year to 1,432 crore rupees and revenue from operations grew 41% year-on-year to 537 crore rupees. Orders delivered reached 15.1 million, up 103% year-on-year.

Excluding InstaHelp, adjusted EBITDA was 30 crore rupees in Q2 FY27, up 213% year-on-year. India Consumer Services (excluding InstaHelp) reported adjusted EBITDA of 34 crore rupees, or 3.5% of net transaction value.

Consolidated adjusted EBITDA was negative 144 crore rupees, which the company said reflects a deliberate investment of 174 crore rupees in the InstaHelp business during the quarter.

The company stated that InstaHelp adjusted EBITDA loss per order improved to negative 279 rupees from negative 346 rupees in Q1 FY27, driven by network densification. It also reported net order value declined to 114 rupees from 138 rupees due to competitive intensity and introductory pricing.

The company reported performance for India Consumer Services (excluding InstaHelp), International, Native, and InstaHelp. It also mentioned a KSA joint venture, Yammak, in partnership with SMASCO.

The company stated it remains on track for adjusted EBITDA breakeven by Q3 FY28 and adjusted EBITDA of 1,000 crore rupees by FY31.

The Board approved a fresh capital raise of up to 2,500 crore rupees, subject to shareholder approval. Management stated the purpose is strategic flexibility to invest across businesses, cement leadership in InstaHelp, and pursue inorganic opportunities selectively.