Urban Company shares slip 7% as Q2 loss widens; check details

Shares of Urban Company fell nearly 7 per cent on Monday after its losses in the September quarter widened to ₹59.3 crore, primarily led by losses in the new daily housekeeping vertical, Insta Help.  

 

The household service provider's stock fell as much as 6.76 per cent during the day to ₹147.01 per share, the biggest intraday fall since September 22 this year. The Urban Company stock pared gains to trade 2.2 per cent lower at ₹154 apiece, compared to a 0.11 per cent advance in Nifty 50 as of 9:53 AM. 

 

The counter has fallen over 5 per cent since its listing in September this year, compared to a 1.6 per cent advance in the benchmark Nifty 50. Urban Company has a total market capitalisation of ₹22,141.61 crore.   READ LATEST STOCK MARKET UPDATES LIVE

 

Urban Company Q2 results 

Urban Company reported a 37 per cent year-on-year growth in revenue from operations, while its losses widened to ₹59.3 crore. Urban Company continued to invest in two long-term growth initiatives — Insta Help and Native. 

 

The company reported an adjusted Ebitda loss for the quarter, primarily due to a loss of ₹44 crore in Insta Help, its new vertical focused on daily cleaning and housekeeping services. Excluding Insta Help, the business delivered an adjusted Ebitda profit of ₹10 crore  (+0.9 per cent of NTV), marking an improvement of ₹15 crore year-on-year (Y-o-Y). 

 

The core India services business remained profitable at an adjusted Ebitda level, while international markets (UAE and Singapore) achieved Adjusted Ebitda breakeven.

 

In India, consumer services, excluding Insta Help, NTV grew 19 per cent year-on-year to ₹762 crore, driven by new user acquisition, steady revenue retention, and strong traction in core categories. Revenue from operations increased 24 per cent Y-o-Y to ₹262 crore. In the International segment, NTV grew 73% year-on-year to ₹160 crore (excluding KSA), supported by strong performance in the UAE and Singapore markets. Revenue from operations rose 66 per cent year-on-year to ₹41 crore (excluding KSA).  ALSO READ | Godrej Consumer shares climb 6% on upbeat outlook post Q2 results

Urban Company IPO details 

The stock was listed at ₹161 — a 56 per cent premium to its issue price of ₹103 — and closed at ₹167, giving the company a market capitalisation of ₹23,987 crore. The ₹1,900 crore issue was fully subscribed within hours of opening and eventually received bids 104 times the size of the offer, making it the most subscribed large IPO of the year.