Urban Company shares fell 8% as the firm reported a consolidated net loss of Rs 182.48 crore for the September quarter, despite a 41% rise in revenue. The company plans a Rs 25 billion fundraise to support growth, while management aims for operational breakeven by FY28.
Urban Company shares saw a sharp decline on the National Stock Exchange, falling nearly 8% to trade at Rs 145.60. The negative market reaction followed the release of the company's financial results for the second quarter of the 2027 fiscal year, which revealed a significant increase in losses compared to the previous year.
For the quarter ended September, Urban Company posted a consolidated net loss of Rs 182.48 crore. This is a steep rise from the Rs 59.33 crore loss reported in the same period a year ago. While the bottom line faced pressure, the company’s operational metrics showed strong activity. Revenue grew by 41.4% to reach Rs 537.29 crore.
The growth in revenue appears to be driven by a high volume of services booked on the platform. The company recorded 15.1 million orders in the second quarter, a 103% increase compared to the same period last year. Furthermore, the Net Transaction Value, which represents the total value of services transacted, rose by 39% to Rs 1,432 crore.
Despite the rise in losses, the company is preparing for a major capital infusion. Management has announced plans to raise up to Rs 25 billion. This funding is intended to strengthen the core consumer services business, support the expansion of InstaHelp, and facilitate potential strategic acquisitions. The company remains focused on its long-term profitability goal, with management targeting consolidated adjusted EBITDA breakeven by the third quarter of the 2028 fiscal year.
While the stock price reacted negatively to the widening losses, some analysts maintain a positive outlook on the company's expansion plans. Emkay Global Financial Services has reaffirmed a 'Buy' rating and raised its target price to Rs 200 from Rs 190. Analysts pointed to the long-term growth potential in the company’s diverse segments and the performance of its core business.
For investors, the key focus remains on the timeline for the planned fundraise and whether the company can control its cash burn while scaling operations. The ability to achieve the targeted breakeven by FY28 will be a critical monitorable for the market.