Urban Company reported a 44% year-on-year revenue increase to ₹528 crore for the first quarter of FY27. The home services platform saw its annual transacting user base expand to 9.3 million, driven by strong growth in India and improved profitability in international markets. While investments in the InstaHelp segment continue, the company's core Indian operations are showing better margins through increased efficiency.
Urban Company, a private home services platform, has released its financial performance for the first quarter of the 2027 fiscal year, reflecting a period of significant scaling and operational progress. The company’s consolidated Net Transaction Value, which measures the total value of services provided through its platform, rose 42% year-on-year to ₹1,465 crore. Revenue from operations reached ₹528 crore, marking a 44% increase compared to the same period last year.
Scaling India Consumer Services
The company’s core home services business in India remained the main driver of its performance, with Net Transaction Value for this segment growing 29% to ₹1,056 crore. The company attributed this growth to increased marketplace density, which allows for better use of service partners and lower costs per fulfillment. This efficiency led to a 170 basis point improvement in Adjusted EBITDA margins, which reached 6.9% for the quarter. Performance was particularly notable in Tier-2 cities, where demand growth outperformed larger metropolitan areas, suggesting a wider reach for the platform's service model.
Performance of InstaHelp and International Expansion
Urban Company continues to invest heavily in its InstaHelp service, which focuses on mental health and wellness. During the quarter, fulfilled orders for this segment rose 43% quarter-on-quarter to 3.82 million. While the segment remains an investment-heavy business, the company managed to reduce its EBITDA loss per order to ₹346, down from ₹447 in the previous quarter, indicating an improvement in unit economics as the service scales.
Internationally, the platform is seeing success in the UAE and Singapore, with the business segment reporting a 76% increase in Net Transaction Value to ₹237 crore. Losses in Saudi Arabia have also begun to narrow. The company has indicated that as operational density increases in these regions, profit margins are expected to move closer to the levels currently seen in its Indian operations.
Product Strategy and Future Monitorables
The company’s 'Native' segment, which focuses on product sales like water purifier filters and smart locks, has moved closer to break-even. Currently, about 75% of water purifier customers purchase replacement filters directly through the platform, a factor that helps improve the lifetime value of each customer.
Investors should track the company’s ability to balance its ongoing capital spending in new growth segments like InstaHelp with the maturing margins of its core India business. While the current cash position allows the company to support these growth initiatives, the long-term trend of consolidated profitability will depend on whether these new services can achieve the same level of efficiency as the core home services marketplace.