Urban Company stock finished the trading session on October 19 at ₹142.6 per share on the BSE, down 9.92 percent, according to Inc42. The decline followed the release of the firm's second-quarter financials for fiscal year 2027 and a board decision to secure new funding. Earlier in the day, the shares had dropped 9.5 percent to ₹143.30, with the company's market value estimated at ₹22,323 crore, or $2.7 billion, at midday.
Inc42 noted that the home services provider posted a consolidated net loss of ₹182.5 crore for the period, up from ₹59.3 crore a year prior and ₹92.1 crore in the previous quarter. Operating revenue climbed 41 percent to ₹537.3 crore, but total costs jumped 61.5 percent to ₹745.7 crore. This expense surge was largely attributed to increased spending on InstaHelp, the company's rapid response household assistance arm. The adjusted EBITDA loss reached ₹144 crore, which incorporated a specific ₹174 crore investment in that segment. As stated in the company's filing, "Excluding the vertical, adjusted EBITDA stood at ₹30 Cr."
The board greenlit a plan to raise up to ₹2,500 crore by issuing equity or convertible instruments through private placement or preferential allotment. Inc42 reported that these funds are intended to bolster InstaHelp's market position, support investments across the firm's three divisions, and finance potential acquisitions. Urban Company is also considering launching residential air conditioners under its Native brand, which currently offers water purifiers and smart locks. Management indicated that while profitability targets could be met without extra capital, the InstaHelp deficit had restricted the company's financial maneuverability.
Emkay Global Financial Services kept its 'Buy' recommendation for the stock and lifted its price target to ₹200 from ₹190. The brokerage pointed to growth potential in the firm's various segments and the resilience of its core operations. It highlighted low penetration in core services, expansion into smaller cities, and improving international profits, including the Saudi Arabia unit's move toward breakeven. Emkay also viewed Native as a growth avenue and noted that InstaHelp was boosting customer engagement.