Urban Company shares plunge 6% on NSE as loss widens owing to listing, investments
Consumer services provider Urban Company's shares plunged as much as 6% in morning trade after its losses ballooned to about Rs 60 crore in Q2 FY26.
Shares of Abhiraj Singh Bhal-led Urban Company plunged as much as 6% in the morning trade on Monday, later paring losses to trade around 4% lower at Rs 151 on the National Stock Exchange.
The development follows the newly listed company announcing its Q2 quarterly earnings—the first since its Rs 1,900-crore initial public offering (IPO) in September.
In the last trading session on Friday, before the company announced its earnings, shares touched a high of Rs 159.4 apiece on NSE.
In its Q2 FY26 results, Urban Company reported a sharp deterioration in profitability as its net loss widened to Rs 59.33 crore, compared with a loss of Rs 1.82 crore a year earlier.
The ballooning losses were primarily due to charges related to its stock market listing. Moreover, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation), signifying core operating performance adjusted for one-time events, also dropped 61.4% from Rs 26.2 crore in Q2 FY25 to just Rs 10.1 crore in the quarter under review.
“This decline is a result of deliberate investments we have made in training, audit, customer support, new user acquisition led by brand marketing, investments towards faster fulfilment, and investments in technology and AI,” CEO Abhiraj Singh Bhal told investors in the earnings call.
The company said it is treating FY26 as a period of reinvestment to build core strengths, a large portion of which is flowing into Instahelp, launched earlier this year. The service, which competes with Nexus-backed Snabbit and General Catalyst-backed Pronto, offers daily housekeeping services. The new vertical posted an adjusted EBITDA loss of Rs 44 crore in the quarter as the company invested in building the category.
The service scaled to 4,68,000 orders in October, eight months after launch, despite limited geographic coverage. The company cited strong customer retention but noted that steady-state metrics will take time to establish.
The consumer services provider saw its revenue from operations climb 37% to Rs 380 crore from Rs 277 crore in the year-ago period. Quarter-on-quarter revenue rose 3.5%.