Urban Company
Urban Company
Consumer DiscretionaryKey Fundamentals
SmallcapEcommerceRetailTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
2- Company is almost debt free.
- Company is expected to give good quarter
Weaknesses
4- Stock is trading at 12.0 times its book value
- Company has low interest coverage ratio.
- Promoter holding is low: 19.0%
- Company has a low return on equity of -1.86% over last 3 years.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 5d agoUrban Company Ltd has a market cap of ₹26,734 Cr and is growing revenue at a 35% CAGR over three years (39% TTM), but remains loss-making with a negative PE of -81.5 and a negative 3-year average ROE of approximately -2%. The company is almost debt-free, though it trades at 12.6x book value with low promoter holding at 19%.
- Strong revenue momentum with TTM compounded sales growth of 39%, indicating accelerating top-line traction
- 3-year compounded sales CAGR of 35% and 5-year CAGR of 44% demonstrate sustained demand for Urban Company's home services platform
- Company is almost debt-free, giving it financial flexibility and reducing balance sheet risk in a high-interest-rate environment
- Expected to deliver a good upcoming quarter, suggesting near-term operational improvements and possible path toward profitability
- Market cap of ₹26,734 Cr reflects significant investor confidence in the platform's addressable market in India's under-penetrated home services segment
- 3-year compounded profit growth of 8% shows early signs of loss narrowing, even though TTM profit growth turned sharply negative at -241%
- As a category creator in organized home services, Urban Company benefits from brand recognition and network effects that are difficult for new entrants to replicate
- Negative PE ratio of -81.5 confirms the company is still loss-making, with no clear timeline to sustained profitability
- 3-year average ROE of -2% and last year ROE of -12% indicate the company is destroying shareholder value rather than generating returns
- Stock trades at 12.6x book value, a steep premium for a company that has not yet turned profitable
- Promoter holding is low at 19.0%, which may raise corporate governance concerns and suggests limited promoter skin in the game
- TTM compounded profit growth of -241% signals a sharp deterioration in losses, contradicting the revenue growth narrative
- Zero dividend yield with no foreseeable payout given ongoing losses, offering no income cushion to investors
- Low interest coverage ratio indicates that even with minimal debt, the company's operating earnings barely cover its interest obligations
- 5-year average ROE of -13% shows that the profitability challenge is structural rather than a recent blip
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 2h ago- BofA downgrades to Underperform Aug 23
Bank of America downgraded Urban Company to 'Underperform' with a ₹155 target (8% downside), citing expensive valuation, InstaHelp losses, and rising competition from Snabbit and Pronto. FY28 EPS cut to -₹0.73 and FY29 to ₹1.41 from ₹2.27.
- Q1 FY27 net loss widens sharply Aug 24
Consolidated net loss of ₹92.12 crore in Q1 FY27 vs net profit of ₹6.94 crore in Q1 FY26, driven by InstaHelp segment loss of ₹132 crore. InstaHelp EBITDA loss surged from ₹10 crore to ₹130 crore YoY.
- Profitability only expected by FY30 Aug 21
Emkay noted that with InstaHelp and Native incubation and suboptimal international profitability, Urban Company is expected to turn profitable only in FY30. Consensus target of ₹143.88 implies 7.5% downside.
- Analyst consensus split, bears present Aug 21
Of eight analysts, only three have Buy ratings while two have Sell (Ambit at ₹91, JM Financial at ₹135) and three Hold. Goldman Sachs maintains Neutral at ₹135.
- Ongoing Kent RO patent disputes Aug 23
Despite winning the disparagement case, multiple matters remain sub-judice including a patent infringement suit by Kent RO and Urban Company's counterclaim, generating continued legal expenses.
- FTSE index inclusion confirmed Aug 24
Urban Company added to FTSE Emerging Markets All Cap, SmallCap, and Global Total Cap indices effective Sep 21, 2026. Stock surged 7% to ₹169.47; expected to attract significant passive fund inflows during rebalancing.
- Revenue up 44% YoY in Q1 Aug 24
Q1 FY27 revenue from operations grew 43.86% YoY to ₹528.34 crore. India Consumer Services (ex-InstaHelp) remained robustly profitable at ₹82 crore segment profit.
- UBS and Emkay initiate Buy Aug 21
UBS initiated with Buy and ₹180 target (13.5% upside), calling it Urban Company's 'Blinkit moment'. Emkay initiated Buy at ₹190, valuing ICS at ₹107/share and InstaHelp at ₹28/share via DCF-SOTP.
- Delhi HC rules against Kent RO Aug 23
Delhi High Court ordered Kent RO to remove all disparaging ads against Urban Company's Native water purifiers within 15 days of Aug 12 hearing. Stock rose 8.19% to ₹157.41 on the news.
- SBI MF buys 2.27% stake Aug 17
SBI Mutual Fund acquired 349.5 million shares on Aug 13, 2026, raising total holding to 8.84% via open market purchases, signaling strong institutional confidence.
- Native segment grows 60% YoY Aug 23
Native water purifier revenue reached ₹95.28 crore in Q1, up 60% YoY from ₹59.55 crore, with EBITDA loss narrowing to ₹7.75 crore from ₹10.87 crore.
- Premium beauty brand partnerships Aug 24
Urban Company expanded Salon Luxe with Forest Essentials, Casmara, and Remy Laure partnerships, charging ₹4,999-5,999 per treatment — more than double regular premium pricing, driving mid-to-premium category resurgence.
- September investor meets expanded Sep 11
Morgan Stanley, Banyan Tree Advisors, and Elara Capital added to Sep 14-21 investor meet schedule in Gurugram and virtually, superseding the Sep 7 partial disclosure.
- Multiple analyst meetings scheduled Aug 25
Urban Company scheduled one-on-one meetings with Edelweiss MF, Creaeegis, Geojit Financial, Think Investments, Sundaram AMC, and Temasek across Aug 18 to Sep 15, 2026.
- Kent RO lawsuit filed and heard Aug 24
Urban Company filed defamation suit on Aug 11, heard Aug 12 in Delhi HC. Court order published Aug 22; exchange disclosure made Aug 23 under SEBI LODR Regulation 30.
TL;DR: Urban Company is delivering strong topline growth at 44% YoY with a profitable core India business, and the FTSE index inclusion and SBI MF stake build provide meaningful institutional tailwinds. However, InstaHelp's ₹132 crore quarterly loss is the dominant overhang, delaying consolidated profitability to FY30 and prompting BofA's downgrade. Analyst opinion is sharply divided with targets ranging from ₹91 to ₹190. The near-term trajectory depends on whether InstaHelp losses narrow as guided and whether passive inflows from the Sep 21 FTSE rebalancing sustain the recent rally.
Quarterly Results
| Particulars | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|
| Sales | 277 | 288 | 298 | 367 | 380 | 383 | 426 | 528 |
| Expenses | 294 | 290 | 317 | 381 | 459 | 425 | 545 | 626 |
| Operating Profit | -16 | -2 | -19 | -13 | -79 | -42 | -120 | -97 |
| OPM % | -6% | -0.7% | -6% | -3.6% | -21% | -11% | -28% | -18% |
| Other Income | 27 | 30 | 32 | 31 | 33 | 36 | 37 | 33 |
| Interest | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 |
| Depreciation | 10 | 9 | 9 | 10 | 10 | 12 | 14 | 16 |
| PBT | -2 | 16 | 1 | 6 | -59 | -21 | -100 | -84 |
| Tax % | 0% | -1315% | 301% | -23% | 0% | 1% | 61% | 10% |
| Net Profit | -2 | 232 | -3 | 7 | -59 | -21 | -161 | -92 |
| EPS in Rs | -93.43 | 11,871 | -0.06 | 0.14 | -0.41 | -0.15 | -1.05 | -0.6 |
Profit & Loss
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|
| Sales | 219 | 248 | 438 | 637 | 828 | 1,144 | 1,556 | 1,717 |
| Expenses | 391 | 503 | 987 | 1,000 | 974 | 1,184 | 1,809 | 2,055 |
| Operating Profit | -173 | -256 | -549 | -364 | -146 | -40 | -254 | -338 |
| OPM % | -79% | -103% | -126% | -57% | -18% | -3.5% | -16% | -20% |
| Other Income | 44 | 42 | 72 | 90 | 100 | 116 | 137 | 138 |
| Interest | 8 | 10 | 8 | 8 | 10 | 11 | 12 | 12 |
| Depreciation | 19 | 26 | 28 | 31 | 37 | 37 | 45 | 52 |
| PBT | -155 | -249 | -514 | -312 | -93 | 29 | -175 | -264 |
| Tax % | 0% | 0% | 0% | 0% | 0% | -740% | 34% | — |
| Net Profit | -155 | -249 | -514 | -312 | -93 | 240 | -235 | -334 |
| EPS in Rs | -11,783 | -14,927 | -27,791 | -16,891 | -5,009 | 4.9 | -1.52 | -2.21 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | — |
Balance Sheet
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Equity Capital | 0.01 | 0.02 | 0.02 | 0.02 | 0.02 | 49 | 146 |
| Reserves | 631 | 454 | 1,551 | 1,339 | 1,292 | 1,746 | 1,997 |
| Borrowings | 0 | 0 | 0 | 102 | 104 | 120 | 136 |
| Other Liabilities | 182 | 193 | 243 | 195 | 248 | 294 | 439 |
| Total Liabilities | 813 | 647 | 1,794 | 1,636 | 1,645 | 2,210 | 2,718 |
| Fixed Assets | 126 | 92 | 87 | 121 | 117 | 127 | 158 |
| CWIP | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | 479 | 371 | 922 | 1,009 | 762 | 1,091 | 1,262 |
| Other Assets | 208 | 185 | 785 | 506 | 766 | 992 | 1,298 |
| Total Assets | 813 | 647 | 1,794 | 1,636 | 1,645 | 2,210 | 2,718 |
Cash Flow
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Operating | -139 | -141 | -315 | -238 | -86 | 55 | -99 |
| Investing | 66 | 111 | -1,087 | 299 | 95 | -200 | -278 |
| Financing | 220 | -23 | 1,383 | -25 | -30 | 164 | 435 |
| Net Cash Flow | 147 | -54 | -19 | 36 | -20 | 19 | 59 |
| Free Cash Flow | -145 | -145 | -326 | -253 | -94 | 44 | -139 |
| CFO/OP | 80 | 54 | 57 | 65 | 56 | -148 | 38 |
Ratios
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Debtor Days | 2 | 5 | 6 | 6 | 9 | 8 | 9 |
| Inventory Days | 91 | 102 | 118 | 67 | 100 | 87 | 103 |
| Days Payable | 206 | 394 | 393 | 308 | 262 | 190 | 204 |
| Cash Conversion Cycle | -113 | -288 | -269 | -234 | -153 | -94 | -93 |
| Working Capital Days | -55 | -105 | -62 | -17 | -7 | -38 | 22 |
| ROCE % | — | -44% | -51% | -20% | -6% | 2% | -8% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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50 extracted metrics + investor summaries across FY20–FY27.
Documents
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Company Information
Incorporated in December 2014, Urban Company is a technology-driven, full-stack online marketplace offering home and beauty services.[1]
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