Urban Company Turns Profitable In FY25 Ahead of IPO; Revenue Surges 38%

June 18, 2025: Urban Company, a leading home service marketplace, has announced a significant financial turnaround for the fiscal year 2025, achieving a consolidated net profit of ₹239.8 crore. This marks a substantial improvement from a net loss of ₹92.7 crore in FY24, primarily driven by enhanced operational efficiencies and robust performance in its core Indian market.

Key Financial Highlights

• Revenue from operations jumped 38.2% year-on-year to ₹1,144.5 crore
• Adjusted EBITDA came in at ₹11.1 crore, a reversal from a ₹119 crore loss in FY24
• Profit before tax stood at ₹28.6 crore
• The net profit was boosted by a ₹211 crore recognition of a deferred tax asset

IPO Plans and Capital Moves

In a move signalling its readiness for a public listing, Urban Company filed its draft papers with SEBI in April 2025 for a ₹1,900 crore Initial Public Offering (IPO). The IPO structure includes a fresh issue of ₹429 crore and an offer-for-sale (OFS) of ₹1,471 crore by existing shareholders. Earlier in the year, the company converted to a public limited company and issued bonus shares at a 2,499:1 ratio to expand its capital base in preparation for the listing.

India Operations Drive Growth

Urban Company’s India business remains its core engine of growth:

• India revenue stood at ₹881.4 crore, up 24.2% YoY.
• The Net Transaction Value (NTV) for India reached ₹2,667.2 crore, with 82% of the transactions originating from repeat users.
• The company averaged 45,619 monthly transacting service professionals, earning ₹26,407 per month after costs. Top professionals earned up to ₹49,000.

New Verticals And Global Expansion

• The Native hardware segment, which includes smart door locks and RO water purifiers, demonstrated significant growth, generating ₹116 crore in revenue (a 3x increase YoY) and contributing ₹155.5 crore to the total NTV. Water purifiers, in particular, emerged as a strong growth driver within this segment.
• International revenue from the UAE and Singapore markets grew by 63.9% to ₹147 crore. While the UAE arm achieved EBITDA-positive status with a ₹1.7 crore profit, the international segment as a whole still reported an EBITDA loss of ₹36.8 crore.
• The company has strategically exited direct operations in Saudi Arabia, transitioning instead to a 50:50 Joint Venture (JV) with SMASCO to navigate the market. This reflects a broader shift towards partnerships in its international expansion strategy, following exits from the US and Australia.

Future Outlook for Urban Company

Urban Company’s profitability in FY25, ahead of its ₹1,900 crore IPO, signals a strong turnaround driven by cost discipline and repeat customer growth. Its focus on the Indian market, rising revenues from new hardware verticals, and strategic global expansions position it well for sustained growth. However, international profitability remains a challenge, and success will depend on scaling operations efficiently while maintaining service quality and professional retention. Investors will watch for its post-IPO execution, especially in newer categories and global markets.

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