**Urban Company Reports ₹239.8 Crore Profit in FY25 Ahead of IPO**
Urban Company, a home services marketplace based in Gurugram, has reported a consolidated net profit of ₹239.8 crore for FY25, marking a significant recovery from a loss of ₹92.7 crore in the previous fiscal year. This turnaround is attributed to enhanced operational performance, robust revenue growth, and a one-time deferred tax credit. Notably, a substantial portion of the profit stemmed from the recognition of deferred tax assets amounting to ₹211 crore, which significantly bolstered the company’s bottom line. Excluding this one-time benefit, the profit before tax was recorded at ₹28.6 crore.
The company also achieved an adjusted EBITDA of ₹11.1 crore, a notable recovery from a loss of ₹119 crore in FY24, indicating improved operational efficiency, although profit margins remain tight. Revenue from operations surged by 38.2% year-on-year, reaching ₹1,144.5 crore in FY25, driven by consistent growth in both domestic and international markets, as well as the expansion of new service verticals.
In India, Urban Company’s core consumer services segment generated ₹881.4 crore in revenue, reflecting a year-on-year increase of 24.2%. The Net Transaction Value (NTV) for the Indian market reached ₹2,667.2 crore, with 82% of transactions coming from repeat customers, highlighting strong customer loyalty. The platform supported an average of 45,619 monthly transacting service professionals in India, who earned an average monthly income of ₹26,407, with top-tier professionals reportedly earning up to ₹49,000 per month.
The company’s hardware division, Native, which offers products such as smart locks and water purifiers, saw its revenue more than triple to ₹116 crore, with NTV reaching ₹155.5 crore. Launched in FY23, this segment continues to grow, with RO water purifiers emerging as a significant contributor to revenue.
Internationally, Urban Company’s operations in the UAE and Singapore experienced a revenue increase of 63.9% year-on-year, totaling ₹147 crore. The UAE segment achieved EBITDA positivity with a profit of ₹1.7 crore, although the overall international business still reported an EBITDA loss of ₹36.8 crore. Urban Company has decided to exit its step-down subsidiary in Saudi Arabia due to financial unsustainability, as noted in its Draft Red Herring Prospectus (DRHP).
Over the past year, Urban Company has adjusted its international strategy, moving away from establishing standalone operations to pursuing partnerships and joint ventures. The company has previously exited markets in the US and Australia while restructuring its presence in existing international locations. Challenges such as high operating costs, talent shortages, and local regulatory hurdles, including strict labor laws and fragmented demand, have impacted its expansion efforts.
As Urban Company prepares for its initial public offering (IPO), it has reduced its target for fresh capital raising to ₹528 crore, down from an earlier estimate of approximately ₹3,000 crore.
**FAQ**
**What is Urban Company’s recent financial performance?**
Urban Company reported a consolidated net profit of ₹239.8 crore for FY25, a significant turnaround from a loss of ₹92.7 crore in the previous fiscal year, driven by strong revenue growth and improved operational efficiency.