Urban Company turns profitable in FY25, reports Rs 240 crore profit ahead of planned IPO

Urban Company, the home services platform founded in 2014, swung to profitability in the fiscal year ended March 2025, recording a 38.2% increase in operating revenue to Rs 1,144 crore, according to its annual financial report.

The company reported a net profit of Rs 240 crore for FY25, marking a major turnaround from a loss of Rs 92.7 crore in FY24. The surge in profitability was supported by a Rs 211 crore deferred tax credit booked during the year. Even without the tax credit, Urban Company recorded a pre-tax profit of Rs 28 crore, reflecting improved operational efficiency and cost control.

The Gurugram-headquartered company, which operates across India and three international markets—Singapore, the United Arab Emirates and the Kingdom of Saudi Arabia—clocked 6.8 million annual customer transactions across 17 service categories spanning spa and salon treatments, appliance repairs, pest control and more. The company reported a total net transaction value of Rs 3,115 crore for FY25.

Platform-led growth and product upside

Platform services remained the company’s primary revenue engine, contributing nearly 65% to overall operating income, which rose to Rs 742 crore, up 32.5% from the previous year. While its customer membership revenue posted a modest increase of 7.7%  to Rs 98 crore, a standout was the threefold surge in revenue from its Native-branded water purifiers—Rs 116 crore in FY25, up from Rs 29 crore in FY24. Sales of products to service professionals generated another Rs 188 crore.

Urban Company reported that its India operations alone contributed Rs 997 crore to the topline, while international markets brought in Rs 147 crore. An additional Rs 117 crore came from interest income and mutual fund realizations, taking total income for FY25 to Rs 1,261 crore—up from Rs 928 crore in the previous fiscal.

Cost discipline yields profitability

Total expenses rose to Rs 1,223 crore, compared with Rs 1,021 crore in FY24. However, the company held steady on its largest cost heads: employee benefit expenses, at Rs 350 crore, remained flat year-on-year and included Rs 72.5 crore in non-cash ESOP costs. Advertising and business promotion outlays were unchanged at Rs 207 crore.

India’s consumer services vertical emerged as the profit engine, generating Rs 113 crore in profits. Losses from the water purifier segment and international operations stood at Rs 38.7 crore and Rs 33.7 crore, respectively.

IPO filing and strategic expansion

With profitability in hand, Urban Company is preparing to go public. In April, the company filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a Rs 1,900 crore public issue, comprising a Rs 429-crore fresh issue and a Rs 1,471-crore offer for sale by existing shareholders. This represents a trimmed-down version of the earlier Rs 3,000-crore plan.

Among its recent initiatives is ‘InstaHelp,’ a quick commerce-like service for on-demand domestic help, launched in March and now operational with about 25-30 minutes fulfillment timeline. Under its Native product label, Urban Company also expanded into smart locks, further building its product-led revenue portfolio.