Urban Company Limited

Urban Company operates a technology-driven, full-stack online services marketplace for quality driven services and solutions across various home and beauty categories. They operate in 51 cities across India, United ArabEmirates ('UAE') and Singapore, excluding cities served by the joint venture in Kingdom of Saudi Arabia('KSA'), of which 47 cities are in India, as at June 30, 2025. The platform enables consumers to easily order services, including cleaning, pest control, electrician, plumbing, carpentry, appliance servicing and repair, on demand home-help assistance, painting, skincare, hair grooming and massage therapy. These services are delivered by trained and independent service professionals at the consumers' convenience. In Fiscals 2023 and 2024, they expanded into home solutions with the launch of water purifiers and electronic door locks, respectively, under the brand name 'Native'. They have also recently launched, and are in the process of scaling-up, the on demand home-help assistance ('InstaHelp') offering in specific micro markets across a number of cities in India. In three months ended June 30, 2025, company had 54,347 average monthly active service professionals on its platform, i.e., a service professional who has delivered at least one service during a given month. Company primarily earns revenue (i) through the platform services provided to the consumers; (ii) from sale of products to service professionals for use during delivery of services through the platform; and (iii) from sale of the Native products to the consumers. Company operates the platform at a hyperlocal level to minimize the travel distances for the service professionals and ensure faster fulfilment times for the consumers. Each city is divided into multiple micro markets, each with a fleet of service professionals and a typical radius of 3-5 km. The size of the micro market varies by service category and is determined by the density of the consumer demand. For categories with a large consumer base with high frequency, they design smaller micro markets due to sufficient demand within a compact area. Conversely, for high-value, low frequency categories such as the painting category, the micro markets are significantly larger. As per financial performance, Urban Company Limited has posted total income / net profits of Rs 726.24 Cr / (312.48) Cr (FY23), Rs 927.99 Cr / Rs (92.77) Cr (FY24), Rs 1,260.67 Cr / 239.76 Cr (FY25) and Rs 398.49 Cr / 6.94 Cr (Q1 FY26). So as per previous financials data, company has shown good sales growth, but net profit margin is very low and just started to make profits. Company has an average EPS of Rs 0.23 and average RoNW of 0.40% for last three fiscals. Issue is priced at a P/BV of 8.25 as per NAV of Rs 12.48/- as on 30.06.25. If we attribute latest earnings of FY24, FY25, TTM and annualised FY26 on equity post issue, then asking price is at a P/E of around NA, 61.68, 63.18 and 532.92 respectively. As per RHP, there is no listed peers. On BRLM's front, Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Goldman Sachs (India) Securities Private Limited and JM Financial Limited are associated with this IPO, and have handled 101 IPOs in last three fiscal years. ( As on 11.09.25 ) As per financials, Urban Company Limited has shown good sales growth, RoNW is 13.35% and P/E is NA, 61.68, 63.18 and 532.92 respectively as per FY24, FY25, TTM and annualised FY26 earnings. So issue looks very aggressively priced and higher net profit in FY25 is due to tax credit. Company operates a technology-driven, full-stack online services marketplace for services and solutions across various home and beauty categories, which is highly competitive & growing business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Abhiraj Singh Bhal
• 2 Raghav Chandra
• 3 Varun Khaitan