Urban Company IPO Review

Urban Company operates a technology-driven, full-stack online services marketplace for quality driven services and solutions across various home and beauty categories. The platform enables consumers to easily order services, including cleaning, pest control, plumbing, carpentry, appliance servicing and repair, painting, skincare, hair grooming and massage therapy. These services are delivered by trained and independent service professionals at the consumers’ convenience. 

The three promoters, namely Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, each have over 10 years of experience in the home services and technology industries. They lead the day-to-day operations of the Company and serve as Executive Directors on our Board. The company have an experienced management team, including senior personnel with extensive industry and functional expertise.

The Revenues from operations for the Period ended on Jun 30, 2025 and Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 3,984.87 Millions, ₹  12,606.77 Millions, ₹ 9,279.91 Millions and ₹ 7,262.38 Millions. The EBITDA for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 178.22 Millions, ₹ 760.24 Millions, ₹ -467.28 Millions and ₹ -2,745.99 Millions. The Profit after Tax for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were were ₹ 69.38 Millions, ₹ 2,397.65 Millions, ₹ -927.72 Millions and ₹ -3,124.84 Millions respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 1.66 and post-issue EPS of ₹ 1.67 for FY25. The pre-issue P/E ratio is 62.05x, while the post-issue P/E ratio is 61.68x. The company's ROE for FY25 is 13.35% and RoNW is 13.35%. The Annualised EPS is ₹ 0.2 and P/E is 515x. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Urban Company showing listing gains of 16.50 %.Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Urban Company Limited IPO for Listing gain.

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About the Author
CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.