IPO-Bound Urban Company Posts Profit, Thanks to ₹211-Crore Deferred Tax Credit

IPO-Bound Urban Company, a leading tech-enabled home services platform, has reported its first full-year profit in fiscal 2025 after benefiting from a substantial deferred tax writeback, as it gears up for a ₹1,900 crore initial public offering.

IPO-Bound Urban Company Net Profit Surges on Tax Writeback

Urban Company reported a consolidated net profit of ₹240 crore in FY25, driven by a one-time deferred tax credit of ₹211 crore. The home services provider had reported a ₹93 crore net loss in the previous fiscal, marking a strong turnaround in its financials.

Excluding the tax benefit, profit before tax stood at ₹28.6 crore, indicating operational improvement. This marks the company’s maiden year of full-year profitability. CEO Abhiraj Singh Bhal noted that cash flow from operating activities amounted to ₹54.6 crore.

Urban Company’s Revenue Growth and Operating Performance

The company’s revenue rose by 38% year on year to ₹1,144 crore from ₹828 crore in FY24. This growth signals increasing demand in both domestic and international markets for its service offerings across home cleaning, beauty, appliance repairs and grooming segments.

Urban Company also narrowed its EBITDA-level losses significantly. EBITDA loss came down fourfold to ₹32 crore in FY25 from ₹147 crore a year ago, showcasing improved cost control and operating leverage.

Urban Company’s Domestic and International Performance

The India consumer services segment brought in ₹881 crore, growing at 24% YoY. The international market showed stronger momentum, contributing ₹147 crore in revenue, reflecting a robust 64% growth. The international business now represents 12.85% of the company’s operational revenue in FY25.

This expanded global footprint highlights the company’s strategic focus on scaling globally while maintaining domestic leadership in the organised home services space.

Deferred Tax Benefit Boosts Bottom Line

The ₹211 crore deferred tax writeback was a one-time item, helping the company report a notable swing into profit. Such tax benefits usually arise due to timing differences in recognising income and expenditure, especially for startups transitioning into profitability.

The component played a significant role in pushing the company’s net profit figure to ₹240 crore, instilling investor confidence as the IPO approaches.

Urban Company’s IPO Structure and Objectives

In April 2025, Urban Company filed draft papers with SEBI for launching a ₹1,900 crore IPO. The issue will include both a fresh share issuance and an offer for sale (OFS) by existing shareholders.

The primary issue is expected to raise up to ₹429 crore, a downward revision from the earlier approved ₹528 crore. The company also reserves the right to carry out a ₹86 crore pre-IPO placement, which would reduce the fresh issuance proportionally.

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Conclusion

Urban Company’s swing to a ₹240 crore net profit in FY25, mainly powered by a deferred tax writeback and operational efficiencies, comes at a strategic juncture as it aligns for a ₹1,900 crore public listing. With strong revenue growth in both domestic and international markets and a significant reduction in losses, the company is showcasing financial maturity ahead of its IPO. 

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