Urban Company's consumer products business Native reported 40% revenue growth in Q2 FY27, demonstrating strong momentum in its core categories. According to reports from NDTV Profit, the company has achieved a significant milestone by installing over 5 lakh water purifiers since its launch three years ago. Co-founder and COO Vikas Khaitan expressed confidence about Native's growth trajectory, driven by new product launches, improving customer experience and deeper penetration in existing categories. The business has crossed the milestone of 5 lakh water purifier installations, three years after its launch, while maintaining its focus on expanding presence in water purifier and smart lock categories.
Native's adjusted EBITDA loss stood at ₹9 crore in Q2 FY27, representing a significant improvement from the previous year. As reported by NDTV Profit, the company has seen an improvement of around 200 basis points in margins compared with the corresponding period last year. Khaitan attributed this improvement to better operating metrics, scale, stronger capabilities and operating leverage. He expects margins to continue improving, with the business inching towards profitability over the next few quarters. The company's financial performance reflects its focus on operational efficiency and scale benefits as it expands its consumer products portfolio.
Urban Company has received board approval to explore entry into the air conditioner category but has not yet taken a final decision on launch. According to NDTV Profit, the company sees an opportunity to address consumer dissatisfaction around product quality, performance and recurring repair costs. Having serviced and repaired millions of air conditioners over the years, Urban Company believes its understanding of consumer pain points and existing service network could help develop a differentiated proposition. Any potential launch would follow a measured and cautious approach, with the proposed AC foray initially targeting premium consumers in cities where the company has strong presence. Khaitan clarified that the proposed AC foray, if it materialises, would initially be restricted to India, with no immediate plans for international markets.
The company launched the Native M3 Pro water purifier, extending its filter life from two years to three years, which has received positive consumer response. As reported by NDTV Profit, Urban Company sees significant headroom for growth in its existing water purifier and smart lock businesses, given their relatively small presence compared with the overall market opportunity. The immediate priority will be to increase penetration and strengthen its position in these categories, with no current evaluation of other new product categories beyond air conditioners. The company's strategic focus remains on strengthening its core businesses while evaluating opportunities that can create meaningful long-term value.
Regarding competitive intensity across multiple segments, Khaitan told NDTV Profit that competitive intensity has increased but is not new to the company. He emphasized that Urban Company's strategy will remain centred on customer experience and operational execution. The company is focused on making services better, faster and cheaper, improving Native product performance and strengthening after-sales service, while offering affordable and instant household help through InstaHelp. Urban Company remains open to acquisition opportunities in both domestic and international markets, with plans to raise funds for potential acquisitions. Khaitan said the company is evaluating acquisitions that can meaningfully advance its broader business mission, with the next phase of growth focusing on strengthening existing businesses while evaluating opportunities that can create meaningful long-term value.
