Urban Company Posts FY26 Loss as InstaHelp Expenditures Weigh

Urban Company Sees Fastest Growth in Nearly Four Years, Despite Slipping into Losses

Urban Company Ltd, a Gurugram-headquartered home services platform, posted its fastest growth in nearly four years during the March quarter. However, the company slipped back into losses in 2025-26 due to investments in its quick household-help vertical, InstaHelp.

The company's revenue rose 43% year-on-year to ₹426 crore in the March quarter and 36% to ₹1,556 crore for the full fiscal year. Despite this growth, the company's net loss during the quarter swelled to ₹161 crore from ₹3 crore a year earlier. The loss included a one-time non-cash deferred tax asset charge of ₹61 crore, and excluding this, the underlying pre-tax loss stood at around ₹100 crore.

For the full year, the company slipped into a net loss of ₹235 crore in FY26, compared with a net profit of ₹240 crore in FY25. Consolidated net transaction value (NTV), the total value of customer orders on the platform after adjusting for discounts, refunds or incentives, rose 42% on-year to ₹1,148 crore in the fourth quarter, the highest growth in the last 15 quarters. Annual NTV rose 31% to ₹4,290 crore.

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Urban Company's core India consumer services business continued to anchor growth, with NTV rising 26% on-year to ₹808 crore during the quarter, the fastest pace in 11 quarters. Revenue from the segment rose 27% to ₹288 crore.

The company's international business, comprising the UAE and Singapore markets, reported revenue of ₹58 crore in the March quarter, up 89% on-year, while NTV surged 84% to ₹211 crore.

Urban Company's Native products business, which sells water purifiers and smart locks, also continued to scale rapidly. Revenue from the segment rose 75% on-year to ₹70 crore in the March quarter, while NTV increased 67% to ₹89 crore.

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The company's largest drag on profitability was InstaHelp, launched in 2025. The segment posted an adjusted Ebitda loss of ₹119 crore during the quarter, up from a ₹61 crore loss in the previous quarter as the company stepped up spending on customer acquisition, subsidies, marketing and partner onboarding. The company said it would continue to invest aggressively in InstaHelp to cement market leadership.

Urban Company's management emphasized that the company prioritizes market share and scale over near-term profitability amid intensifying competition. The company has a large user base, brand recall, and cash reserves, but rising competition in the home-services segment could keep profitability under pressure for longer than expected.

Urban Company's core India business may face slowing growth in its top eight cities, where penetration has already crossed 50% of the target market, making expansion into smaller cities and newer categories critical for sustaining growth. The company reiterated its target of achieving consolidated adjusted Ebitda breakeven by Q3FY28.