Urban Company Q3 results: Firm remains in red with Rs 21-crore loss, revenue rises 33%

Urban Company Q3: Firm remains in red with Rs 21 cr loss, revenue rises 33%

Home services firm Urban Company posted a net loss of Rs 21.05 crore in the third quarter (Q3) of financial year 2025-26 (FY26), compared with a profit of Rs 16.38 crore in the year ago period. The company had posted a loss of Rs 59.3 crore in the previous quarter, according to regulatory filings.

The company's revenue from operations grew 33 percent year-on-year (YoY) to Rs 382.68 crore in Q3 from Rs 287.92 crore in the same period last year. On a sequential basis, revenue remainedd flat from Rs 380 crore in the previous quarter.

Losses were primarily driven by the company’s recently launched 15-minute home services vertical InstaHelp.

At a consolidated level, the business reported an adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) loss of Rs 17 crore, driven by ongoing investments in InstaHelp, which scaled rapidly during the quarter but incurred an adjusted EBITDA loss of Rs 61 crore.

Excluding InstaHelp, the core business delivered an Adjusted EBITDA profit of Rs 44 crore. “We expect consolidated adjusted EBITDA losses to persist in the near term as investments in InstaHelp continue, while the core business remains profitable,” the company said.

"We expect to reach consolidated Adjusted EBITDA breakeven by Q3 FY28, as profits from our India Consumer Services (Ex InstaHelp) and international markets offset the losses of InstaHelp. We expect the India Consumer Services (Ex InstaHelp) and International (UAE & Singapore) business to continue expanding their Adjusted EBITDA margins over the next few years and expect Native to continue its path to profitability," the firm said in its letter to shareholders.

Urban Company's cash burn stood at Rs 42 crore in Q3 FY26, compared to a surplus of Rs 61 crore a year ago.

The Gurugram-based firm's total expenses, meanwhile, increased 43 percent YoY to Rs 432.83 crore in the December quarter, compared to Rs 301.90 in Q3 FY25. Urban Company's expenses stood at Rs 461.73 crore in the September quarter.

On January 23, Urban Company's shares on BSE were trading 3.40 percent lower at Rs 125.20 apiece.