Urban Company shares tumble 7% on weak Q3 results, down 28% from IPO price

Urban Company share price

• Urban Company shares fell nearly 7 percent after Q3 FY26 results were released
• Company expects consolidated losses to persist due to investments in InstaHelp
• Urban Company's Q3 revenue rose 33 percent YoY, but posted a Rs 21.26 crore loss

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The shares of Urban Company tumbled nearly 7 percent after the company released its results for the October-December quarter of the ongoing financial year 2026.

The shares of the company dropped to Rs 116.58 apiece, the lowest level seen since listing in September last year. The stock is currently 25 percent lower than its IPO price.

Urban Company Q3 Results:

Urban Company on January 23 reported a consolidated revenue from operations at Rs 382.68 crore for Q3 FY26, marking a 33 percent YoY rise from Rs 287.92 crore in Q3 FY25. The firm posted a loss of Rs 21.26 crore during the quarter, as against a net profit of Rs 231.84 crore in the same period last year. This included a one-time impact of Rs 2.69 crore arising due to the implementation of new labour codes.

At a consolidated level, Urban Company reported an adjusted 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 company’s 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.

"The consolidated business had achieved Adjusted EBITDA breakeven during FY25. With stepped up investments in building InstaHelp, we expect the consolidated business to remain loss making for the next few quarters. The InstaHelp opportunity is significant and immediate, and we are committed to maintaining clear market leadership," it added.

How have Urban Company shares performed since listing?

Urban Company shares had made a bumper market debut on September 17, listing at a premium of over 57 percent over the IPO price at Rs 162.25 per share on the NSE. The shares gained further to close 64 percent higher than its IPO price on its debut day.

The shares of the app-based beauty and home services platform continued to record strong gains for the next few sessions, rising around 24 percent in three sessions post debut to hit a high of Rs 201.18 per share on September 22.

The shares of the company however sharply declined following that. At the current level, the stock is down more than 28 percent from its listing price, and around 13 percent higher than its IPO price of Rs 103 per share.

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