Upfront investments in new vertical drag earnings despite 37 per cent revenue rise
Urban Company reported a net loss of Rs 59.3 crore in the second quarter (Q2) of FY26, reversing a profit of Rs 6.9 crore in the previous quarter, as higher spending on its new daily housekeeping vertical weighed on earnings. The Gurugram-based home services platform had posted a loss of Rs 1.82 crore in the same period last year, regulatory filings showed.
The company said the loss was driven by upfront investments in Insta Help, its newly launched housekeeping service, which offset strong growth in core operations and smart home products.
Revenue from operations rose 37 per cent year-on-year to Rs 380 crore from Rs 277 crore, supported by broad-based growth across India, international markets, and its smart home division. Revenue was also up sequentially from Rs 367 crore in Q1.
Costs Rise On Expansion Push
Total expenses increased to Rs 462 crore from Rs 384 crore in the previous quarter as the firm ramped up partner training, onboarding, and customer acquisition to scale Insta Help. Adjusted Ebitda slipped to a loss of Rs 35 crore, compared with a profit of Rs 21 crore in Q1.
Excluding Insta Help, Urban Company reported an adjusted EBITDA profit of Rs 10 crore, or 0.9 per cent of net transaction value (NTV). The new vertical alone accounted for an EBITDA loss of Rs 44 crore.
“Early indicators for Insta Help are encouraging, with strong consumer adoption and repeat usage,” the company said in a shareholder letter. “We view this category as a significant long-term opportunity and believe these investments are important to sustaining market leadership.”
Core And Overseas Businesses Steady
Revenue from the India Consumer Services segment, excluding Insta Help, rose 24 per cent year-on-year to Rs 262 crore, led by growth in categories such as beauty, cleaning, and home repairs. Adjusted Ebitda stood at Rs 18 crore, or 2.4 per cent of NTV, compared with 3.1 per cent a year earlier, reflecting higher operational costs.
Its smart home products arm, Native, which sells water purifiers and electronic door locks, posted a 179 per cent jump in revenue to Rs 75 crore, while losses narrowed to 9 per cent of NTV from 30 per cent last year. The company’s international operations in the UAE and Singapore achieved Ebitda breakeven, with revenue up 66 per cent to Rs 41 crore, supported by improved customer retention.
Urban Company’s NTV stood at Rs 1,030 crore, up 31 per cent year-on-year. The platform’s annual transacting users reached 7.4 million, while the number of active service professionals rose to 57,251 during the quarter.
