Urban Company swings to Rs 92 crore Q1 FY27 loss despite 44% revenue growth as InstaHelp spending surges

Urban Company reported a consolidated net loss of Rs 92 crore for the quarter ending 30 June 2026, compared with a profit of Rs 7 crore a year earlier, as losses at its InstaHelp business outweighed improving results across its core operations. 

Revenue from operations rose by 44% year on year to Rs 528 crore, while Net Transaction Value, or NTV, increased by 42% to Rs 1,465 crore.

NTV is Urban Company’s measure of the value paid by customers for services and Native products. It is calculated gross of taxes and net of discounts, cancellations and product returns, and is not the same as revenue.

The home services platform delivered 13.2 million orders during the quarter, an increase of 79% from a year earlier. It also added about 1.2 million new users, surpassing one million new users in a single quarter for the first time.

Urban Company’s adjusted earnings before interest, tax, depreciation and amortisation showed a loss of Rs 65 crore, narrowing from a Rs 98 crore loss in the previous quarter.

InstaHelp recorded an adjusted EBITDA loss of Rs 132 crore. Excluding the division, Urban Company generated an adjusted EBITDA profit of Rs 67 crore, more than double the Rs 31 crore recorded a year earlier. 

Core India business grows

India Consumer Services, excluding InstaHelp, remained Urban Company’s largest business.

Its NTV rose by 29% to Rs 1,056 crore, marking a fourth consecutive quarter of accelerating growth, while revenue increased by 31% to Rs 356 crore.

Adjusted EBITDA from the division reached Rs 73 crore, equivalent to 6.9% of NTV, compared with a margin of 5.2% a year earlier. 

Annual transacting users increased by about 21% to approximately 8.2 million. NTV per annual transacting user during the quarter rose by about 7%, from roughly Rs 1,205 to Rs 1,293. 

Growth outside India’s 10 largest metropolitan areas continued to outpace the company’s main city markets. NTV in Tier 2 cities rose by 36.2%, compared with growth of 28.7% in the top 10 cities.

International operations expand

NTV from Urban Company’s operations in the United Arab Emirates and Singapore increased by 76% to Rs 237 crore. Growth was 58% on a constant-currency basis.

Revenue from the international division rose by 82% to Rs 65 crore, while it recorded an adjusted EBITDA profit of Rs 3 crore. 

The company said demand in the UAE weakened temporarily in April as some residents left the country during the conflict in the Middle East. Demand recovered through May and June, with no material decline in active-user frequency or the availability of service professionals.

Waed, Urban Company’s joint venture with SMASCO in Saudi Arabia, reported a 135% increase in NTV to Rs 77 crore. Its adjusted EBITDA loss narrowed to Rs 9 crore from Rs 17 crore a year earlier. 

Native losses narrow

Urban Company’s Native products division recorded a 51% increase in NTV to Rs 119 crore, while revenue rose by 60% to Rs 95 crore.

The division posted an adjusted EBITDA loss of Rs 9 crore. Its loss margin narrowed to 7.3% of NTV from 11.4% a year earlier. 

During the quarter, Urban Company test-launched the Native M3 Pro, a water purifier engineered to operate for three years without requiring servicing.

It also launched Lock Ultra, a smart lock offering two-way video calls and facial-recognition unlocking.

InstaHelp investment remains high

InstaHelp delivered 3.82 million orders during the quarter, an increase of 43% from the previous three months.

Its NTV rose by 32% quarter on quarter to Rs 53 crore, while revenue increased by 26% to approximately Rs 11 crore. 

The division’s adjusted EBITDA loss widened to Rs 132 crore from Rs 119 crore in the previous quarter as order volumes increased.

However, the adjusted EBITDA loss per order narrowed to Rs 346 from Rs 447, which Urban Company attributed largely to the benefits of a denser service network.

The average order value fell to Rs 138 from Rs 150, reflecting lower introductory prices used to attract customers and continued competitive pressure. 

Urban Company said it expected InstaHelp’s losses to “remain elevated” as it invested in expanding the business, adding that it was “prioritising market leadership over everything else”.