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Urban Company Swings to Loss Amid Aggressive Scaling
23 Jan
Summary
- Urban Company reported a net loss of ₹21.3 crore in Q3FY26.
- Investments in scaling InstaHelp led to the significant net loss.
- Revenue from operations increased 33% year-over-year to ₹382.7 crore.
Urban Company recorded a consolidated net loss of ₹21.3 crore in the third quarter of fiscal year 2026, a notable decline from the ₹231.8 crore net profit reported in the same period last year. The company attributed this financial outcome to its ongoing commitment to investing heavily in the expansion of its quick housekeeping service, InstaHelp.
Sequentially, the net loss narrowed by 64% compared to the second quarter of fiscal year 2026. Total income, including other income, rose by 33% year-over-year to ₹418.8 crore, driven by a 33% increase in revenue from operations, which stood at ₹382.7 crore.
Expenses for the quarter saw a 43% increase compared to the previous year, reaching ₹432.8 crore. Notably, the prior year's results included a one-time deferred tax credit of ₹215.5 crore. Without this, Urban Company's Q3FY25 profit was ₹16.4 crore.
InstaHelp demonstrated significant growth, with orders increasing 176% quarter-over-quarter to 1.61 million and net transaction value (NTV) rising 178% to ₹28 crore. Despite an adjusted EBITDA loss of ₹61 crore for InstaHelp, the company plans further investment due to its growth potential. Overall NTV grew 32% YoY to ₹1,081 crore.
