Urban Company shares tank 11%, most since listing, after Q4 net loss widens

Shares of Urban Company Ltd. declined 11% on Monday, May 11, reacting to its fourth quarter earnings. This is the biggest single-day fall for the stock since its listing back in September 2025.

How Did Urban Company Fared In Q4

The company reported good internals, excluding its InstaHelp vertical.

Its revenue increased by 42.6% in the fourth quarter to ₹425.56 crore from ₹298.45 crore in the previous year.

Its net loss increased to ₹161.16 crore from ₹2.84 crore last year. The company's EBITDA loss increased to ₹114.44 crore from ₹9.93 crore in the year-ago period.

The company's net transaction value (NTV) increased 42% to ₹1,148 crore, which was the highest across 15 quarters. Its earnings before interest, tax, depreciation and amortization (EBITDA), excluding InstaHelp, was at ₹22 crore, while its margins improved by 160 basis points.



The InstaHelp vertical delivered 2.7 million orders and ₹40 crore net transaction value in the fourth quarter, which was up from the 1.6 million orders and ₹28 crore NTV sequentially. In March alone, it crossed 1.1 million orders.

BoFA Securities

Brokerage firm BoFA Securities has a "neutral" rating on the stock with a price target of ₹155 per share, indicating an upside of 11% from its previous closing price.

It said the NTV and revenue beat estimates due to strong core growth. The adjusted EBITDA losses increased sequentially, while InsaHelp losses nearly doubled.

The management continues investing aggressively to strengthen its leadership, the brokerage said. Urban Company's core categories and micro markets are witnessing strong densification trends, it added.

Seven analysts have coverage on Urban Company and only one among those seven has a "buy" rating on the stock. Three analysts each have a "hold" and "sell" rating on it respectively.

Shares of Urban Company declined 10.9% to hit an intraday low of ₹124.4 apiece on Monday. It was trading 10.4% lower at ₹125.21 at 9.50 am on Monday. The stock has declined 7.6% in the past month.

The stock had listed on the exchanges in September 2025 at a 60% premium and is now 38.2% down from its post-listing high of 201.18 apiece. The stock had slipped below its issue price of ₹103 in March, before recovering last month.

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