Urban Company shares fall after Q3 results, ex-Insta Help losses

Shares of Urban Company are trading 2% lower on Tuesday, January 27, after the company reported is December quarter earnings. Its revenue rose 33% year-on-year to ₹382.68 crore from ₹287.92 crore in the same quarter last year.

However, profitability remained under pressure, with EBITDA loss widening to ₹35.31 crore compared with a marginal loss of ₹1.9 crore a year ago.

The company posted a net loss of ₹21.26 crore in Q3FY26, reversing from a net profit of ₹231.84 crore in Q3FY25, largely aided by a tax credit of ₹215.46 crore in the year-ago period.

Excluding Insta Help, Urban Company reported EBITDA of ₹44 crore, translating into a margin of 4.2% of net transaction value.

Segment-wise, the India business continued to deliver steady growth. Revenue from India operations increased 25.5% year-on-year to ₹264.54 crore, while EBIT rose 50.1% to ₹52.15 crore from ₹34.75 crore.

Margins in the India segment expanded to 19.7% from 16.5% in the corresponding quarter last year.

The Native brand saw sharp acceleration, with revenue more than doubling to ₹61.77 crore from ₹30.72 crore a year ago. EBIT losses in the segment narrowed to ₹3.48 crore from ₹11.21 crore.

Insta Help remained a drag on profitability during the quarter, with revenue of ₹6.79 crore and an EBIT loss of ₹60.9 crore.

On the outlook, management said full-year margins for the India Consumer Services business, excluding Insta Help, are expected to be slightly ahead of FY25 levels.

The company is targeting an adjusted EBITDA of around ₹1,000 crore for the consolidated business by FY31, while losses per order in Insta Help are expected to reduce progressively.

Separately, Urban Company announced a tie-up with Amber Enterprises to manufacture products under the Native brand.

On Friday, shares of Urban Company Ltd. closed 3.83% lower at ₹124.70.