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Shares of Urban Company are trading 6% lower on Tuesday, January 27, after the company reported is December quarter earnings. The stock is now down 42% from its post-listing high, and its nearing its IPO price post the earnings announcement.
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.
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.
