Despite the consolidated loss, Urban Company’s top line demonstrated robust momentum, driven by festive demand and the rapid scaling of its new quick-service model.
The “InstaHelp” Drag
The primary reason for the slide back into the red is the InstaHelp vertical, which is currently in a “burn-to-scale” phase.
- Vertical Loss: InstaHelp reported an adjusted EBITDA loss of ₹61 crore in Q3, up from ₹44 crore in Q2.
- Rapid Adoption: The segment clocked 1.61 million orders during the quarter, nearly tripling its volume from 0.58 million in the previous quarter.
- The Breakeven Goal: CEO Abhiraj Singh Bhal stated that the company expects consolidated breakeven by Q3 FY28, provided Average Order Values (AOV) for InstaHelp rise by 1.8x to 2.0x from the current ₹172 level.
Financial Performance Snapshot (Q3 FY26)
| Metric | Q3 FY25 (Actual) | Q3 FY26 (Actual) | Change (YoY) |
| Revenue from Ops | ₹288 Crore | ₹383 Crore | ▲ 33% |
| Consolidated Net Profit | ₹232 Crore* | (₹21.26) Crore | ▼ 109% |
| Total Expenses | ₹302 Crore | ₹433 Crore | ▲ 43% |
| Cash Balance | — | ₹2,095 Crore | High Runway |
*Q3 FY25 profit was bolstered by a one-time exceptional tax credit.
Segment-wise Highlights
While the new vertical is loss-making, Urban Company’s core businesses remain structurally profitable:
- Core India Consumer Services: Excluding InstaHelp, this segment remains the primary engine, delivering an adjusted EBITDA profit of ₹44 crore on revenue of ₹265 crore.
- Native (Products): The private-label brand (water purifiers, locks) saw revenue double to ₹62 crore, a 101% YoY increase.
- International Business: Combined operations in the UAE and Singapore achieved adjusted EBITDA breakeven during the quarter, with revenue growing 79% YoY to ₹50 crore.
Partner Economics
The company highlighted that despite the operational losses, earnings for service professionals improved. The top 20% of service partners in India earned an average monthly net income of over ₹42,000 during the quarter.
Conclusion: A 2028 Profitability Roadmap
The Q3 FY26 results reflect a deliberate choice to trade short-term margins for market share in the “instant” home-help category. With a cash reserve of ₹2,095 crore, Urban Company has a comfortable runway to absorb these tactical losses. Investors are now focused on the ₹125–₹130 stock price range as the market weighs the company’s aggressive expansion against its target for sustainable profitability in late 2027.
