In a post-earnings call following its Q3 FY26 results, Urban Company co-founder and CEO Abhiraj Singh Bhal announced that the firm is targeting a return to consolidated Adjusted EBITDA breakeven by Q3 FY28 (the December 2027 quarter).
While the company’s core business remains profitable, its bottom line has recently slipped back into the red due to aggressive “burn-to-scale” investments in its new high-frequency vertical, InstaHelp.
The Road to FY28: Balancing Burn and Growth
The company’s strategy involves using the robust profits from its established segments to fund the rapid expansion of InstaHelp, its 15-to-45-minute cleaning and housekeeping service.
Financial Highlights (Q3 FY26 vs. Q3 FY25)
Urban Company reported its financial results on January 23, 2026, highlighting a mix of strong revenue growth and tactical losses.
| Metric | Q3 FY25 | Q3 FY26 | Change (YoY) |
| Revenue from Ops | ₹288 Crore | ₹383 Crore | ▲ 33% |
| Consolidated Net Profit | ₹232 Crore* | (₹21.26) Crore | ▼ 109% |
| Core India EBITDA | ₹10 Crore (Q2) | ₹44 Crore | ▲ Healthy Margin |
| InstaHelp EBITDA | — | (₹61) Crore | Scaling Phase |
*Q3 FY25 profit was skewed by a one-time exceptional tax credit.
The InstaHelp Growth Engine
Despite being the primary drag on profitability, InstaHelp is seeing rapid consumer adoption.
- Order Surge: The vertical clocked 1.61 million orders in Q3, up from 0.58 million in Q2.
- Efficiency Gains: While absolute losses increased, the loss per order nearly halved sequentially, dropping from ₹760 in Q2 to ₹381 in Q3.
- The Pivot: CEO Abhiraj Bhal indicated plans to move more core services (like beauty and plumbing) toward this “instant” model in high-density micro-markets.
Segment-wise Resilience
- Core India Consumer Services: Excluding InstaHelp, this segment remains the company’s “cash cow,” with adjusted EBITDA margins improving to 5.6% of Net Transaction Value (NTV).
- International Markets: Operations in the UAE and Singapore achieved adjusted EBITDA breakeven, reporting a 79% YoY growth in NTV.
- Native (Products): Revenue for the smart home products line (water purifiers, locks) doubled to ₹62 crore.
Conclusion: A ₹2,000 Crore Runway
With a formidable cash balance of ₹2,095 crore, Urban Company is well-positioned to sustain its “land-grab” strategy in the quick-service industry. The target of Q3 FY28 breakeven is built on the expectation that InstaHelp’s unit economics will stabilize as Average Order Values (AOV) rise by 1.8x to 2x. For now, the market is closely watching if the company can maintain its 33% revenue growth without further deepening its operational “burn.”
