Urban Company Q3 results: Co reports loss of Rs 21 crore, sales up 33%

Urban Company reported a net loss of Rs 21 crore in the December quarter, reversing a profit of Rs 232 crore in the same period last year, as aggressive investments in its new high-frequency household business weighed on profits. Despite the loss, the company achieved decent revenue growth, with revenue from operations rising 33% year-on-year to Rs 383 crore.The Gurugram-based home services platform said the December quarter saw healthy and broad-based growth across businesses, supported by festive season demand, stable customer retention and expansion in India and international markets. Net transaction value increased 36% year-on-year, excluding Saudi Arabia, to Rs 1,081 crore.

At the consolidated level, Urban Company posted an adjusted EBITDA loss of Rs 17 crore during the quarter. This was largely due to continued investments in InstaHelp, a recently launched vertical housekeeping service, which grew rapidly but remained loss-making.InstaHelp alone reported an adjusted EBITDA loss of Rs 61 crore during the quarter. Excluding InstaHelp, the core business remained profitable, with an adjusted EBITDA profit of Rs 44 crore, or about 4.2% of net transaction value.

The company’s Indian consumer services business, excluding InstaHelp, continued to show steady improvement. Net transaction value in this segment grew 21% year-on-year to Rs 781 crore, while revenue rose 26% to Rs 265 crore. Improved operating leverage and better category mix helped lift adjusted EBITDA margins to 5.6% of net transaction value, compared to 4.4% a year earlier. Contribution margins also improved, supported by higher order density and better cost control.

Urban Company said new user numbers remained strong during the festive quarter, while repeat usage and revenue retention remained stable across core categories such as beauty, wellness, cleaning and repairs. Based on the performance over the first nine months of the fiscal year, the company expects full-year margins in Indian consumer services to be slightly better than last year.

The company also highlighted improving revenues for its service partners. Active partners earned an average monthly net income of Rs 28,322 during the quarter, compared to Rs 26,489 in the corresponding period last year. The top 20% of partners earned more than Rs 42,000 per month, while the top 5% earned more than Rs 51,000. Urban Company’s Native business, which includes products such as water purifiers and electronic door locks, posted strong year-on-year growth, with net transaction value rising 93% to Rs 79 crore and revenue doubling to Rs 62 crore. Losses in this segment narrowed sharply, with adjusted EBITDA margin improving significantly compared to last year, even as sequential growth slowed after a strong festive quarter earlier.

International operations in markets such as the UAE and Singapore also reported robust growth. Net transaction value rose 79% year-on-year to Rs 193 crore, while revenue rose to Rs 50 crore. This segment became profitable at adjusted EBITDA levels, supported by an expanded service mix and higher customer acquisition.

InstaHelp remained the biggest barrier to consolidated profitability. The segment grew to around 1.61 million orders in the quarter, with net transaction value rising to Rs 28 crore, compared to Rs 10 crore in the previous quarter. While losses increased in absolute terms, the company said unit economics improved significantly, with loss per order nearly halving on a sequential basis due to higher average order value and better partner utilization.

Urban Company said consolidated losses are likely to persist in the near term as investments in InstaHelp continue, but reiterated that the core business remains profitable and structurally strong, with improving margins and steady demand trends.