Urban Company (URBANCO) Q2 25/26 earnings summary

Executive summary

• Revenue from operations rose 37% year-on-year to INR 380 crores, or 44% on a like-to-like basis excluding KSA, with broad-based growth across all segments.

• Net transaction value (NTV) for the quarter grew 31% year-on-year to INR 1,030 crores, with like-to-like growth at 34% excluding Saudi Arabia deconsolidation.

• Core India services business remained profitable at Adjusted EBITDA of INR 18 crores (2.4% of NTV), while international operations in UAE and Singapore achieved Adjusted EBITDA break-even.

• InstaHealth/Insta Help, a new business segment, scaled rapidly to 4.7 lakh monthly orders but incurred an Adjusted EBITDA loss of INR 44 crores.

• Overall adjusted EBITDA loss for the quarter was INR 35 crores, driven by upfront investments in InstaHealth/Insta Help; excluding this, adjusted EBITDA profit was INR 10 crores.

Financial highlights

• Excluding InstaHealth/Insta Help, the business delivered an adjusted EBITDA profit of INR 10 crores, a year-on-year improvement of INR 15 crores.

• India consumer services (excluding InstaHealth/Insta Help) saw 19% NTV growth and 24% revenue growth year-on-year.

• Native vertical NTV grew 164% year-on-year to INR 97 crores, with revenue up 179% to INR 75 crores; margin improved from -30% to -9% of NTV.

• International operations (UAE, Singapore) NTV up 73% and revenue up 66% year-on-year, achieving Adjusted EBITDA break-even.

• Cash and cash equivalents at quarter end were INR 2,136 crores.

Outlook and guidance

• FY26 is positioned as a year of reinvestment, with margin expansion expected to resume from FY27 onwards.

• Long-term steady-state Adjusted EBITDA margin for India consumer services (excluding InstaHealth/Insta Help) targeted at 9%-10% of NTV.

• InstaHealth/Insta Help is expected to follow a similar profit trajectory as other verticals with scale and efficiency.

• Native is on a clear path to profitability, with losses expected to be behind.

• Continued investment in long-term growth initiatives, particularly InstaHealth/Insta Help and Native.