Urban Company (URBANCO) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw strong, broad-based growth and improved profitability across core businesses in India and international markets, with continued investment in new growth areas like InstaHelp and Native.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, and took on record the limited review reports from auditors.

• Entered into a manufacturing and supply agreement with Amber Enterprises India Limited for 'Native' brand products, aiming to optimize operations and strengthen the supply chain.

• Net transaction value (NTV) grew 36% year-on-year (excluding KSA) to INR 1,081 crore; revenue from operations rose 42% year-on-year to INR 800.38 crore, with growth across India, Consumer Services, Native, and international markets.

• InstaHelp scaled to 1.61 million orders and INR 28 crore NTV, with adjusted EBITDA loss per order reduced from INR 760 in Q2 to INR 381 in Q3.

Financial highlights

• Consolidated revenue from operations for Q3 FY26 was ₹382.68 crore, up from ₹287.92 crore in Q3 FY25; nine-month revenue was ₹1,129.98 crore, up from ₹846.02 crore year-over-year.

• Consolidated net loss for Q3 FY26 was ₹21.26 crore, compared to a net profit of ₹231.84 crore in Q3 FY25; nine-month net loss was ₹73.65 crore.

• NTV (ex-KSA) up 36% year-on-year to INR 1,081 crore; revenue from operations up 42% year-on-year to INR 800.38 crore.

• Consolidated adjusted EBITDA loss at INR 17 crore; core business (ex-InstaHelp) adjusted EBITDA profit at INR 44 crore.

• Basic EPS (consolidated) for Q3 FY26 was ₹(0.14), compared to ₹1.62 in Q3 FY25.

Outlook and guidance

• India Consumer Services (ex-InstaHelp) margins expected to be slightly ahead of FY25 for FY26, with continued year-on-year margin expansion anticipated.

• International and Native businesses expected to drive profitability, with Native showing margin improvement and declining losses.

• Consolidated adjusted EBITDA expected to break even by Q3 FY28, with core business profits offsetting InstaHelp losses; potential for earlier achievement.

• Focus on operational optimization and supply chain strengthening through new manufacturing partnerships.

• FY31 target of INR 1,000 crore adjusted EBITDA, primarily from core businesses, with InstaHelp expected to break even by then.