Urban Company Limited — Q3 FY26 earnings call

Call held 23 Jan 2026

Management summary

Urban Company reported a strong Q3 FY26 with consolidated NTV growing 36% YoY to ₹1,081 crores and revenue up 42% YoY to ₹383 crore, both excluding KSA impact. Core businesses in India and international markets showed healthy growth and improved profitability, with India Consumer Services (ex-InstaHelp) EBITDA margins reaching 5.6%. However, the consolidated adjusted EBITDA was a loss of ₹17 crores, primarily due to continued investment in InstaHelp, which incurred a loss of ₹61 crores, though its loss per order significantly reduced.

Highlights

  • Consolidated Net Transaction Value (NTV) grew 36% year-on-year (excluding KSA impact) to ₹1,081 crores.

  • Revenue from operations increased 42% year-on-year to ₹383 crore (excluding KSA impact).

  • India Consumer Services (ex-InstaHelp) NTV grew 21% year-on-year, with adjusted EBITDA margins improving to 5.6% of NTV, up from 4.4% in the same period last year.

  • Native business NTV grew 93% year-on-year, alongside meaningful margin improvement compared to the same time last year.

  • International markets (UAE and Singapore) delivered 79% year-on-year growth on a like-to-like basis in NTV, with an adjusted EBITDA margin of 2% of NTV.

  • InstaHelp saw a reduction in the adjusted EBITDA loss per order from ~₹760 in Q2 to ~₹381 in Q3.

Concerns

  • Consolidated adjusted EBITDA for the quarter was a loss of ₹17 crores.

  • InstaHelp adjusted EBITDA loss stood at ₹61 crores this quarter, and absolute losses increased quarter-on-quarter.

  • Native business saw softer sequential growth in Q3, primarily due to festive demand being pulled forward into Q2.

Key financials

  1. Consolidated NTV (ex-KSA) ₹1,081 Cr +36%YoY
  2. Consolidated Revenue (ex-KSA) ₹383 Cr +42%YoY
  3. Consolidated Adj. EBITDA ₹-17 Cr
  4. Adj. EBITDA (ex-InstaHelp) ₹44 Cr

What they filed

Q1 FY27: revenue up 43.9%, net profit down 1414.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue277 288 298 367 380 +37%383 +33%426 +43%528 +44%
EBITDA-16 -2 -19 -13 -79 −394%-42 −2000%-120 −532%-97 −646%
Net profit-2 232 -3 7 -59 −2850%-21 −109%-161 −5267%-92 −1414%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • India Consumer Services (ex-InstaHelp)
    21% NTV Growth5.6 % of NTV Adj. EBITDA Margin2.4 % of NTV Adj. EBITDA Margin (Q2)4.4 % of NTV Adj. EBITDA Margin (LY)
  • Native
    93% NTV Growth— Margin Improvement
  • International (UAE & Singapore)
    79% NTV Growth (like-to-like)2 % of NTV Adj. EBITDA Margin
  • InstaHelp
    1.61 Mn Orders₹28 Cr NTV₹-61 Cr Adj. EBITDA Loss₹381 Adj. EBITDA Loss per Order₹760 Adj. EBITDA Loss per Order (Q2)

Guidance & targets

Profitability

  • Consolidated Adjusted EBITDA Break-even Profitability · Q3 FY28 · High confidence Break-even
    The big question obviously is around Instahelp. Instahelp is early and we are not yet fully clear on the quantum of investments on a quarterly basis that will go into Instahelp. So our view is that latest by Q3 of the financial year FY28, the overall profits from the rest of the business should be sufficiently large enough to offset the losses in Instahelp.

    — Abhiraj S Bhal

  • India Consumer Services (ex-InstaHelp) FY26 Adjusted EBITDA Margins Profitability · FY26 · High confidence Slightly ahead of FY25
    Based on the first nine months' performance, we believe that the full Financial Year 26 margins for India Consumer Services, ex of InstaHelp will be slightly ahead of FY25.

    — Abhiraj S Bhal

  • India Consumer Services (ex-InstaHelp) Adjusted EBITDA Margins Profitability · FY27 onwards · High confidence Continue to increase
    But certainly, FY26 we now expect to be slightly ahead of FY25, and FY27 onwards, we think that margins will continue to increase on a percentage basis and also on an absolute basis.

    — Abhiraj S Bhal

  • India Consumer Services (ex-InstaHelp) Long-Term Adjusted EBITDA Margin Profitability · Long-term · High confidence 9-10% of NTV
    As you might recall in the last letter and even in this letter, we've reiterated our long term guidance that this business can reach 9-10% of NTV.

    — Abhiraj S Bhal

  • InstaHelp Loss per Order Profitability · Over time · High confidence Continue to reduce
    The loss per order in my view has to keep coming down. The magnitude of decline might not be as sharp as it has been earlier, but it has to keep coming down for this business to sustainably eventually break even.

    — Abhiraj S Bhal

  • InstaHelp Break-even Profitability · Minimum by FY31 · Medium confidence Break-even
    There certainly is an assumption that InstaHelp will break even at the minimum by F31.

    — Abhiraj S Bhal

  • FY31 Adjusted EBITDA Profitability · FY31 · High confidence 1000 crores
    The majority of the FY31 projected 1000 crores adjusted EBITDA will come from India Consumer Services, ex of InstaHelp, which is our largest, most mature core business.

    — Abhiraj S Bhal

  • India Consumer Services (ex-InstaHelp) Adjusted EBITDA Margin Improvement Profitability · FY27 onwards · High confidence Sustained improvement

    Previously Flat over FY25 → Sustained improvement

    FY27 onwards, we should see sustained adjusted EBITDA margin improvement in India Consumer Services, ex of Insta. That's where we have maximum certainty.

    — Abhiraj S Bhal

  • International Business (UAE & Singapore) Margin Expansion Profitability · Ongoing, 1-2 years behind India · High confidence Year on year improvement
    And now, it'll continue on that margin expansion year on year, probably one and a half to two years behind India in its margin maturity.

    — Abhiraj S Bhal

Growth

  • Core India Services Business Growth Growth · Ongoing · Medium confidence At least 2x market growth
    Net-net, we internally definitely the ambition to grow this business at at-least 2x of what the market is growing at.

    — Abhiraj S Bhal

What to watch in Q4 FY26

InstaHelp Loss per Order Reduction

Next quarter
Current ~₹381
Target Further reduction

Why it matters

Continued reduction in loss per order is crucial for InstaHelp's path to profitability and overall consolidated EBITDA improvement.

The loss per order in my view has to keep coming down. The magnitude of decline might not be as sharp as it has been earlier, but it has to keep coming down for this business to sustainably eventually break even.

Risks & concerns

  • InstaHelp losses and investment uncertainty

    medium

    InstaHelp's adjusted EBITDA loss stood at ₹61 crores this quarter, with absolute losses increasing QoQ. The quantum of future investments and the precise path to profitability are still unclear, though loss per order is reducing.

    Management acknowledged

  • Competitive intensity in InstaHelp

    medium

    The InstaHelp market is competitive, leading to elevated discounting levels to acquire users, which impacts profitability in the short term.

    Management acknowledged

  • Uncertainty in InstaHelp AOV and competitive dynamics for break-even

    medium

    Management notes that InstaHelp's AOV needs to be 1.8 to 2x higher than current levels for break-even, but the timeline to achieve this and the future competitive landscape are uncertain.

    Management acknowledged

Q&A highlights

8 direct
Consolidated EBITDA break-even timeline Direct
So our view is that latest by Q3 of the financial year FY28, the overall profits from the rest of the business should be sufficiently large enough to offset the losses in Instahelp. This could happen sooner, but certainly from Q3 FY28 onwards, it should happen and should happen sustainably going forward.

Clarifies the company's commitment to the Q3 FY28 break-even target, emphasizing it as a latest-case scenario driven by core business profitability offsetting InstaHelp losses.

Asked by Mohit

InstaHelp loss per order trajectory with accelerated growth Direct
The loss per order in my view has to keep coming down. The magnitude of decline might not be as sharp as it has been earlier, but it has to keep coming down for this business to sustainably eventually break even.

Addresses concerns about potential increase in loss per order due to rapid growth, with management reiterating commitment to reduction despite potential lumpiness.

Asked by Mohit

Drivers of India Consumer Services' 8% adjusted EBITDA categories Direct
about a third of our business, roughly 30%, is already operating at 8% in this quarter. In fact, in the first nine months. And that gives us the confidence that, you know, the overall business as it matures, as the rest of the categories mature, you know, we have line of sight of that long term guidance that we have given of nine to 10%.

Provides confidence in the long-term margin guidance for India Consumer Services by highlighting that a significant portion of the business is already achieving high profitability.

Asked by Mohit

Softer sequential growth in Native business in Q3 Direct
This financial year, Diwali was much earlier in the OND quarter vis-a-vis the previous financial year. And as a result, the e-commerce sales actually landed in Q2. And even in Q2, we had mentioned that the big step jump, much of it is because of the forward pulling of demand.

Explains the sequential slowdown in Native's NTV growth as a seasonal effect due to an earlier festive season, reassuring investors it's not a fundamental demand issue.

Asked by Deepak Saha

InstaHelp supply-side engagement model and differentiation Direct
So our focus is on building a very, very high-quality, reliable, trained supply pool, which is available at a very small micro-market level. ... We emphasize extensively on the playbooks that we have learned over the years, which is around extensive background verification, training, making sure the right type of service professionals join the platform who have the Urban Company ethos, making sure they're well aligned to serving customers and ensuring that they have attractive earnings vis-a-vis offline opportunities or other online competitors.

Details the strategic approach to building the InstaHelp supply base, emphasizing quality, micro-market density, and service professional welfare, which are critical for sustainable growth in this segment.

Asked by Tushar Behl

Building blocks for the FY31 adjusted EBITDA target of ₹1000 crores Direct
The majority of the FY31 projected 1000 crores adjusted EBITDA will come from India Consumer Services, ex of InstaHelp, which is our largest, most mature core business. This business will see steady improvement in its adjusted EBITDA year on year. ... Second place where we have high certainty now is in our international business in UAE and Singapore.

Provides a clear breakdown of the expected contributions to the ambitious FY31 EBITDA target, highlighting the core businesses as primary drivers and InstaHelp's eventual break-even.

Asked by Manish Addukia

InstaHelp customer acquisition strategy and discounting Direct
So basically there is, you know, discount laddering that we have created. And as the customer matures, the level of discounting comes down and eventually the customer migrates to the full price. ... it's also important for us to acquire consumers at a rapid pace. And hence the level of discounting is much more elevated than what we would have normally been comfortable with.

Explains the rationale behind current high discounting in InstaHelp as a strategy for rapid customer acquisition and initial stickiness, with a clear path to full-price migration as cohorts mature.

Asked by Kunal Mehta

Instant services expansion beyond InstaHelp Direct
Yeah, so beyond InstaHelp, for our core India consumer services business, wherever applicable, we want to move all of those services to become relatively instantaneous as well. ... And densification is a fundamental driver of moving our core India services business also towards a more instantaneous service delivery model.

Reveals a broader strategic initiative to make core services more instantaneous, leveraging learnings from InstaHelp and densification, which could enhance customer experience and market penetration.

Asked by Srinath V

3 min read 6 chapters

Detailed narrative

Q3 FY26 Consolidated Performance Highlights

Urban Company reported a robust Q3 FY26, with consolidated Net Transaction Value (NTV) growing 36% year-on-year to ₹1,081 crores, excluding the impact of KSA. Revenue from operations also saw a significant increase of 42% year-on-year, reaching ₹383 crore, again excluding KSA. Despite these strong top-line figures, the consolidated adjusted EBITDA for the quarter was a loss of ₹17 crores, primarily due to strategic investments in new growth areas. However, excluding the InstaHelp losses, the core business delivered an adjusted EBITDA profit of ₹44 crores, underscoring its underlying strength.

India Consumer Services (ex-InstaHelp) Profitability Improvement

The India Consumer Services segment, excluding InstaHelp, demonstrated healthy growth and improved profitability. NTV for this business segment grew 21% year-on-year. Adjusted EBITDA margins improved to 5.6% of NTV, a notable increase from 4.4% in the same period last year and sequentially up from 2.4% in Q2. This performance was attributed to strong new user additions, steady revenue retention, healthy festive season demand, and continued operating leverage. Management expects full FY26 margins for this segment to be slightly ahead of FY25, with continued increases from FY27 onwards, targeting 9-10% of NTV in the long term.

Native Business Growth and Margin Expansion

The Native business continued to show strong year-on-year demand, with NTV growing 93%. This growth was accompanied by meaningful margin improvement compared to the same time last year. While Q3 saw softer sequential growth, management clarified this was primarily due to the festive season (Diwali) occurring earlier in Q2 this financial year, pulling demand forward. The focus for Native remains on scaling the business well and improving its margin profile through operating leverage, covering fixed costs like R&D, product development, and marketing as scale increases. Structural advantages, such as sales from its own app and cross-utilization of service professionals, are expected to drive long-term profitability.

InstaHelp Investment and Path to Profitability

Urban Company continues to invest significantly in InstaHelp, its high-frequency household services vertical. InstaHelp scaled rapidly to 1.61 million orders in the quarter, generating ₹28 crores in Net Transaction Value. The adjusted EBITDA loss for InstaHelp stood at ₹61 crores, with absolute losses increasing quarter-on-quarter. However, the adjusted EBITDA loss per order reduced significantly from ~₹760 in Q2 to ~₹381 in Q3. Management is committed to further reducing loss per order over time, driven by improving average order value, service partner utilization, and micro-market densification. The company aims for InstaHelp to break even by FY31, with overall consolidated EBITDA break-even targeted by Q3 FY28, supported by the profitability of other core businesses.

International Market Performance and Strategy

International markets, specifically UAE and Singapore, continued to perform well, delivering a 79% year-on-year growth on a like-to-like basis in NTV, with an adjusted EBITDA margin of 2% of NTV. The company noted that these markets share similarities with India in customer behavior and supply-side dynamics, and learnings from these markets are expected to benefit the India business. Management is very excited about these markets, believing they have strong long-term headroom for profitable growth and expect year-on-year margin expansion, albeit 1-2 years behind India's maturity curve.

Long-Term Vision and Strategic Drivers

Urban Company's long-term vision includes achieving ₹1000 crores in adjusted EBITDA by FY31, primarily driven by India Consumer Services, International, and Native businesses. The company aims for its core India services business to grow at least 2x the market growth rate (currently 10-11%). Key drivers for this growth include a superior proposition (faster, cheaper, better services), densification benefits passed to consumers, and investments in quality, technology, and marketing for new user acquisition and coverage expansion. The company is also exploring making more core services instantaneous, leveraging learnings from InstaHelp.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Consumer Services earnings calls