URBANCO

Urban Company concluded FY26 with a strong Q4, achieving its highest consolidated NTV growth in 15 quarters, reaching ₹1,148 crores, a 42% year-on-year increase. Revenue for the quarter grew 43% to ₹426 crores. For the full year, consolidated NTV stood at ₹4,290 crores, up 33% year-on-year, with the transacting user base expanding by 24% to 8.4 million. The company's core businesses demonstrated meaningful profitability improvements, while strategic investments in InstaHelp contributed to a consolidated adjusted EBITDA loss of ₹98 crores in Q4.

The India Consumer Services segment, excluding InstaHelp, showed significant acceleration, with NTV growing 26% in Q4 to ₹808 Cr., marking its fastest growth in 11 quarters. This segment's adjusted EBITDA margin expanded to 3.3% of NTV in Q4, up from 1.6% a year ago, and delivered ₹131 Cr. of adjusted EBITDA at 4.1% of NTV for the full year. Management attributes this growth to densification and the 'faster, cheaper, better' flywheel effect, with the rollout of 'UC Instant' services (30-60 minute fulfillment) improving supply-side utilization and professional earnings.

Urban Company's international operations in UAE and Singapore scaled rapidly, delivering 84% NTV growth in Q4 to ₹211 Cr. For the full year, international NTV grew 75% to ₹700 Cr., and the business achieved adjusted EBITDA positive status, reporting ₹6 Cr. for FY26. Despite a temporary demand headwind in the UAE in March due to regional conflict, the business is now almost back to full recovery. The company emphasizes its focus on densification and the 'faster, cheaper, better' playbook in these markets, with a clear line of sight towards profitability in its Saudi Arabia joint venture as well.

The Native business segment demonstrated strong growth, with NTV increasing 67% in Q4 to ₹89 Cr., and a full-year NTV of ₹345 crores, up 122%. The adjusted EBITDA loss for Native narrowed from ₹39 Cr. in FY25 to ₹31 Cr. in FY26, with the margin improving significantly from (25.1)% to (8.9)% of NTV. Management is confident that the Native business, primarily driven by water purifiers and smart electronic door locks, is on a clear path to breakeven within the next few quarters and aims to quadruple its net revenue, supported by high customer retention rates.

InstaHelp represents Urban Company's most significant current investment, delivering 2.7 million orders and ₹40 crores of NTV in Q4, with March alone crossing 1.1 million orders. However, this segment incurred a ₹119 crore adjusted EBITDA loss in Q4, reflecting substantial costs for consumer acquisition, network density subsidies, and supply onboarding. Management views this as an investment to build market leadership, stating a willingness to be 'irrational' to win market share and not prioritizing 'elegance' over growth. The company maintains its consolidated adjusted EBITDA breakeven target by Q3 FY28 and ₹1,000 crores by FY31, with the core businesses generating sufficient cash to fund InstaHelp's growth.

Urban Company is extensively integrating AI across its operations to enhance quality, efficiency, and customer experience. AI is used for 100% image auditing in proof of work and diagnostics in repair categories. Approximately 55% of partner support queries are now handled effectively by AI, contributing to lower costs. AI also aids in demand forecasting, revenue generation (e.g., Native filter expiry reminders), and over 90% of the company's code is now shipped by GenAI, alongside its application in fraud detection.

Management acknowledged competitive intensity in the InstaHelp segment but expressed confidence in its strategy to win, emphasizing that businesses of trust often lead to a 'winner-take-all' scenario. The company's focus remains on delivering superlative service, quality of professionals, and robust training protocols, which it believes will compound in the long run. Despite potential new entrants or diversification by competitors, Urban Company is focused on its vast, largely untapped core addressable market, which is currently less than 1-2% penetrated.