Urban Company Reports Strong Growth in FY26 Q2

Urban Company has shown impressive topline growth in the second quarter of FY26, although its net profit faced challenges due to substantial investments in its newly introduced service, Insta Help. The quarterly financial results reveal that Urban Company’s operational revenue climbed 37% year-on-year, reaching Rs 380 crore, while its net transaction value (NTV) increased by 34% to Rs 1,030 crore.

Performance in Consumer Services

Urban Company’s India Consumer Services sector, which encompasses areas such as cleaning, beauty, and repairs, generated Rs 262 crore in revenue. The company reported an annual total of 7.4 million transacting users, with a rise in monthly active professionals to 57,251 during the quarter.

Revenue Highlights

Income from the home water purifier segment surged by 179% to Rs 75 crore in Q2 FY26. Additionally, the revenue from international operations was recorded at Rs 41 crore. Insta Help, which is the latest daily housekeeping service launched earlier this year, processed 468,000 orders in October 2025, although it has not yet significantly contributed to revenue.

Expenditure and Losses

Due to the launch of Insta Help, Urban Company had to expand its workforce, leading to increased costs in employee benefits, marketing, and other operational expenses. Consequently, total expenditure rose to Rs 462 crore in Q2 FY26, resulting in a net loss of Rs 59 crore, compared to a loss of Rs 1.82 crore in Q2 FY24. In contrast, the company recorded a net profit of Rs 6.94 crore in Q1 FY26.

Future Projections

In a statement from Urban Company’s shareholders’ letter, the company anticipates continuing consolidated EBITDA losses as it intensively invests in scaling Insta Help, which is deemed vital for enhancing its core platform. As of September 2025, Urban Company’s total current assets were at Rs 1,939 crore, ensuring sufficient liquidity for upcoming initiatives and growth.

Abhiraj Singh Bhal, co-founder and CEO of Urban Company, articulated the vision, stating that while the company is not yet generating free cash flow, the focus is on creating a platform aimed at maximising long-term free cash flow per share and ensuring lasting value for all shareholders.