Urban Company Reports ₹59 Crore Net Loss in Q2 FY26 Despite 37% Revenue Surge, Insta Help Expansion Drives Strategic Shift

Urban Company

Urban Company, India’s leading home services marketplace, reported its Q2 FY26 financial results with a mixed performance—highlighting aggressive growth in topline revenue but a widening net loss. The Gurugram-based firm posted a consolidated net loss of ₹59.3 crore, a sharp increase from ₹1.82 crore in the same quarter last year. The loss was primarily attributed to heavy upfront investments in Insta Help, its newly launched daily housekeeping vertical, which the company views as a long-term growth engine.

Despite the bottom-line pressure, Urban Company’s revenue from operations jumped 37% year-on-year to ₹380 crore, driven by strong traction in its core categories such as beauty, cleaning, appliance repair, and smart home services. The company also saw sequential growth from ₹367 crore in Q1 FY26, underscoring its expanding footprint across India and international markets.

📊 Urban Company Q2 FY26 Financial Summary

MetricQ2 FY26Q2 FY25YoY Change
Revenue from Operations₹380 crore₹277 crore+37%
Net Loss₹59.3 crore₹1.82 croreWidened
Total Expenses₹462 crore₹384 crore+20.3%
Adjusted EBITDA₹-35 crore₹+21 crore (Q1)Negative
Insta Help EBITDA Loss₹44 croreNANew vertical impact

The company’s strategic pivot toward high-frequency services has temporarily impacted profitability.

🧠 Segment-Wise Revenue Breakdown

SegmentQ2 FY26 RevenueGrowth Driver
India Consumer Services₹262 croreBeauty, cleaning, appliance repair
Smart Home Products₹75 croreWater purifiers, IoT-enabled devices
International Operations₹43 croreUAE, Singapore, KSA

Urban Company’s India business remains the dominant contributor, while international markets show promising growth.

🏢 Insta Help: Strategic Bet on Daily Housekeeping

FeatureDescription
Launch DateQ2 FY26
Service TypeDaily housekeeping, quick help services
Investment FocusPartner training, logistics, tech stack
EBITDA Impact₹44 crore loss in Q2
Long-Term GoalHigh-frequency engagement, subscription model

CEO Abhiraj Singh Bhal emphasized that Insta Help is a long-term play aimed at transforming household service delivery in India.

🗣️ Management Commentary

Abhiraj Singh Bhal, Co-founder and CEO, stated:

“We are investing in the future of home services. Insta Help is a strategic shift that will redefine how Indian households engage with service professionals. While profitability is under pressure in the short term, our revenue growth and user engagement metrics validate our direction.”

He also noted that Urban Company’s annual transacting users now stand at 7.4 million, with monthly active professionals reaching 57,251.

📈 User and Partner Metrics

MetricQ2 FY26 ValueQoQ Change
Annual Transacting Users7.4 million+8%
Monthly Active Professionals57,251+6%
Net Transaction Value (NTV)₹1,030 crore+34% YoY

These metrics reflect strong platform engagement and operational scale.

🧭 Strategic Outlook for FY26

Focus AreaPlanned Action
Subscription ExpansionInsta Help, UC Gold, Smart Home bundles
Partner UpskillingTraining, certification, incentives
Tech InnovationAI-based scheduling, smart routing
International GrowthDeeper penetration in UAE, Singapore, KSA

Urban Company aims to balance growth and profitability through operational efficiency and product innovation.

📌 Conclusion

Urban Company’s Q2 FY26 results reflect a bold strategic shift toward high-frequency services, with Insta Help emerging as a key growth lever. While the widened net loss of ₹59.3 crore raises short-term concerns, the 37% revenue surge and expanding user base signal strong underlying momentum. As the company continues to invest in partner training, tech infrastructure, and international expansion, it remains focused on building a scalable and sustainable home services ecosystem.

Disclaimer: This article is based on publicly available financial disclosures and executive statements. It is intended for informational purposes only and does not constitute investment advice.

Leave a Reply

Your email address will not be published. Required fields are marked *