Home services platform Urban Company reported a significant deterioration in its financial performance for the fourth quarter of FY26, despite achieving strong top-line growth. According to the company's exchange filing released on Friday, the company posted a net loss of ₹161 crore in Q4 FY26, which was sharply higher than the loss of ₹2.8 crore reported during the corresponding quarter last year. This represents a substantial increase in losses year-on-year, indicating mounting operational challenges despite revenue expansion. The company's total income rose 40% year-on-year to ₹462 crore in the March quarter, as reported by The Times of India.
The company's push into instant domestic services significantly impacted profitability, with the InstaHelp vertical posting an adjusted EBITDA loss of ₹119 crore in Q4 as reported by The Times of India. Urban Company fulfilled 2.7 million InstaHelp orders in the March quarter, up from 1.6 million in the December quarter, with March alone crossing 1.1 million orders. The company's cofounder and CEO Abhiraj Singh Bhal stated during the analyst call that "We're playing to win and not playing to look elegant," emphasizing the company's willingness to stay aggressive despite mounting losses. The net order value for InstaHelp fell sequentially to ₹150 from ₹172 due to discounts and lower-priced packs, though customer retention and repeat usage remained strong.
Despite the widening losses, Urban Company demonstrated robust growth in its core business metrics. Revenue from operations rose 42.6% year-on-year to ₹426 crore, compared with ₹298 crore in the same quarter a year ago. This strong top-line performance reflects the company's ability to expand its service offerings and market presence across key markets, though operational efficiency remained under pressure during the quarter. For the full fiscal year FY26, the company reported total income of ₹1,692 crore, up 34% year-on-year, as reported by The Times of India.
The company's aggressive expansion strategy comes as it competes with fast-growing rivals such as Pronto and Snabbit in the emerging instant domestic services category. Bhal acknowledged during the analyst call that the current level of competition was still "manageable," though he acknowledged that companies may need to behave irrationally at times to gain market share. The company views the category as structurally different from quick commerce due to the importance of trust and worker quality, with Bhal stating "In businesses of trust, it's a winner-take-all. Whoever wins the supply side of the market will be the winner." Urban Company indicated it may eventually introduce subscription-style offerings in InstaHelp, similar to what it has rolled out in international markets such as the UAE and Singapore.
For the complete fiscal year FY26, Urban Company reported a consolidated loss of ₹235 crore against a profit of ₹240 crore in the previous year, while total income rose 34% to ₹1,692 crore. Excluding the InstaHelp vertical, the company's core business remained profitable, with adjusted EBITDA excluding the vertical rising nine-fold to ₹106 crore for FY26. The company maintained its guidance of achieving consolidated adjusted EBITDA breakeven by Q3 FY28, despite the aggressive investment cycle in the InstaHelp vertical.
