Urban Company slips into red in Q1, revenue jumps 44%

Urban Company, the digital home services provider, reported a net loss of Rs 92.12 crore in the first quarter of FY27, marking a shift from a profit of Rs 6.94 crore in the same quarter last year. Despite this, the company highlighted the quarter as one of its strongest performances. Revenue grew by 44% to Rs 528.34 crore, up from Rs 367.27 crore in the same period last year.

The company's core operations showed improved profitability, leading to a 43% reduction in losses compared to the previous quarter. Urban Company added more than 1.2 million new users during this period, marking its first time acquiring over one million users in a single quarter. The on-demand domestic services business, InstaHelp, generated Rs 11.22 crore in revenue but suffered an EBITDA loss of Rs 131.58 crore, a significant increase from the previous year's Rs 9.24 crore loss.

InstaHelp launched in March 2025, and the company expects margins to remain under pressure due to aggressive discounting in the market. The company expects a one-time adjustment in volumes if pricing normalizes. Despite these challenges, all business segments of Urban Company saw growth. Its international segment experienced an 82% year-on-year increase, with revenue reaching Rs 65.42 crore.

The net transaction value grew 76% year-on-year, with profitability in UAE and Singapore continuing. The company's joint venture in Saudi Arabia also scaled rapidly while reducing losses.