Urban Company on Friday reported its fastest quarterly growth in nearly four years in the June quarter, driven by strong demand across its core home-services business. But heavier spending on its quick household-help venture, InstaHelp, and a deferred tax expense pushed the Gurugram-based company into a net loss.
Consolidated revenue from operations rose 44% year-on-year to ₹528.3 crore in the quarter ended June (Q1FY27). The company reported a net loss of ₹92.1 crore, compared with a net profit of ₹6.9 crore a year earlier. The swing was primarily driven by a deferred tax expense of ₹8.4 crore, versus a deferred tax credit in the year-ago period. Excluding the tax impact, operating performance continued to improve as losses narrowed sequentially.
Consolidated net transaction value (NTV)—the value of customer orders after adjusting for discounts, refunds and incentives—rose 42% to ₹1,465 crore, while quarterly orders surged 79% to 13.2 million, the strongest volume growth in the company’s history. Urban Company also added more than 1.2 million new users during the quarter, the first time quarterly customer additions crossed the one-million mark.
“This was one of the strongest quarters in ‘s history,” co-founder and chief executive Abhiraj Singh Bhal told analysts, citing broad-based growth across businesses and improving profitability in the core India services business.
Core business acceleration
India’s consumer services business remained the company’s biggest growth engine.
Revenue from the segment increased 31% year-on-year to ₹356 crore, while NTV grew 29% to ₹1,056 crore, marking the fourth consecutive quarter of accelerating growth. Adjusted Ebitda margin expanded to 6.9% of NTV, up 170 basis points from a year earlier, helped by stronger contribution margins and operating leverage.
Bhal attributed the acceleration to better execution rather than higher marketing spend. Marketing expenditure in the India consumer services business remained largely flat from a year earlier even as customer additions accelerated, with better fulfilment rates, improving traffic and stronger conversion driving growth.
“We will continue to focus on the basics—quality, supply sufficiency, fulfilment times and customer experience,” he told analysts, adding that over the long term, “there’s no reason why this business cannot become significantly larger than it is today.”
Smaller cities increasingly drove that growth. Tier-II markets outpaced metros during the quarter, while categories such as beauty gained traction following investments in service quality, training and product assortment. The company reiterated its long-term target of achieving 9-10% adjusted margins for the core India services business.
Betting on scale
That improving profitability in the core business continued to fund aggressive expansion elsewhere.
InstaHelp, Urban Company’s on-demand housekeeping service launched last year, remained the biggest drag on earnings as the company prioritized market share over profitability.
The business generated ₹53 crore in NTV, up from ₹40 crore in the previous quarter, while orders rose 43% sequentially to 3.82 million. Adjusted Ebitda loss widened to ₹132 crore from ₹119 crore in the March quarter as Urban Company continued to spend on customer acquisition, subsidies and partner onboarding.
Bhal defended the aggressive investments, saying the company was focused on capturing a disproportionate share of what it believes could become a ₹7,000-12,000 crore annual market.
He said current competition was largely centred on subsidising demand within a limited number of micro-markets rather than expanding category penetration, and said Urban Company wanted to emerge as the eventual market leader before pricing normalises.
While average order values remain under pressure because of intense competition, Bhal said the company believes sustainable pricing will eventually need to move closer to ₹300 per hour for the model to generate healthy returns while ensuring adequate earnings for service professionals.
He reiterated Urban Company’s target of achieving consolidated adjusted Ebitda breakeven by Q3 FY28.
The international business continued to emerge as the company’s second growth engine. Revenue rose 82% year-on-year to ₹65 crore, while NTV increased 76% to ₹237 crore. The segment remained profitable with adjusted Ebitda of ₹3 crore, supported by continued growth in the United Arab Emirates (UAE) and Singapore, while the Saudi Arabia joint venture more than doubled its business and significantly reduced losses.
Management said demand in the UAE had recovered after a temporary slowdown caused by geopolitical tensions earlier in the quarter.
Urban Company’s Native products business also maintained strong momentum. Revenue increased 60% to ₹95 crore, while NTV rose 51% to ₹119 crore. Adjusted Ebitda loss narrowed as the company benefited from improving scale and new product launches, including its M3 Pro water purifier and Lock Ultra smart lock.
Bhal said the company would continue focusing on premium, technology-led products rather than competing across every price point, with expansion into new categories remaining a lower priority than deepening presence in existing ones.