Urban Company posted strong revenue growth in the first quarter of FY27 but slipped into a loss as it continued investing heavily in its fast-growing InstaHelp business. The home services platform reported revenue from operations of ₹528.3 crore, a 44% increase compared to the same quarter last year.
The company reported a net loss of ₹92.12 crore, compared to a profit of ₹6.94 crore in Q1 FY26. The loss was mainly due to higher spending on InstaHelp and a deferred tax expense. However, the company’s performance improved compared to the previous quarter, when it had reported a much larger loss of ₹161.16 crore.
Urban Company also achieved record business activity during the quarter. Its Net Transaction Value (NTV) grew 42% year-on-year to ₹1,465 crore, while total orders increased 79% to 13.2 million, the highest ever for the company in a single quarter. It also added 1.2 million new customers, taking its annual transacting users to 9.3 million.
Core Home Services Continue to Drive Growth
Urban Company’s main India home services business remained its strongest performer during the quarter. Excluding InstaHelp, the segment recorded NTV of ₹1,056 crore, up 29% from last year, while revenue increased 31% to ₹356 crore.
The business also became more profitable, with Adjusted EBITDA improving to ₹73 crore. The company said growth was supported by strong demand in categories such as beauty services, home cleaning and pest control. It also continued expanding into Tier-2 cities, helping attract more customers outside major metro areas.
At the same time, analysts believe future growth in large cities could slow because Urban Company has already reached many of its target customers there. This means the company will increasingly depend on smaller cities for long-term growth.
The biggest challenge for the company remains InstaHelp, its 15-minute housekeeping service. The platform continued to grow quickly during the quarter, with orders rising 43% compared to the previous quarter to 3.82 million. Its NTV reached ₹53 crore, while revenue stood at ₹11.22 crore.
Even with strong demand, InstaHelp remained loss-making. The business reported an Adjusted EBITDA loss of ₹132 crore, making it the biggest reason behind the company’s overall quarterly loss. Urban Company is spending heavily on discounts and customer acquisition as it competes with other companies in the fast-growing instant home services market.
The company has said that its current focus is on building market leadership rather than short-term profits. It believes the instant housekeeping market in India could be worth between ₹7,000 crore and ₹12,000 crore every year. Urban Company is aiming to achieve consolidated Adjusted EBITDA breakeven by Q3 FY28 and targets ₹1,000 crore EBITDA by FY31.
Native Business and Overseas Operations Show Strong Performance
Urban Company’s Native business, which sells smart home products, also reported healthy growth in Q1 FY27. Revenue increased 60% year-on-year to ₹95.28 crore, while NTV rose 51% to ₹119 crore. The business also reduced its operating losses compared to last year.
During the quarter, the company launched the Native M3 Pro water purifier, which comes with a three-year filter life and does not require regular servicing. It also introduced the Lock Ultra smart door lock, featuring facial recognition and two-way video calling.
Urban Company’s international business also performed well. Revenue from overseas markets increased 82% year-on-year to ₹65.42 crore, while NTV grew 76% to ₹237 crore. The company’s operations in the UAE and Singapore remained profitable during the quarter.
The company also completed the restructuring of its Saudi Arabia business. It closed its earlier subsidiary and shifted operations to a 50:50 joint venture called Waed with local manpower company SMASCO. Although this resulted in a one-time charge during the quarter, the new partnership recorded strong growth while reducing losses.
Investors Remain Focused on Future Growth
Urban Company’s results come a few months after the expiry of its IPO lock-in period, which allowed a large number of shares to become available for trading. This led to selling by some institutional investors and temporary pressure on the company’s share price.
Later, investor confidence improved after SBI Mutual Fund increased its stake in the company through a major block deal.
Brokerages have shared mixed views on Urban Company’s future. Some believe the company’s core home services business remains strong and can continue delivering steady growth. Others are cautious because of high competition in the instant services market and slower growth opportunities in India’s largest cities.
Despite these concerns, Urban Company remains in a strong financial position. As of June 30, 2026, the company had ₹2,019 crore in cash and treasury investments, giving it enough resources to support future expansion.
In the coming quarters, investors will closely watch whether Urban Company can reduce losses while continuing to grow. The performance of InstaHelp, expansion of the Native business, and growth in international markets are expected to play an important role in the company’s long-term success.