Urban Company reported a 56.7X jump in its consolidated net loss to ₹161.2 Cr in the fourth quarter of FY26 (Q4 FY26) from a loss of ₹2.8 Cr in the year-ago period, as its newest vertical InstaHelp continued to weigh on the bottom line. Sequentially, loss widened over 656% from ₹21 Cr.

Operating revenue grew 42.6% to ₹425.6 Cr during the quarter under review from ₹298.5 Cr in the year-ago period. On a QoQ basis, it increased 11.2% from ₹382.7 Cr.

Including other income of ₹36.7 Cr, total income stood at ₹462.3 Cr in Q4 FY26.

Meanwhile, total expenses rose 73.8% YoY to ₹556.9 Cr.

In the quarter, the company reported an adjusted EBITDA loss of ₹98 Cr against an adjusted EBITDA profit of ₹3 Cr in the year-ago period.

Urban Company continued to derive the bulk of its revenue from its India consumer services business (excluding InstaHelp), with it raking in ₹288.5 Cr during the quarter, up 26.6% YoY and 9% QoQ.

Within this segment, services revenue increased 27.9% YoY to ₹219 Cr, while products revenue rose 22.8% YoY to ₹69.4 Cr.

The company’s ‘Native’ business maintained strong momentum, with revenue climbing 75.4% YoY to ₹70.2 Cr in Q4 FY26 from ₹40 Cr in the year-ago quarter.

Its international business’ revenue rose 89.4% YoY to ₹57.9 Cr from ₹30.6 Cr a year ago. However, the Middle East conflict weighed on the UAE in March 2026. January and February saw net transactional value (NTV) growth of 88% and 96% YoY, respectively, but it moderated to 71% in March.

In the last 3-4 weeks of the quarter, the company saw about 15-20% drop in demand in the UAE, driven by some users leaving the country.

It also flagged that rupee depreciation against the US dollar, coupled with higher commodity prices, will translate into higher input costs for its B2B2C product business, Revamp panels, and Native in coming quarters, with gross margins for these businesses potentially dipping slightly in the short term.

Meanwhile, InstaHelp’s revenue stood at ₹8.9 Cr during the quarter under review compared to ₹6.8 Cr in Q3 FY26. In its letter to shareholders, the company said that the vertical touched 2.7 Mn orders in Q4 FY26, up nearly 69% from 1.6 Mn orders in Q3 FY26.

“We expect InstaHelp burn to remain elevated over the next few quarters as we prioritise densification, broader micro-market coverage, and accelerated partner onboarding,” the company said.

The company acknowledged that the competitive environment in the housekeeping segment “has been irrational at times”. It is pertinent to mention that the quick home services segment is seeing intense competition, with Urban Company’s rivals Snabbit and Pronto raising millions of dollars in funding recently.

As a result of this competition, InstaHelp’s adjusted EBITDA loss widened to ₹119 Cr in Q4 from ₹61 Cr in Q3, driven by three cost levers – two-sided marketplace subsidies, marketing and customer acquisition, and supply onboarding.

The segment’s per-order loss rose to ₹447 in Q4 from ₹381 in Q3, driven almost entirely by marketing spend to accelerate consumer trials, which typically come at lower average order value (AOV) realisations.

On the consumer side, more than 30% of orders in March were delivered at or above an AOV of ₹200 against a steady-state target of ₹300, with no meaningful drop in order frequency among customers who have moved up the price ladder.

On the partner side, 38% of active partners delivered more than 90 orders in March, against a steady-state target of 100-110 per month, and minimum guarantee payouts have already started declining in older micro-markets.

The company said that as pricing and micro-market density improve, both subsidies will naturally approach zero at scale, and that the steady-state cost structure is “a fraction of where we are today.”

For the full year FY26, the company reported a net loss of ₹234.8 Cr against a net profit of ₹239.8 Cr in previous year. Revenue grew 35.9% to ₹1,555.5 Cr from ₹1,144.5 Cr in FY25.

The company ended the fiscal with ₹2,021 Cr in cash, while maintaining the target of achieving adjusted EBITDA breakeven by Q3 FY28.

Shares of Urban Company ended today’s trading session 4.84% lower at ₹139.55 on the BSE.

The post Urban Company’s Q4 Loss Surges Multifold To ₹161 Cr appeared first on Inc42 Media.