Urban Company Q2 FY26 Results: Strong Growth, But Losses Widen as “Insta Help” Costs Mount

India’s home-services marketplace Urban Company has reported its Q2 FY26 results, showing a mixed picture of robust revenue growth but a sharp deterioration in profitability.

Key Financial Highlights

• Revenue from operations for the quarter rose by 37% YoY to ₹380 crore. Moneycontrol+2Business Upturn+2
• Including other income of ₹32.6 crore, total income stood at approximately ₹412.7 crore. Business Upturn+1
• Net loss widened to ₹59.3 crore in Q2 FY26, compared with a loss of ≈ ₹1.8 crore in Q2 FY25 and a profit of ₹6.9 crore in Q1 FY26. StartupNews.fyi+1
• Adjusted EBITDA loss for the quarter came in at roughly ₹35 crore, driven by the new vertical “Insta Help”. Business Standard+1

Read Also :- Apple Records All-Time High Revenue in India in Q4 FY2025 Amid Surging iPhone Demand

Business Breakdown & Strategic Drivers

Urban Company’s growth in the quarter was broad-based:

• Its India Consumer Services segment (excluding Insta Help) delivered revenue of around ₹262 crore, up ~24% YoY. Moneycontrol
• The “Native” products business (smart locks, water purifiers) saw revenue jump ~179% YoY to about ₹75 crore. Moneycontrol+1
• International operations (UAE, Singapore) achieved adjusted EBITDA breakeven with revenue ~₹41 crore, up ~66% YoY. Business Standard+1

However, the major drag on profitability was the new “Insta Help” vertical — a high-frequency daily-housekeeping service launched earlier in the year. Urban Company reported an EBITDA loss of about ₹44 crore from Insta Help alone in Q2. Moneycontrol+1 The company emphasised that while this vertical is loss-making now, it targets it as a long-term strategic growth driver.

What It Means & What to Watch

Why the losses are troubling:

• Heavy upfront spending in partner onboarding, training, fulfilment and discounts for Insta Help has expanded expense base significantly. Business Upturn+1
• Despite the core business showing adjusted profitability excluding Insta Help (≈ ₹10 crore profit in Q2). Business Standard+1

Why the growth numbers matter:

• Strong revenue growth (~37% YoY) suggests demand remains strong for at-home services and the company is scaling.
• Expansion in product verticals and international markets provides diversification beyond at-home services.

Key watching points going ahead:

• When will Insta Help attain scale and improve unit economics so that it contributes positively?
• Can the company control costs and convert growth into sustainable profitability?
• How much pressure will competition and macro cost inflation (labour, materials) place on margins?
• Execution risk in international markets and product business – scaling up fast often involves investment which may drag near-term.

Conclusion

Urban Company’s Q2 FY26 results reflect a dual reality: strong top-line momentum accompanied by margin pressure and widening losses. The core business seems to be holding up and growing, but the aggressive push into Insta Help and associated investments have weighed heavily on profitability. For investors and watchers, the key question will be when (and if) these new growth initiatives convert into scalable, margin-accretive businesses, rather than just cost centres.