Urban Company's Profit Halves In Q1 FY26; Revenue Rises To INR 367 Cr

IPO-bound consumer services unicorn Urban Company’s net profit declined 45.2% to INR 6.9 Cr in the first quarter of the fiscal year ending March 2026 (Q1 FY26), from INR 12.6 Cr in the same quarter last year.

Meanwhile, operating revenue rose 31% to INR 367.2 Cr in the period under review from INR 280.8 Cr in Q1 FY24.

Including other income, Urban Company’s total revenue for the period stood at INR 398.4 Cr, 29.4% up from INR 307.9 Cr in the previous fiscal.

Founded in 2014 by Abhiraj Singh Bahl, Raghav Chandra and Varun Khaitan, Urban Company provides a tech-enabled, full-stack online marketplace platform that enables users to hire professionals for household services such as home cleaning, appliance salon and massage, repair services and painting, among others.

The startup disclosed the financials for the June quarter in its red herring prospectus (RHP) as it filed for a INR 1,900 Cr IPO. The issue includes a fresh share sale worth INR 472 Cr and an offer-for-sale (OFS) component of INR 1,428 Cr.

While the overall IPO size remains unchanged from the DRHP, the startup has increased the fresh issue portion by 10% compared to the earlier proposed INR 429 Cr.

Breaking Down The Major Expenses

Urban Company’s total expenses in the period under review rose 30.1% to INR 384.2 from INR 295.3 Cr in the previous fiscal.

Employee Benefit Expenses: Its employee benefit expenses remained the largest in the period under review, growing 17.9% to INR 99.2 Cr in Q1 FY26 from INR 84.1 Cr previously.

Advertising Expenses: The company’s advertising expenses increased 6.5% to INR 51.8 Cr from INR 48.6 Cr in the same period previous year.

Incentive to service professionals: Expenses under this head grew 13.8% to INR 23.9 Cr from INR 21 Cr in Q1 FY25.

Notably, Urban Company had reported its profit at INR 239.7 in FY25 against a net loss of INR 92.7 Cr in FY24. Meanwhile, its operating revenue rose 38.2% to INR 1,144.4 Cr in FY25 from INR 828 Cr in FY24.

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