Urban Company's shares fall 11% on dismal earnings report
What's the story
Urban Company's shares plummeted by 11% today, marking its biggest single-day decline since listing in September 2025. The fall comes after the company reported a sharp increase in its fourth-quarter net loss. Despite the financial setback, Urban Company did post strong revenue growth and record-high net transaction value (NTV) during the quarter under review.
Financial results
Revenue growth and net loss figures
Urban Company's revenue grew 42.6% in the fourth quarter to ₹425.56 crore, up from ₹298.45 crore last year. However, its net loss widened significantly to ₹161.16 crore from just ₹2.84 crore last year. The company's EBITDA loss also widened substantially to ₹114.44 crore from ₹9.93 crore in the same period last year.
Business growth
Other key financial highlights
Urban Company's NTV surged 42% to ₹1,148 crore, its highest in 15 quarters. The company's earnings before interest, tax, depreciation and amortization (EBITDA), excluding InstaHelp, stood at ₹22 crore with margins improving by 160 basis points. InstaHelp delivered 2.7 million orders and ₹40 crore NTV in Q4 FY26 as against 1.6 million orders and ₹28 crore NTV sequentially.
Market reaction
Stock performance and analyst ratings
Urban Company's shares fell 9.64% to ₹126.10 at 10:37am today. The stock has fallen 7.6% over the last month. BoFA Securities have given a "neutral" rating on the stock with a price target of ₹155 per share, suggesting an upside of 11% from its previous closing price. However, only one out of seven analysts tracking Urban Company has given it a "buy" rating, while three each have rated it as "hold" and "sell," respectively.