Urban Company Limited ( urban company ) launched the Native M3 and M3 Pro water purifiers on August 5, 2026, introducing a premium home appliance segment focused on reduced maintenance and long-term value. The new devices are priced at ₹22,000 onwards and feature filters designed to last up to three years, backed by an unconditional three-year warranty. This launch aims to address high maintenance costs in the water purification industry by offering a solution that minimizes frequent servicing and filter replacements.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on the National Stock Exchange of India Limited and BSE Limited. The press release highlights the strategic expansion of Urban Company’s Native portfolio, integrating hardware sales with its existing service network. Varun Khaitan, Co-Founder and COO of Urban Company, stated that the product is designed to solve pain points related to frequent servicing and high ownership costs through long-life filtration and connected monitoring.

Product Features and Specifications

The Native M3 Pro distinguishes itself from conventional reverse osmosis (RO) systems through several key technological features aimed at enhancing durability and user experience:

The device ensures that 100% of water passes through the RO membrane to eliminate heavy metals and chemicals. It includes advanced mineralization and pH balancing to restore essential nutrients and improve taste. Users can monitor filter health, water quality, and performance parameters via the Urban Company app, supported by a dot-matrix smart display on the device itself.

Financial Context and Business Growth

The launch coincides with strong growth in Urban Company’s Native business segment. In FY26, the Native division recorded ₹267 crore in revenue from operations, representing a 130% year-on-year increase. The Net Transaction Value (NTV) for the same period grew 122% year-on-year to ₹345 crore.

Customers using the Native M3 series can save over ₹26,000 over nine years compared to conventional systems, primarily due to long-life filters and reduced maintenance requirements. The company maintains an average customer rating of 4.5 stars across platforms and a 75% customer renewal rate, indicating strong trust in its lifecycle service model.

What the Numbers Show

The significant disparity between revenue growth (130%) and NTV growth (122%) suggests an improvement in average order values or higher-margin transactions within the Native segment. With a 75% renewal rate, the business model appears to be shifting from one-time hardware sales toward recurring service engagements, leveraging the connected nature of the new M3 Pro devices to drive long-term customer retention.

Urban Company reported a consolidated revenue of ₹528 crore for Q1FY27, a 44% year-on-year increase, marking its highest growth rate in 16 quarters. Despite a widening net loss driven by aggressive investments in its daily cleaning vertical, InstaHelp, the company’s core India consumer services business demonstrated accelerating profitability with adjusted EBITDA margins improving to 6.9%. Consolidated adjusted EBITDA loss narrowed quarter-on-quarter from ₹(98) crore in Q4FY26 to ₹(65) crore in Q1FY27, signaling improving unit economics across the platform. CEO Abhiraj Singh Bhal highlighted that the core business is compounding well, while InstaHelp remains a strategic investment aimed at capturing a ₹7,000–₹12,000 crore addressable market in the top 15 cities.

The Board of Directors approved the unaudited standalone and consolidated financial results on July 31, 2026. Statutory auditors B S R & Co. LLP issued a limited review report under Standard on Review Engagements (SRE) 2410. The disclosure was made pursuant to Regulation 30 and Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. During the quarter, the ESOP Trust allotted 1,03,59,538 equity shares, increasing paid-up capital to ₹147.26 crore from ₹146.22 crore.

Segment Performance and Operational Metrics

Consolidated Net Transaction Value (NTV) grew 42% year-on-year to reach ₹1,465 crore, driven by broad-based growth across segments. Total orders surged 79% to 13.2 million, with the company adding approximately 1.2 million new customers in the quarter alone — the first-ever quarter to cross one million new users acquired. The annual transacting user base expanded to 9.3 million, with spend per user rising ~7% year-on-year.

The India consumer services segment (excluding InstaHelp) remained the primary profit engine, contributing ₹356.42 crore in revenue. Its NTV crossed the ₹1,000 crore mark for the first time, reaching ₹1,056 crore, reflecting 29% year-on-year growth. This marks the fourth consecutive quarter of acceleration in this segment. Meanwhile, the Native branded products segment saw revenue jump to ₹95.28 crore from ₹59.55 crore, with NTV growing 51% to ₹119 crore. International business revenue more than doubled to ₹65.42 crore, supported by profitable growth in UAE and Singapore operations.

Cost Pressures and Strategic Investments

The widening net loss was primarily attributed to a sharp rise in operating expenses. Employee benefits expense surged to ₹151.15 crore from ₹99.22 crore YoY, indicating aggressive hiring to support scale. Other expenses nearly doubled to ₹369.85 crore from ₹193.28 crore, reflecting substantial investments in marketing, technology, and partner incentives. The InstaHelp segment, despite delivering 3.82 million orders (up 43% quarter-on-quarter), reported a segment loss of ₹131.58 crore. Management noted that loss per order improved from ₹(447) in Q4FY26 to ₹(346) in Q1FY27 as micro-market density built up.

CEO Abhiraj Singh Bhal stated that the company is investing aggressively in InstaHelp to cement leadership in a category it believes has an addressable market ranging from ₹7,000 to ₹12,000 crore NTV annually in the top 15 cities. He emphasized that while the core business is compounding well, InstaHelp remains the largest investment area and will continue to incur losses for the next two years or more. The company retained its guidance of achieving consolidated adjusted EBITDA breakeven by Q3FY28 and reaching ₹1,000 crore in adjusted EBITDA by FY31.

What the Numbers Show

The financial data reveals a distinct bifurcation in Urban Company’s operational strategy. Excluding InstaHelp, the rest of the operations delivered an adjusted EBITDA profit of ₹67 crore, representing over 100% growth from the same period last year. This core profitability is being leveraged to fund the cash-intensive expansion of InstaHelp, which accounts for nearly double the company’s total adjusted EBITDA loss of ₹(65) crore. With ₹2,019 crore in cash and treasury investments on its balance sheet, the company maintains a strong liquidity position to sustain these investments. Management indicated no plans to enter new international markets, preferring to deepen penetration in existing geographies including India, UAE, Singapore, and Saudi Arabia.