Urban company Limited has filed its quarterly monitoring agency report for the quarter ended December 31, 2025, under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report, prepared by CARE Ratings Limited as the monitoring agency, provides a comprehensive overview of how the company has utilized proceeds from its ₹472.00 crore Initial Public Offering during Q3FY26.

IPO Proceeds Utilization Overview

The monitoring agency report reveals that Urban Company utilized ₹56.47 crores during the quarter across its stated objectives, with ₹415.53 crores remaining unutilized and strategically deployed in various financial instruments. The company's IPO, which was conducted from September 10, 2025, to September 12, 2025, raised funds for specific strategic initiatives outlined in the offer document.

Technology Development and Infrastructure Investments

The largest allocation during the quarter was ₹18.04 crores for new technology development and cloud infrastructure. This expenditure comprised ₹12.46 crores in salary payments to the engineering team for new technology development and ₹5.58 crores for Amazon Web Services (AWS) cloud infrastructure. The company has allocated a total of ₹190.00 crores for this objective across FY26, FY27, and FY28.

Marketing and Operational Expenditures

Urban Company invested ₹6.56 crores in marketing activities during the quarter, making payments to major digital platforms including Google India Private Limited, Facebook India Online Services Private Limited, and M&C Saatchi Mobile India LLP for advertising services. The total marketing budget allocation stands at ₹90.00 crores.

For office lease payments, the company spent ₹7.31 crores out of the total allocated ₹75.00 crores. Additionally, ₹24.55 crores were utilized for issue expenses, including listing fees and audit fees, nearly completing this category with only ₹2.36 crores remaining.

Investment of Unutilized Proceeds

The company has strategically invested the remaining ₹415.53 crores across multiple fixed deposits with leading banks. The investments are distributed among HDFC Bank Limited (₹145.00 crores), ICICI Bank Limited (₹60.00 crores), and Axis Bank Limited (₹200.00 crores), with the remainder in current accounts and monitoring accounts.

Compliance and Monitoring

CARE Ratings Limited, serving as the monitoring agency, confirmed that all utilizations align with the objects disclosed in the offer document. The report indicates no material deviations from the stated purposes, with all expenditures properly documented through chartered accountant certificates from JC Bhalla & Co., management certificates, and bank statements.

The monitoring agency noted that board approval for utilization under General Corporate Purpose during Q3FY26 had not been received at the time of report preparation, though they relied on management confirmation and chartered accountant certification for the minimal ₹0.01 crore expenditure on bank charges.

Implementation Timeline

The company is implementing its stated objectives according to the planned timeline, with expenditures spread across FY26, FY27, and FY28. For technology development, the company plans to spend ₹42.00 crores in FY26, ₹74.00 crores each in FY27 and FY28. Similar phased approaches are planned for office lease payments and marketing activities, ensuring systematic deployment of IPO proceeds over the specified period.

Urban Company announced its unaudited consolidated financial results for the quarter ended December 31, 2025, revealing a challenging quarter with widened losses despite strong revenue growth. The home services platform reported a consolidated net loss of ₹21.26 crores compared to a profit of ₹231.84 crores in the corresponding quarter of the previous year.

Financial Performance Overview

The company demonstrated robust revenue growth with total income reaching ₹418.78 crores, up from ₹318.28 crores in Q3FY25. Revenue from operations grew significantly by 32.89% to ₹382.68 crores from ₹287.92 crores year-on-year.

Segment-wise Performance

Urban Company's diversified business segments showed mixed performance during the quarter. The India consumer services segment excluding InstaHelp remained the largest contributor with revenue of ₹264.54 crores, up from ₹210.72 crores in Q3FY25.

The Native segment showed exceptional growth, doubling its revenue to ₹61.77 crores from ₹30.72 crores. The newly launched InstaHelp segment, designed for daily cleaning and housekeeping needs, contributed ₹6.79 crores in revenue.

Key Corporate Developments

The board of directors approved several strategic initiatives during their meeting on January 23, 2026. The company entered into a manufacturing and supply agreement with Amber Enterprises India Limited for products under the Native brand, extending until December 2029 with potential extensions.

Additionally, the board approved a postal ballot notice for shareholders covering amendments to the Employee Stock Option Scheme 2015, implementation through trust route, and authorization for interest-free loans to the ESOP Trust. The company also decided to close the Urban Company Limited Employee Stock Option Plan 2022.

Expense Analysis and Challenges

Total expenses increased substantially to ₹432.83 crores from ₹301.90 crores in Q3FY25, primarily driven by higher employee benefit expenses of ₹114.20 crores and other expenses of ₹232.26 crores. The company recognized provisions totaling ₹2.69 crores related to new labor code regulations, including ₹1.89 crores for employee benefits and ₹0.80 crores for contractual employees.

The InstaHelp segment reported a segment loss of ₹60.91 crores, significantly impacting overall profitability as the company invests in this new vertical. Share of net loss from joint ventures contributed an additional ₹7.00 crores to the overall loss.

Nine-Month Performance

For the nine months ended December 31, 2025, Urban Company reported revenue from operations of ₹1,129.98 crores compared to ₹846.02 crores in the corresponding period of FY25, representing a growth of 33.56%. However, the company recorded a consolidated net loss of ₹73.65 crores against a profit of ₹242.60 crores in the previous year.

The company's paid-up equity share capital stood at ₹144.61 crores as of December 31, 2025, following the conversion of preference shares and public listing on September 17, 2025. Basic earnings per share for the quarter was negative ₹0.14 compared to positive ₹1.62 in Q3FY25.

Source: Urban Company Limited