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

Urban Company Limited has announced the grant of 70,82,350 stock options to eligible employees under its Employee Stock Option Scheme 2015. The company's Nomination and Remuneration Committee approved this significant employee benefit initiative on January 21, 2026, through circulation at 02:00 p.m.

Stock Option Grant Details

The comprehensive stock option grant encompasses several key parameters that define the structure and terms of the employee benefit program:

Scheme Compliance and Structure

The Employee Stock Option Scheme 2015 operates in full compliance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Each stock option granted under the scheme is convertible into one fully paid-up equity share having a face value of ₹1.00 each, meaning the total grant covers 70,82,350 equity shares.

The scheme incorporates comprehensive provisions for various employment scenarios including death, permanent incapacity, resignation, termination, retirement, and abandonment. Notably, the equity shares allotted pursuant to the exercise of stock options will not be subject to lock-in restrictions.

Exercise Terms and Conditions

Employees granted these stock options will have the flexibility to exercise them anytime within a 10-year period from the date of vesting. The exercise price has been set at ₹1.00 per stock option, making it accessible for eligible employees to convert their options into equity shares.

Regulatory Disclosure

Urban Company Limited has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has communicated this development to both the National Stock Exchange of India Limited (Symbol: URBANCO) and BSE Limited (Scrip Code: 544515).

The detailed information regarding this stock option grant will be made available on the company's investor relations website at investorrelations.urbancompany.com, ensuring transparency and accessibility for all stakeholders.