Urban Company Ltd — Q4 FY26

Urban Company Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=kqQrFcUFmvU Published: 5 days ago

0:02 2 seconds Good evening everyone. Welcome to Urban Company Limited's Q4 and FY 2026 earnings conference call. As a reminder, 0:11 11 seconds all participant lines will be in listenonly mode and there will be an opportunity for you to ask questions after the management's remarks. Please note that this call is being recorded. 0:22 22 seconds On behalf of uh Kotak institutional equities um I welcome uh the urban company management to discuss earnings 0:30 30 seconds for the fourth quarter and year ended 31st month March 2026. I welcome Mr. 0:36 36 seconds Abhirat Singh Dhal co-founder and CEO and Mr. Abh Matur CFO. The results and 0:43 43 seconds investor letter have been uploaded to the stock exchanges and are available on the company's investor relations 0:50 50 seconds website. Before we begin, I'd like to remind you that certain statements made on this call may be forward-looking in 0:57 57 seconds nature and should be viewed in conjunction with the risk factors disclosed in the company's filings. With 1:04 1 minute, 4 seconds that, I'll hand the call over to Agira to share the key highlights of the quarter. 1:11 1 minute, 11 seconds Thank you very much, Gimma. Good evening, ladies and gentlemen, and welcome to Urban Company's Q4 FY26 earnings call. 1:21 1 minute, 21 seconds Let me start by saying that Q4 was amongst the strongest quarters that we've ever had in the history of Google 1:29 1 minute, 29 seconds company in what I believe was a defining year for the company, our first as a listed company. Uh we delivered our 1:38 1 minute, 38 seconds highest ever consolidated NTV growth in 15 quarters, crossed 10 million orders 1:44 1 minute, 44 seconds for the first time in a single quarter, and meaningfully improved the profitability of our core businesses. 1:51 1 minute, 51 seconds And I'll walk through each of these one by one. 1:55 1 minute, 55 seconds Let me start with the headline. On a consolidated basis, Q4 net transaction value grew 42% year-on-year to reach 2:04 2 minutes, 4 seconds 1148 crores. and revenue grew 43% year-onear to reach 426 crores for the 2:12 2 minutes, 12 seconds full financial year FI26 consolidated NTV reached 4,290 crores which is up 33% yearonear 2:20 2 minutes, 20 seconds including the impact of SAB consolidation our transacting user base also grew by a healthy 24% to reach 8.4 4 million 2:30 2 minutes, 30 seconds unique annual transacting users and today 83% of our net transaction value comes from retained users. 2:40 2 minutes, 40 seconds Now four very important points that I want to talk about before we get into Q&A. Four simple but powerful points 2:48 2 minutes, 48 seconds which in our view help capture the story of urban company. Where is it today and where is it heading? Let me start with 2:56 2 minutes, 56 seconds the core business India core consumer services exist health. In our view the core is accelerating with structurally 3:05 3 minutes, 5 seconds improving margins. If I look at India consumer services exist we grew by 26% 3:12 3 minutes, 12 seconds in Q4 for NTV to reach 88 crores. This was our fastest growth in 11 quarters. 3:20 3 minutes, 20 seconds Our adjusted IBITA margin also improved from 1.6% 6% of NTV a year ago to 3.3% 3:27 3 minutes, 27 seconds [clears throat] 3:28 3 minutes, 28 seconds of NTV and as a result for the full financial year the business delivered 131 crores of adjusted IBIDA or 4.1% of 3:38 3 minutes, 38 seconds NTV which was about 80 basis points ahead of the initial view that we had at 3:45 3 minutes, 45 seconds the beginning of the year to put things in context this core business was loss making as recently as FI24 3:54 3 minutes, 54 seconds That's the first point. The second point is international. 3:58 3 minutes, 58 seconds I want to highlight for investors that international is now scaling rapidly and is profitable. Our UAE and Singapore 4:05 4 minutes, 5 seconds businesses delivered 84% NTV growth in Q4 to reach 211 crores of NTV and this 4:13 4 minutes, 13 seconds was despite some demand headwind in UA in the month of March because of the escalation of the Middle East conflict for the full financial year. 4:22 4 minutes, 22 seconds International NTV grew 75% to reach 700 crores and the business turned adjusted EVITA positive 6 crores for the entire financial year. 4:33 4 minutes, 33 seconds This business for us is now four times larger than it was four years back. 4:40 4 minutes, 40 seconds Third, I want to talk about gated. A business that we started barely two to three years back has now become 4:47 4 minutes, 47 seconds meaningful in scale with a clear path to profitability. 4:51 4 minutes, 51 seconds NTV grew 67% in Q4 to reach 89 crores and it reached 345 crores for the full 4:58 4 minutes, 58 seconds financial year up 122% over the previous year. 5:03 5 minutes, 3 seconds The adjusted IITA loss narrowed from 39 crores in FY25 to 31 crores in FY26 even as the business scaled more than 100%. 5:13 5 minutes, 13 seconds And margin trajectory improved from negative 25.1% of NTV to negative 8.9% of NT. 5:20 5 minutes, 20 seconds What's even more encouraging is that the earliest cohort of users who have completed two years, 5:27 5 minutes, 27 seconds almost 75% of them have come back to us and gotten their replacement and renewal cycle through the company. That number 5:35 5 minutes, 35 seconds is almost 4x of what the industry averages. It's a strong signal of consumer stickiness and this number will only compound further as the installed brace grows. 5:46 5 minutes, 46 seconds Last but by no means least is Easter. 5:50 5 minutes, 50 seconds Our most significant investment today and one where we are leaning in heavily. This business did not exist a year back. 5:58 5 minutes, 58 seconds And in the fourth quarter of FY26, they delivered 2.7 million orders with as many as 1.1 million plus orders in March alone and 40 crores of NTV. 6:10 6 minutes, 10 seconds This business did incur a meaningful loss 119 crores of adjusted evida loss in the last quarter and this loss 6:18 6 minutes, 18 seconds reflects the cost of building the market consumer acquisition network density subsidies and supply only. 6:27 6 minutes, 27 seconds We are very clear that we are investing to win here and we intend to stay ahead and cement our market. 6:35 6 minutes, 35 seconds Given the competitive dynamics in the space, we've shared everything. We will be able to share on Insta Health in the shareholders letter. We won't be going 6:43 6 minutes, 43 seconds beyond that on this earnings call. I hope you all understand why. 6:48 6 minutes, 48 seconds Finally, a little bit of a housekeeping point. The consolidated P&L for this quarter was -160 6:58 6 minutes, 58 seconds crores of loss. However, adjusted was only 98 crores. 7:04 7 minutes, 4 seconds The delta was going to a reversal of VTA of about 61 crores. The details of which are there in the shareholders letter. 7:13 7 minutes, 13 seconds Overall, we believe we're in a very confident position. 7:18 7 minutes, 18 seconds Our businesses are accelerating as far as growth is concerned. 7:22 7 minutes, 22 seconds Excluding the investments in Insta Health, our businesses are profitable with the port delivering about 22 crores of adjusted profit in the last quarter 7:32 7 minutes, 32 seconds and 106 crores for the full financial year 26. We ended the financial year with 2021 crores of cash in the balance 7:40 7 minutes, 40 seconds sheet. So we believe we are well positioned both from a balance sheet cash perspectives as well as the core generating increasingly larger profits 7:49 7 minutes, 49 seconds to fund Insta Health's growth journey while maintaining a decent balance sheet. We retain our target of consolidated adjusted IBIDA break even 7:57 7 minutes, 57 seconds by Q3 FY28 and thousand crores of adjusted IBIDA by FY31. 8:04 8 minutes, 4 seconds With that I will hand it back to Gara for Q&A. 8:10 8 minutes, 10 seconds Thank you Airaj. We will now begin the question and answer session. Anyone who wishes to ask a question may press the raise hand button on their zoom screens. 8:21 8 minutes, 21 seconds Please introduce yourself and then proceed with your questions. Our first question from Manisha Dukia. 8:29 8 minutes, 29 seconds Please go ahead. Hi, are you able to hear me? 8:41 8 minutes, 41 seconds Yes. Perfect. Thank you. Hi. Uh good evening. 8:44 8 minutes, 44 seconds Thank you for taking my questions and uh congratulations on uh great set of numbers growth. Uh really really strong and also wanted to commend the team on 8:53 8 minutes, 53 seconds the extensive disclosures in the shareholder letter. They're really helpful. I have a few questions. Uh please feel free to stop me. Uh and I'm 9:00 9 minutes happy to jump back in the queue. Um so first one is on just the growth bits and I know you've talked about it in the shareholder letter in a fair bit of 9:07 9 minutes, 7 seconds detail as to what drove uh the growth but then I look at just the India consumer services x Insta help even in the top 10 cities despite no category 9:14 9 minutes, 14 seconds expansion you've delivered 25% growth um now one wanted to understand have you seen this kind of acceleration 9:23 9 minutes, 23 seconds in your business in the past as well what I mean by that is the core consumer services is not a new category for you've been doing this for a long time 9:32 9 minutes, 32 seconds and has this time's growth acceleration been different in the past and why has it been different like what is driving this acceleration versus what you may 9:40 9 minutes, 40 seconds have seen in the past and how much of it a contributor is the instant delivery of services that is leading to growth that'll be just helpful to understand 9:47 9 minutes, 47 seconds and maybe a follow on as to I know you talked about durability will need to be tested over a few quarters but any color 9:54 9 minutes, 54 seconds on your sense on visibility of how long this could you know sustain that's my first question Yeah, great question Manish. So, Manish, 10:03 10 minutes, 3 seconds you know, just to for the for the listeners to understand India consumer services, this is a it's a very large 10:10 10 minutes, 10 seconds and complex business. We have 60 plus service categories spread across 47 cities uh in hundreds of micro markets. 10:19 10 minutes, 19 seconds Um and across each and every service category and micro market, one has to carefully build supply and demand 10:27 10 minutes, 27 seconds density. uh while ensuring quality control, training, consistency of service um and go the whole nine yards. 10:34 10 minutes, 34 seconds So we've [clears throat] been hard at work for many years now doing that. Um we believe that many of our categories 10:44 10 minutes, 44 seconds and micro markets are hitting an inflection point from a densification standpoint which is driving the simple fly what we've talked about in our 10:52 10 minutes, 52 seconds shareholders letter of faster, cheaper, better. Spend a minute talking about this. Now once you cross threshold density in a category in a micro market 11:01 11 minutes, 1 second what ends up happening is that service professionals start getting utilized much better. Consequently their earnings go up and the cost to serve for the 11:10 11 minutes, 10 seconds entire business comes down. Some of these benefits can also be enjoyed by the customer in terms of better value. 11:17 11 minutes, 17 seconds Also travel distances come down. Job packing efficiencies move up and therefore service professionals are spending more time inside the consumer's 11:25 11 minutes, 25 seconds homes delivering orders and less time either waiting for orders or traveling towards orders and therefore customers also start to 11:33 11 minutes, 33 seconds enjoy what we call faster which is faster fulfillment. We have started to roll out UC Instant where you can get 11:40 11 minutes, 40 seconds the service within 30 to 60 minutes and we're in the early innings of UC Instant getting rolled out and the goodness of UC Instant playing across the 11:47 11 minutes, 47 seconds marketplace and then better because service professionals are more dependent on the platform. They're seeing higher earnings. We see better retention, their 11:55 11 minutes, 55 seconds propensity to follow UCSOPs, UC's quality protocols, etc. All of that improves and that translates into better 12:02 12 minutes, 2 seconds service for the end consumer. And simply put, a professional who's earning more and traveling less is generally more likely to deliver a service to you with 12:10 12 minutes, 10 seconds a smile. And we've always maintained that happy professionals lead to happy customers. So that trifecta of faster, cheaper, better, which is, you know, 12:18 12 minutes, 18 seconds seems like a simple playbook, but but it's very hard to execute across so many services and so many micro markets. when 12:25 12 minutes, 25 seconds it starts to get going, uh, you know, that acceleration is possible. Now, why do we not yet want to call it a 12:34 12 minutes, 34 seconds long-term trend and want to observe for a few quarters? Because we're just getting started on this. Um, yes, NTV 12:41 12 minutes, 41 seconds growth has been accelerating in in Q2 FY26, it was 19% to jump to 21% in Q3 and 26% in Q4. Um you know as proven 12:51 12 minutes, 51 seconds management we want to wait and watch uh see another two three four quarters um and then see if we believe that uh you 12:58 12 minutes, 58 seconds know the acceleration means that from a 5year lens uh with what we had imagined earlier this business can be much larger. 13:08 13 minutes, 8 seconds Very helpful bira for that. Um one I I was just curious that you operate in like multiple cities. Let's say if we 13:15 13 minutes, 15 seconds talk about your top 10 cities, I I'm just surprised that all of them are seeing acceleration at the same time. I mean, I thought that some cities would 13:23 13 minutes, 23 seconds be in different places on the curve where some would have seen acceleration 2 years ago, some may see two years later. So, is there like a common thread as to why they are all seeing 13:32 13 minutes, 32 seconds acceleration at the same time or have you seen some cities already let's say peak in terms of growth and some that are accelerating a lot like just any dynamics you can share that'll be helpful. 13:41 13 minutes, 41 seconds I would say for the last few months we've seen very broad-based demand acceleration to the point where internally we feel that uh the real 13:50 13 minutes, 50 seconds challenge is building high quality supply across these cities and categories and micro markets. Um and we we know that we've left demand on the table across cities and categories. 14:01 14 minutes, 1 second Very clear. Thank you. Uh second question is just on Insta help and I appreciate Abra you mentioned you won't be able to share too much details but still trying my luck. I mean when you 14:09 14 minutes, 9 seconds say losses remaining elevated for the foreseeable future are you expecting potentially losses to also increase from 14:17 14 minutes, 17 seconds these levels and when you say elevated for a prolonged period of time are we talking about like four quarters 8 quarters longer than that any any color 14:26 14 minutes, 26 seconds you can share that'll be helpful and also maybe a little question average order value continues to you know get 14:33 14 minutes, 33 seconds lower my concern there is would it be that much more difficult for you to recover AOV if they keep getting lower 14:40 14 minutes, 40 seconds and thus maybe you know take you further away from whatever your steady state margin expectations are uh in that business. 14:47 14 minutes, 47 seconds Yeah. No, thanks for that question uh Manish. So um I'd say I'll just take a little bit of a step 14:55 14 minutes, 55 seconds back. Um you know one of our uh one of our messages to the investor community is that at this stage of of uh our 15:04 15 minutes, 4 seconds company building journey um we believe the investor community should hold us very much accountable to disciplined 15:12 15 minutes, 12 seconds highquality execution um in our core India services business um in international and even in native 15:19 15 minutes, 19 seconds which means continued growth and compounding improving margins year after year some quarters they'll go up, some quarters they'll go down, but a 15:27 15 minutes, 27 seconds consistent margin uh upward trajectory um uh every year uh and cash generation. 15:35 15 minutes, 35 seconds Um for Insta, we believe that right now u the most important thing uh is market 15:43 15 minutes, 43 seconds leadership. Uh we believe we have a strong balance sheet. We believe we have cash generating core business. Um and 15:51 15 minutes, 51 seconds we've given two clear guidelines uh that we will hold as guardrails for ourselves which is uh a consolidated break even at 15:59 15 minutes, 59 seconds an adjusted EVA level by Q3 FI28 uh and thousand crores of uh adjusted 16:05 16 minutes, 5 seconds EVA by FY1. Um and we're committed to sticking to those overall guard rates. 16:12 16 minutes, 12 seconds Uh within that the rest of it I think the management needs the maneuverability. Um you know uh it's a 16:18 16 minutes, 18 seconds dynamic market. Um some quarters uh AOEs will move up, some quarters they'll move down. Um it'll be a combination of uh uh 16:28 16 minutes, 28 seconds you know tactics and strategy. Um we're very much focused on uh you know seeing uh that this shapes up well in the 16:36 16 minutes, 36 seconds medium term. We have our eyes on all of those numbers that you spoke about. Um we believe right now the most important 16:44 16 minutes, 44 seconds thing for us is continuing to cement our market leadership and staying ahead uh of the game. Um while longitudinally 16:52 16 minutes, 52 seconds making sure that loss per order keeps coming down and over a period of time losses come down. How much time it will take etc is something we will review. 17:01 17 minutes, 1 second Very clear. Just maybe last question for me before I jump back in the queue. uh I know you have a uh answer or a question around artificial intelligence but if 17:10 17 minutes, 10 seconds you can just maybe help summarize for us both on the demand side and maybe also on the cost side what are let's say the 17:18 17 minutes, 18 seconds changes that we can expect from an AI perspective in terms of you know revenue levers or or cost levers that'll be helpful thank you 17:26 17 minutes, 26 seconds uh hi this is R I'll take that question and thank you for asking it I think this is an area which is full of potential for us you know we take initial steps. 17:35 17 minutes, 35 seconds So to start with, we've actually built a solid layer of AI on top of our code platform which is now embedded in everyday operation. I'll call out a few 17:43 17 minutes, 43 seconds areas where we made progress and you know we're excited about for the future. 17:47 17 minutes, 47 seconds I think the first one really is on quality. Uh so we are leveraging extensively in proof of work. We're 17:54 17 minutes, 54 seconds autoating 100% of images which are shared uh you know during during the job. also running diagnostics in some of 18:02 18 minutes, 2 seconds our repair and appli and and and handyman categories. U we made a fair amount of progress in customer and 18:08 18 minutes, 8 seconds partner support where 55% of all partner support queries are now handled effectively through AI and this is 18:15 18 minutes, 15 seconds helping us deliver a low cost as well. U we're also generating top of funnel for partners through AI uh by exist asking 18:23 18 minutes, 23 seconds existing partners to refer uh jobs which were done by people earlier. Uh we've always been using AI for demand 18:31 18 minutes, 31 seconds forecasting. AI has only made our our our demand forecasting and trend line simpler and more accurate. Uh we've started deploying it in a couple of 18:39 18 minutes, 39 seconds areas for revenue as well. So for native for example, if your filter life is about to expire, you will get a call 18:47 18 minutes, 47 seconds from urban companies reminding you uh to to refresh it. We are visualizing interior spaces for a revamp using AI 18:55 18 minutes, 55 seconds which helps make decision making much simpler. 18:58 18 minutes, 58 seconds uh so you know these early steps on revenue generation on code I think this is the area where you've seen the maximum progress you know conservatively 19:05 19 minutes, 5 seconds more than 90% of our code is being shipped by gener and and this was not the case some time ago so a lot of the 19:13 19 minutes, 13 seconds basic work is being done leveraging AI and we're also using for fraud detection so I think we're just getting started 19:20 19 minutes, 20 seconds this is a space with a lot of potential we're actually driving usage within the organization and we'll keep updating investors as about this. 19:29 19 minutes, 29 seconds Thank you so much for patiently answering all my questions. All the best. 19:34 19 minutes, 34 seconds Thanks. Uh, next question from Sachin Salaka. Please go ahead. Thanks Karima. Hi management. Good day. Uh, I have three sets of questions. 19:42 19 minutes, 42 seconds First question on native. Um, your losses have expanded on a Y1 and Q basis. Anything specific happening out 19:50 19 minutes, 50 seconds there and Abira any specific timelines we could have from a native break even point of view? 19:59 19 minutes, 59 seconds Yes. Uh nothing specific uh as such uh to call out uh such as I think the 20:07 20 minutes, 7 seconds business trajectory has grown well. Uh business uh has grown by uh 67% on an 20:13 20 minutes, 13 seconds NTV basis even faster on net revenue. Um and uh the margins have improved. Uh so 20:21 20 minutes, 21 seconds same time last year the margin trajectory was -14.7% uh of NTV and now it's uh 9.9%. Uh so 20:30 20 minutes, 30 seconds margins have improved. Um we are fairly confident I would say on the uh trajectory from here on uh to achieve 20:38 20 minutes, 38 seconds break even. We don't want to give a timeline yet. Uh but um you know it should happen in the next few quarters actually. 20:46 20 minutes, 46 seconds Got it. And this break even will happen despite launch of new products in the native category. 20:52 20 minutes, 52 seconds Yes. Um we believe so. Um it should happen despite any new products that we launch. Um some of the uh elevated 21:02 21 minutes, 2 seconds losses uh are on account of R&D for new products. So our core is actually already approaching close to beginning. 21:09 21 minutes, 9 seconds Got it. Uh second question is on Insta help. uh and I completely get in terms of uh management having the flexibility. 21:16 21 minutes, 16 seconds It's a new business. Uh but what we are actually seeing is both your competitors raise money in pockets one could see competition getting irrational. 21:26 21 minutes, 26 seconds uh so any guardrails you want to indicate to the analyst and investor community hey these are some of the things like for example on a loss per 21:34 21 minutes, 34 seconds order basis there is no intention to become you know much higher than that because I understand your medium-term and longerterm targets in terms of EITA 21:43 21 minutes, 43 seconds break even as well as you know where you want to have an EITA uh but you know I mean if on a quarter-to- quarter basis losses are expecting you know we do 21:52 21 minutes, 52 seconds expect you know some comfort in terms of hey you know this is a threshold where one could get a sense that competitive intensity is getting completely 21:59 21 minutes, 59 seconds irrational and perhaps it's okay to let go a bit of a market share uh just in case because things are a bit bad. So 22:07 22 minutes, 7 seconds again wanted to understand any color you could give and of course a follow-up is uh what would because this is relatively new business and it is not there in most of the countries uh across the globe. 22:19 22 minutes, 19 seconds How could one think about any range for a steadystate economic a unit economics or a beta margin in the medium term? 22:28 22 minutes, 28 seconds Yeah. No, both fair questions. Um and and uh you know appreciate where you're coming from Sachin. I think you know we 22:36 22 minutes, 36 seconds we've been doing this now for close to 12 years 11 and a half years such and we've seen various cycles of competition and [clears throat] irrationality. So 22:45 22 minutes, 45 seconds it's nothing new to us. Um, I'd say the level of competitive intensity that we're seeing and and 22:53 22 minutes, 53 seconds irrationality that we're seeing um right now is pretty manageable. Um, we're not 23:01 23 minutes, 1 second perturbed by it. Um, if anything, we're very clear that we're 23:07 23 minutes, 7 seconds playing to win um and and not playing uh to look elegant. And sometimes in the 23:15 23 minutes, 15 seconds short run uh you know either you can optimize for market share or you can optimize for uh on paper elegance. And 23:23 23 minutes, 23 seconds we're [clears throat] not optimizing for elegance. We're optimizing to win. We're optimizing for market share. Um and which means if we have to be irrational 23:31 23 minutes, 31 seconds from time to time, we should be willing to be irrational uh as well. So um I don't worry about competition uh too 23:39 23 minutes, 39 seconds much. Uh I think our eyes are on the customer and the service professional. Um and we're playing to win. 23:47 23 minutes, 47 seconds Got it. U a related question on the Insta help is uh there are adjacencies and potential new services also one 23:55 23 minutes, 55 seconds could look to explore for example cooks drivers uh help for elderly and so on so 24:02 24 minutes, 2 seconds forth. Are these some of the areas or are there any adjacencies you guys are experimenting and looking to expand into? 24:10 24 minutes, 10 seconds We keep experimenting session but you know strategically right now we think all our energy and resources 24:17 24 minutes, 17 seconds uh and focus should actually go into densifying and winning in the core segments. Um we know that some of our 24:25 24 minutes, 25 seconds competitors are experimenting with some of these adjacencies. Um but we are focused on core uh we believe the player 24:33 24 minutes, 33 seconds that will win the core segment in the core micro markets uh will will uh 24:41 24 minutes, 41 seconds that's essentially the turf to win uh and that's that's all our attention and focus right now and you know we have 24:48 24 minutes, 48 seconds limited resources as a company uh monetary and people and we want to focus all of them towards winning the main segment in the main micro markets. 24:58 24 minutes, 58 seconds Very clear. And lastly, Middle East clearly u you know is now seeing some signs of recovery. How is your business? 25:05 25 minutes, 5 seconds Are we back to square one in terms of recovery or it's still a gradual recovery? 25:10 25 minutes, 10 seconds No, more or less back to square one. In fact, the dip for us also was not I mean it was there but we were far we far more resilient than most other businesses and 25:19 25 minutes, 19 seconds that's visible in the numbers that you would have seen uh that she put out there on the on the month-on-month uh 25:26 25 minutes, 26 seconds trajectory. So there was a dip uh but uh you know with a year on year growth continue to be pretty healthy u and uh 25:33 25 minutes, 33 seconds the business now is is almost back to uh back to full recovery. Perfect. All the best and thanks again. 25:42 25 minutes, 42 seconds Thank you sir. 25:44 25 minutes, 44 seconds Thank you. Uh maybe I'll go next. I also had a few questions. Uh first on the core business right the acceleration and 25:52 25 minutes, 52 seconds TV growth is very encouraging. very near-term do you think there could be some hiccup in this accelerated growth not because of lack of demand but 26:00 26 minutes because of lack of supply right due to elections and the resultant temporary work workplace displacement. 26:08 26 minutes, 8 seconds Uh hi Gman this is a I'll try and answer that. So you know in the last quarter we didn't really see any disruption. Um I think in the in the month which has gone 26:16 26 minutes, 16 seconds by we are seeing you know some some level of demand loss but nothing unusual. I think we had seen some of 26:24 26 minutes, 24 seconds this coming and you know we had prepped in advance we had onboarded you know more and more professionals so I think you know for a services business like 26:31 26 minutes, 31 seconds ours this is a vau problem and there's nothing you know which we are really concerned about here 26:39 26 minutes, 39 seconds got it okay good to know uh second question that I had was on native now you've given a target of quadrupling net 26:46 26 minutes, 46 seconds revenue of this business uh could you give us some sense of the pipeline of products you are building that would enable you to achieve uh this target. 26:58 26 minutes, 58 seconds For the large part, we believe this will have to come from the current two products that we have, which is water purifiers and smart electronic door 27:06 27 minutes, 6 seconds locks. Um we we've not put a timeline to it deliberately because we we don't know how long it will take, but we believe 27:13 27 minutes, 13 seconds that those two segments should be meaningful enough over a over a period of time uh to get us there. Um and a 27:21 27 minutes, 21 seconds little bit of the revenue uh and and this is also because it's not just the pro revenue from product sales as in water purifiers the installed base 27:30 27 minutes, 30 seconds increases daimma the service revenues also start to kick in um and over time they can be quite quite meaningful u 27:38 27 minutes, 38 seconds especially given that our retention early retention signs are very very healthy and a meaningful multiplier of what the industry averages. uh some of 27:47 27 minutes, 47 seconds uh that uh you know number could also come from new products that we launch but for the large part I think it'll be 27:54 27 minutes, 54 seconds it'll be the existing categories got it very clear um third piece of the 28:04 28 minutes, 4 seconds question you know you uh on uh Insta health in your view what could be the potential market structure here say 2 3 28:12 28 minutes, 12 seconds years out do you think two or more players can coexist. 28:17 28 minutes, 17 seconds And a related question here is with some competitors raising money, in fact some of them very very recently, do you think 28:25 28 minutes, 25 seconds they might want to diversify into what is your core business? 28:32 28 minutes, 32 seconds Very hard to say how [clears throat] both how large this market is and and what the endstage structure could look like. 28:40 28 minutes, 40 seconds uh generally speaking I'm of the view that in businesses of trust it's a 28:46 28 minutes, 46 seconds winner take all and um you know this is a business of trust so I really don't 28:53 28 minutes, 53 seconds see any reason why there should be multiple players over time and that's at least the mindset with which we are approaching this 29:02 29 minutes, 2 seconds market in our core business we have lion share of the market and We'd like something similar to play out here as 29:10 29 minutes, 10 seconds well. Um but of course we um are mindful that in order to achieve that we have to deliver superlative service to the end 29:19 29 minutes, 19 seconds consumer win on execution. Uh and there are other funded competitive players who are also attacking the market. So um I 29:27 29 minutes, 27 seconds think this will eventually boil down to execution over [clears throat] a period of time. 29:32 29 minutes, 32 seconds uh we are which other services they will launch um and um you know it's a honestly we want 29:41 29 minutes, 41 seconds to point we are it's not something that we worry about because it's a our core business is very very large we're still scratching the surface we're probably 29:50 29 minutes, 50 seconds sub 1 to 2% of the total market addressable market so uh we're we're focused on what we have to do there 29:58 29 minutes, 58 seconds got it and you raised this important point of you know building a trustworthy service. So any you know one or two points you want to highlight particularly on the Insta Health 30:06 30 minutes, 6 seconds business which sort of differentiate your service you know beyond the availability part uh compared to whatever else is available in the market. 30:17 30 minutes, 17 seconds I think our view is that this is a service of trust. It's a it's a service where the quality of the service professional, the training, uh the 30:26 30 minutes, 26 seconds effort that you put into selection, onboarding, uh the details that you go in into SOPs, etc., these are the things 30:32 30 minutes, 32 seconds that matter. They will compound slower uh than you know discounts and instantaneous availability and throwing 30:41 30 minutes, 41 seconds money at the problem, but they will compound in the long run. Um and that's what we're focused on. Um we actually do 30:48 30 minutes, 48 seconds not dilute um our quality selection and onboarding and training processes for this business. Visually we are core uh 30:56 30 minutes, 56 seconds that playbook that we have developed on the core business over the last 10 years is something that we um have extrapolated to Insta as well. We talked 31:06 31 minutes, 6 seconds about average ratings in Insta which um are at 4.7 very close to where the core is um and we believe materially better 31:14 31 minutes, 14 seconds than the rest of the industry. Uh we also believe our repeat rates and retention rates are um to the best of our knowledge uh industry leading at 31:23 31 minutes, 23 seconds this point in time. Um and that's part of the reason why we are the clear market leaders today. Um so uh in our 31:32 31 minutes, 32 seconds view it will eventually come down to quality of service uh quality of the supply side and like our core this will 31:39 31 minutes, 39 seconds be a supply first business and you know whoever wins the supply side of the market will be the winner. 31:47 31 minutes, 47 seconds Very clear. Thanks for that uh Avid. Uh next question from Goravia. Please go ahead. 32:01 32 minutes, 1 second Hi. Uh thank you for taking my question. 32:04 32 minutes, 4 seconds Uh congrats on uh great execution. Uh my first question is on the densification 32:11 32 minutes, 11 seconds that you talked about. Have you seen any impact of competition in the those micro 32:19 32 minutes, 19 seconds markets? My sense is that the there will be meaningful difference in the consumer experience uh because of the instant service that 32:26 32 minutes, 26 seconds you are launching versus what competition would have been doing in select categories and therefore they will be years behind to catch up. So 32:34 32 minutes, 34 seconds there would have been some consolidation in those micro markets. Any any anecdotal evidence if you can share on that? 32:44 32 minutes, 44 seconds This is with reference to India core, right? Yeah, India core business. 32:49 32 minutes, 49 seconds Yeah. To be honest, in India core got we um uh like we don't spend a lot of time 32:58 32 minutes, 58 seconds looking at or tracking competition. Um part of the reason could be that you know competition is very distributed 33:05 33 minutes, 5 seconds across categories and micro markets. I think much of this growth is actually just driven by internal factors. around 33:13 33 minutes, 13 seconds uh you know what I refer to as faster, cheaper, better and as I mentioned like we we feel we left demand on the table because we were 33:21 33 minutes, 21 seconds supply constraint uh for most of the quarter um so I think that's really where our input is. on the supply side 33:29 33 minutes, 29 seconds it's only show that quality of our supply side of our service professionals training SOPs are top-notch um and we continue to drive 33:38 33 minutes, 38 seconds densification and consequently roll out instant um and uh uh I think the 33:46 33 minutes, 46 seconds goodness of that uh in our view uh those are strong inputs uh the service is available faster um it's better value 33:54 33 minutes, 54 seconds for the end consumer and the quality of service is improving um you know in our view that should translate into growth. 34:03 34 minutes, 3 seconds Got it. Uh secondly on the uh is there a sensitivity to AOV from demand perspective? I know that for lot of the 34:12 34 minutes, 12 seconds basic categories the AOVs would have remained largely similar across last couple of years. Uh and if there is an 34:20 34 minutes, 20 seconds inflation related problem even if it is a transient one there could be some impact on the AOVs. 34:28 34 minutes, 28 seconds uh and uh I'm just trying to understand based on your historical experience have you seen any sensitivity or it doesn't really matter 34:36 34 minutes, 36 seconds I would say in the core the sensitivity is low in itself of course it's very high but 34:44 34 minutes, 44 seconds in the core we haven't we like there's always some sensitivity but it's it's very much manageable. 34:52 34 minutes, 52 seconds Okay, last question on your outlook on consolidated break even uh nothing has 34:59 34 minutes, 59 seconds changed right while external involvement on Insta category has changed in terms of potential fundraising etc. Is it 35:07 35 minutes, 7 seconds coming from greater confidence uh in the core business given that you have executed or outexecuted your own 35:15 35 minutes, 15 seconds expectations in fiscal 26 which gives you uh very strong confidence that even if the investments were to remain higher 35:24 35 minutes, 24 seconds than what you would have thought through in Instaar you would be more than uh able to offset that with better profitability in the core business. So 35:33 35 minutes, 33 seconds or is it your view that the external environment could change fast? Thank you. 35:38 35 minutes, 38 seconds In the former, I think we're we feel that the way we're executing on the core will give us enough buffer buffer and cushion even in the external environment for instate. 35:50 35 minutes, 50 seconds Uh yeah, all the best. Thank you. Thank you. 35:59 35 minutes, 59 seconds Next question is from the line of pranhatria. Please go ahead. 36:16 36 minutes, 16 seconds Please go ahead. 36:18 36 minutes, 18 seconds Next question is uh you know the first question is regarding the your voice is unclear 36:25 36 minutes, 25 seconds of the margins and uh hello can you hear me? 36:31 36 minutes, 31 seconds It's better now please go ahead. My question is regarding the volatility in the margin for the India core business. 36:37 36 minutes, 37 seconds So while the IITA margin has structurally sort of trended up uh in this quarter as you said that you know this uh you know US supply constraint 36:46 36 minutes, 46 seconds and hence one would have expected the margins to sort of go up but that has not really happened. So what exactly led 36:53 36 minutes, 53 seconds to uh that situation? Uh and my second question is that uh you know uh uh for 37:00 37 minutes uh Insta health platform what kind of cohort uh you know are we getting? uh is it the same cohort which was sort of 37:08 37 minutes, 8 seconds using other services is now coming to uh Insta help or there is new set of customers who are coming uh and is there 37:16 37 minutes, 16 seconds any rub off of those customers because of yeah 37:23 37 minutes, 23 seconds so thanks for the question bro uh only India consumer services uh just give it a margin as a percentage of NTV 37:31 37 minutes, 31 seconds uh we've mentioned this in the past that the right way to think about this is year on year versus quarter on quarter and that's because there are multiple 37:39 37 minutes, 39 seconds factors every quarter around seasonality uh etc. 37:45 37 minutes, 45 seconds Uh and therefore um you know Q1 and Q3 in every year are structurally better quarters than Q2 and Q4 37:53 37 minutes, 53 seconds um why is that the case is because uh you know Q1 and Q3 are seasonally stronger quarters. Therefore, a lot of 38:01 38 minutes, 1 second the marketing, supply ramp up, etc. for us happens in the preceding quarters, which is Q2 and Q4. Q4 also happens to 38:09 38 minutes, 9 seconds be the quarter where we have our uh annual appraisals. So, for a variety of factors, uh if we uh look at this business on a quarteronquarter basis 38:17 38 minutes, 17 seconds from a margin standpoint, we'll not be able to fully understand and appreciate. 38:21 38 minutes, 21 seconds Uh now that we have eight quarters of trajectory, uh we can actually compare year on year. uh and that's what we've 38:28 38 minutes, 28 seconds always told uh investors that don't look at it quarter on quarter look at it year on year on year if you Q4 has gone from 1.6% in Q4 FY25 38:38 38 minutes, 38 seconds uh to 3.3% in Q4 FY26 and also the entire India consumer services business has gone from 3.3% to 4.1%. that 38:46 38 minutes, 46 seconds trajectory we believe should continue uh and eventually this business should get to about 10% uh adjusted as a percentage 38:54 38 minutes, 54 seconds of NTV um over a longer period of time uh and every year there will be margin expition some years it will be faster some years it will be slower but the 39:02 39 minutes, 2 seconds right way to think about it is duration not so that's the first question second question in help I think 39:10 39 minutes, 10 seconds both existing cohorts of urban company consumers adopted uh But we're also seeing newer cohorts and newer customers 39:18 39 minutes, 18 seconds first time to the platform uh adopt Insta Health. And so Insta that extent is also helping us expand that. 39:28 39 minutes, 28 seconds Okay. Uh thank you. That's it from all the 39:36 39 minutes, 36 seconds next question is from Serat V. Please go ahead. 39:43 39 minutes, 43 seconds Hi every congratulations on the good set of numbers. Uh first I wanted to understand uh you know as we go into FY27 39:52 39 minutes, 52 seconds how do we look at you know between adding new micro markets and deepening our supply in Insta Health you know how 39:59 39 minutes, 59 seconds many new micro markets are we looking to open or cities are we looking to open because you know for example in our 40:05 40 minutes, 5 seconds office more than 50% of the staff don't have access to uh you know insta health so how when would you know our top three 40:13 40 minutes, 13 seconds cities get fully covered for us uh you across say Bangalore, NCR and Mumbai for example. 40:23 40 minutes, 23 seconds Yeah. Uh good question Reina. Um I think 40:30 40 minutes, 30 seconds hard to give a precise timeline but what I'd say is that our [clears throat] leaning is always 40:37 40 minutes, 37 seconds towards densification uh and and going deeper and penetrating existing micro markets. uh we'll 40:45 40 minutes, 45 seconds continue to expand coverage uh uh in a calibrated fashion. Uh but we we do believe that uh the most important micro 40:54 40 minutes, 54 seconds markets have to be one and therefore uh densifying and penetrating them deeper will be priority over proliferation. 41:05 41 minutes, 5 seconds Perfect. And any broad thoughts on getting full coverage in the top cities? 41:12 41 minutes, 12 seconds I think full coverage may not happen even for a long period of time because uh in certain parts of the city it might 41:21 41 minutes, 21 seconds there might not be adequate density for me to be able to have effective cost to serve. So micro markets that we're 41:28 41 minutes, 28 seconds prioritizing are the micro markets which we believe that as we densify we can eventually get those micro markets to break even and eventually become 41:36 41 minutes, 36 seconds profitable even if in the interim they're loss. 41:39 41 minutes, 39 seconds There'll be some parts of the city where just the demand density is so spread out that at least so far we haven't cracked 41:48 41 minutes, 48 seconds the model to serve [clears throat] them well. Um now work on that will continue to happen. Uh but um you know if you 41:57 41 minutes, 57 seconds think about how demand density um and cost to serve plays out in Insta health um is actually far more hyper localal than quick commerce. 42:09 42 minutes, 9 seconds Um and so to that extent uh you know the prioritization playbook here is uh even 42:15 42 minutes, 15 seconds more important. Um yeah, perfect. Uh on the strong India services 42:22 42 minutes, 22 seconds growth, would it be fair to assume that uh some of the Insta Health flywheel is playing out? Any qualitative comments on 42:32 42 minutes, 32 seconds uh how Crossell is playing out with customers who are uh you know Insta Health customers. uh as the app moves to 42:39 42 minutes, 39 seconds the front page uh you know of the phone are we seeing any higher you know repeat usage for those particular cohort of 42:46 42 minutes, 46 seconds customers that could be helping the strong growth in India too early to uh to form a view there but 42:57 42 minutes, 57 seconds if anything we no we think the the the growth is in and of its own merit. 43:04 43 minutes, 4 seconds Got it. Uh and the last question would be uh you know uh given that some level of marketing activity is also started 43:12 43 minutes, 12 seconds for Insta Health uh the the losses that we are posting not not necessarily all of these losses are coming from a CM level of uh you know MG and consumer 43:20 43 minutes, 20 seconds subsidies would there be some amount of spends uh you know on performance marketing or advertising uh you know in a way fixed cost of uh Insta Health. 43:32 43 minutes, 32 seconds Yes, absolutely. And we've mentioned that in the letter as well uh that this quarter saw elevated marketing uh to 43:39 43 minutes, 39 seconds acquire new users uh and build the brand including for the cricket world cup uh and actually all other metrics uh which 43:48 43 minutes, 48 seconds formed part of the loss per order moved in the right direction and moved positively. It was only largely on account of this one metric that the loss 43:55 43 minutes, 55 seconds per order swung in the reverse direction. Uh but everything else actually uh moved in the right direction. 44:02 44 minutes, 2 seconds So to be clear, contribution loss per order was actually down, but it was largely losses from fixed cost. Great. Yeah. 44:10 44 minutes, 10 seconds Thanks. Thanks a lot. I'll get back to the question. 44:17 44 minutes, 17 seconds Thank you. Uh, next question is from the line of Abhishek Patak. Please go ahead. 44:24 44 minutes, 24 seconds Uh, yeah. Hi. Uh, thanks Gimma for the opportunity. Uh, hi team and a great quarter. Uh so my question was uh kind of you know a follow up on on the Insta 44:33 44 minutes, 33 seconds help um offering uh is it fair to assume that uh uh you know as compared to other services which require densification the 44:42 44 minutes, 42 seconds degree of densification required here is far higher because um you know uh uh you know I mean the the the maids etc they 44:50 44 minutes, 50 seconds might not really have modes of transport and uh from that perspective the TAM would probably be even more constrained 44:58 44 minutes, 58 seconds um considering it requires hybrid densification. In that context, considering you know we've got let's say two to three players attacking this 45:05 45 minutes, 5 seconds particular uh um sort of you know time in a very irrational way. um um uh how long uh or rather what are the what are 45:14 45 minutes, 14 seconds the kind of you know uh criteria we set ourselves to in in the sense that when does this market if if it becomes irrational for too long do we choose to 45:22 45 minutes, 22 seconds kind of you know pair back sort of our investments or or do we double down here you know considering insta help can be a 45:30 45 minutes, 30 seconds funnel to um our other offerings which may be slightly sort of you know uh which may have slightly higher tam thank you 45:39 45 minutes, 39 seconds Yeah, short answer to that question is uh [clears throat] you're right. Insta 45:46 45 minutes, 46 seconds Health's density is far more granular compared to core or perhaps any other consumer 45:54 45 minutes, 54 seconds internet business to the best of our knowledge. Um does that constrain the time? maybe uh you know and 46:03 46 minutes, 3 seconds [clears throat] maybe playbooks can evolve to uh serve medium density micro markets as well. Uh so I think that's 46:11 46 minutes, 11 seconds that's to be seen. Um how large as as a as a consequence of that how large is 46:17 46 minutes, 17 seconds the TAM and the size of the prize? Um we don't know and honestly we don't beyond a point like that's not the most 46:26 46 minutes, 26 seconds important thing we're worried about today. Whatever it is we want to win it. 46:30 46 minutes, 30 seconds That's how we think about it. I think we don't have a choice. We have to win and we have to win big. Uh if it's a very large stand, great. If it's a 46:38 46 minutes, 38 seconds medium-sized stand, that's also good for us because uh you know, we have other businesses that uh we live and eat our 46:46 46 minutes, 46 seconds bread off. So, uh this business only helps accelerate those uh and and it plays a certain role in terms of 46:52 46 minutes, 52 seconds frequency and engagement of the app. Um we have discussed and debated this internally and our our view is you know 47:01 47 minutes, 1 second whether it's a midsize dam or a very large dam right now from our perspective uh strategically the only thing that 47:08 47 minutes, 8 seconds makes sense is to attack it uh aggressively and win it. 47:16 47 minutes, 16 seconds That makes sense. But that's how we are thinking about it. 47:21 47 minutes, 21 seconds Like actually thinking about it pretty simply rather than trying to over complicate it. Whatever the size of the time is, we have to win. 47:30 47 minutes, 30 seconds Understood. Thank you. Thank you so much. 47:35 47 minutes, 35 seconds Sure. Thank you. Next in line is Swapnil Puk. Please go ahead. 47:42 47 minutes, 42 seconds Hi. Uh thanks for the opportunity. Uh my first question is with respect to uh uh inshah health versus uh uh international 47:51 47 minutes, 51 seconds markets. Now the question out here is like uh is uh uh winning uh in the insta health market in India more important 47:58 47 minutes, 58 seconds than uh opportunity available in let's say some of the other geographies where your uh services are not available 48:06 48 minutes, 6 seconds beyond UAE and Singapore today and there could be a potential time available there also and with limited competition 48:12 48 minutes, 12 seconds compared to what is happening in install right now. 48:18 48 minutes, 18 seconds Yeah. A good question and strategically when we've mentioned that in the past in a few shareholder letters as well we 48:25 48 minutes, 25 seconds strategically chosen to prioritize India uh and the two overseas markets that we have who owns subsidiaries in UAE and 48:33 48 minutes, 33 seconds Singapore as well as KSA through JB. We are clear we're not launching any other international markets. Um I'm sure the 48:41 48 minutes, 41 seconds opportunity is is is good in some of these markets but from our strategic prioritization standpoint we are focused 48:48 48 minutes, 48 seconds in India and these two markets uh for now and for the foreseeable future. 48:55 48 minutes, 55 seconds So will it be fair to say that till the time you achieve your guidances the near the medium-term guidances uh any 49:02 49 minutes, 2 seconds incremental international geography is broadly out of question. 49:08 49 minutes, 8 seconds Yes, absolutely. And we've said that in one of the part letters and there's many words as well. 49:13 49 minutes, 13 seconds Got it. Uh the second question is with respect to so is there an uh seasonality in your customer marketing expenses for 49:20 49 minutes, 20 seconds the uh India uh business uh because it seems from 3Q to 4K for the last two years these costs have been uh increased on a you know quarterly basis. 49:33 49 minutes, 33 seconds for me I'll launch that yes there is some seasonality in our marketing spend and the dat so typically as a mentioned 49:41 49 minutes, 41 seconds you know Q1 and Q3 are the quarters where we see a lot of consumer activity uh and before the beginning of those 49:48 49 minutes, 48 seconds quarters you know and some to some extent during the quarter we do increase our marketing spend at that time overall if you've seen uh we have seen 49:56 49 minutes, 56 seconds consistent operating leverage on our marketing spends over the last couple of years but yes in the year there are there are spikes depending on when the season is about to start. 50:08 50 minutes, 8 seconds Got it. Got it. 50:10 50 minutes, 10 seconds Thank you guys. Uh those were my questions u and all the rest. 50:17 50 minutes, 17 seconds Thank you. Uh next in line is Pray Jen. Please go ahead. Um hi am I audible? Yes. 50:26 50 minutes, 26 seconds Okay. Thank you for the opportunity. Uh so I have three questions. Uh my first question is uh could you help us 50:32 50 minutes, 32 seconds understand you know how the instant um India India consumer [clears throat] business uh works operationally like how 50:41 50 minutes, 41 seconds do you transition from a scheduled services marketplace to an instant service uh model like do you require 50:48 50 minutes, 48 seconds excess capacity initially in order to you know um do like ensure timely supply that's my first question and I'll then 50:56 50 minutes, 56 seconds follow it up with the other Yeah. No, great question. Um, and 51:05 51 minutes, 5 seconds how this works. Um, I I won't go into the hip level of detail here, but um, it's a reasonable change management that 51:13 51 minutes, 13 seconds we do at the back end. uh operationally uh realigning the micro markets uh in 51:20 51 minutes, 20 seconds terms of their size, realigning partner expectations, calendar management uh availability etc etc before we flip a 51:28 51 minutes, 28 seconds micro market in the category and [clears throat] make the instant proposition available there. We also have to ensure that there is adequate supply and demand and density therein. 51:37 51 minutes, 37 seconds The interesting point here is that uh and you've shown this in in in our letter as well. We're achieving this with increasing utilization on the 51:45 51 minutes, 45 seconds supply side and not decreasing utilization. So conventional wisdom would say that in order to offer instant you'll have to keep slack and therefore 51:53 51 minutes, 53 seconds utilization should fall. Um what we're experiencing is that utilization is actually improving. That's because we're offering instant in the sweet spot of 30 52:01 52 minutes, 1 second to 60 minutes. um which is uh which doesn't require us to break the back on capacity and utilization and if anything 52:09 52 minutes, 9 seconds those orders uh see fewer cancellation rates visually scheduled orders and you know backto-back packing and efficiency 52:17 52 minutes, 17 seconds is better and consequently we're actually seeing better utilization uh as a result of that instant roll out. Um 52:25 52 minutes, 25 seconds so it's a it's a real win-win uh in our view. um you know it helps improve uh packing efficiency and overall 52:34 52 minutes, 34 seconds utilization for partners and consequently improve their earnings. Uh it helps bring down time to serve for end consumers and it's also more 52:41 52 minutes, 41 seconds profitable for us. Um obviously if we were to take the core marketplace also all the way to 10 minutes uh that would 52:49 52 minutes, 49 seconds meet what you're seeing which is which is keep a lot of excess capacity but we don't think that's needed. Um we think 30 to 60 minutes is adequate for most of 52:57 52 minutes, 57 seconds our core services. As long as we can deliver that reliably um consumers are uh are happy with that with that change and shift. 53:07 53 minutes, 7 seconds Got it. Understood. Uh thank you for that. Uh my second question is uh on the fact that you know uh you've spoken 53:15 53 minutes, 15 seconds about it earlier as well and even this shareholder letter that there is a there is deep trust that is embedded in the 53:23 53 minutes, 23 seconds model. Given that professionals spend significant time inside uh the homes of the consumers, customers u but at the 53:31 53 minutes, 31 seconds same time we are seeing new uh instant service platforms also enter and they are also gaining a reasonable amount of customer acceptance. 53:40 53 minutes, 40 seconds Uh so do you think the uh comfort of the customer with allowing uh service professionals into their home is becoming more standardized over time across platforms? 53:53 53 minutes, 53 seconds I think at the end of the day any player that executes well on quality on on safety on trust and doesn't take the 54:01 54 minutes, 1 second customers trust for granted uh can eventually gain acceptance and uh you know uh we don't make any tall claims 54:08 54 minutes, 8 seconds that we'll be the only player who will enter the homes of the customers. We're certainly one of the trusted players in our view. Uh we also think to be able to 54:16 54 minutes, 16 seconds do this across 60 plus categories and hundreds of micro markets in categories in our core business where the complexity of the business is much 54:24 54 minutes, 24 seconds higher in terms of training, in terms of tooling, SOPs etc. uh is not a mean feat. Um 54:32 54 minutes, 32 seconds sometimes easy to exclude that in a single category business uh but not so much across multiple categories. And therefore historically we've also seen 54:41 54 minutes, 41 seconds competition limited to one or two verticals rather than the entire horizontal skew. Now it's always possible that you know over time players 54:49 54 minutes, 49 seconds emerge in the entire horizontal school which is okay. At the end of the day competition keeps us honest you know keeps us uh charged up and uh deliver 54:58 54 minutes, 58 seconds best services to the end consumers. So it's a very large market as we've emphasized multiple times in the past. 55:05 55 minutes, 5 seconds Uh the total market is more than five lakh crores. uh we're still a very very small percentage of that market uh sub 55:12 55 minutes, 12 seconds 1% and uh you know I think uh if anything the focus should be on how do we keep growing the pie uh versus uh you 55:20 55 minutes, 20 seconds know zero sum of how we break a small pie today between players 55:27 55 minutes, 27 seconds right uh makes sense um the last question is on the international business could you elaborate on the 55:34 55 minutes, 34 seconds competitive landscape across your key markets uh given that these markets are relatively more organized and structured. You know, who are your key competitors over here? 55:45 55 minutes, 45 seconds Yeah, I think um in [clears throat] uh in uh UAE uh we have one more uh 55:54 55 minutes, 54 seconds competitor major I mean there are lots of players but there's uh there is a company called just life uh who has been 56:02 56 minutes, 2 seconds around in the market uh for as long as we have a little bit longer than us um pretty decent players um we do have 56:11 56 minutes, 11 seconds respect for them and and we've learned a lot from them and they've learned a lot from Um and um we believe that the 56:19 56 minutes, 19 seconds competition in that market has been quite healthy and both players are growing well um and that market continues to be very attractive from a 56:27 56 minutes, 27 seconds long-term growth and uh margin attractiveness standpoint. Um so uh I think that's an interesting and 56:35 56 minutes, 35 seconds exciting market. Um uh in Singapore there are also small players uh nobody meaning to call out. Um again a very 56:44 56 minutes, 44 seconds very exciting market uh growing well for us profitably. 56:48 56 minutes, 48 seconds Uh both the markets I think uh you know the headroom for growth is meaningful. 56:53 56 minutes, 53 seconds Uh we're growing profitably. Our proposition continues to improve year after year. Uh the same playbook of faster, cheaper, better is playing out 57:01 57 minutes, 1 second in those markets as well. if anything in an accelerated fashion uh because the demand density um 57:09 57 minutes, 9 seconds you know operates on steroids in some sense in both these markets. So um you know we're quite excited by how our international business is shaping up 57:17 57 minutes, 17 seconds across these two markets. Saudi we don't recognize revenue but that business is also shaping up very well. We've disclosed the numbers and as you can see 57:25 57 minutes, 25 seconds the growth is in the right direction, margins are improving. We now believe we have a clear line of sight to towards profitability uh in our joint venture in 57:34 57 minutes, 34 seconds Saudi Arabia as well and u we're quite excited by that. 57:40 57 minutes, 40 seconds Got it. Uh thank you for the answers and all the best for the coming quarters. Thank you. 57:48 57 minutes, 48 seconds Next question is from the line of Deepak Saha. Please go ahead. 57:58 57 minutes, 58 seconds Hi, thanks for the opportunity. Am I audible? Yeah. Yes, you could. Please go ahead. 58:02 58 minutes, 2 seconds Yeah. Uh so first of all, congratulations on get great set of numbers. My uh only question I have on the international side. What I understood for the international 58:10 58 minutes, 10 seconds business, you very beautifully laid out the fact that how your you know the subscription model has played out and uh 58:18 58 minutes, 18 seconds meaningfully contributing to the overall uh numbers there. If you just can lay out what are the drivers that are working well for subscription model 58:26 58 minutes, 26 seconds there and how can or or and and secondly how can we apply that model here if at all um the the the dynamics allow us to 58:35 58 minutes, 35 seconds do that these are the two questions I have initially yeah that's a good question so deep one 58:42 58 minutes, 42 seconds of the main services for us one fairly important service in both UA and Singapore is cleaning deep cleaning of 58:50 58 minutes, 50 seconds the home. Um, and while some households there have permanent house health, uh, as you can 58:58 58 minutes, 58 seconds imagine, a lot of households don't, and therefore they rely on platforms like us, all local players, offline players, 59:05 59 minutes, 5 seconds and the larger unorganized market to get uh, weekly, bi-weekly, fortnightly, monthly, or once in a while deep cleaning done. 59:14 59 minutes, 14 seconds uh we've been able to launch uh subscription programs that lock in essentially these households and users into more high frequency deep cleaning. 59:23 59 minutes, 23 seconds Um so for example in UAE many of our users use our deep cleaning um not just once in a while but maybe on a weekly or 59:32 59 minutes, 32 seconds fortnightly basis and quite a few of them use it multiple times a week as well. Um and that actually accelerates the growth of the business. Uh similarly 59:40 59 minutes, 40 seconds in Singapore uh while the subweekly use case for our deep cleaning uh is not prevalent many users use us on a weekly 59:47 59 minutes, 47 seconds or fortnightly basis and these users get locked into subscription programs and then uh you know it becomes sort of an annotylike business. Uh some of those 59:56 59 minutes, 56 seconds learnings will certainly be helpful for us here in India as well. We are toying with and experimenting with cleaning subscriptions. Uh I believe over time we 1:00:04 1 hour, 4 seconds will experiment with versions of these in Instagram as well. Um and we also have funding programs in India uh which 1:00:12 1 hour, 12 seconds take a leap for the playbook in our international markets. So many learnings for us uh from these two markets. 1:00:19 1 hour, 19 seconds Got it. That's helpful. Uh just in the same context when we see Insta help uh you you mentioned that for 10% of the 1:00:27 1 hour, 27 seconds users you have eight times monthly orders uh and and for 1% of the top users you have 21 times right. So is 1:00:34 1 hour, 34 seconds there a scope I know it's pretty early days but is there a scope of um enabling any subscription model for Insta Health in India? 1:00:42 1 hour, 42 seconds I'm sure it's possible. I'm sure the scope is there. 1:00:47 1 hour, 47 seconds Super super fine. And and last question on Insta Health side um uh on the payment side right so the the payouts 1:00:54 1 hour, 54 seconds that we're doing to our professionals so just trying to understand because the volume has gained meaningfully say 3 months ago and currently is there is 1:01:03 1 hour, 1 minute, 3 seconds there any change in the structure of payment as far as fixed payment is concerned and and job specific um uh variables are concerned uh is there uh 1:01:11 1 hour, 1 minute, 11 seconds any any uh specific change which can improve the cost dynamics depending upon uh successfully delivered services or jobs. 1:01:20 1 hour, 1 minute, 20 seconds Yeah, we keep we keep experimenting and toying with with various structures tactically that we believe are sort of best suited 1:01:28 1 hour, 1 minute, 28 seconds to win different micro markets and and keep supply engaged and depending upon the supply and demand situation in the particular micro market in a particular 1:01:37 1 hour, 1 minute, 37 seconds point in time um you know we're we're quite nimble with with some of these changes. So does it have any fixed 1:01:44 1 hour, 1 minute, 44 seconds component or gradually you're moving to a lower fixed component in that context? 1:01:51 1 hour, 1 minute, 51 seconds I mean there's a per hour payout uh essentially uh but that can vary based on the quality of the service professional and the particular micro 1:01:59 1 hour, 1 minute, 59 seconds market and time of the day and time of the week. It's quite dynamic. 1:02:04 1 hour, 2 minutes, 4 seconds That's that's really helpful. Thanks a lot. Last question from my end uh on the user side. So say Insta help and consumer services business right. So are 1:02:13 1 hour, 2 minutes, 13 seconds we seeing incrementally uh any new users coming solely for Insta Health and again you are able to cross utilize it for consumer or it's the other way around? 1:02:22 1 hour, 2 minutes, 22 seconds It's both. 1:02:24 1 hour, 2 minutes, 24 seconds Okay. Okay. Okay. Any distribution you would like to you know lay out uh in terms of proportion somewhere more uh it's the core business uh higher 1:02:33 1 hour, 2 minutes, 33 seconds proportion leading to insta help uh incrementally or it's the other way? No not right now. 1:02:38 1 hour, 2 minutes, 38 seconds Okay fine. Thank you. That's really and all the best Wi-Fi 27. Thank you so much. Thank you. 1:02:45 1 hour, 2 minutes, 45 seconds Thank you. Uh that was the last question for today and we would like to close the call here. Uh thank you members of the 1:02:52 1 hour, 2 minutes, 52 seconds management and all participants for joining Urban Company's results call. You may now disconnect your lines. 1:03:00 1 hour, 3 minutes Thank you.