- Urban Company shares surged over 17% on August 3, hitting an intraday high of ₹152.21 on the NSE, following a double upgrade from Morgan Stanley.
- Morgan Stanley double-upgraded Urban Company from Underweight to Overweight and raised its target price from ₹128 to ₹165, citing strong business growth.
- Urban Company reported a net loss of ₹92 crore in Q1 FY27, a significant drop from a profit of ₹6.94 crore in the same quarter last year.
- InstaHelp's loss widened to ₹132 crore from ₹119 crore in Q4 FY26, although EBITDA loss per order improved.
- Urban Company's consolidated revenue increased by 44% year-on-year to ₹528 crore during the quarter.
- Other brokerages like JM Financial and Ambit retained cautious views with target prices of ₹135 and ₹91 respectively.
- Urban Company announced its Q1 earnings report after the market hours on Friday, July 31.
- InstaHelp crossed 100,000 delivered orders in a single day on August 2, reflecting strong consumer demand.
Urban Company shares surged 17% to ₹152.21 on August 3, following a double upgrade from Morgan Stanley, which raised its target price from ₹128 to ₹165. Despite a Q1 net loss of ₹92 crore, down from ₹161 crore in the previous quarter, the company reported a 44% year-on-year revenue growth to ₹528 crore.1
Morgan Stanley's analysts highlighted the company's structural expansion in its core India consumer services and international operations, expressing confidence in profitability across segments. They noted that profitability targets could be achieved sooner than management's guidance, with elevated losses in the InstaHelp segment potentially prompting earlier consolidation.
The stock has shown strong performance, gaining 12% in one week and 11% in one month, reflecting investor optimism despite the recent losses. Urban Company's market capitalization stands at ₹22,765.67 crore, and the stock is trading nearly 48% higher than its IPO price of ₹103, although it remains 24% below its all-time high of ₹201. Analysts remain cautious, citing limited visibility on profitability and the need for continued investments in InstaHelp, which has seen a significant increase in order volume, delivering 100,000 orders in a single day recently.
Overall, while Urban Company faces challenges, the recent upgrade and revenue growth signal potential for recovery and future profitability.
“InstaHelp crossed 100,000 delivered orders in a single day on August 2, with CEO Abhiraj Singh Bhal citing growing demand, but the segment's loss widened to Rs 132 crore. JM Financial kept a 'reduce' call with a Rs 135 target, citing near-term sustainability challenges.”
