Urban Company Jumps 8% As UBS Sees ‘Blinkit Moment’ In Home Services

Urban Company's shares surged nearly 8% on the BSE after global brokerage UBS initiated coverage with a 'Buy' rating and set a target price of ₹180. The stock's value swelled to ₹156.35 at one point before settling back around ₹156. UBS anticipates India's online home services market may be entering a "Blinkit moment," potentially experiencing rapid growth.

The brokerage projects Urban Company's NTV will grow at a 32% CAGR from ₹4,300 Cr in fiscal 2026 to about ₹10,000 Cr by fiscal 2029. UBS highlighted the company's strong product-market fit, solid financial footing, and execution prowess as key growth drivers. InstaHelp, Urban Company's fast-growing instant home services division, was expected to reach profitability earlier than anticipated, according to UBS.

The brokerage believes investors have undervalued the potential for accelerated growth at Urban Company. This report follows Morgan Stanley's upgrade to 'Overweight' and a target price increase to ₹165, citing strong growth prospects in both India and internationally. Urban Company's Middle East arm has also teamed up with Unicommerce Esolutions to bolster its ecommerce operations in Saudi Arabia and the UAE.

The partnership leverages Unicommerce's Uniware platform for inventory and fulfillment management. Despite a significant net loss in Q1 FY27, driven by heavy investments in InstaHelp, the company's adjusted EBITDA loss narrowed from ₹161.2 Cr in Q4 FY26 to ₹65 Cr. Excluding InstaHelp, Urban Company reported an adjusted EBITDA profit of ₹67 Cr in Q1 FY27, more than double its previous year's figure.

The instant services segment saw a 26% quarter-over-quarter order increase and a 32% sequential NTV rise to ₹53 Cr. While InstaHelp is expected to take time to become profitable, Urban Company remains optimistic about its long-term growth potential, with the company aiming to break even on its adjusted EBITDA by Q3 FY28 and achieving ₹1,000 Cr in adjusted EBITDA by FY31.