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

Shares of Urban Company jumped as much as 8.1% to ₹157.35 apiece on the BSE after global brokerage UBS initiated coverage on the home services platform with a ‘Buy’ rating and a target price of ₹180. 

The stock later pared some of its gains to trade 7.32% higher at ₹156.35 apiece at 12:35 IST. The company’s market capitalisation stood at ₹24,110 Cr (about $2.5 Bn). 

UBS said India’s online home services market may be approaching its “Blinkit moment”, indicating that the sector could be entering a phase of accelerated online adoption and growth. 

The brokerage expects Urban Company’s NTV to grow at a CAGR of 32% from ₹4,300 Cr in FY26 to about ₹10,000 Cr by FY29. 

It said Urban Company’s strong product-market fit, balance sheet, execution track record, and focus on unit economics provide the company with a strong base for growth. 

UBS also expects InstaHelp, Urban Company’s instant home services vertical, to reach break-even earlier than the company currently anticipates.  The brokerage believes investors are “under-appreciating the growth acceleration opportunity” at Urban Company. 

The UBS report comes weeks after Morgan Stanley upgraded Urban Company to ‘Overweight’ and raised its target price to ₹165 from ₹128, citing improving growth momentum in the company’s core India consumer services business and international operations. 

Meanwhile, Urban Company’s Middle East arm has partnered with Unicommerce Esolutions to support its ecommerce operations in Saudi Arabia and the UAE.

Under the partnership, Urban Company will use Unicommerce’s Uniware platform to manage inventory and fulfilment for its at-home services business. The system will provide real-time inventory visibility and help route service kits and consumables to service professionals.

The move comes as the company continues to expand overseas. Urban Company’s international NTV rose 76% YoY in the June quarter, with its UAE and Singapore operations reporting profitable growth.

InstaHelp Weighs On Earnings 

Urban Company reported a consolidated net loss of ₹92.1 Cr in Q1 FY27 as against a net profit of ₹6.9 Cr in the year-ago quarter, as it continued investing heavily in InstaHelp. However, loss narrowed from ₹161.2 Cr in Q4 FY26. 

Operating revenue jumped 43.9% YoY to ₹528.3 Cr during the quarter. 

Urban Company reported an adjusted EBITDA loss of ₹65 Cr in Q1 FY27 compared with an adjusted EBITDA profit of ₹21 Cr in the year-ago quarter. Excluding InstaHelp, the company posted an adjusted EBITDA profit of ₹67 Cr, more than double the ₹31 Cr reported a year earlier. 

InstaHelp’s revenue increased 26% QoQ to ₹11 Cr, but its adjusted EBITDA loss widened to ₹132 Cr. Urban Company invested ₹132 Cr in the business during the quarter as it focused on scaling the service and building market share.

The vertical delivered 3.82 Mn orders during the quarter, up 43% QoQ, while its NTV rose 32% sequentially to ₹53 Cr. 

Urban Company’s core India consumer-services business continued to improve, with NTV rising 29% YoY to ₹1,056 Cr. The segment crossed ₹1,000 Cr in quarterly NTV for the first time, while its adjusted EBITDA margin expanded to 6.9% from 5.2% a year earlier.

During the company’s earnings call, CEO and cofounder Abhiraj Singh Bhal pegged InstaHelp’s addressable market at ₹7,000 Cr-₹12,000 Cr across India’s top 15 cities. However, he said the vertical is structurally lower-margin than Urban Company’s core operations and is unlikely to become profitable over the next five years. 

Urban Company ended the quarter with ₹2,019 Cr in cash and treasury investments. It retained its guidance of achieving consolidated adjusted EBITDA break-even by Q3 FY28 and ₹1,000 Cr in adjusted EBITDA by FY31. 

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