Morgan Stanley has maintained its underweight rating on home-based services provider Urban Company Ltd, while raising its target price to Rs 128 from Rs 120. The current market price is 137.80 and the revised target price implies a downside of about 7.1%.
The brokerage said Urban Company's fourth-quarter performance reflected good execution and a strong intent to win in the instant services market. It noted that the biggest takeaway from the quarter was that the company's business moats have become stronger than before.
However, Morgan Stanley said the battle for the instant services market is turning increasingly serious, especially after strong capital raising by private peers. This could keep competitive intensity high and force companies to invest more aggressively. The brokerage expects investment levels to remain elevated for a longer period, despite the company's improved execution and strengthening market position.
Out of seven analysts tracking the company, one maintain a 'buy' rating, three maintain a "hold", and three maintain a "sell" rating, according to Bloomberg data. The average 12-month consensus price target of Rs 133.14 implies an upside of 5.9%
Urban Company Q4 Earnings
Urban Company has posted widening of consolidated loss to Rs 161 crore for March quarter FY26 mainly on account of investment in new service InstaHelp. The company had posted a loss of Rs 2.84 crore in the same period a year ago, as per a regulatory filing.In contrast, revenue from operations surged 42.6% to Rs 426 crore, compared to Rs 298 crore year-on-year. However, the expansion in scale was accompanied by a widening of operational losses; EBITDA loss stood at Rs 114 crore versus a loss of Rs 9.9 crore in the previous year.
InstaHelp exited the fourth quarter with around 27 lakh orders with March alone crossing 11 lakh orders and net transaction value (NTV) of Rs 40 crore from near-zero at the start of FY26, Urban Company, Founder and CEO, Abhiraj Singh Bhal said.
For the year ended March 31, 2026, Urban Company posted a loss of around Rs 235 crore compared to a profit of Rs 239.76 crore a year ago. Revenue from operations grew by about 36% to Rs 1,555.54 crore.
ALSO READ: Urban Company Q4 Results: Net Loss Rockets Even As Revenue Jumps 43%
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