Target: ₹190

CMP: ₹168.50

We initiate coverage on Urban Company with BUY and DCF-based SOTP TP of ₹190. Urban Company is the leader of India’s online home services market, whose large TAM and highly unorganised nature provide the company with a long growth runway.

Increasing demand density in micro-markets is driving consumer satisfaction as well as partner wages, thereby reinforcing the flywheel. This has led to accelerating growth, and we build in 19.8 per cent FY26-29E net transaction value (NTV) CAGR for India consumer services, ex-InstaHelp (ICS). With high operating leverage, we build in 47.4 per cent adjusted EBITDA CAGR over FY26-29E for ICS.

While the street is concerned about Urban Company’s InstaHelp foray given the upfront cash burn, we believe this is the right playbook to improve platform stickiness and drive cross-sell. Urban Company has the opportunity to capture a large TAM and increase frequency of platform use, which should create a sticky business.

Considering the company is incubating InstaHelp and Native, and international business profitability is suboptimal, we expect Urban Company to turn profitable only in FY30. The stock trades at 10.4x/8.3x FY28E/FY29E revenue.

Key risks: Intense competition in the InstaHelp segment; legal or regulatory changes for service professionals/gig workers; litigation risks; and service partner availability and cost inflation.

Published on August 24, 2026


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Shin John
Shin JohnYtv Market News
Share-market news writer and analyst with deep experience covering equities, commodities, forex, and cryptocurrencies for readers in the USA, UK, Canada, and Australia. Ytv Market News delivers timely market updates, practical trading insights, and clear explanations of macro and company-level catalysts that move prices. Combines on-the-ground financial reporting with technical analysis, using concise charts and actionable ideas to help investors and traders make smarter decisions.