1QF27 – first cut: growth acceleration in core Indian consumer services ex Insta surprises positively

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M

Update

July 31, 2026 12:08 PM GMT

Morgan Stanley India Company Private Limited+

Urban Co Limited | Asia Pacific

Gaurav Rateria

Equity Analyst

1QF27 – first cut: growth

acceleration in core Indian

consumer services ex Insta

surprises positively

Sulabh Govila, CFA

Equity Analyst

Sakshi Rana

Research Associate

Shreshtha Chopra

Research Associate

AlphaSignals Earnings Reaction

Weakens our thesis

Modest upside

Modest revision higher

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Urban Co Limited (URBN.NS, URBANCO IS)

India Technology | India

Rs734mn losses….

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Jul 30, 2026)

52-Week Range

Sh out, dil, curr (mn)

Mkt cap, curr (mn)

EV, curr (mn)

Avg daily trading value (mn)

...led largely by a ~20% beat in adjusted EBITDA of Indian consumer services ex

Fiscal Year Ending

03/25 03/26e 03/27e 03/28e

Insta.

EPS (Rs)**

Prior EPS (Rs)*

Revenue, net (Rs mn)

EBITDA (Rs mn)

ModelWare net inc (Rs

mn)

P/E

P/BV

RNOA (%)

ROE (%)

EV/EBITDA

FCF yld ratio (%)**

Leverage (EOP) (%)

1.65 (1.51) (1.62) (0.25)

11,445 15,556 21,194 26,922

(507) (2,658) (3,731)

(922)

2,398 (2,345) (2,539)

(391)

Key Takeaways

Consolidated revenue of Rs5.3bn (+24.1% qoq, +43.9% YoY) beat our estimate by

6.8%.

Consolidated adjusted EBITDA loss was Rs650mn, better than our forecast of

Consolidated adjusted EBITDA ex Instahelp was Rs670mn (vs. our Rs575mn

estimate).

Management maintained outlook:

• Core Indian business margin outlook of 9-10% of NTV,

• Consolidated adjusted EBITDA of Rs10bn by F31, and

• Adjusted EBITDA break-even by 3QF28 at the consolidated level.

Details:

Indian consumer business ex Insta – broad-based growth across services: NTV

(6.5)

18.5

NM

(3.4)

Underweight

In-Line

Rs128.00

(2)

Rs130.50

Rs201.18-100.70

1,557

Rs203,126

Rs197,588

Rs1,195

NM

8.6

(15.5)

(13.1)

NM

(0.6)

(5.6)

NM

10.2

(20.9)

(11.8)

NM

(0.0)

(8.9)

NM

9.8

(8.4)

(1.9)

NM

0.3

(13.9)

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

…