Re-rating candidate: double upgrade to OW

Research evidence excerpt

Re-rating candidate: double upgrade to OW

Idea

August 3, 2026 12:49 AM GMT

Morgan Stanley India Company Private Limited+MUrban Co Limited | Asia Pacific Gaurav Rateria

Equity Analyst

Re-rating candidate: double Gaurav.Rateria@morganstanley.comSulabh Govila, CFA +91 22 6118-2237

Sulabh.Govila@morganstanley.com +91 22 6118-2249

upgrade to OW Sakshi Rana

Research Associate

What’s Changed Sakshi.Rana@morganstanley.com +91 22 6118-1002

Shreshtha Chopra

Urban Co Limited (URBN.NS) From To Research Associate

Rating Underweight Overweight Shreshtha.Chopra@morganstanley.com +91 22 6118-2227

Price Target Rs128.00 Rs165.00

Highlights: 1) Structural expansion in its growth rates in India

consumer services ex insta and international business. 2)

Confidence on profitability across segments improved with

Urban Co Limited (URBN.NS, URBANCO IS)

strong execution. 3) Assigning higher weight to execution

India Technology | India

(internal factor) vs competition (external factor) for insta. Stock Rating Overweight

Industry View In-Line

Price target Rs165.00

Key Takeaways Up/downside to price target (%) 28

Shr price, close (Jul 31, 2026) Rs129.39

India services (ex Insta) NTV growth to accelerate to 24% CAGR over F26-28e 52-Week Range Rs201.18-100.70

Sh out, dil, curr (mn) 1,557

Profitability targets could get achieved sooner than management guidance Mkt cap, curr (mn) Rs201,398

EV, curr (mn) Rs201,398

Elevated losses in Instahelp could force consolidation sooner Avg daily trading value (mn) Rs1,190

ROCE to normalize at 20%+ on steady state Fiscal Year Ending 03/26 03/27e 03/28e 03/29e

EPS (Rs)** (1.51) (2.61) (0.72) 1.49

Starting point of valuation has become reasonable following a large Prior EPS (Rs)* - (1.62) (0.25) 1.74

underperformance Revenue, net (Rs mn) 15,556 21,514 28,253 35,741