The block transaction involved shares equivalent to around 2% of Urban Company’s outstanding equity. The shares changed hands at an average price of ₹136 apiece, taking the total transaction value to around ₹428 crore.
State Bank of India Mutual Fund (SBI MF) has bought the 3.15 crore shares, representing a 2% stake in Urban Company, while early investors including Accel and Vy Capital, also known as Dharana Capital, are understood to be the sellers, according to reports.
The transaction was executed at a discount of around 6% to Urban Company’s prevailing market price.
SBI MF is already an investor in Urban Company and has been steadily increasing its stake since participating in the company’s pre-IPO funding rounds ahead of its September 2025 listing.
SBI MF held a 1.89% stake in Urban Company as of December 2025, which increased to around 5.9% by March 2026. Following the latest transaction, its holding is expected to rise to around 8%.
Last week, Morgan Stanley double-upgraded Urban Company’s stock to ‘Overweight’ from ‘Underweight’, with the brokerage initiating coverage on the stock at ‘Underweight’ in October 2025. It also raised its price target to ₹165 from ₹128.
Urban Company reported strong growth in its core business for the June quarter, with revenue rising 44% year-on-year to ₹528.34 crore. However, its net loss widened to ₹92 crore during the quarter, while EBITDA losses also increased.Revenue from the India business grew 31% YoY, while margins expanded to 23% from 14.8% a year ago. The company’s Native business revenue grew 60% YoY, with its EBIT loss narrowing, while international business revenue increased 82% and turned EBIT-positive compared with a loss in the year-ago period.
For InstaHelp, Urban Company’s orders jumped 43% sequentially to 3.82 million. Its EBITDA loss per order narrowed to ₹346 from ₹447 in the previous quarter, although average order value declined to ₹138 from ₹150.
Management expects losses to remain elevated as it continues to prioritise market leadership over profitability.
Seven analysts currently cover Urban Company, with two each having ‘Buy’ and ‘Sell’ ratings and the remaining three maintaining ‘Hold’ recommendations.
Shares of Urban Company were trading 3.75% higher at ₹144.26 on Thursday. The stock remains below its post-listing high of ₹201 but has recovered significantly from its post-listing low of ₹100.70.
