Shares of Urban Company jumped nearly 18 per cent in early trade on Monday after brokerages highlighted strong growth, improved execution and profitability prospects despite the company reporting a consolidated net loss for the June quarter.At 9.33 am, the stock traded at ₹151 on the NSE after hitting an intraday high of ₹152.21.The home services platform reported a consolidated net loss of ₹92.12 crore for Q1FY27, compared with a consolidated net profit of ₹6.94 crore in the year-ago period. Its consolidated revenue from operations rose 43.9 per cent to ₹528.34 crore.Morgan Stanley upgraded Urban Company to overweight from underweight and raised its target price to ₹165 from ₹128.The brokerage said the company is a re-rating candidate, driven by structural expansion in growth rates in its India consumer services business excluding insta and its international business.It said confidence in profitability across segments has improved due to strong execution and that it is assigning higher weight to execution than competition for insta.Morgan Stanley added that profitability targets could be achieved sooner than management guidance, although elevated losses in Instahelp could force consolidation sooner.It also expects return on capital employed to normalise at over 20 per cent in the steady state and said the valuation starting point has become reasonable following a large underperformance.Morgan Stanley had earlier maintained an underweight rating with a target price of ₹128, saying growth exceeded expectations due to AI-led cost savings and operating leverage in the core India business.The brokerage noted that management maintained its outlook for core margins at 9-10 per cent of NTV and consolidated breakeven by Q3FY28, while adding that the international business was impacted by a soft April due to geopolitical disruption.Published on August 3, 2026