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Business Desk – Urban Company Share: A sharp rise was seen in the Urban Company Share Price on Thursday. The company's shares were trading at Rs 144.67 with a rise of more than 4%. This surge in the stock has come after the news of a big Block Deal.

According to reports, SBI Mutual Fund (SBI MF) has bought about 3.15 crore shares of Urban Company. This deal is said to be worth around Rs 428 crore. Through this deal, SBI MF is expected to get about 2% additional stake in the company.

SBI MF increases stake in Urban Company

According to the information received, SBI Mutual Fund has planned to buy 3.15 crore shares of Urban Company. In this deal worth about Rs 428 crore, Urban Company's early investors Accel and VY Capital (Dharana Capital) can sell some of their shares.

That is, this transaction is mainly like Secondary Share Sale, in which existing investors sell their shares and the buyer gets a stake in the company. SBI MF is already an investor in Urban Company. SBI MF has had stake in the company since before its IPO. Urban Company was listed in the stock market in September 2025.

SBI MF's stake had reached 6.59%

According to available data, SBI Mutual Fund held about 1.89% stake in Urban Company in December 2025. By June 2026, this share will increase to about 6.59%.

Now after the new purchase of 3.15 crore shares, the stake of SBI MF is expected to increase further. However, the picture will be completely clear only after the official information about all the parties involved in the deal and the final share is available.

Shares surge due to deal worth Rs 428 crore

This block deal is believed to be the main reason for the rise in the shares of Urban Company on Thursday. Investors often see the news of a big institutional investor buying a stake in the market as a positive sign towards the company.

However, one should not decide to invest in shares only on the basis of purchasing a big fund. It is also important to look at the company's Valuation, Profitability, Revenue Growth and Future Business Outlook.

Urban Company suffered a loss of Rs 92 crore instead of profit.

Talking about the recent Quarterly Results of Urban Company, the company suffered a Consolidated Net Loss of Rs 92 crore in the April-June quarter of the financial year 2027. In the same quarter a year ago, the company had registered a profit of about Rs 7 crore. This means that the pressure on the company's profitability has increased in this quarter.

Revenue increased by 44% to Rs 528 crore

Despite the losses, the company has seen good growth in its revenue. In the April-June quarter, Urban Company's revenue increased by 44% year-on-year to Rs 528 crore. The company's revenue was less than this in the same quarter last year. That means the company's business is growing, but profitability has been affected due to expenses increasing faster than revenue growth.

Expenses increased by 66.5% to Rs 640 crore

Urban Company's total expenses in Q1FY27 increased by 66.5% year-on-year to Rs 640 crore. The total income of the company increased by about 42% to Rs 566 crore. That means the increase in the company's expenses was much faster than its income growth. This is the reason why despite increase in revenue, the company suffered a huge net loss in this quarter.

Now investors have their eyes on these 3 things

Urban Company's shares have definitely gained momentum due to the purchase of SBI MF, but going forward investors will mainly keep an eye on the final stake of SBI MF, the company's profitability and reduction in expenses. If the company is successful in controlling its expenses and reducing losses along with revenue growth, it could be a positive sign for the stock. At the same time, increasing expenses and continuous losses may remain a matter of concern for investors.