Urban Company shares gained 5% following UBS's initiation of a 'buy' rating with a target price of ₹180. According to reports from UBS, the brokerage highlighted the company's strong growth potential supported by its leadership position in India's online home services market. The company currently serves 84 lakh users and maintains 59,000 service providers across its platform.
Shanthi Gears shares surged 37.5% over two trading sessions, extending gains from the previous session where it had already surged 19.99%. The stock opened 14.59% higher at ₹532 on the National Stock Exchange and extended gains to hit an intraday high of ₹532 on Monday. As per The Economic Times, the latest rally was fuelled by Tube Investments acquiring an additional 2.69% stake in Shanthi Gears through a block deal, taking its holding to 73.16% from 70.46%. The shares were acquired through an all-cash block deal for approximately ₹77.49 crore, with the transaction not classified as a related-party transaction and no regulatory approvals required.
RailTel Corporation shares rose more than 2% after securing a significant work order worth ₹164.78 crore from Western Coalfields. According to reports, the contract involves the establishment of an MPLS VPN network on a rental basis for a 60-month period. This substantial order demonstrates RailTel's growing presence in the infrastructure sector.
Despite the stock surge, Shanthi Gears reported weak quarterly results in the recently concluded June quarter. For Q1 FY27, the company reported a PAT of ₹14.17 crore, down more than 50% compared to ₹30.62 crores in Q1 FY26. Revenue declined by nearly 15% year-on-year to ₹115.49 crore. The company's EBITDA fell 52% to ₹15 crore compared with ₹31 crore in the year-ago period, while the EBITDA margin contracted to 13% from 23%. The company's Gears and Gear Products business revenue stood at ₹115.13 crore against ₹134.70 crore in the previous cycle. The size of unexecuted order book stood at ₹378 crores as on June 30, 2026. As per Business Standard, Shanthi Gears is part of the Chennai-based Murugappa Group and specializes in design and manufacture of Gears, Gear boxes, Geared Motors, and Gear Assemblies, with turnover of ₹518.72 crore as of March 31, 2026.
For FY26, revenue declined 14% to ₹519 crore compared with ₹605 crore in FY25. EBITDA fell 14% to ₹124 crore from ₹144 crore, while the EBITDA margin stood at 23.9%, broadly stable from 23.8% a year earlier. The decline in FY26 revenue was attributed to lower order inflows. Free cash flow also declined to ₹30 crore from ₹75 crore, although the company remains debt-free. Despite the weak FY26 performance, order inflows gained momentum during the second half of FY26, with the company reporting record order bookings in Q4FY26.
On the sectoral front, selling pressure was observed across auto, FMCG, IT, consumer durables, and pharma sectors, while buying interest emerged in bank, energy, metal, and realty segments. As reported by market sources, the broader market showed mixed performance with the Nifty Midcap index declining marginally while the Smallcap index rose 0.7%. Market breadth remained positive with 1,979 shares advancing, 1,356 declining, and 213 remaining unchanged on the BSE.
