Shares of Meesho rose over 5% in early trade on Thursday, May 7, a day after the leading e-commerce company reported its January-March quarter results for fiscal 2025-26 (Q4FY26). Meesho reported a strong quarterterly performance after net loss narrowed by 88% to Rs 166.3 crore in the March quarter of FY26, while revenue from operations topped the Rs 3,500-crore mark on surge in sales.
On Thursday, shares of Meesho opened at Rs 205, over 4% higher than its previous close of Rs 196.28 apiece on the NSE. The stock has gained nearly 4% so far to hit an intraday high of Rs 211.34 apiece on the NSE. Shares last traded 5% higher at Rs 206 apiece on the NSE. The stock has risen 6.8% in one week, 395 in one month, and 13% on a year-to-date basis. The company commands a market cap of Rs 93,757.46 crore. The stock has gained 24% from its post-IPO listing price.
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Meesho Q4 Results
Meesho Ltd.'s net loss for the fourth quarter of FY26 narrowed sharply year-on-year, according to its exchange filing. The company registered a consolidated loss of Rs 166.3 crore, compared to a loss of Rs 1,391 crore in the year-ago period. Revenue from operations jumped 47% to Rs 3,531 crore from Rs 2,400 crore in the corresponding quarter of last fiscal.
Although, earnings before interest, taxes, depreciation, and amortisation loss widened to Rs 255 crore from a loss of Rs 233 crore. In the quarter under review the e-commerce company reported Net Merchandise Value of Rs 11,371 crore, up 43% annually, with 717 million orders driven by continued new user onboarding and deeper engagement from existing cohorts, as per its press release. Annual Transacting Users grew 33% year-on-year to 264 million, while orders increased 45% to 2.67 billion. NMV for the year stood at Rs 41,560 crore, up 39% YoY, with frequency improving to 10.1 transactions per user annually.
Commenting on the performance Vidit Aatrey, Founder & CEO, Meesho said, "FY2026 has deepened our conviction that the Indian e-commerce market has far more depth than most people assume. In emerging markets like China, Southeast Asia, and Latin America, more than 80% of smartphone users shop online." He added in India, that number is around 30%, not because Indians don't want to shop online, but because nobody built e-commerce that actually works for them.
"Every time we removed one of those barriers, the market got larger. That pattern has held for a decade," Aatrey highlighted.
Brokerages Bullish on Meesho Post Q4 Scores: Should You Buy or Sell?
Morgan Stanley maintained an equal-weight stance on the stock but hiked the target price to Rs 190 from Rs 174. It highlighted that the beat in adjusted EBITDA was led by stronger operating leverage. The management commentary suggests continued focus on growth in near term. Last month, JPMorgan initiated coverage on Meesho with an 'overweight' and a target price of Rs 215. ''EBITDA margins expected to expand to 4% by FY31 , thanks to undermonetised ad take-rates; this should drive EBITDA/FCF CAGR of 170/52% over FY28-31 post break-even,'' said the global brokerage.
The brokerage expects Meesho's NMV to grow at a strong pace, even as user growth moderates. This shift from scale to depth-higher spending per user - could sustain a 23% CAGR through FY31.The key drivers include increased purchase frequency, expansion into new categories, and the scaling of initiatives like Mall and Content Commerce. Together, these are expected to reduce reliance on pure user growth and strengthen the platform's monetisation engine.
JPMorgan also downplays recent volatility in logistics costs, viewing the pullback as cyclical rather than structural. The brokerage attributes recent margin pressure to one-off factors, including adjustments by third-party logistics providers, and expects recovery as scale efficiencies improve. Domestic brokerage Axis Capital also initiated a 'buy' call on Meesho in March.
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