Synopsis : Meesho reported a sharp improvement in profitability for Q4 FY26 as net losses narrowed significantly while revenue and user growth remained strong. Brokerages acknowledged the company’s improving fundamentals, though opinions remain divided on whether the stock still offers meaningful upside from current levels.
Meesho shares jumped nearly 8% on May 7 after the e-commerce platform posted a massive reduction in quarterly losses alongside strong growth in revenue, users, and order volumes. The upbeat earnings triggered positive market sentiment, pushing the stock higher during intraday trade.
The company reported a consolidated net loss of Rs 166.34 crore for the quarter ended March 2026, compared with a loss of Rs 1,391.38 crore in the same period last year. Sequential improvement in operational efficiency, better logistics performance, and stronger user engagement supported the sharp turnaround.
Revenue from operations for the quarter surged 47.13% year-on-year to Rs 3,531.21 crore, up from Rs 2,399.97 crore in Q4 FY25. Total expenses also increased to Rs 3,807 crore from Rs 2,636.83 crore a year ago as the company continued investing in growth, logistics, and ecosystem expansion.
For the full FY26 financial year, Meesho reduced its consolidated net loss to Rs 1,357.73 crore from Rs 3,941.70 crore in FY25. Annual revenue from operations climbed 34.4% to Rs 12,626.34 crore, highlighting continued momentum in India̢۪s fast-growing e-commerce market.
Operational metrics also remained strong throughout the year. Annual transacting users increased 33% year-on-year to 264 million, while total orders surged 45% to 2.67 billion. Net merchandise value for FY26 stood at Rs 41,560 crore, reflecting a 39% increase over the previous year.
Founder and CEO Vidit Aatrey said the company remains optimistic about the long-term growth opportunity in Indian e-commerce, stating that the sector still has far greater potential than many currently estimate.
Meesho̢۪s board also approved an additional investment of up to Rs 100 crore in subsidiary Meesho Payments Private Limited through a rights issue or additional capital infusion in multiple phases. The move is aimed at strengthening the company̢۪s payments ecosystem and expanding financial services capabilities.
Following the results, Meesho share price opened at Rs 204.40 on the BSE before climbing to an intraday high of Rs 211.35.
Brokerages delivered mixed reactions after the earnings announcement. JM Financial highlighted strong operational execution during Q4 FY26, noting that marketplace NMV growth accelerated sharply compared to the previous quarter. The brokerage said contribution margins improved significantly as earlier logistics disruptions normalized.
The brokerage also raised its NMV and adjusted EBITDA estimates for FY27 and FY28, while increasing its March 2027 target price to Rs 180 from Rs 155 earlier. However, despite the stronger outlook, JM Financial maintained a ‘Reduce’ rating, stating that current valuations leave limited room for operational setbacks.
Choice Institutional Equities also acknowledged improving operating metrics including user growth, seller additions, and ordering frequency. The brokerage noted that logistics inefficiencies have largely been addressed and expects contribution margins to improve gradually over time.
However, it believes most short-term positives are already reflected in the current valuation. As a result, the brokerage downgraded the stock to ‘Add’ while maintaining a target price of Rs 210.
The latest quarterly performance indicates that Meesho is steadily moving closer toward profitability while continuing to expand aggressively across India̢۪s digital commerce ecosystem. Investors will now closely track whether the company can maintain growth momentum while improving margins further in the coming quarters.
Disclaimer : This article is for informational purposes only and should not be considered investment advice. Investors should consult a financial advisor before making any investment decisions.
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