Meesho shares declined as much as 6% to touch an intraday low of ₹177.50 on Friday, July 26, as the June quarter earnings failed to impress market investors. According to latest market data, at 10:38 AM, Meesho shares were trading at ₹180.04 apiece on the National Stock Exchange, falling 6.06%. For six months' time, the stock has surged 17,890%, with shares having hit a 52-week high of ₹254.40 on December 18, 2025, and a 52-week low of ₹125.56 on March 16, 2026. Despite the market decline, analysts remain largely positive on the company's fundamentals, with Choice Institutional Equities upgrading Meesho to 'buy' with a target price of ₹220, raising its FY28 revenue estimates to reflect the stronger growth outlook. Citi analysts noted that Meesho delivered a solid quarter, with growth broadly in line with expectations and supported by strong pricing power in its marketplace segment, while Jefferies highlighted that growth momentum remains strong with marketplace losses largely in line with expectations.
E-commerce company Meesho Ltd. delivered strong financial results for the first quarter of FY27, demonstrating significant improvement across key metrics. According to the latest exchange filing, the company's consolidated net loss narrowed to ₹132.84 crore compared to a loss of ₹289.32 crore in the corresponding quarter of the previous fiscal year. This represents a substantial 54% reduction in net losses year-on-year, with the company beating Bloomberg's consensus estimate of ₹135.2 crore loss. The Bengaluru-based company reported consolidated revenue from operations of ₹3,712.81 crore for the quarter ended June 30, surpassing Bloomberg's consensus estimate of ₹3,601.5 crore based on seven analyst forecasts. Including other income of ₹107.6 crore, Meesho's total income for the quarter stood at about ₹3,815 crore. Loss in earnings before interest, taxes, depreciation, and amortisation narrowed to ₹224.7 crore from a loss of ₹264.4 crore in the corresponding quarter of FY26, showing continued operational improvement. Total expenditure rose 37.6% YoY to ₹3,937.46 crore, with employee expenses increasing 17.3% YoY to ₹243.08 crore and depreciation surging 146.4% YoY to ₹19.66 crore. Finance costs rose 46.9% YoY to ₹2.13 crore, while sequentially, the loss also reduced from ₹166.3 crore, indicating continued improvement in profitability metrics. Dhiresh Bansal, Chief Financial Officer at Meesho, said the Q1 performance reflected the strength of the company's operating model, with the company delivering 34% year-on-year NMV growth and contribution margin expanding to 4.6%.
The company's revenue performance was particularly robust, with revenue from operations climbing 48.28% YoY to ₹3,712.81 crore from ₹2,503.87 crore in the year-ago period, and 5.1% QoQ growth. As reported by the exchange filing, this significant revenue growth was driven by improved delivery conversion through lower cancellations, Return-to-Origin (RTO) rates and higher platform monetisation. The substantial revenue increase of nearly ₹1,200 crore year-on-year reflects Meesho's strong business fundamentals and market positioning in the competitive e-commerce landscape. The marketplace business revenue rose 48% year-on-year to ₹3,707 crore, while the marketplace's adjusted EBITDA improved to a loss of 1.2% of NMV from the previous quarter. Net merchandise value (NMV) increased 34% to ₹11,614 crore, with gross merchandise value (GMV) rising to ₹19,054 crore from ₹15,134 crore a year earlier. The contribution margin expanded to 4.6% of NMV, increasing 54 basis points sequentially from 4% in Q4FY26 and 2.3% in Q3FY26, supported by logistics efficiencies and improved platform monetisation. The contribution margin in absolute terms increased to ₹531 crore from ₹459 crore in the previous quarter, with the company also reporting improvements in marketplace-adjusted EBITDA and free cash flow. Last twelve months free cash flow improved by approximately 15%, demonstrating the company's improving cash generation capabilities. As of June 30, 2026, Meesho had a cash balance of ₹6,521 crore, providing substantial financial flexibility for future growth initiatives.
The company's operational metrics remained exceptionally strong, with annual transacting users rising 29% year-on-year to 274 million, while purchase frequency improved to 10.3 transactions per user annually. According to Business Standard, the platform processed 725 million orders during the quarter, up 29% from a year earlier, with prepaid orders accounting for around 37% of shipped orders, contributing to lower cancellations and RTO rates. The number of annual transacting sellers jumped 81% to 1.04 million, supported by AI-powered tools that help merchants create product catalogues, understand demand trends and communicate with customers in regional languages. Sellers from Tier-II towns and smaller markets accounted for 45% of the seller base, while the number of sellers from Tier-IV cities grew 125% from year earlier. The strong user growth reflects the company's successful expansion strategy and AI-driven platform improvements that enhance user engagement and monetisation capabilities. Over two-thirds of sellers by GMV are actively leveraging the platform, highlighting the effectiveness of advertising monetisation initiatives and the company's focus on monetisation of advertising remains a key focus area as highlighted by Choice Institutional Equities.
In a significant operational development, Meesho accelerated its AI-first engineering transformation, embedding AI across the software development lifecycle and delivering 2x+ productivity gains. The company announced the launch of AI Blitz, an internal initiative to embed AI agents into its engineering workflows, with the initiative resulting in productivity gains of more than two times across the board. According to Business Standard, this AI-driven approach enabled engineers to focus on architecture, product design and outcomes while processing nearly 725 million orders during the quarter, averaging more than 90 orders every second. The number of annual transacting sellers jumped 81% to 1.04 million, supported by AI-powered tools that help merchants create product catalogues, understand demand trends and communicate with customers in regional languages. Sellers from Tier-II towns and smaller markets accounted for 45% of the seller base, while the number of sellers from Tier-IV cities grew 125% from year earlier. The platform recorded 725 million placed orders during the quarter, up 29% year-on-year, with prepaid orders accounting for around 37% of shipped orders, contributing to lower cancellations and RTO rates. As part of its AI-led productivity push, Meesho has shifted code authorship, testing and documentation to AI agents, enabling engineers to focus on writing specifications and reviewing code. The company uses AI-powered cataloguing, demand intelligence, multilingual voice agents and its PRISM recommendation engine to support sellers and improve product discovery and personalisation. Commenting on the results, CFO Dhiresh Bansal said artificial intelligence is becoming foundational across product discovery, seller growth, logistics and engineering, helping the company innovate faster while maintaining disciplined capital allocation and creating long-term value.
In a strategic development, Meesho announced an investment of ₹75 crore in its wholly-owned subsidiary, Meesho Grocery Private Limited, to support the overall business operations and growth of the grocery arm. According to the company statement, the infusion of funds is expected to facilitate expansion of MGPL's activities, improve operational efficiency, and support the development of its offerings in line with the evolving needs of the business and the market needs. The company expects the second quarter of the current fiscal to show higher user growth and spend and slower NMV growth, both by design and a shift in festive seasonality this year. "We are comfortable trading one quarter's optics for a stronger festive season on a compounding platform. Every additional consumer, seller and data point makes the future growth more durable," the company said. Morgan Stanley analysts described the quarter as mixed, with losses broadly in line with expectations, while revenue came in slightly below estimates, noting that the miss in merchandise value was attributed to slower-than-expected order growth during the period. UBS analysts said topline growth of Meesho remained strong during the quarter, while margins came in ahead of expectations, highlighting that the company's performance reflected healthy operating trends. Citi analysts added that while a shift in festive timing could impact near-term performance, it is expected to support growth in the subsequent quarter, providing some visibility on demand recovery.
