Meesho shares surged nearly 8% on Thursday, 7 May, following the e-commerce company's announcement of significant financial improvement for Q4 FY26. The stock movement reflects positive investor sentiment toward the company's consolidated net loss narrowing to ₹166.34 crore for the fourth quarter, representing a substantial improvement from ₹1,391.38 crore in the same quarter last year. Consolidated revenue from operations rose 47.13% to ₹3,531.21 crore during the quarter, demonstrating strong operational performance and market demand for the company's services.
The Bengaluru-based e-commerce company delivered strong financial results for Q4 FY26, with fourth-quarter loss narrowing 88% to ₹166 crore from ₹1,391 crore a year ago, according to company reports. Operating revenue grew to ₹3,531 crore during the quarter, demonstrating significant operational improvement. Total costs amounted to ₹38.1 billion while other income for the quarter was recorded at ₹1.2 billion rupees. The company's annual transacting user base rose 32% year-on-year to 264 million in Q4 FY26, while net merchandise value (NMV) grew 43% to ₹11,371 crore, as reported during the earnings call on Wednesday.
Meesho's strategic investments in artificial intelligence technologies have yielded significant results in user acquisition and engagement. Vaani, the company's AI shopping agent launched in Q4, crossed 1.5 million users in the first month and delivered a 22% conversion lift for users who adopted the platform. The company's seller base expanded 87% to 9.6 lakh in FY26, with investments into AI-led cataloguing and voice agents playing a crucial role in this growth. As reported by the company, more than 70% of its code is now AI-generated, enabling faster product releases with greater reliability than at any point in the company's history.
For the entire financial year 2025-26, Meesho's consolidated net loss was reduced to ₹1,357.73 crore, compared to ₹3,941.70 crore in FY25. Revenue generated from operations increased by 34.4% to ₹12,626.34 crore in FY26, up from ₹9,389.90 crore in the prior fiscal year. Total orders increased by 45% year-on-year to 2.67 billion, while net merchandise value for the year reached ₹41,560 crore, up 39%. Founder and CEO Vidit Aatrey emphasized that FY26 has reinforced the company's belief that the Indian e-commerce sector has significantly more potential than many people realize, with the company focused on building for India's next 500 million consumers, particularly those from smaller cities and vernacular-language markets.
