Meesho shares surged over 7% to their day's high of ₹211 on the BSE following the company's strong Q4 FY26 results announcement. Morgan Stanley has maintained its "Equal-weight" rating on Meesho shares and raised the target price to ₹190 from ₹174 earlier, after what it described as a strong Q4 performance. The brokerage noted that acceleration in NMV growth continued during the quarter, while contribution margin improved to 4%, in line with estimates. It also highlighted that adjusted EBITDA beat expectations, supported by stronger operating leverage. According to The Economic Times, the market rally reflects investor confidence in the company's continued focus on growth in the near term.
According to reports from APAC News and The Economic Times, Meesho announced its Q4 FY26 results showing significant improvement in financial metrics. The e-commerce platform's consolidated net loss narrowed by 88% year-on-year to ₹166.3 crore for the quarter ended March 31, compared to a net loss of ₹1,391.4 crore in the corresponding quarter of the previous financial year. The company's revenue from operations increased by 47% to ₹3,531.2 crore, marginally higher than ₹3,517.6 crore reported in the previous quarter. Meesho's losses also narrowed on a sequential basis, declining to ₹166.3 crore from ₹490.7 crore in Q3 FY26, while revenue remained largely flat at ₹3,531.2 crore compared with ₹3,517.6 crore in the January–March quarter of FY26. The growth was driven by improved user engagement and higher purchase frequency, with revenue reflecting stronger traction among repeat users.
As reported by APAC News, for the full financial year 2025-26, Meesho's consolidated net loss narrowed to ₹1,357.7 crore from ₹3,941.7 crore in FY25, reflecting steady progress in narrowing losses. The company's annual revenue from operations grew by 34.4% to ₹12,626.34 crore in FY26, up from ₹9,389.90 crore in the preceding fiscal. The platform demonstrated strong user engagement with annual transacting users growing 33% YoY to 264 million and orders increasing 45% YoY to 2.67 billion for the full year. Net merchandise value (NMV) for the full fiscal stood at ₹41,560 crore, marking a 39% year-on-year increase, driven by a combination of new user additions, habit formation and increased purchase frequency across the platform. User frequency improved to 10.1 transactions per user annually, indicating continued strengthening of user cohorts and sustained growth in habitual usage.
According to the regulatory filing, Meesho reported Net Merchandise Value (NMV) of ₹11,371 crore in Q4 FY26, representing a 43% year-on-year increase. The quarter saw 717 million orders (up 43% YoY), driven by continued new user onboarding and deeper engagement from existing cohorts. The company achieved a sharp recovery in contribution margin to 4% of NMV and an improvement of 245 basis points sequentially in adjusted EBITDA (Marketplace) to -1.7% of NMV, driven by logistics cost normalization, network optimisation and operating leverage at scale. Operationally, Meesho noted that temporary cost inefficiencies seen during Q2 and Q3—arising from consolidation within the third-party logistics (3PL) ecosystem—are now easing. The company said interim nodes built for disruption absorption were decommissioned, indicating a return to more stable logistics operations. Despite elevated costs, growth outpaced spending with total expenses increasing 44% year-on-year to ₹3,807.1 crore in the March quarter, though they declined sequentially from ₹4,071.3 crore, indicating improving cost discipline. CEO Vidit Aatrey highlighted the transformative impact of AI on user experience: "More than 75% of orders on Meesho come from personalized feeds that infer what a user is looking for before they even type a query." He noted that "Vaani, our voice shopping agent, lets a user describe what they want in their own language and complete a purchase through conversation."
As reported by APAC News and The Economic Times, Meesho's Board approved an investment of up to ₹100 crore in its subsidiary Meesho Payments Private Limited (MPPL). The fund infusion will be made by subscribing to a rights issue or further issue of capital in one or more tranches. CEO Vidit Aatrey emphasized the transformative impact of AI on market expansion: "FY2026 has deepened our conviction that the Indian e-commerce market has far more depth than most people assume. Every time we removed one of those barriers, the market got larger. What AI has changed is the pace at which we can now remove them." He added that accessibility improvements are bringing new cohorts online, with "first-time buyers who had never placed an order online are now completing purchases on Meesho." The company continued to expand India's e-commerce market, emerging as the most downloaded shopping app in the country and the largest platform by annual transacting users. Looking ahead, Meesho flagged an uncertain macroeconomic environment for FY27, driven by geopolitical developments and pressure on input costs and consumer sentiment. However, the company noted that consumption held up through Q4, and when spending tightens, it usually moves toward value rather than away from it.
