Meesho Jumps 8% After Q4 Loss Shrinks 88%

Shares of Meesho soared as much as 8% to hit an intraday high of ₹211.3 on the BSE during the intraday trading today after the ecommerce company reported a sharp decline in Q4 FY26 loss and a strong top line growth. 

The stock later pared some of the gains and was trading nearly 3.6% higher at ₹203.7 as of 11:20 IST. The company’s market capitalisation stood at ₹93,007.4 Cr (about $9.8 Bn) at the time. 

Yesterday, Meesho reported an 88% decline in its net loss to ₹166.3 Cr in Q4 FY26 from ₹1,391.4 Cr in the corresponding quarter last year. Sequentially, loss decreased 66% from ₹490.7 Cr. 

Operating revenue rose 47.1% to ₹3,531.2 Cr during the quarter under review from ₹2,400 Cr a year earlier. Revenue remained largely flat compared to ₹3,517.6 Cr in Q3 FY26. Including other income, total income stood at ₹3,647 Cr.

Meanwhile, total expenses climbed 44.4% YoY to ₹3,807.1 Cr in Q4 FY26, although they declined 6.5% sequentially from ₹4,071.3 Cr. For the full fiscal year FY26, Meesho’s consolidated loss narrowed 65.6% YoY to ₹1,357.7 Cr, while operating revenue increased 34.5% to ₹12,626 Cr.

On the operational front, Meesho’s net merchandise value (NMV) grew 43% YoY to ₹11,371 Cr in Q4 FY26, while order volumes also rose 43% to 71.7 Cr. Contribution margin improved 34% to ₹459 Cr from ₹340 Cr in the year ago quarter.

Meesho reported a 33% YoY increase in annual transacting users to 26.4 Cr in Q4 FY26. The company said it now has 9.6 Lakh sellers and nearly 16.6 Cr active listings on its platform, while logistics arm Valmo works with 18K logistics partners and 1.2 Lakh last-mile agents.

However, adjusted EBITDA loss widened during the quarter due to higher spending on customer acquisition, AI infrastructure, server costs and hiring of AI engineers.

In its shareholder letter, Meesho cofounder and CEO Vidit Aatrey said that over 70% of the company’s marketplace code is now generated using AI tools.

“Platform experiments in Q4 FY26 were up 2.0X versus the same quarter last year, and the compounding gains are showing up in platform reliability and quality,” he added.

Alongside its Q4 results, the ecommerce market platform announced an investment of up to ₹100 Cr in its financial services subsidiary, Meesho Payments Private Ltd (MPPL), through a rights issue and said investment will be made in multiple tranches before June 30.

Brokerages also reacted positively to the earnings. Morgan Stanley maintained its “Equal-weight” rating on the stock and raised the target price to ₹190 from ₹174 earlier, citing strong Q4 performance, improving margins and better-than-expected profitability.

JM Financial also said Meesho delivered a strong operational performance in Q4 FY26, led by faster NMV growth and improving profitability. Following the results, the brokerage raised its NMV and adjusted EBITDA estimates for FY27 and FY28.

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