Meesho Shares Surge 3.5% as Q4 Net Loss Narrows Sharply, Brokerages Optimistic Amid Margin Recovery

Meesho Reports Narrowed Net Loss in Q4, Revenue Growth

E-commerce firm Meesho announced its consolidated net loss narrowed to Rs 166.34 crore for the fourth quarter ended March 31. This represents a significant improvement from the net loss of Rs 1,391.38 crore posted in the corresponding quarter of the previous financial year, according to a regulatory filing.

The company's consolidated revenue from operations for the quarter under review increased 47.13% to Rs 3,531.21 crore compared to Rs 2,399.97 crore in the year-ago period. Meanwhile, total expenses stood at Rs 3,807 crore against Rs 2,636.83 crore a year ago.

Meesho's Share Price Sees 3% Gain

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At 10:05 am on May 7, Meesho shares were trading 3% higher at Rs 202.26 apiece.

Full Financial Year 2025-26 Review

For the full financial year 2025-26, Meesho's consolidated net loss narrowed to Rs 1,357.73 crore from Rs 3,941.70 crore in FY25. The company's annual revenue from operations grew by 34.4% to Rs 12,626.34 crore in FY26, up from Rs 9,389.90 crore in the preceding fiscal.

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AI-Driven Growth

Meesho founder and CEO Vidit Aatrey noted that the company has deepened its conviction that the Indian e-commerce market has far more depth than most people assume. The company has made a deliberate bet on AI as the operating system for how Meesho builds, with over 70% of its code now AI-generated.

Investment in Meesho Payments Private Limited

The company's Board also approved an investment of up to Rs 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.

Brokerages Bullish on Margin Recovery

Brokerages are bullish on the firm's margin recovery guidance. Choice Institutional Equities gave Meesho an 'ADD' rating and target price of Rs 210 per share, citing the company's strong underlying growth and expected gradual improvement in contribution margin. HSBC said the firm delivered strong Q4 results with ahead-of-guidance margin recovery, with rising prepaid mix and order intensity expected to improve logistics efficiency.