Synopsis: Meesho reported strong Q1 FY27 revenue growth, narrowed losses, improved margins, expanded AI and grocery operations, while Jefferies stayed bullish and Macquarie maintained a cautious outlook.
This Large-Cap Stock, engaged in operating an e-commerce marketplace that connects buyers and sellers, offering affordable products across fashion, groceries, home essentials, electronics, and lifestyle categories, fell over 6 percent after reporting its Q1 FY27 results, while leading brokerages shared mixed views on its future growth prospects.
With a market capitalization of Rs. 84,653.98 crores, the share of Meesho Limited has reached an intraday low of Rs. 177.60 per equity share, down nearly 6.01 percent from its previous day’s close price of Rs. 188.95. Since then, the stock has recovered and is currently trading at Rs. 183.50 per equity share.
Q1 FY27 Result Walkthrough
Coming into the quarterly results of Meesho Limited, the company’s consolidated revenue from operations increased by 48.28 percent YOY, from Rs. 2,504 crore in Q1 FY26 to Rs. 3,713 crore in Q1 FY27, and grew by 5.15 percent QoQ from Rs. 3,531 crore in Q4 FY26.
In Q1 FY27, Meesho Limited’s consolidated net loss improved, reaching Rs. 133 crore compared to Rs. 289 crore during the same period last year. As compared to Q4 FY26, the company’s net loss also improved and better, from Rs. 166 crore.
Margin and Grocery Expansion
Meesho Limited reported an EBITDA loss of Rs. 224.7 crore in the quarter, improving from a loss of Rs. 264.4 crore a year ago, indicating better operational performance. The company also approved an investment of Rs. 75 crore in its subsidiary, Meesho Groceries, to strengthen its grocery business and support future growth.
Brokerage Viewpoints
Macquarie, a prominent brokerage firm, has recommended an “Underperform” call on Meesho Limited with a target price of Rs. 125 per share, indicating a downside potential of 31.88 percent from its current price of Rs. 183.50.
Macquarie has maintained its Underperform rating on Meesho, despite acknowledging the company’s strong market positioning. The brokerage noted that Meesho’s growth has moderated sequentially, although profit margins have improved. It believes the platform continues to attract value-conscious customers with its affordable offerings.
However, Macquarie remains cautious about the stock’s valuation. It believes Meesho’s low profit per order means the current valuation already assumes the company will maintain very strong growth for the next five years. While the business model is attractive, the brokerage feels the stock price leaves limited room for disappointment, leading it to retain its Underperform rating.
Similarly, Jefferies has also recommended a “Buy” call on Meesho Limited, increasing its target price from Rs. 225 to Rs. 240 per share, indicating an upside potential of 30.79 percent from its current price of Rs. 183.50.
Jefferies has maintained its Buy rating on Meesho, saying the company’s growth momentum remains strong. Marketplace losses were in line with expectations, while management chose to absorb higher costs instead of passing them on to customers. This helps Meesho maintain its value-for-money positioning and keep customer demand strong.
The brokerage remains positive on the long-term outlook. However, management expects Q2 to be relatively softer due to a change in seasonal demand, while Q3 is likely to be much stronger. Meesho is also running several business experiments, but overall losses are expected to remain within a controlled range, supporting future growth.
Active User Growth
Meesho continued to add more active users during the quarter, with annual transacting users rising to 274 million. Customers also shopped more often, with the average purchase frequency increasing to 10.3 orders per user per year, showing stronger customer engagement.
The share of prepaid orders increased to around 37 percent, which helped reduce cancellations and return-to-origin (RTO) rates by improving customer trust. These trends indicate that more shoppers are choosing Meesho for regular purchases, helping the company strengthen its position in India’s value-focused e-commerce market.
AI Expansion
Meesho is increasing the use of artificial intelligence (AI) across its platform to improve customer and seller experiences. AI has helped engineers become more than twice as productive, while recommendation tools have improved product discovery and personalised shopping.
The company also uses AI-powered cataloguing, demand forecasting, and multilingual voice tools, helping annual transacting sellers grow 81 percent year-on-year to over 1.04 million. AI-based features such as Vaani are also making online shopping easier for voice-first and regional language users across India.
Margin Improvement
The company continued to improve its profitability through better operational efficiency. Contribution margin increased to 4.6 percent of NMV, supported by improved logistics, a higher share of prepaid orders, and better platform monetisation. Marketplace adjusted EBITDA improved to a loss of 1.2 percent of NMV, reflecting stronger unit economics.
Meesho also expanded Meesho Mall to over 1,200 brands, while Content Commerce NMV grew 141 percent year-on-year. With a cash balance of ₹6,521 crore, the company remains well-funded to invest in technology, customer acquisition, and long-term growth.
Company Overview
Meesho Limited is an Indian e-commerce company headquartered in Bengaluru that operates an online marketplace connecting buyers with sellers across categories such as fashion, home essentials, beauty, electronics accessories, and everyday products. Founded in 2015, it has grown into one of India’s largest e-commerce platforms by annual transacting users and order volume, with a strong focus on affordability and expanding online commerce beyond major metropolitan areas.
Annual Performance of FY26
Meesho Limited’s revenue has increased from Rs. 9,390 crore in FY25 to Rs. 12,626 crore in FY26, which has grown by 34.46 percent. The company’s net loss has improved from Rs. 3,942 crore in FY25 to Rs. 1,358 crore in FY26. In terms of return ratios, the company’s ROCE and ROE stand at -35.6 percent and -42.3 percent, respectively. Meesho Limited’s debt-to-equity ratio is 0.01x.
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