Meesho Q4 FY26 Results: Loss narrows, revenue up 47%

Stock reaction: rally fades after intraday jump

Meesho shares moved sharply higher after the company reported a steep reduction in losses for the March quarter. The stock surged as much as 8% intraday to about ₹211.3-₹211.35 on the BSE following the earnings update. In early trade on May 7, the stock was reported up around 3% at ₹202.26, and around 3.2% at ₹202.21 versus a previous close of ₹196.28. Later in the session, Meesho pared gains and ended up 1.07% at ₹198.6 on the BSE. Market capitalisation was reported at ₹90,647.4 crore at the end of the day, and about ₹93,007.4 crore during the intraday move.

Q4 FY26: net loss narrows sharply

For Q4 FY26 (quarter ended March 31), Meesho reported a consolidated net loss of ₹166.34 crore. This compared with a net loss of ₹1,391.38 crore in Q4 FY25, reflecting the sharp year-on-year reduction highlighted by markets. The company also reported a pre-tax loss of ₹160.08 crore in Q4 FY26, versus a pre-tax loss of ₹1,394.93 crore in Q4 FY25. On a sequential basis, losses also narrowed from about ₹490.7-₹491 crore in Q3 FY26. The company said the loss is attributable to the owners of the parent company.

Revenue growth: up 47% YoY in the quarter

Revenue from operations in Q4 FY26 rose 47% year-on-year to ₹3,531 crore, from ₹2,400 crore a year earlier. Sequentially, revenue was largely flat versus ₹3,518 crore in Q3 FY26. The earnings release and broker notes around the results put the focus on Meesho’s combination of scale-up and improving unit economics. Investors also tracked the relationship between faster growth and cost control, since the company’s quarterly revenue was steady versus Q3 while losses fell.

Costs: expenses rise YoY, fall sequentially

Meesho’s total expenses increased 44.4% year-on-year to ₹3,807.1 crore in Q4 FY26. At the same time, expenses were down 6.5% sequentially from ₹4,071.3 crore in Q3 FY26. This mix of cost growth versus last year and lower spending versus the immediately preceding quarter was part of the backdrop for the margin recovery narrative. Brokerages also pointed to logistics performance and operating leverage as key factors behind better profitability metrics.

Full-year FY26: loss narrows, operating revenue rises

For FY26, Meesho reported a consolidated net loss of ₹1,357.73 crore, narrowing from ₹3,941.70 crore in FY25. Operating revenue for the full year increased 34.4%-34.5% to about ₹12,626 crore (reported as ₹12,626-₹12,626.34 crore across updates). The FY26 print reinforced the trend of reduced losses while the business continues to grow. Management commentary cited by brokerages suggested the company will remain focused on growth in the near term.

Operating metrics: users, orders, NMV and contribution

Operational indicators released alongside the results signalled continued scaling. Annual transacting users (ATUs) rose 33% year-on-year to 264 million. Total orders were reported up 45% to 2.67 billion.

In Q4 FY26, net merchandise value (NMV) grew 43% year-on-year to ₹11,371 crore, while order volumes rose 43% to 71.7 crore. Contribution margin was reported to have improved 34% to ₹459 crore from ₹340 crore in the year-ago quarter. Morgan Stanley also noted contribution margin improved to about 4%, in line with its estimates.

Brokerages: margin recovery remains the core debate

Choice Institutional Equities said Q4 FY26 results reinforced its constructive medium-term view, pointing to user-led scale-up and expansion of the seller ecosystem. The brokerage added that management indicated logistics inefficiencies seen last year have largely been resolved, with around 4.0% expected to serve as the baseline contribution margin going forward. Choice expects gradual improvement in contribution margin, supported by operating leverage from prior investments and steady progress in ad monetisation.

HSBC said Meesho delivered strong Q4 results with ahead-of-guidance margin recovery. It flagged rising prepaid mix and order intensity as factors expected to improve logistics efficiency, while highlighting advertising and scale benefits as key long-term margin drivers. HSBC also said free cash flow is expected to turn positive from FY27 amid improving profitability.

Morgan Stanley maintained an “Equal-weight” rating and raised its target price to ₹190 from ₹174, citing strong Q4 performance, improving margins and better-than-expected profitability. It said adjusted EBITDA beat expectations, supported by stronger operating leverage.

JM Financial retained a “Reduce” rating and set a March 2027 target price of ₹180 (raised from ₹155), and said it raised NMV estimates by 2%-4% and adjusted EBITDA estimates by 4%-5% over FY27-28 after the Q4 results.

Capital allocation: payments subsidiary investment plan

Meesho also said it will invest up to ₹100 crore in its Meesho Payments subsidiary. The disclosure came alongside the quarterly update that drove the stock’s sharp intraday move.

Key numbers at a glance

Broker call sheet and target prices

Why the results matter for investors

The quarter combined strong reported growth with a sharp reduction in losses, which is why margin commentary drew outsized attention. A key datapoint repeated by brokerages is the 4% contribution margin level, described as both achieved and expected to be a baseline going forward. Meesho’s sequential numbers also mattered, with losses narrowing from Q3 even as revenue stayed close to the prior quarter. The stock reaction reflected optimism around profitability, but the pullback from the intraday high showed investors are also sensitive to how much of the improvement is already priced in.

Conclusion

Meesho’s Q4 FY26 results showed sharply narrower losses, 47% year-on-year revenue growth, and improving contribution metrics. Brokerages broadly reiterated margin recovery as the central driver, while diverging on near-term upside through differing ratings and target prices. The next key markers will be management execution on logistics efficiency, ad monetisation progress, and updates on profitability and cash flow trajectory, including plans around Meesho Payments.