Meesho shares fall 6% post Q1 results: Analysts flag revenue miss; expects softer Q2

The e-commerce firm reported a year-on-year (YoY) net loss of ₹1,328 crore for the quarter ended June 30, 2026, narrowing from a net loss of ₹2,894 crore seen in the corresponding quarter last year.

For Q1 FY27, the company’s revenue from operations increased 48% YoY to ₹3,713 crore as compared to ₹2,504 crore in Q1 FY26, driven by improved delivery conversion through lower cancellations, Return-to-Origin (RTO) rates and higher platform monetisation.

The e-commerce platform’s net merchandise value (NMV) registered a yearly growth of 34% at ₹11,614 crore, supported by continued expansion in its user base and higher engagement levels on the platform. The company also saw improvement in profitability metrics, with contribution margin expanding to 4.6% of NMV, up 54 basis points sequentially, driven by logistics efficiencies and better monetisation.

Meanwhile, its last twelve months (LTM) free cash flow improved by around 15% to negative ₹537 crore from negative ₹633 crore in the previous quarter, reflecting ongoing progress in capital allocation and underlying business performance.

Meesho share price trends

At 10:54 AM, Meesho shares were trading at ₹180.17 apiece on the National Stock Exchange, falling 4.65%. For six months’ time, the stock has surged 10%.

Shares of the firm had hit a 52-week high of ₹254.40 on December 18, 2025, and a 52-week low of ₹125.56 on March 16, 2026.

Here's what analysts said

Citi analysts noted that Meesho delivered a solid quarter, with growth broadly in line with expectations and supported by strong pricing power in its marketplace segment. The company was able to successfully pass on higher fulfilment costs arising from fuel and wage inflation, indicating resilience in its business model.

Customer additions remained healthy during the period, while ordering frequency also showed improvement, reflecting steady demand momentum.

The analysts added that Meesho continues to invest in user acquisition even as it moves closer to break-even. While a shift in festive timing could impact near-term performance, it is expected to support growth in the subsequent quarter, providing some visibility on demand recovery.

Analysts from Jefferies said growth momentum remains strong, with marketplace losses largely in line with expectations. They highlighted that the overall outlook continues to be positive, supported by steady underlying trends in the business.

However, they noted that a shift in seasonality is likely to make the second quarter relatively softer, while the third quarter could see a stronger performance.

Morgan Stanley analysts described the quarter as mixed, with losses broadly in line with expectations, while revenue came in slightly below estimates. They noted that profitability improved at a faster pace than revenue growth, indicating some operating leverage. However, the miss in merchandise value was attributed to slower-than-expected order growth during the period.

The analysts added that the company plans to step up user acquisition spending ahead of the festive season, which could support growth momentum. They also highlighted that a shift in festive sale timing may make the next quarter appear optically softer, even as underlying trends remain influenced by seasonality.

Analysts from UBS said that topline growth of Meesho remained strong during the quarter, while margins came in ahead of expectations. They highlighted that the company’s performance reflected healthy operating trends, with profitability showing better-than-anticipated improvement.

The analysts added that marketing spend is expected to increase to support festive demand. They indicated that the second quarter could see higher user acquisition spending alongside softer NMV growth, with growth trends likely to normalise in the third quarter.