Meesho shares jump over 7% intraday as Q4 net loss narrows 88% YoY to ₹166 crore

Meesho shares were in demand on Thursday, May 7, after the e-commerce firm reported its March quarter earnings. Meesho shares rose 7.6% in early morning trade to a day high of ₹211.34 apiece on NSE.

Meesho announced its Q4FY26 earnings on May 6 after market hours. The firm reported a 47.1% YoY increase in revenue to ₹3,531 crore compared to ₹2,400 crore revenue in the same quarter last year. Revenue remained flat on a sequential basis.

The company managed to narrow down its losses sharply by 88% to ₹166 crore in Q4FY26. Meesho reported a net loss of ₹1,391 crore in Q4FY25. Net loss was also lower compared to the ₹491 crore loss reported in the previous quarter.

For the full year ended 31 March 2026, Meesho’s revenue rose 34.4% to ₹12,626 crore from ₹9,390 crore a year earlier. Meanwhile, its full-year loss stood at ₹1,358 crore compared to ₹3,942 crore in FY25, down by 65.5% YoY.

How did Meesho manage to narrow its losses?

The company managed to narrow down its losses, supported by continuous improvement in its key business metric, like net merchandise value (NMV) and an increase in the number of orders.

In Q4 FY26, Meesho reported net merchandise value (NMV) of ₹11,371 crore, up 43% YoY, with 717 million orders (+43%YoY), driven by continued new user onboarding and deeper engagement from existing cohorts. NMV for the year stood at ₹41,560 crores, up 39% YoY.

March quarter also saw a sharp recovery in contribution margin to 4.0% of NMV, driven by structural and operational efficiencies. Meanwhile, an improvement of 245 bps QoQ in adjusted EBITDA (marketplace) to -1.7% of NMV, driven by logistics cost normalisation, network optimisation, and operating leverage at scale.

As per the company, its e-commerce platform is one of the largest platforms by Annual Transacting Users (ATUs) and placed orders. For the full year FY26, Annual Transacting Users grew 33% YoY to 264 million, while orders increased 45% YoY to 2.67 billion.

Meesho leveraging AI to scale its business growth

During the March quarter, Meesho continued to deepen its technology-led transformation. The company has done full-stack investment across accessibility, trust and transactability, which helped drive higher conversion for new consumers, enabling the company to accelerate its Annual Transacting Users (ATU) growth.

PRISM, Meesho’s recommendation engine, enhanced intent-aware discovery and feed relevance, while Trendpulse, an LLM-powered engine, enabled proactive identification of regional and cultural demand trends. Meanwhile, Meesho’s AI shopping agent, Vaani, launched in Q4 FY26, crossed 1.5 million users within the first month and delivered a 22% conversion lift for adopters.

On the supply side, GenAI-powered seller voice agents are scaled to handle ~300,000 calls per day, guiding sellers through promotional and sale events, improving participation and enabling new growth opportunities on the platform.