Meesho shares extended their winning run for a fourth straight session on Thursday, August 20, surging another 5.4% to hit a three-month high of ₹207 apiece. The stock has been witnessing a notable rise in trading volumes in recent weeks, taking its gains in August so far to 14.3%.
The Street’s initial reaction to the company’s June-quarter earnings was negative. However, the stock later regained momentum as analysts remained bullish on Meesho’s growth outlook, citing its asset-light business model and improving unit economics.
The company’s net loss narrowed to ₹132.8 crore in the quarter ended June 2026, aided by higher sales and lower order cancellations, compared with a loss of ₹289.35 crore in the same period a year ago.
Meesho’s consolidated revenue from operations grew 48% to ₹3,712.81 crore in the June 2026 quarter from ₹2,503.86 crore in the corresponding period of the previous year. The company’s gross merchandise value (GMV) rose about 26% to ₹19,054 crore from ₹15,134 crore in the year-ago period.
Net merchandise value (NMV), which represents the value of orders delivered, increased 34% year-on-year to ₹11,614 crore during the reported quarter.
The company’s operational metrics also remained strong. Annual transacting users rose 29% year-on-year to 274 million, while purchase frequency improved to 10.3 transactions per user annually.
The platform processed 725 million orders during the quarter, up 29% from a year earlier, with prepaid orders accounting for around 37% of shipped orders, helping reduce cancellations and return-to-origin rates.
Looking ahead, the company expects the second quarter of the current fiscal to witness higher user growth and spending, along with slower NMV growth, driven by a deliberate strategic approach and a shift in festive seasonality this year.
Domestic brokerage firm Motilal Oswal recently initiated coverage on the stock with a ‘Buy’ rating and a target price of ₹240 apiece. Under its bull-case scenario, the brokerage has set a target price of ₹335, while under its bear-case scenario, it expects the stock to fall to ₹140.
Motilal Oswal expects Meesho to deliver a 25% CAGR in marketplace NMV over FY26–31, driven by customer acquisition and rising platform adoption.
Meanwhile, Choice Broking upgraded Meesho to a ‘Buy’ rating with a target price of ₹220, implying more than 16% upside from the previous close.
Deliver strong returns since listing
The August recovery rally followed a period of sharp volatility after a large portion of Meesho’s pre-IPO shareholding came out of the lock-in period in June, increasing the supply of shares available for trading on the exchanges.
The shares made a blockbuster debut in December, listing at ₹162 apiece, a 46% premium over the issue price.
Following the strong start, the stock maintained its momentum in subsequent sessions, rising to ₹254 apiece and emerging as one of the strongest post-listing performers among mainboard IPOs in 2025. At current levels, the stock is trading 87.6% higher than its IPO price.
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