Shares of Meesho Ltd. experienced a significant drop of over 3% during early trading on Tuesday, following media reports suggesting a potential block deal by venture capital firm Elevation Capital. The e-commerce marketplace's market capitalization subsequently slipped below Rs 83,000 crore.
Elevation Capital, which held a 12.04% stake in Meesho as of June 2026, was reportedly planning to sell a portion of its holding, valued at approximately Rs 1,200 crore. The stock, which settled at Rs 182.55 on Monday, dropped to Rs 177 per share. This decline marks a more than 30% correction from its post-listing high of Rs 254.65, achieved on December 18, 2025.
Meesho initially listed on bourses in December 2025, raising Rs 5,421 crore through its IPO at a price of Rs 111 per share. Despite the recent dip, the stock continues to trade approximately 65% above its initial public offering price.
Q1 Financial Performance Overview
For the first quarter, Meesho reported robust financial growth. Revenue from operations surged by 48% year-on-year (YoY) to Rs 3,712.8 crore. While the company still posted an EBITDA loss, it contracted to Rs 224.7 crore. Its net merchandise value (NMV) also saw a substantial 34% YoY increase, reaching Rs 11,614 crore, driven by expanding user base and heightened platform engagement.
Key highlights from the Q1 results include:
- Marketplace revenue from operations grew 48% YoY to Rs 3,707 crore.
- Contribution margin expanded to 4.6% of NMV, a 54 basis point sequential improvement, attributed to logistics efficiencies and enhanced platform monetization.
- Prepaid orders constituted around 37% of shipped orders, contributing to lower cancellation and return-to-origin rates.
- Marketplace adjusted EBITDA improved to a loss of 1.2% of NMV.
- Annual transacting users increased 29% YoY to 274 million.
- Purchase frequency improved to 10.3 transactions per user annually.
- The platform recorded 725 million placed orders, up 29% on a yearly basis.
Analyst Insights and Price Targets
Brokerage firms have offered varied outlooks on Meesho's stock performance:
Motilal Oswal Financial Services
Motilal Oswal initiated coverage with a 'buy' rating and a target price of Rs 240. The firm highlighted Meesho's asset-light business model, requiring limited capital expenditure on physical infrastructure or inventory. They noted its negative working capital, which generates significant float income and enables strong free cash flow generation. Motilal Oswal anticipates Meesho to deliver a 25% CAGR in marketplace NMV over FY26-31, driven by customer acquisition and increased platform adoption, with contribution margin expanding to 7.5% by FY31.
Choice Institutional Equities
Choice Institutional Equities also issued a 'buy' rating, setting a target price of Rs 220. The firm believes Meesho's initiatives could replicate its asset-light, low-cost logistics model, potentially expanding its total addressable market significantly, especially in value-conscious and underserved regions. They expect Meesho to achieve EBITDA breakeven by H2FY28E, supported by logistics normalization and steady progress in ad monetization.
JM Financial
JM Financial maintained a 'reduce' rating with a target price of Rs 185. The firm indicated soft growth in Q2 due to the rescheduling of mega blockbuster sales to Q3 and a sharp rise in advertising and promotion expenditure in Q2 as a precursor to the festive season in Q3. While segmental estimates were tweaked to factor in Q1 results, consolidated estimates for FY27–29E saw only marginal changes.