$MEESHO

Meesho shares fell more than 4 percent despite the e-commerce company reporting a strong set of Q1 FY27 results, as investors focused on a softer near-term outlook and higher planned investments ahead of the festive season. The company reported a 48 percent year-on-year increase in marketplace revenue to Rs 3,713 crore, while its net loss narrowed significantly to Rs 133 crore from Rs 289 crore in the corresponding quarter last year, reflecting improved operating efficiency and stronger monetisation. Operational performance remained robust, with Net Merchandise Value (NMV) rising 34 percent year on year to Rs 11,614 crore, supported by higher user engagement, better delivery conversion, lower return-to-origin rates, and improved platform monetisation. The company also continued investing in artificial intelligence capabilities, engineering productivity, and expanding its grocery business while maintaining disciplined capital allocation. Despite the healthy quarterly performance, investor sentiment remained cautious after management guided for slower year-on-year NMV growth in the July-September quarter and indicated higher spending on customer acquisition ahead of the festive season. Analysts noted that while Meesho's long-term growth outlook remains supported by its expanding user base and improving operating metrics, near-term profitability could remain under pressure due to increased investments and softer Q2 expectations.