Meesho Share Price: Shares of e-commerce sector company Meesho witnessed a sharp decline for the second consecutive day on Monday, February 2. The company’s shares fell 5 percent and reached their lower circuit. This decline is being seen after the announcement of quarterly results of MISH. Meesho said that in the third quarter of the current financial year, its net loss has increased 13 times on an annual basis. Besides, there has been a sharp increase in the expenses of the company, which has increased the concern of the investors.
Why did quarterly results increase concern?
Meesho released its first results after listing on the stock exchange on January 30. The company said its net loss widened to Rs 490.7 crore in the December quarter, which was Rs 37.4 crore in the same period a year ago. In its last quarter also the company had suffered a loss of Rs 411.4 crore.
However, there was a sharp jump on the expenditure front also. Meesho’s total expenses increased by 44 per cent to Rs 4,071.3 crore in the December quarter from Rs 2,822.8 crore in the same quarter a year ago. In the last quarter this expenditure was Rs 3,540.4 crore. In particular, advertising and sales promotion expenses, which almost doubled as a proportion of net merchandise value to 2.4 percent, put pressure on margins.
Company expects further improvement
Meesho’s management says that the pressure on margins in the current quarter is temporary. The company expects to see improvement in adjusted core earnings margins in the next two quarters. Recovery of logistics costs, operating leverage on user growth and benefits from investment in technology have been cited as important reasons behind this.
What is the opinion of brokerage firms?
Global brokerage firm Morgan Stanley has increased its target price on Meesho from Rs 169 to Rs 174. However, it also said that contribution margin in the December quarter was weaker than expected. The brokerage says that the main reason for this was the increase in logistics costs, the burden of which the company did not pass on to the customers.
Brokerage firm JM Financial has maintained its ‘reduce’ rating on Meesho shares and given a target price of Rs 160. The brokerage says that this quarter was a disrupted one for the company, where growth remained but the pressure on margins increased further.
According to JM Financial, the company recorded 26 percent year-on-year growth in net merchandise value, which was supported by a 34 percent increase in active transacting users. However, there was a slight increase in ordering frequency and a decline in average order value. The brokerage believes that clarity regarding profits still remains unclear. For this reason he has advised to adopt a cautious approach on the stock.
share status
Since the beginning of 2026, Meesho’s stock has fallen by about 13 percent. Since its listing on December 10, 2025, it has registered a decline of about 3.3 percent.
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