The e-commerce firm recorded a 34% year-on-year increase in operational revenue to Rs 4,132 crore, alongside an EBITDA loss of Rs 229 crore for the second quarter. While brokerages like Jefferies and Motilal Oswal raised their price targets due to solid underlying momentum, Nomura flagged that net merchandise value growth fell short of its projections. However, analysts noted that festive season shifts partially distorted quarterly comparisons, with domestic brokerages forecasting breakeven by FY28.
Key points
Net merchandise value expanded 23% year-on-year, though Nomura cautioned that it trailed…: Net merchandise value expanded 23% year-on-year, though Nomura cautioned that it trailed its target of 31%.
Motilal Oswal projected that advertising monetization and platform adoption will guide th…: Motilal Oswal projected that advertising monetization and platform adoption will guide the company to breakeven in FY28.
Operating metrics showed an unexpected improvement as the company's contribution margin i…: Operating metrics showed an unexpected improvement as the company's contribution margin increased to 6%.
Sources checked by our analysis pipeline: 1
Meesho’s revenue from operations meanwhile increased more than 34% year-on-year to Rs 4,132 crore in the second quarter of FY27, from Rs 3,074 crore in Q2 FY26. Its total expenses increased around 24% YoY to Rs 4,382 crore during the quarter under review, from Rs 3,540 crore in the year-ago period. The shares of the company fell to Rs 222 apiece on Thursday morning.
Meesho's net loss, however, remained broadly flat on a sequential basis, compared to Rs 133 crore in the April-June quarter of FY27. Revenue from operations rose 11.3% quarter-on-quarter (QoQ) to Rs 4,131.58 crore from Rs 3,712.81 crore. EBITDA loss stood at Rs 229 crore, compared with Rs 225 crore in the previous quarter.
Also Read | Meesho Q2 Results: Loss narrows to Rs 132 crore YoY, revenue rises 34%
Jefferies on Meesho share price
Jefferies maintained its ‘Buy’ rating on the shares of Meesho but increased its target price to Rs 285 apiece from Rs 240 apiece. The latest target price implies 27% upside potential from the stock’s previous closing price.The international brokerage noted that the…
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