Meesho shares fell 6 per cent on Friday despite the company narrowing its consolidated loss in Q1FY27 to ₹133 crore from ₹289.3 crore in Q1FY26.The stock traded at ₹180.35 on the NSE at 10.07 am, after hitting a low of ₹177.50, compared with the previous close of ₹188.95.Dhiresh Bansal, Chief Financial Officer at Meesho, said Q1 performance reflected the strength of the company’s operating model. The company delivered 34 per cent year-on-year NMV growth, while contribution margin expanded to 4.6 per cent, marketplace adjusted EBITDA improved to (1.2 per cent) of NMV and last twelve months free cash flow improved by approximately 15 per cent.Meesho provided long-term growth guidance of 25 per cent CAGR for the next five years, with higher growth expected in the initial years and lower growth in the latter years.Logistics costs are expected to continue reducing at a good pace despite fuel price and minimum wage increases. The baseline AOV decline should be about 5 per cent year-on-year, with recent quarters showing a lesser decline due to raw material and fuel price impacts.New initiatives have an annual budget cap of approximately ₹200 crore for EBITDA, with the company operating with a hard cap on experimental burn. Contribution margin is expected to increase, driven by restoring margins on logistics services and improved ad revenues.The board approved additional investment of up to ₹75 crore in the equity shares of Meesho Grocery Private Limited, a wholly owned subsidiary, through a rights issue or further issue of capital, in one or more tranches.It approved the acquisition of one equity share of face value of ₹1, representing 0.01 per cent of the paid-up equity share capital of Meesho Payments Private Limited, a subsidiary, from the existing shareholder.Brokerage dividedChoice Institutional Equities said Q1FY27 results reinforce its constructive medium-term view on Meesho, with user-led scale-up and continued expansion of the seller ecosystem driving underlying growth. It highlighted advertising monetisation, noting that over two-thirds of sellers by GMV are actively leveraging the platform.The brokerage raised its FY28 revenue estimates and upgraded the stock to “buy” with a target price of ₹220.Meanwhile, JM Financial maintained its reduce rating on Meesho with a target price of ₹185. The brokerage said its consolidated estimates for FY27–29E saw marginal changes after tweaking segmental estimates to factor in Q1 results. It added that the stock continues to trade at elevated valuation multiples of around 45x FY29E EV/Adjusted EBITDA, leaving limited room for execution misses.Published on July 24, 2026