Meesho shares fall 5% after Q3 net loss widens 13-fold; here's what brokerages say

Meesho shares fall 5% after Q3 net loss widens 13-fold; here's what brokerages say

Shares of Meesho fell 5% to Rs 157.2 apiece on February 2 after the e-commerce firm's Q3 net loss widened 13x from Rs 37.4 crore a year ago

The company's investment in ads and sales promotion, as share of net merchandise value, nearly doubled to 2.4%.

The recently-listed company expects adjusted core earnings margin to improve in next two quarters, driven by logistics cost recovery, operating leverage on user growth, tech investments.

Morgan Stanley, which increasing price target from Rs 169 to Rs 174, said contribution margin miss was led by higher logistics costs, which the company did not pass on to consumers.

So far in 2025, the stock fell nearly 13% and has been down 3.3% since listing debut on December 10, 2025.

JM Financial gave a 'Reduce' rating to the share and price target of Rs 160.

"Meesho reported a disrupted quarter with growth sustaining while margins took an even sharper hit. Valmo faced certain temporary inefficiencies wherein the company decided to absorb the cost instead of passing it through. NMV growth was at 26% YoY supported by 34%/9%/-3% change in ATUs/annual ordering frequency/AOV. Marketplace CM dipped 200 bps YoY to -2.3% of NMV, as the PnL got squeezed between lower fulfilment mark-up and higher customer acquisition. As a result, Adjusted EBITDAM dipped 380 bps YoY to -4.5% of NMV. While Meesho brings e-commerce to an ever growing customer base, visibility on profitability still remains blurred. Hence, we maintain REDUCE with DCF based March 27 TP of Rs 160, implying 106x/23x FY28/30 EV/Adj. EBITDA multiple," said the domestic brokerage.