Meesho shares surge 5% as strong festive sales, Q2 biz update boost sentiment. Should you buy?
“As India’s largest e-commerce platform by Placed Orders, Meesho saw orders peak at over 75,000 per minute within just 15 minutes of the sale going live, underscoring the scale at which festive demand came onto the platform,” the company said in a regulatory filing.
Meesho reported a 60% YoY increase in transacting customers, with strong demand across categories such as fashion, home and kitchen, beauty and personal care, kids’ products and electronic accessories.
Orders on Meesho Mall, its branded shopping platform, grew more than 200% on Day 1, reflecting wider adoption of branded products beyond major cities. The number of customers from Tier-3 and smaller markets shopping on Meesho Mall nearly tripled YoY, while more than one in three shoppers purchased a Mall product for the first time from a catalogue spanning over 1,000 brands.
Beauty and personal care emerged as the leading category among first-time Meesho Mall buyers, with more than 80% shopping for products such as face washes, perfumes, soaps and skincare items. Health and wellness and footwear followed. The trend highlights growing access to affordable branded products beyond metropolitan markets.
Meesho also reported strong growth in creator-led commerce, with orders through Content Commerce rising around 3.7 times YoY. Nano creators, with fewer than 10,000 followers, accounted for 90% of the active creator base, while 81% of active creators were from non-metro India. The company said this model is making product discovery more local and relatable.
The update follows Meesho’s recent disclosure that net merchandise value (NMV) from Content Commerce grew 152% year-on-year between August 1, 2025, and August 31, 2026. During this period, 1.6 lakh active creators participated in the segment, while Tier-3 and Tier-4 markets accounted for 66% of Content Commerce orders.Content Commerce refers to selling products through creator-generated content rather than relying solely on traditional advertising.
Buy, sell or hold Meesho shares?
Last week, international brokerage Nomura initiated coverage on Meesho with a ‘Reduce’ rating and a target price of Rs 167.
Nomura said competition from horizontal e-commerce platforms and quick commerce (QC) players could intensify, even as Meesho retains an early-mover advantage. The brokerage expects Amazon and Flipkart to expand their presence in QC and value commerce (VC), both of which are growing faster than the overall e-commerce market. It cited Flipkart’s relaunch of Shopsy in May 2026, with a gamified approach targeting Gen Z and aimed at boosting user engagement, as a step in that direction.
Days earlier, UBS raised its target price on Meesho by 24% to Rs 260. The brokerage increased its FY29-31 net merchandise value (NMV) estimates by 7-18%, with a similar upward revision to contribution profit estimates and a 20-40% increase in EBITDA estimates.
The higher NMV forecasts reflect the continued flywheel effect of seller and buyer growth. Sellers increased 81% YoY to 1.04 million in Q1FY27, while buyers rose 29% YoY to 274 million. This growth has been accompanied by a rapid expansion in stock-keeping units (SKUs) and logistics partners.
Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
