Meesho Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Meesho Ltd trades at ₹188, in a confirmed uptrend and 9 weeks into that stage. That is +8.3% against its own 200-day average. It sits at 58% of a 52-week range of ₹138 to ₹224. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (4 weeks and counting).

Today the stock is in a confirmed uptrend — week 9 of stage 2, confirmed. At ₹188 it trades +8.3% versus its 200-day average and sits at 58% of its 52-week range (₹138–₹224).

Against the market, two honest reads. Cumulative: over the last 7 months the stock moved +14% while the NIFTY 500 moved −1% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (4 weeks and counting; last ahead the week of 2026-06-25) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: how the P/E reads against its own history.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

P/E does not price Meesho Ltd — earnings are negative, so there is no multiple to rank against its own history. The revenue and margin lines below are where a turn, when it comes, would show first. On sales the market values Meesho Ltd at 6.8× its FY26 revenue of ₹12,626 Cr.

With earnings negative, P/E does not price — there is no multiple to rank against its own history. The revenue and margin lines below are where the turn, when it comes, will show first.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Meesho Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

51.8/100 — rank 5 of 6 in New age - Platform - E-Retail · 51% evidence confidence

Meesho Ltd scores 51.8 out of 100 against the 6 companies it is compared with in New age - Platform - E-Retail, ranking 5. Fill the missing evidence before acting; the ranking is deliberately pulled toward neutral.

The four contributions add to the total exactly: 25.6 + 6.2 + 10 + 10 = 51.8. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Meesho Ltd reported ₹3,713 Cr of revenue in the Jun 26 quarter, +48.3% year on year. That is the 3rd straight quarter of year-on-year growth. Over 3 years it has compounded at 30.1% a year. The last full year, FY26, came in at ₹12,626 Cr. The last four reported quarters add to ₹13,836 Cr.

Meesho Ltd reported ₹3,713 Cr of revenue in the Jun 26 quarter, +48.3% year on year. That is the 3rd straight quarter of year-on-year growth. Over 3 years it has compounded at 30.1% a year. The last full year, FY26, came in at ₹12,626 Cr. The last four reported quarters add to ₹13,836 Cr.

FY26 revenue came in at ₹12,626 Cr (+34.5% on the year), capping 3 years at 30.1% compound. The latest quarter (Jun 26) printed ₹3,713 Cr, +48.3% year on year — the 3rd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +42.2% growth against the decade's 30.1% — the current year is running faster than its own long-run rate.

→ Revenue grew — did margins hold as it scaled? Next: −6.0% this quarter (+5.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Meesho Ltd's operating margin is −6.0% in the Jun 26 quarter, +5.0 percentage points against the same quarter a year ago. Across 4 fiscal years the operating margin has ranged −31.0% to −6.0%. The current quarter sits inside that band.

Meesho Ltd's operating margin is −6.0% in the Jun 26 quarter, +5.0 percentage points against the same quarter a year ago. Across 4 fiscal years the operating margin has ranged −31.0% to −6.0%. The current quarter sits inside that band.

The latest quarter's operating margin is −6.0%, +5.0 pp against the same quarter a year ago. Across 4 fiscal years the operating margin has ranged −31.0%–−6.0%.

Why the margin moved: operating margin went +4.5 pp year on year while gross margin went +0.0 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

→ Margins held — did that reach the bottom line? Next: profit null in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Meesho Ltd posted a net loss of ₹133 Cr in the Jun 26 quarter. The full FY26 year was a loss of ₹1,358 Cr. That loss is 3.6% of the quarter's revenue. The same quarter a year earlier lost ₹289 Cr.

Meesho Ltd posted a net loss of ₹133 Cr in the Jun 26 quarter. The full FY26 year was a loss of ₹1,358 Cr. That loss is 3.6% of the quarter's revenue. The same quarter a year earlier lost ₹289 Cr.

Jun 26 profit was ₹−133 Cr, null year on year. On the full year, FY26 printed ₹−1,358 Cr (null).

→ Profit rose — but did the cash follow?

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Meesho Ltd's cash-flow history is too thin to judge how much reported profit converts into cash. In FY26 that was ₹−3,875 Cr of operating cash against ₹−1,358 Cr of profit. After ₹146 Cr of capital spending, ₹−4,021 Cr was left as free cash. Cash resolution here is annual, because quarterly cash statements are not published.

FY26: operating cash of ₹−3,875 Cr against reported profit of ₹−1,358 Cr, leaving free cash of ₹−4,021 Cr after ₹146 Cr of capital spending.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Router verdict: the bigger cash user is investment — capital spending ran 2.0× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹276 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Meesho Ltd's cash conversion cycle runs 0 days in FY26, down from 0 days in FY23. Capital spending ran ₹276 Cr over the last 3 years. At FY26 sales of ₹12,626 Cr each day of that cycle holds about ₹34.6 Cr, so roughly ₹0.0 Cr sits inside the business at any moment.

FY26: debtors at 0 days (an asset-light business — no inventory to speak of) — for a full cycle of 0 days, tighter than FY23's 0.

In money terms: at FY26 sales of ₹12,626 Cr, each day of the cycle holds about ₹34.6 Cr — so the 0-day loop keeps roughly ₹0.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹276 Cr over the last 3 fiscal years against ₹139 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹0.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is −36% and the ROIC − WACC spread is −44.9 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Meesho Ltd earns a ROCE of −36% in FY26. Return on invested capital clears the cost of that capital by −44.9 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is −10.8% net margin on 1.60× asset turns.

FY26 ROCE is −36%.

🚨 Why the return is what it is — the wiring (FY26): −10.8% net margin × 1.60× asset turns × 1.80× balance-sheet leverage ≈ −31.1% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: −32.9% − 12.0% = a −44.9 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.01.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Meesho Ltd carries total debt of ₹63.0 Cr against shareholder equity of ₹4,386 Cr as of Mar 26, a debt-to-equity of 0.01 — effectively unlevered. On the annual view that ratio went from 0.04 in FY25 to 0.01 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹63.0 Cr against shareholder equity of ₹4,386 Cr — a debt-to-equity of 0.01. On the annual view, debt-to-equity went from 0.04 (FY25) to 0.01 (FY26). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: the register is quiet.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Meesho Ltd moved a full percentage point over the last two years — the register is quiet. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — .

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Meesho Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Frequently asked questions