Meesho falls 6.9% after Nomura starts coverage with ‘reduce’ call

Nomura flagged Meesho’s premium valuation and intensifying competition from Amazon, Flipkart and quick commerce. The company reported 48% year-on-year Q1 revenue growth to Rs 3,712.8 crore, while net loss narrowed 54% to Rs 132.8 crore.

— Source publishedFri, 25 Sept, 2026, 16:56 IST·First seen Fri, 25 Sept, 2026, 17:03 IST·Source Business Today · Latest

What happened

Nomura initiated Meesho at reduce, citing premium valuation and rising competition from Amazon, Flipkart and quick commerce. Shares fell 6.87%. Meesho’s Q1

Key facts

  • Meesho shares fell 6.87% to Rs 216.85
  • Market capitalisation: Rs 96,451 crore
  • Nomura forecasts 23% NMV CAGR in FY27-FY30
  • Q1 net loss: Rs 132.8 crore, down 54% YoY from Rs 289.4 crore
  • Q1 revenue: Rs 3,712.8 crore, up 48% YoY from Rs 2,503.9 crore
  • Q1 total expenses: Rs 3,959.2 crore, up 43% YoY
  • UBS raised price target by 24%
  • UBS raised FY29-FY31 NMV forecasts by 7-18% and EBITDA estimates by 20-40%

Why this matters

Meesho’s valuation reset could create partnership or acquisition openings in logistics, seller services and quick-commerce adjacencies as it seeks defensible capabilities against larger rivals.

What to watch

  • Next quarterly revenue growth, net-loss trend and contribution-margin disclosures.
  • Marketing, logistics and employee-cost growth relative to revenue.
  • Active users, order frequency, average order value, seller retention and take-rate trends.
  • Competitive discounting or delivery-expansion announcements from Amazon, Flipkart and quick-commerce operators.
  • Additional analyst target-price revisions, institutional ownership changes and lock-up or insider-sale activity.
  • Management is likely to emphasize contribution-margin improvement, repeat-user growth, seller additions and capital efficiency in investor communications.
  • Meesho may selectively raise promotions, shipping incentives and seller services to defend value-focused shoppers and marketplace liquidity.
  • Peers could intensify discounts, faster-delivery propositions and seller fee incentives in key value-commerce categories.
  • Analyst debate will shift toward whether growth is organic and durable or being supported by elevated marketing and fulfillment expenditure.