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Big jump of 7% in Meesho share, is this the right time to invest money or will you get stuck?

Sanjeev Kumar | May 7, 2026 5:23 PM CST

Big jump of 7% in Meesho shares

Today was a very busy day for the investors of e-commerce sector giant Meesho. As soon as the excellent financial results for the quarter ending March 2026 were released in the market, the company's shares gained rocket speed. On one hand, a huge jump of 47 percent was recorded in the company's earnings, while on the other hand, the loss figure also reduced to a great extent. The effect of this double happiness was directly visible on the stock market and Meesho's stock jumped by more than 7 percent. However, amidst this fast race, a report by stock market experts and brokerage firms has also advised investors to be a little cautious.

Bumper increase in earnings, then where is the problem?

The figures for March 2026 quarter have brought a big relief for Meesho. The company's operational revenue has grown at a fast pace of 47.1 percent on an annual basis and has crossed Rs 3,531.2 crore. The best thing is that the net loss of the company has reduced from Rs 1,391 crore to just Rs 166.3 crore.

However, it is important to understand a subtle nuance here. In the same quarter last year, the company had suffered an exceptional loss of Rs 1,285 crore. If we adjust that figure, the company's losses have actually increased on an annual basis. Apart from this, the operating loss of the company has also increased from Rs 230.8 crore to Rs 254.72 crore.

What are the margin and cash flow figures saying?

The health of any company is determined by its cash flow and margin. In the case of Meesho, the contribution margin in the March 2026 quarter has been 4 percent. This figure is better than the last few quarters. It was 2.3 percent in the December 2025 quarter and 3.3 percent in September. However, it is still slightly less than 4.4 percent in June 2025. The matter of concern is the free cash flow of the company. Trailing free cash flow for the last 12 months has fallen from a profit of Rs 591 crore to a loss (negative) of Rs 633 crore on an annual basis.

Why is the brokerage firm putting brakes on this flight of shares?

During intra-day trading in the stock market, Meesho's shares jumped 7.56 percent to Rs 211.35 and later were seen trading around Rs 201.55 on BSE with a gain of about 2.57 percent. But, meanwhile, the famous brokerage firm HSBC released its report. The firm has maintained 'Hold' rating on Meesho's shares.

He has definitely increased its target price from Rs 160 to Rs 185, but this new target is much below the current market price of the share (beyond Rs 200). This is the reason why it is being considered as an alert signal for investors. HSBC believes that improvement in prepaid orders and logistics system will benefit the company in future. He expects that on the basis of large-scale business and advertising income, the company's free cash flow will become positive by financial year 2027 and there will be a significant improvement in profits.

How has been the journey of investors since listing?

If we look at Meesho's stock market journey so far, it has been quite interesting. The company had come up with its big IPO of Rs 5,421 crore, in which shares were issued to common investors at a price of Rs 111 each. Meesho had a spectacular entry in the domestic stock market on 10 December 2025. After being listed at a huge premium of 46 per cent, within just two days the stock touched its all-time high (record high) of Rs 254.65 on December 12, 2025.

Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money related decisions.

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