Meesho (MEES.NS): Mid-30s NMV Growth: Marketplace Pricing Power Demonstrated

Research evidence excerpt

Meesho (MEES.NS): Mid-30s NMV Growth: Marketplace Pricing Power Demonstrated

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23 Jul 2026 15:12:30 ET │ 20 pages

Meesho (MEES.NS)

Mid-30s NMV Growth: Marketplace Pricing Power Demonstrated

CITI'S TAKE

Meesho delivered a solid 1Q with mid-30s NMV growth (in-line), solid ATC

additions QoQ (+10mn), and a clear demonstration of marketplace pricing

power as it passed on fulfillment cost increases (fuel & minimum wages): Buy

take-rates rose 80bps QoQ, Marketplace contribution and Adj EBITDA Price (23 Jul 26 15:30) Rs188.95

margins rose ~50bps QoQ each. Meesho continues to invest in new user

acquisitions as it targets >300mn ATCs within FY27E while delivering Target price Rs220.00↑

progress towards Adj EBITDA b/e through improvement in ad monetization from Rs210.00

and operating leverage. We raise estimates; our new TP (Rs220/sh) is based Expected share price return 16.4%on 56x FY29E EV/Adj EBITDA (50x earlier) discounted back 1 year. Buy.

Expected dividend yield 0.0%

1QFY27 — Meesho delivered an in-line 1Q marketplace NMV at Rs116bn (+34% YoY), Expected total return 16.4%

lower marketplace Adj EBITDA losses vs Citi at -Rs1.39bn (CitiE: -Rs1.57bn). Higher Market Cap Rs873,399Mlosses in new verticals resulted in overall consolidated Adj EBITDA losses at -

Rs1.8bn vs CitiE: -Rs1.7bn. Marketplace: Contribution margins & Adj EBITDA margins US$9,044M

expanded c50bps QoQ to 4.6%/(1.2)% of NMV despite fuel price/minimum wage

hikes (CitiE: 4.7%/(1.4)%). Other positives: +10mn QoQ in ATCs, further uptick in LTM

ordering freq (10.3x vs 10.1 QoQ) Outlook for 2Q: festive shift into 3Q this FY – 2Q’s

headline growth likely slips into 20s YoY but 3Q will likely accelerate and Price Performance

compensate. Investments ahead of festive (A&P) may moderate margins QoQ.