Meesho narrows Q4 loss as expenses fall 6.67% QoQ
Revenue was nearly flat, while operating margin improved 8.10 percentage points but remained negative at -7.22%; the stock later fell 6.61% by day 15.
Filed 06 May 2026, 17:03 IST · after market close · Meesho Ltd (MEESHO)
Key takeaways
- Expenses fell 6.67% QoQ while revenue rose 0.39%, narrowing the operating loss by 52.71%.
- Operating margin improved by 8.10 percentage points to -7.22%, but remained 22.03 points below the 93-peer sector median.
- The stock gained 1.28% in the first session after the filing before falling 6.61% by day 15.
Price around the results
Lower expenses cut Meesho’s consolidated Q4 loss
Meesho’s consolidated revenue was nearly unchanged QoQ, rising 0.39%, while expenses declined 6.67%. That cost reduction narrowed the operating loss by 52.71% and the net loss by 66.10% to Rs 166.34 cr. The improvement came from cost control rather than topline momentum.
Margin recovery was offset by higher depreciation
Operating margin improved by 8.10 percentage points because expenses fell faster than revenue, but it remained negative at -7.22%. Interest expense declined 38.82%, while depreciation rose 70.60% to Rs 18.63 cr. Other income was Rs 115.77 cr, yet profit before tax remained negative at Rs 160.09 cr; the tax rate also fell by 1.39 percentage points as tax expense declined 48.18%.
Meesho remained near the bottom of reported peer margins
Among 93 Consumer Discretionary peers that reported the same quarter, the median operating margin was 14.81%. Meesho’s -7.22% margin was 22.03 percentage points below that median and ranked fifth from the bottom. The available quarterly trend nevertheless shows an improvement from Q3FY26, when operating margin was -15.32%.
Initial stock gain reversed over the following sessions
After the results were filed after market close on 6 May, the stock gained 1.28% in the first session and opened with a 4.44% gap; volume was 3.57 times the reference level. The return was 1.91% by day one, but turned negative by day five at -2.77% and reached -6.61% by day 15.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹3,531 cr | ₹3,518 cr | +0.39% |
| Other income | ₹116 cr | ₹75 cr | +54.13% |
| Expenses | ₹3,786 cr | ₹4,056 cr | -6.67% |
| Operating profit | ₹-255 cr | ₹-539 cr | +52.71% |
| Operating margin (%) | -7.22% | -15.32% | — |
| Interest | ₹2 cr | ₹4 cr | -38.82% |
| Depreciation | ₹19 cr | ₹11 cr | +70.60% |
| Profit before tax | ₹-160 cr | ₹-479 cr | +66.55% |
| Tax | ₹6 cr | ₹12 cr | -48.18% |
| Net profit | ₹-166 cr | ₹-491 cr | +66.10% |
| EPS (₹) | ₹-0.36 | ₹-1.14 | +68.42% |
Operating margin of -7.22% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.28% | +1.30% |
| Next session | +1.91% | — |
| 5 sessions | -2.77% | -0.14% |
| 15 sessions | -6.61% | — |
| 30 sessions | -11.58% | — |
Volume on the results session was 3.57× its 20-day average.
What to watch
- Whether operating margin improves from -7.22% in the next quarter
- Whether expenses remain below Rs 3,786.06 cr while revenue builds from Rs 3,531.21 cr
- Whether depreciation moderates from Rs 18.63 cr and other income remains material at Rs 115.77 cr