Meesho Hits Lower Circuit at ₹149.33 on Second Day; Shares Slide ~10% in Two Days After Q3 Loss Widens 13x to ₹490.7 Cr, Revenue Up 32%.
Meesho Ltd shares extended their decline for a second straight session on February 2, hitting the lower circuit as investor sentiment weakened following the company’s Q3 FY26 earnings. Over two days, the stock has fallen close to 10%, triggering concerns among investors about profitability despite strong topline growth.
(NSE: MEESHO | BSE: 544632)
What drove the fall?
The sell-off followed Meesho’s December-quarter results, where the company reported a sharp deterioration in profitability:
Net Loss: ₹490.7 crore in Q3 FY26, a 13x year-on-year increase
Revenue: ₹3,517.6 crore, up 32% YoY (₹2,673.6 crore in Q3 FY25)
Total Expenses: ₹4,071.3 crore, up 44% YoY, led by higher advertising and sales promotion spends
Stock Reaction: Down 5% on Feb 2, locked in lower circuit; ~10% drop over two days
Quarterly Results Snapshot
While Meesho delivered robust revenue growth driven by scale and user acquisition, the sharp rise in operating costs compressed margins. Elevated marketing and incentive spending weighed heavily on earnings, overshadowing the topline momentum.
Investor Takeaway
The results underscore a classic growth-versus-profitability trade-off. Near-term volatility may persist as markets reassess the path to breakeven and cost discipline. Investors will closely track management’s guidance on expense rationalisation and margin improvement in coming quarters.
