I went through Meesho's ratios and financials. One thing first: if you look only at headline numbers, the picture will be incomplete.
What looks good ✅
→ FY26 net sales of ₹12,626 cr, up 34.5%
→ Almost no debt, with interest of only ~₹9 cr
→ Current ratio of 1.55, and cash up from ₹147 cr to ₹620 cr
→ Asset-light model: asset turnover of ~1.7 and near-zero receivables
What needs a closer look ⚠️
→ FY26 expenses grew 41.6% against 34.5% sales growth, so costs outpaced revenue
→ PBIDT went from -₹68 cr in FY25 to -₹1,012 cr in FY26
→ Excluding other income (₹473 cr), the core operating loss is roughly 11.8% of sales (my calculation)
→ Operating cash flow in FY26 was -₹3,875 cr, while financing brought in ₹4,101 cr
→ ROE of -59% and ROCE of -41%
A trap to avoid 🪤
FY25's net loss margin was -41.84% and FY26's is -10.6%. That sounds like a big profitability improvement. But a large part of the FY25 loss came from tax (₹2,487 cr) and exceptional items (₹1,346 cr). The real operating picture is different, so understand PBIDT and the role of other income before leaning on net profit.
The valuation question 💭
Market cap is ~₹1.09 lakh cr, about 8.7x FY26 sales. P/E doesn't apply because the company is loss-making. The market is already pricing in long-term growth and future profitability. Here's a simple illustration (my assumptions, not a forecast): at an 8% net margin and 25x P/E, justifying this value would need roughly ₹55,000 cr of revenue, about 4x the TTM figure.
What I'd track next 🔍
Whether quarterly PBIDT is moving toward break-even
Whether operating cash flow normalises
The source of other income
How do you see Meesho: a real growth story, or too early to tell? Tell me in the comments 👇
Disclaimer: I am an NISM-certified Research Analyst. This post is for educational purposes only and is not investment advice. Data is taken from screenshots dated 6 Oct 2026. Please do your own research or consult a registered advisor before investing.
What looks good ✅
→ FY26 net sales of ₹12,626 cr, up 34.5%
→ Almost no debt, with interest of only ~₹9 cr
→ Current ratio of 1.55, and cash up from ₹147 cr to ₹620 cr
→ Asset-light model: asset turnover of ~1.7 and near-zero receivables
What needs a closer look ⚠️
→ FY26 expenses grew 41.6% against 34.5% sales growth, so costs outpaced revenue
→ PBIDT went from -₹68 cr in FY25 to -₹1,012 cr in FY26
→ Excluding other income (₹473 cr), the core operating loss is roughly 11.8% of sales (my calculation)
→ Operating cash flow in FY26 was -₹3,875 cr, while financing brought in ₹4,101 cr
→ ROE of -59% and ROCE of -41%
A trap to avoid 🪤
FY25's net loss margin was -41.84% and FY26's is -10.6%. That sounds like a big profitability improvement. But a large part of the FY25 loss came from tax (₹2,487 cr) and exceptional items (₹1,346 cr). The real operating picture is different, so understand PBIDT and the role of other income before leaning on net profit.
The valuation question 💭
Market cap is ~₹1.09 lakh cr, about 8.7x FY26 sales. P/E doesn't apply because the company is loss-making. The market is already pricing in long-term growth and future profitability. Here's a simple illustration (my assumptions, not a forecast): at an 8% net margin and 25x P/E, justifying this value would need roughly ₹55,000 cr of revenue, about 4x the TTM figure.
What I'd track next 🔍
Whether quarterly PBIDT is moving toward break-even
Whether operating cash flow normalises
The source of other income
How do you see Meesho: a real growth story, or too early to tell? Tell me in the comments 👇
Disclaimer: I am an NISM-certified Research Analyst. This post is for educational purposes only and is not investment advice. Data is taken from screenshots dated 6 Oct 2026. Please do your own research or consult a registered advisor before investing.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.