Business

According to the company’s regulatory update, order volumes peaked at more than 75,000 orders per minute within just 15 minutes of the sale going live. The number of transacting customers increased by approximately 60% compared with the same period last year. The strong opening performance reflected growing demand across fashion, home and kitchen products, beauty and personal care, children’s products and electronic accessories.

Meesho’s performance attracted attention in the stock market even as broader market sentiment remained subdued. Business Standard reported that the shares reached their highest level since December 2025 during Monday’s session. The stock had previously recorded an all-time high of ₹254.65 on December 18, 2025. The latest rally therefore brought the share price closer to its previous peak, although the stock’s future direction will depend on sustained business growth and investor expectations.

One of the strongest contributors to the festive sales performance was Meesho Mall, the company’s branded shopping platform. Orders through Meesho Mall increased by more than 200% year on year on the first day of the sale. The number of customers from Tier 3 and smaller markets shopping through the platform nearly tripled, while more than one in three shoppers purchased a Meesho Mall product for the first time.

The platform offers products from more than 1,000 brands, helping the company expand its presence in branded merchandise beyond major metropolitan markets. Beauty and personal care products emerged as a leading category among first-time Meesho Mall buyers, followed by health and wellness products and footwear. The development points to growing interest in branded goods among consumers looking for affordable shopping options.

Festive demand was not limited to clothing and traditional shopping categories. Meesho reported increased orders for home decoration and puja-related products, with demand for torans and wall hangings rising eightfold. Orders for ear-lobe support patches used with heavy earrings increased nearly sevenfold, while rosemary hair-care products recorded more than sixfold growth. Sarees, children’s clothing sets and kurta sets were among the popular fashion products during the opening day of the sale.

Personalised product recommendations also played a major role in shopping activity. According to a report by Business Today, around 85% of Day 1 orders were powered by personalised recommendations. This highlights the growing importance of technology-led product discovery in helping customers find relevant products across a wide range of categories.

The company also reported encouraging trends among sellers and content creators. The number of transacting sellers rose approximately 63% year on year, while participation from sellers based in Tier 4 and smaller markets doubled. The number of sellers receiving their first-ever order on the opening day increased by around 43%, suggesting that the festive shopping event is creating opportunities for a broader network of businesses.

Creator-led commerce also continued to expand rapidly. Orders generated through Meesho’s Content Commerce segment grew approximately 3.7 times year on year. Around 90% of active creators in the segment were nano creators with fewer than 10,000 followers, while 81% were from non-metropolitan India. The figures underline the role of smaller creators in connecting products with customers through relatable content and recommendations.

The latest festive sales update follows the company’s earlier disclosure that the net merchandise value generated through Content Commerce increased by 152% year on year between August 2025 and August 2026. Meesho said approximately 1.6 lakh active creators participated in the segment during the period, with Tier 3 and Tier 4 markets accounting for 66% of Content Commerce orders.

Despite the positive business update, brokerage views on Meesho remain divided. Last week, international brokerage Nomura initiated coverage on the stock with a Reduce rating and a target price of ₹167. The brokerage cautioned that competition from established e-commerce companies and quick-commerce platforms could intensify. Amazon and Flipkart are expected to strengthen their presence in value commerce and quick commerce, potentially increasing competitive pressure on Meesho.

In contrast, UBS raised its target price on Meesho by 24% to ₹260. The brokerage increased its estimates for the company’s net merchandise value for financial years 2029 to 2031 by 7% to 18%, alongside upward revisions to contribution profit and EBITDA estimates. The improved outlook was linked to continued growth in buyers and sellers, expanding product availability and the potential benefits of operating scale.

Meesho’s buyer and seller growth has been an important part of its expansion strategy. The company reported that its seller base increased 81% year on year to 1.04 million in the first quarter of financial year 2026–27, while the number of buyers rose 29% to 274 million. These figures suggest that the platform continues to broaden its reach, although sustained growth will also depend on its ability to manage competition, fulfilment costs and profitability.

For investors, the latest rally presents both opportunities and risks. Strong festive demand, increasing customer participation, rapid growth in Meesho Mall and the expansion of creator-led commerce are encouraging indicators. At the same time, differing brokerage assessments show that analysts do not share a uniform view of the stock’s valuation and future growth prospects.

Whether Meesho shares can maintain their upward momentum will depend on how effectively the company converts the surge in festive orders into sustained business growth. Investors should also monitor subsequent financial results, operating margins, competitive developments and official company disclosures before making investment decisions.

Market disclaimer: This report is for news and information purposes only and does not constitute investment advice or a recommendation to buy or sell Meesho shares. Brokerage target prices are estimates, not guaranteed outcomes. Investors should assess their risk tolerance and financial circumstances before making investment decisions.