Block deal alert: Meesho shares in focus as Peak XV, Elevation Capital eye Rs 1,900 crore stake sale

Shares of Meesho will be in focus heading into trade on Tuesday after early investors Peak XV Partners and Elevation Capital look to offload a combined 2.3 per cent stake in Meesho through block deals worth around Rs 1,900 crore.

The sale comprises nearly 10.5 crore shares at a floor price of Rs 182.08 apiece, which is set at a 5 per cent discount to the current market price. Morgan Stanley is managing the transaction as the broker, according to term sheets.

Meesho Q1 results

For the quarter ended June 30, 2026, Meesho reported a loss of Rs 133 crore, improving from a loss of Rs 289 crore in the corresponding quarter last year. The company expects year-on-year growth in net merchandise value (NMV) to slow during the July to September quarter as it steps up spending to acquire new users ahead of the festive season.


Also read: Meesho expects slower Q2 growth, to raise festive marketing spend

According to the company, the softer growth outlook is primary due to the timing of its flagship Mega Blockbuster Sale, which has been shifted this year from the July to September quarter to the October to December quarter. As a result, the company expects growth in the third quarter to appear stronger, with comparisons expected to even out when both quarters are viewed together.

Should you buy, sell or hold Meesho shares?

Following the earnings, Citi reiterated its Buy rating on Meesho and increased its target price to Rs 220 from Rs 210, implying a 16 per cent upside. The brokerage described the quarter as solid, with growth broadly matching expectations and continued strength in marketplace pricing. It noted that Meesho was able to pass on higher fulfilment costs driven by fuel and wage inflation, while take rates and contribution margins improved despite cost pressures.

Citi said the shift in the festive season could weigh on near-term performance but should benefit the following quarter. It also raised its estimates, citing confidence in the company's ability to maintain its efficiency gains.

Morgan Stanley retained its Equal Weight rating on Meesho with a target price of Rs 190. The brokerage said the quarter delivered mixed results, with losses broadly meeting expectations but revenue coming in slightly below forecasts. It highlighted that profitability improved faster than revenue growth, supported by better delivery conversion and logistics optimisation, which helped expand contribution margins.

The brokerage also noted that Meesho successfully passed on higher fuel and wage costs. However, it pointed out that the shortfall in merchandise value suggested weaker than expected order growth. Morgan Stanley added that higher spending on user acquisition ahead of the festive season, along with the shift in festive sale timing, could make the upcoming quarter appear relatively softer.

Meesho, the social commerce platform that debuted on the stock exchanges in December 2025 at an issue price of Rs 111, has witnessed sharp swings in its share price since listing. After touching post-listing highs of around Rs 254, the stock corrected and has recently been trading in the Rs 180 to Rs 190 range. In the last six months, the stock is up 28 per cent.

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