Brokerages have started coverage on Meesho, Swiggy, and three other Indian stocks, spotlighting big upside potential. JP Morgan rates Meesho “Overweight” with about 11% upside, while Equirus gives Swiggy a “Buy” targeting roughly 48% gains. Analysts also turned constructive on Capillary Technologies, Shadowfax Technologies, and Shyam Metallics.
Meesho is pushing deeper into AI-led software development, with CEO Vidit Aatrey saying over 70% of the company’s code is now AI-generated. The ecommerce platform says this shift helps it release products faster while improving reliability. Meesho hasn’t disclosed the specific tools or how AI code is governed and reviewed, signaling a broader startup trend toward AI as an internal operating layer.
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Meesho shares surged up to 8% after the company reported an 88% year-on-year decline in Q4 net loss to ₹166.3 crore, alongside 47% growth in operating revenue to ₹3,531.2 crore. Although expenses rose, margins improved with rising NMV and order volumes. The firm also announced up to ₹100 crore investment in Meesho Payments, while brokerages cited improving profitability and platform reliability from AI-driven experiments.
Paytm reported another profitable quarter, posting Q4 FY26 net profit of ₹183 crore and improving EBITDA, driven by cost discipline, AI-led automation and payments strength. Meesho cut losses sharply to ₹166.3 crore and approved ₹100 crore for lending. Freshworks plans to cut 500 jobs, while PB Fintech’s profit jumped and Reliance accelerates satcom plans.
Meesho reported a 47% jump in Q4 revenue, driven by heavy reliance on AI systems. CEO Vidit Aatrey said more than 70% of the company’s code is now written using artificial intelligence, while over three fourths of orders come via its AI recommendation engine. The upbeat growth was tempered by wider operating losses tied to an aggressive expansion push.
Meesho’s board has approved an investment of up to Rs 100 crore into its payments subsidiary, Meesho Payments Private Limited (MPPL). The capital will flow via share subscriptions, including a rights issue, to strengthen MPPL’s operations and growth. Meesho says the move will also improve MPPL’s ability to meet regulatory requirements and expand its payment services.
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Meesho says its AI tools, including PRISM and Vaani, helped lift customer engagement and drive sales as it upgraded technology across its marketplace. In the March quarter, the e-commerce firm reported an 88% drop in losses and a 47% year-on-year rise in revenue from operations. The results underscore a strategy focused on improving user experience and marketplace efficiency.
Meesho reported a standout Q4 as its loss narrowed 88% year on year to Rs 166 crore. Revenue from operations surged 47% to Rs 3,531 crore, up from Rs 2,400 crore in the same quarter last year. The update signals a stronger operating performance despite earlier profitability pressure.
Indian markets ended lower as selling hit financial, consumer and realty names. Amid the downturn, Voltamp tumbled sharply following weak results, while Tata Technologies, CAMS and Sobha posted gains. Stocks moved in contrasting directions, highlighting how earnings performance drove sentiment more than sector-wide trends on Tuesday.
Meesho shares jumped nearly 10% after JP Morgan initiated coverage with an Overweight rating and a Rs 215 target price. The brokerage expects EBITDA margin expansion and strong net merchandise value growth, fueled by advertising monetization and logistics improvements. It also projects a recovery in free cash flow, betting that Meesho’s market leadership can sustain further gains.
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Value commerce platform Meesho is contesting a Rs 14.29 crore Goods and Services Tax demand over alleged failure to collect tax at source (TCS) on specific seller transactions. The cases span October 2018 to March 2020. Meesho says the demand is unsustainable and without merit, even as the GST Appellate Tribunal raised the tax call.
Meesho’s rise from a tiny start to roughly INR 10,000 crore revenue in eight years has fueled comparisons to an “Aam Aadmi’s Amazon.” Yet the key question for a potential IPO remains unchanged: like other high-growth unicorns, Meesho has not turned profitable, raising scrutiny over sustainability and investor returns.
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