Meesho Ltd — Q4 FY26

Meesho delivered a strong Q4 with contribution margin expanding 130 bps sequentially to 4% exit rate, driven by logistics cost normalization after Q2/Q3 disruptions and ad revenue growth. The one-time logistics headwind of 145 bps is now behind, and management expects gradual margin improvement from ad monetization and fulfillment efficiencies. Annual transacting users grew 33% YoY to 264 million, with first-year frequency doubling over three years. The company is investing aggressively in rural user acquisition via AI tools like Vani, and scaling Meesho Mall for value brands. Key risk: potential margin pressure if third-party logistics partners shift focus to profitability over volume, though management sees no incentive for partners to reduce capacity.