Shares of social commerce major Meesho surged sharply on Tuesday, hitting the 20% upper circuit in early trade after global brokerage firm UBS initiated coverage with a ‘Buy’ rating, triggering strong investor interest in the newly listed stock.
The stock was locked at its upper circuit limit during intraday trading, with minimal selling pressure, reflecting bullish sentiment following the brokerage’s positive outlook. According to market data, Meesho’s shares climbed to around ₹216 on the NSE, marking one of the stock’s strongest single-day gains since its market debut.
In its initiation note, UBS highlighted Meesho’s distinctive zero-commission marketplace model, which it said positions the company well to capture India’s rapidly expanding value focused e-commerce segment. The brokerage also cited improving execution, disciplined cost management, and Meesho’s strong traction among Tier II and Tier III consumers as key factors underpinning its investment thesis.
The rally comes close on the heels of Meesho’s strong stock market debut last week. The Bengaluru-based company listed at ₹162.5 per share, representing a 46% premium over its issue price of ₹111, and completed one of the largest technology IPOs of 2025.
On the financial front, Meesho reported revenue of ₹9,390 crore in the last fiscal year, while losses before exceptional items and tax narrowed to ₹108 crore. For the first half of the ongoing fiscal year (H1 FY26), the company posted revenue of ₹5,577 crore, reflecting sustained growth momentum.
In recent quarters, Meesho has focused on enhancing operational efficiency by optimising logistics costs, rationalising marketing spends, and strengthening its supplier ecosystem. The company has also doubled down on high-demand categories such as fashion and home essentials, catering to price-sensitive shoppers.
As of the latest update, Meesho’s shares remained locked at the upper circuit, with investors closely tracking whether the strong momentum continues in upcoming sessions.
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