Choice Equities: Meesho to hit profitability by FY27, significant upside seen

• Choice Institutional Equities predicts Meesho will achieve EBITDA profitability by FY27.
• Profitability is driven by improving unit economics, scale benefits, declining customer acquisition costs, and strong category leadership.
• Meesho commands nearly 29% of India's e-commerce order volumes, projected to increase to 31%.
• The company shows improved contribution margins (2.9% in FY23 to 5% in FY25) and stable take rates of 30-31%.
• Choice Institutional Equities set a target price of ₹200, seeing significant upside and favorable cash-flow metrics.

Why It Matters: Meesho's profitability by FY27 indicates its strong position in India's e-commerce growth.