This means that if advertising CM grows, the path to adjusted-Ebitda profitability is well within reach. Reaching management’s medium-term CM target of 8% to 8.5% relies heavily on advertising CM, which stood at 3.1% of NMV in Q1FY27. Can it double from here? Management noted that sellers are willing to increase ad spending by 2.5x to 3x, meaning seller budgets are not the bottleneck. However, Meesho aims to avoid overloading the platform with ads to protect return on ad spend and user experience, making advertising CM improvement the key driver for the stock’s upside.
