E-commerce marketplace Meesho reported a 68% year-on-year decline in its net loss to ₹132.4 crore for the September quarter of the 2026–27 financial year. The company had posted a net loss of ₹411.4 crore in the corresponding quarter last year, as revenue growth outpaced the increase in expenses.
Revenue from operations rose 34% to ₹4,131.6 crore, compared with ₹3,073.7 crore a year earlier. Total income increased 31% to ₹4,259 crore, while total expenses climbed 24% to ₹4,382.3 crore.
However, Meesho’s net loss remained almost unchanged from the ₹132.8 crore recorded in the preceding June quarter.
Orders Rise to 819 Million
Meesho continued to expand its customer base and marketplace activity during the quarter. The number of orders placed on the platform increased 17% year-on-year to 819 million.
Net merchandise value (NMV), which measures the value of goods sold after accounting for returns and discounts, rose 23% to ₹12,911 crore.
The company’s annual transacting users increased 21% to 284 million, while annual purchase frequency reached 10.4 transactions per user. The number of annual transacting sellers also grew 60% to 1.13 million.
These figures indicate that the platform continued to attract customers and sellers as it expanded its presence across India’s online shopping market.
Festive Sale Timing Affects Quarterly Growth
Meesho said the timing of its flagship Mega Blockbuster Sale affected comparisons with the previous year. The sale took place in the September quarter last year but has shifted to the December quarter in the current financial year.
As a result, some festive-season demand is expected to be reflected in the third quarter instead.
Comparing the 90 days preceding Dussehra in both years, Meesho reported a 33% year-on-year increase in NMV. The company said this festive-aligned comparison provides a clearer picture of demand across equivalent periods.
Contribution Margin Improves
Meesho’s marketplace contribution margin improved to 6% of NMV from 4.6% in the previous quarter. The company attributed the improvement to logistics efficiencies and stronger monetisation, including advertising revenue.
The improvement suggests that Meesho is retaining a larger share of merchandise value after costs directly associated with fulfilling orders.
However, the company plans to reinvest some of these gains in improving the customer and seller experience, expanding branded offerings and developing content-led commerce. It has cautioned that the contribution margin could moderate in the near term as spending increases.
Spending Remains Elevated
Despite the improvement in its annual loss, Meesho continues to invest in customer acquisition, technology and platform expansion.
The company expects growth-related spending to remain elevated during its festive sales period and around Diwali. Technology expenses are also expected to remain higher until ongoing optimisation initiatives begin delivering further efficiencies.
Meesho reported quarterly free cash flow of ₹345 crore, although its free cash flow over the preceding 12 months remained negative at ₹565 crore. Its cash balance stood at ₹7,048 crore.
What Lies Ahead for Meesho?
Meesho’s September-quarter results show rising revenue, increased order volumes and a narrower annual loss. However, the company remains loss-making, and its ability to sustain growth while controlling expenses will be important in determining its progress towards consistent profitability.
Investors will also monitor the December quarter, when the shifted Mega Blockbuster Sale and festive demand are expected to influence the company’s reported performance.
