Meesho reported a 34.4% YoY rise in revenue from operations to ₹4,131.6 crore in Q2 FY27, while its consolidated net loss narrowed to ₹132.5 crore from ₹411.4 crore a year earlier. The Bengaluru-based e commerce company’s results reflect stronger marketplace activity and improving operating economics, although it continues to report a loss.
Founded by Vidit Aatrey and Sanjeev Barnwal, Meesho reported revenue of ₹3,073.7 crore in Q2 FY26 and ₹3,712.8 crore in Q1 FY27. Its net loss was broadly unchanged from ₹132.8 crore in the preceding quarter, showing that the sharp annual improvement did not translate into further sequential loss reduction.
Meesho’s Marketplace Growth Drives Revenue
Meesho’s marketplace business generated around ₹4,120 crore in Q2 FY27 revenue, up 34% from a year earlier. Revenue from new initiatives rose to ₹11.7 crore from ₹2.3 crore, though these businesses remain a small part of the company’s overall revenue.
The company’s net merchandise value (NMV), which measures the value of goods sold through the platform, increased 23% YoY to ₹12,911 crore. Placed orders rose 17% to 819 million, while annual transacting users grew 21% to 284 million. Annual purchase frequency also increased 7% to 10.4 transactions per user.
Meesho said festive aligned NMV grew 33% year-on-year over the 90 days before Dussehra. The company adjusted this comparison for the timing shift of its Mega Blockbuster Sale, which moved from Q2 last year to Q3 this year.
Contribution Margin Improves as Losses Narrow
Meesho’s EBITDA loss declined to ₹229 crore from ₹456 crore in Q2 FY26. Total expenses rose 24% YoY to ₹4,382.3 crore, below the 34.4% growth in operating revenue.
Its contribution margin improved to 6% of NMV, compared with 4.6% in Q1 FY27. The company attributed the improvement to logistics efficiencies and better platform monetisation, including stronger advertising revenue.
However, the comparison with last year also reflects the absence of certain exceptional charges recorded in Q2 FY26. These included expenses linked to a business combination and a vendor dispute, along with a related tax charge. The narrower net loss therefore reflects both operating progress and a more favourable comparison with the previous year.
For the six months ended September 2026, revenue from operations rose to ₹7,844 crore from ₹5,578 crore in the corresponding period last year. Meesho’s consolidated net loss for the half-year stood at approximately ₹265 crore.
What the Results Mean for Meesho
Meesho’s results point to a marketplace attracting more users and orders while improving its contribution margin. The company also reported a cash balance of ₹7,048 crore as of September 30, 2026, and quarterly free cash flow of ₹345 crore, supported in part by seasonal working-capital movements.
The key challenge is to turn these gains into sustained profitability. Meesho continues to invest in logistics, technology, customer acquisition and newer business lines, all of which can influence margins as the platform grows.
For Aatrey and Barnwal, the next milestone is not simply maintaining high revenue growth, but showing that the marketplace can convert scale and operational efficiencies into durable earnings and cash generation.
Disclaimer: This article is for information purposes only and is not investment advice. Investments in securities are subject to market risks. Please read the official offer documents before investing.
