Meesho reported a 68% year-on-year drop in its net loss for the September quarter of the 2026-27 financial year, as revenue continued to grow and more customers used its platform. The e-commerce company Meesho saw its net loss fall to ₹132.4 crore from ₹411.4 crore in the same quarter last year.
Revenue from operations increased 34% to ₹4,131.6 crore, up from ₹3,073.7 crore a year earlier. The results show that Meesho is improving its financial performance while expanding its business. However, the company continues to spend on technology, logistics and attracting new customers as it works towards sustainable growth.
Key Highlights
- Meesho Cuts Quarterly Loss 68% as Revenue Rises 34% in Q2 FY27
- Meesho Reports Lower Losses and Strong Revenue Growth in Q2 FY27
Customer Growth Boosts Orders and Sales
Meesho saw an increase in both customer activity and sales during the quarter. The number of orders placed on its platform rose 17% year-on-year to 819 million. Its net merchandise value (NMV), which measures the total value of goods sold through the platform, increased 23% to ₹12,911 crore.
The company had 284 million annual transacting users, up 21% from the previous year. Customers also placed orders more frequently, with annual purchase frequency rising 7% to 10.4 transactions per user. The number of first-time buyers increased 16% compared with the previous quarter.
The timing of Meesho's flagship Mega Blockbuster Sale also affected its quarterly performance. The sale took place in the second quarter last year but has been moved to the third quarter this year.
To compare performance more accurately, the company looked at the 90 days leading up to Dussehra in both years. On this basis, NMV grew 33% year-on-year, showing that customer demand remained strong during the festive shopping period.
Meesho also expanded its seller base. The number of annual transacting sellers rose 60% year-on-year to 1.13 million. This growth reflects the company's efforts to bring more sellers onto its platform and reach customers across India, including those in smaller cities and towns.
Lower Loss Reflects Better Cost Management
Meesho's total expenses rose 24% year-on-year to ₹4,382.3 crore in the September quarter, compared with ₹3,540.4 crore a year earlier. However, revenue grew faster than expenses, helping the company reduce its losses.
The company's contribution margin improved to 6% of NMV from 4.6% in the previous quarter. Meesho attributed the improvement to more efficient logistics operations and better monetisation, including revenue from advertising on its platform.
The company reported free cash flow of ₹345 crore for the quarter, partly supported by seasonal changes in working capital. Its trailing 12-month free cash flow remained negative at ₹565 crore. As of September 30, 2026, Meesho had a cash balance of ₹7,048 crore.
Meesho is also using artificial intelligence (AI) to improve its technology operations. The company said engineering productivity increased 171% between March and September 2026. It plans to use these improvements to develop its platform, serve customers more effectively and make its operations more efficient.
Spending is expected to remain high during the festive shopping season, particularly as the company prepares for sales around Diwali. Technology expenses may also remain elevated until planned efficiency measures begin to deliver results.
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Meesho's latest results show progress in reducing losses while growing revenue and customer numbers. The next challenge will be to maintain this growth, manage expenses and improve cash generation as competition in India's e-commerce market continues.
