Meesho Q1 FY27 results: Net loss narrows to ₹1,328 crore YoY; NMV sees yearly growth of 34%

For Q1 FY27, the company’s revenue from operations increased 48% YoY to ₹3,713 crore as compared to ₹2,504 crore in Q1 FY26, driven by improved delivery conversion through lower cancellations, Return-to-Origin (RTO) rates and higher platform monetisation.

On the operational level, Meesho’s earnings before interest, taxes, depreciation and amortisation (EBITDA) loss stood at ₹224 crore in Q1 FY27 as against a loss of ₹265 crore in the same quarter of the previous fiscal year.

The e-commerce platform’s net merchandise value (NMV) registered a yearly growth of 34% at ₹11,614 crore, supported by continued expansion in its user base and higher engagement levels on the platform. The company also saw improvement in profitability metrics, with contribution margin expanding to 4.6% of NMV, up 54 basis points sequentially, driven by logistics efficiencies and better monetisation.

Meanwhile, its last twelve months (LTM) free cash flow improved by around 15% to negative ₹537 crore from negative ₹633 crore in the previous quarter, reflecting ongoing progress in capital allocation and underlying business performance.

Meesho’s annual transacting users (ATUs) increased by 29% YoY to 274 million. The platform also saw an improvement in purchase frequency, rising to 10.3 transactions per user annually, indicating higher engagement from existing users.

In addition, the number of placed orders surged 29% YoY to 725 million, reflecting continued expansion across the platform, the firm said.

“Our Q1 performance reflects the strength of Meesho's operating model. This quarter also marked our strongest Contribution Margin and Marketplace Adjusted EBITDA since listing, despite higher fuel costs and minimum wage increases in certain states, reflecting the structural improvements we've made across our platform,” said Dhiresh Bansal, Chief Financial Officer at Meesho.

In the reporting quarter, Meesho said it accelerated its AI-first engineering transformation, embedding AI across the software development lifecycle and delivering 2x+ productivity gains, enabling engineers to focus on architecture, product design and outcomes.

The company also continued investing in AI capabilities, engineering productivity and new consumer acquisition while maintaining a disciplined capital allocation approach.

As of June 30, 2026, Meesho had a cash balance of ₹6,521 crore, providing significant flexibility to invest in long-term growth opportunities while maintaining financial discipline.

“AI is becoming foundational across every layer of our business, from product discovery and seller growth to logistics and engineering. This quarter alone, Meesho processed nearly 725 million orders, averaging more than 90 orders every second, demonstrating the scale at which these systems now operate,” added Bansal.

On Thursday, Meesho shares closed at ₹188.95 apiece on the National Stock Exchange, slipping 0.48%. The earnings, however, came after the market hours.