Meesho Q1 Results: Net Loss More Than Halves to Rs 133 Cr; Revenue Jumps 48% as Orders, User Growth Accelerate

Bengaluru-based e-commerce platform Meesho reported a significantly improved financial performance for the first quarter of FY27, with losses narrowing sharply as its core marketplace business continued to expand. Strong growth in revenue, rising order volumes and better operational efficiency helped the company move closer to profitability during the April-June quarter.

Meesho Q1 Results: Net Loss Narrows More Than Halves as Revenue Jumps 48%

Meesho reported a net loss of Rs 133 crore for the quarter ended June 30, 2026, compared with Rs 289 crore in the corresponding period last year. At the same time, revenue from its marketplace operations climbed 48% year-on-year to Rs 3,707 crore, showing stronger customer activity and improved platform monetisation.

The company witnessed healthy business growth across its marketplace during the quarter as more transactions were successfully completed and fewer orders were cancelled or returned.

Loss before tax also improved considerably, declining to Rs 132.8 crore from Rs 240 crore a year ago. According to the company, better execution across its logistics network and stronger monetisation of its platform supported the improvement in financial performance.

Order Volumes and Marketplace Activity Continue to Rise

Meesho registered strong growth in customer transactions during the quarter. Gross Merchandise Value (GMV), which represents the total value of products sold through the platform, increased to Rs 19,054 crore from Rs 15,134 crore a year earlier.

Meanwhile, Net Merchandise Value (NMV), which reflects successfully completed transactions after cancellations and returns, rose 34% year-on-year to Rs 11,614 crore.

The company also processed 725 million orders during the quarter, up from 562 million in the same period last year. The faster growth in completed transactions indicates that more orders successfully reached customers, helping improve overall operating efficiency.

Technology and AI Improve Delivery Performance

Meesho attributed part of its operational improvement to technology-led initiatives aimed at reducing failed deliveries and unnecessary logistics costs.

The company said its AI-based risk detection system helped identify high-risk transactions before dispatch, resulting in fewer cancelled orders and lower Return-to-Origin (RTO) shipments. Since unsuccessful deliveries remain one of the biggest expenses for online marketplaces, reducing these cases helped improve the company's overall efficiency.

The platform also continued expanding the use of artificial intelligence across product recommendations, engineering and seller services to enhance customer experience and simplify business operations.

Growing Customer Base Strengthens Marketplace

The number of annual transacting users increased to 274 million, compared with 213 million a year earlier. At the same time, shoppers purchased more frequently, reflecting improving customer retention and repeat buying behaviour.

A larger active customer base combined with higher purchase frequency provides greater stability to marketplace businesses by reducing dependence on acquiring new users through expensive marketing campaigns.

Marketplace Margins Improve Despite Continued Investments

While Meesho's marketplace business became more profitable, the company continued investing in newer businesses to support long-term growth. Marketplace contribution margin improved during the quarter, reflecting stronger monetisation and better operating leverage as transaction volumes increased.

However, consolidated adjusted EBITDA remained under pressure as the company stepped up investments in emerging businesses such as financial services and logistics infrastructure. Management indicated that these businesses are still in their early stages and are expected to support future expansion rather than near-term profitability.

Meesho Tier-2 and Tier-4 Sellers Fuel Expansion

Small businesses from non-metro cities continued to play an important role in Meesho's growth story. The company reported an 81% year-on-year increase in annual transacting sellers, taking the total seller base beyond one million.

Nearly 45% of sellers now come from Tier-2 and smaller towns, while seller growth in Tier-4 locations recorded triple-digit expansion during the quarter. Meesho said AI-powered catalogue creation, local-language support and simplified onboarding tools have encouraged more small businesses to join the platform.

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