Meesho Q1 Results: Loss narrows to Rs 133 crore; marketplace revenue rises 48%

Meesho narrowed its June-quarter loss as marketplace revenue rose sharply and operating metrics improved, helped by higher user engagement, better delivery conversion and stronger platform monetisation. The company reported a loss of Rs 133 crore for the quarter ended June 30, 2026, compared with a loss of Rs 289 crore in the same quarter last year, according to its shareholder letter. Loss before tax also narrowed to Rs 132.8 crore from Rs 240 crore a year earlier.

Meesho's marketplace revenue from operations stood at Rs 3,707 crore in Q1FY27, up 48% YoY. The company said the growth was driven by improved delivery conversion through lower cancellations, lower return-to-origin rates and higher platform monetisation.

Net merchandise value rose 34% YoY to Rs 11,614 crore from Rs 8,679 crore in Q1. Gross merchandise value stood at Rs 19,054 crore, compared with Rs 15,134 crore a year earlier. Placed orders grew 29% YoY to 725 million from 562 million. Annual transacting users increased to 274 million from 213 million a year earlier, while last twelve months purchase frequency rose to 10.33 from 9.49.

The company said NMV growth outpaced order growth because of lower cancellations and return-to-origin rates, helped by improvements in TrustMesh, its algorithm used to filter high-risk orders. Meesho also said improvements in PRISM, its recommendation engine, supported better product discovery, personalisation and conversion.

Margins improve

Contribution margin for the marketplace business expanded to Rs 531 crore, or 4.6% of NMV, from Rs 384 crore, or 4.4% of NMV, in the year-ago quarter. Sequentially, contribution margin improved from 4% in Q4FY26. Adjusted EBITDA loss for the marketplace segment narrowed to Rs 138.9 crore, or 1.2% of NMV, from Rs 148.4 crore, or 1.7% of NMV, a year earlier. In the previous quarter, marketplace adjusted EBITDA loss was Rs 198 crore.

Consolidated adjusted EBITDA loss stood at Rs 178.2 crore in Q1FY27, compared with Rs 167.5 crore in Q1FY26. The wider consolidated adjusted EBITDA loss was due to higher losses in new initiatives, which increased to Rs 39.3 crore from Rs 16.7 crore.

Meesho said new initiatives include financial services and its low-cost logistics network. The company said these are early-stage bets outside the core marketplace, with their own budgets and economics.

Other income rose to Rs 107.6 crore from Rs 76.7 crore a year earlier. ESOP costs declined to Rs 40.4 crore from Rs 47.5 crore, while depreciation and amortisation increased to Rs 19.7 crore from Rs 8 crore.

AI and seller growth

Meesho said it made progress toward an autonomous software development lifecycle during the quarter by shifting code authorship, testing and documentation to AI agents. The company said this has delivered more than 2 times productivity gains across its engineering organisation.

Annual transacting sellers grew 81% year-on-year to 1.04 million. The company said seller growth was supported by targeted campaigns, word-of-mouth referrals, AI-powered cataloguing, demand intelligence, local-language GenAI voice agents and product changes that help new sellers gain visibility faster.

Sellers from Tier 2 towns and smaller markets made up 45% of the total seller base, while Tier 4 seller growth reached 125% year-on-year.