Meesho vs Flipkart: Growth without gains for E-commerce majors

Meesho vs Flipkart: India’s e-commerce sector continues to witness aggressive growth accompanied by mounting losses, as financial results of Meesho and Flipkart reflect contrasting operational trends during the fiscal year.

While Meesho has since listed after reporting its results, Flipkart remains unlisted.

Total expenses, however, increased significantly to Rs 100,093.30 million from Rs 81,737.75 million, exerting pressure on margins.

The company posted a restated loss before exceptional items and tax of Rs 1,084.29 million, narrowing from Rs 3,145.33 million in the previous fiscal year. After accounting for exceptional items, the restated loss before tax stood at Rs 14,548.63 million, compared to Rs 3,276.41 million earlier.

At the net level, Meesho’s restated loss for the fiscal year expanded to Rs 39,417.05 million, significantly higher than Rs 3,276.41 million reported in the prior period. Total comprehensive loss stood at Rs 39,453.60 million, as against Rs 3,236.30 million previously.

Basic and diluted loss per share widened to Rs 9.98 from Rs 0.87.

As of 12:05 pm, shares of the e-commerce platform were trading 0.8 per cent, or Rs 1.25 lower, at Rs 157.90.

Consolidated revenue rose 17.3 per cent to Rs 82,787.30 crore from Rs 70,541.90 crore, indicating continued expansion. However, total expenses increased 17.4 per cent year-on-year to Rs 88,121.40 crore, slightly outpacing revenue growth.

Stock-in-trade purchases remained a key expense driver, rising to Rs 87,737.80 crore from Rs 74,271.20 crore in the previous fiscal year. Finance costs jumped approximately 57 per cent to Rs 454.00 crore, further weighing on profitability.

According to a list compiled by JM Financial, Reliance Retail, Flipkart, and Malabar Gold and Diamonds feature among the top three of 100 unlisted companies.

In both cases, expenses have grown at a pace comparable to or faster than income, underscoring the capital-intensive nature of India’s e-commerce ecosystem.

The financial performance of the two companies highlights a broader industry theme: sustained scale growth remains the priority, even as the path to profitability continues to present challenges.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)