Meesho’s Q2 FY27 Loss Falls 68% to ₹132 Crore as Revenue Grows 34%

Meesho reported a significant improvement in its financial performance in the September quarter of FY27, with its consolidated net loss narrowing 68% year-on-year (YoY) to around ₹132.5 crore. The ecommerce platform’s operating revenue rose 34% to ₹4,131.6 crore, supported by stronger marketplace performance and growing customer engagement.

However, the company’s loss remained almost unchanged from the previous quarter, when it reported a net loss of ₹132.8 crore.

## Meesho’s Revenue Rises as Expenses Grow More Slowly

Meesho’s operating revenue increased to ₹4,131.6 crore in Q2 FY27, compared with ₹3,073.7 crore in the same quarter last year. On a quarter-on-quarter (QoQ) basis, revenue grew 11% from ₹3,712.8 crore in Q1 FY27.

Including other income of ₹127.4 crore, the company’s total income reached ₹4,259 crore, marking a 31% increase from ₹3,254.9 crore a year earlier.

Total expenses rose 24% YoY to ₹4,382.3 crore, lower than the pace of revenue growth. Other expenses accounted for the largest share of costs, increasing to ₹4,079.9 crore from ₹3,292.1 crore in the year-ago quarter.

Employee benefit expenses climbed 18% to ₹280.9 crore, while depreciation and amortisation costs more than doubled to ₹20.1 crore.

The year-on-year reduction in net loss was also partly due to the absence of certain exceptional charges recorded in Q2 FY26. Last year, Meesho incurred ₹45 crore in exceptional expenses related to a business combination and a vendor dispute settlement, along with a ₹64.4 crore tax charge linked to the business combination.

Excluding exceptional items and tax, the company’s loss declined 57% to ₹123.3 crore from ₹285.5 crore a year earlier.

## Marketplace Business Continues to Drive Growth

Meesho’s marketplace business remains its primary revenue engine. The segment includes its ecommerce marketplace, advertising, logistics and content commerce operations.

Revenue from the marketplace segment increased 34% YoY to ₹4,119.9 crore. Its loss narrowed substantially to ₹130.5 crore from ₹370.7 crore in Q2 FY26.

The segment also reported an improvement in contribution margin, which rose to 6% of net merchandise value (NMV), compared with 3.3% a year ago and 4.6% in the previous quarter.

Customer activity continued to strengthen during the quarter. Meesho’s NMV grew 23% YoY to ₹12,911 crore, while its annual transacting user base reached 284 million. The company also reported a 16% quarter-on-quarter increase in first-time buyers.

CEO Vidit Aatrey attributed the performance to stronger customer engagement, with more consumers shopping on the platform and making purchases more frequently.

## Festive Sales Shift to the December Quarter

The timing of the festive season affected Meesho’s quarterly performance. This year, the festive period arrived 19 days later, shifting a larger share of seasonal demand into Q3 FY27.

Meesho’s Mega Blockbuster Sale, which took place in Q2 last year, has also moved to Q3 this year. As a result, the September-quarter comparison does not fully capture the impact of the festive shopping season.

To provide a more comparable picture, the company highlighted festive-aligned NMV growth, measured over the 90 days leading up to Dussehra. On this basis, NMV increased 33% year-on-year.

Management expects Q2 and Q3 to be viewed together to better understand the underlying sales trend.

## New Initiatives See Higher Revenue but Wider Losses

Meesho’s newer business initiatives recorded revenue growth during the quarter, although their losses increased.

Revenue from this segment rose more than fivefold to ₹11.7 crore from ₹2.3 crore in Q2 FY26. However, its loss widened to ₹41.6 crore, compared with ₹13.5 crore a year earlier and ₹39.3 crore in the previous quarter.

The segment includes the company’s low-cost logistics network for daily essentials, digital financial services and AI-related services.

Meesho said improvements in logistics helped it deliver orders 15% faster year-on-year, supporting better contribution margins. During the quarter, the parent company also invested an additional ₹75 crore in Meesho Grocery to support its expansion and financial needs.

The company further highlighted the growing role of AI in its internal operations. Between March and September 2026, AI adoption helped increase engineering productivity by 171% and reduce code approval times by 41%, according to management.

## Meesho Advances Acquisition Plans and Board Changes

Alongside its quarterly results, Meesho provided an update on its proposed acquisition of Singapore-based Kirana Club and a direct 0.41% stake in its Indian subsidiary, Retail Pulse Labs.

The transaction, valued at ₹202.1 crore, is expected to close in Q3 FY27.

The company’s board also approved the appointment of Sudhir Ganesh Sitapati as an additional independent director for a five-year term, effective October 28, subject to shareholder approval.

## What Lies Ahead for Meesho?

Meesho’s Q2 FY27 results point to improving financial performance, with revenue growing faster than expenses and losses narrowing significantly compared with the previous year. Its core marketplace business has also benefited from stronger contribution margins and increased customer activity.

However, the company continues to report losses, while its newer initiatives require further investment. The shift in festive sales into Q3 will also be important when assessing its performance over the coming quarter.

Meesho’s ability to sustain marketplace growth, improve operating efficiency and scale newer businesses without significantly increasing losses will remain key factors in its progress towards profitability.

Meesho shares closed 1.77% higher at ₹227.60 apiece on the BSE on the day of the results.