Whalesbook
Meesho's fourth-quarter FY26 results showed a significant improvement in profitability, with its net loss shrinking 88% year-on-year to Rs 166.3 crore. This was supported by a strong 47% increase in revenue from operations, reaching Rs 3,531.2 crore. Total expenses rose by a more moderate 44%, indicating better cost control alongside revenue growth.
Profitability and Growth Metrics
The company reported significant operational gains: Net Merchandise Value (NMV) grew 43% year-on-year to Rs 11,371 crore, and orders increased to 717 million. Profitability metrics showed sequential gains, with the contribution margin recovering to 4.0% of NMV. Adjusted EBITDA for the marketplace segment also improved quarter-on-quarter, nearing break-even. For the full fiscal year, annual transacting users rose 33% to 264 million, with total orders climbing 45% to 2.67 billion, showing continued user engagement and platform growth.
Market Potential and AI Integration
Founder & CEO Vidit Aatrey highlighted India's vast untapped e-commerce potential, noting only about 30% of smartphone users shop online, far below markets like China. He attributed growth to AI-driven personalization, voice shopping, and better address recognition tools that boost accessibility and transactions, especially for new users. Aatrey expects continued market expansion as technological barriers fall, allowing Meesho to capture this growth.
Despite these positive operational and strategic developments, Meesho's shares closed 3.77% lower at Rs 196.50 on the BSE on Monday. This dip is a common post-earnings market reaction, often reflecting profit-taking by investors.