Meesho reported a 34% rise in net merchandise value to ₹11,614 crore for the first quarter of fiscal year 2027. The e-commerce firm improved its margins and narrowed losses through better operational efficiency and platform monetization. Investors should monitor how the company balances its aggressive seller expansion with ongoing efforts to turn profitable.
Detailed Coverage
Meesho Limited has reported strong growth in its financial results for the quarter ending June 30, 2026, marking a positive trend since its listing in December 2025. The platform saw its net merchandise value, or the total value of goods sold on the site, rise 34% year-on-year to ₹11,614 crore. This growth was supported by a 29% increase in total orders, which reached 725 million during the period.
Revenue and Operational Margin Trends
The company’s marketplace revenue grew by 48% to ₹3,707 crore compared to the same period last year. This improvement stems from a focused effort to reduce order cancellations and return-to-origin shipments, which are common logistical challenges in the Indian e-commerce sector. The contribution margin, which represents the money left after direct costs, improved to 4.6% of the net merchandise value. Furthermore, the adjusted EBITDA, a key measure of operational profitability, stood at negative 1.2% of the net merchandise value, showing a narrowing loss trend.
Despite rising fuel costs and higher minimum wages in several states, the company reported a 15% improvement in its last twelve months' free cash flow. As of June 30, 2026, the company maintained a cash balance of ₹6,521 crore, providing liquidity for its ongoing operations and strategic investments.
Strategic Investments and Governance Updates
Beyond core e-commerce, Meesho is investing in specialized segments and subsidiary growth. The board has approved an investment of up to ₹75 crore into its subsidiary, Meesho Grocery Private Limited. Additionally, the company is moving to acquire the remaining stake in Meesho Payments Private Limited to make it a fully-owned subsidiary. These moves suggest a strategy to control more parts of the payment and delivery ecosystem in-house.
On the governance front, the board has proposed changes to the company's articles of association. These changes aim to grant formal nomination rights to founders Vidit Aatrey and Sanjeev Kumar, as well as to large investors holding at least 8% of the company's equity. These amendments will require final approval from shareholders.
The company’s seller base saw significant expansion, growing 81% year-on-year to over 1.04 million sellers. A large portion of this growth came from Tier 2 and Tier 4 towns, highlighting the company's focus on smaller Indian markets. The next important monitorables for investors will be whether the company can maintain these margin improvements while scaling its specialized segments like Meesho Mall and content commerce, and how the planned governance changes are received by the broader shareholder base.