Meesho Q1 loss narrows to ₹133 crore; NMV grows 34% as platform engagement improves

E-commerce platform Meesho Ltd on Thursday (July 23) reported a consolidated net loss of ₹132.8 crore for the first quarter of FY27, compared with a loss of ₹289.4 crore in the corresponding period last year.

Revenue from operations increased 48% year-on-year to ₹3,712.8 crore from ₹2,503.9 crore. Earnings before interest, taxes, depreciation and amortisation (EBITDA) loss stood at ₹224.7 crore during the quarter, compared with an EBITDA loss of ₹264.4 crore in Q1 FY26.

Meesho’s Net Merchandise Value (NMV) grew 34% year-on-year to ₹11,614 crore, driven by continued user growth and higher engagement on the platform.

ALSO READ | Meesho shares gain as much as 8% after net loss narrows in Q4 but concerns remain

Marketplace revenue from operations increased 48% year-on-year to ₹3,707 crore, supported by improved delivery conversion through lower cancellations, reduced Return-to-Origin (RTO) rates and higher platform monetisation.

The company’s contribution margin expanded to 4.6% of NMV, increasing 54 basis points sequentially, supported by logistics efficiencies and improved platform monetisation. Marketplace adjusted EBITDA improved to a loss of 1.2% of NMV.

Meesho’s annual transacting users (ATUs) increased 29% year-on-year to 274 million, while purchase frequency improved to 10.3 transactions per user annually.

The platform recorded 725 million placed orders during the quarter, up 29% year-on-year. Prepaid orders accounted for around 37% of shipped orders, contributing to lower cancellations and Return-to-Origin rates.

ALSO READ | Meesho shares could fall another 24% after eight-day losing streak, Macquarie warns

Meesho said it continued investments in artificial intelligence (AI) across its platform. The company accelerated its AI-first engineering transformation by integrating AI across the software development lifecycle, resulting in more than two times productivity gains for engineers, according to the company.

AI-powered cataloguing, demand intelligence and multilingual voice agents helped annual transacting sellers increase 81% year-on-year to more than 1.04 million. The company said 45% of sellers are based in Tier 2 and beyond towns, while growth among Tier 4 sellers stood at 125% year-on-year.

Meesho Mall, the company’s branded marketplace, now includes more than 1,200 brands and grew around 93% year-on-year. The platform expanded participation across categories including beauty and personal care, baby care, health and wellness, grocery and fashion.

Content Commerce NMV increased 141% year-on-year, with active order-generating content rising to 1.7 million, supported by AI-powered creator tools.

ALSO READ | Why Meesho’s Q2 may disappoint—and how AI fits into its growth plan

Meesho said its last twelve months (LTM) free cash flow improved by around 15% to a negative ₹537 crore from a negative ₹633 crore in the previous quarter.

As of June 30, 2026, Meesho had a cash balance of ₹6,521 crore, providing flexibility to invest in growth opportunities while maintaining capital allocation discipline.

Dhiresh Bansal, Chief Financial Officer at Meesho, said, "Our Q1 performance reflects the strength of Meesho's operating model. We delivered 34% year-on-year NMV growth, while Contribution Margin expanded to 4.6%, Marketplace Adjusted EBITDA improved to (1.2%) of NMV, and Last Twelve Months Free Cash Flow improved by
approximately 15%.

This quarter also marked our strongest Contribution Margin and Marketplace Adjusted EBITDA since listing, despite higher fuel costs and minimum wage increases in certain states, reflecting the structural improvements we've made across our platform.

ALSO READ | Meesho betting on AI, payments and content commerce to drive next phase of growth

AI is becoming foundational across every layer of our business, from product discovery and seller growth to logistics and engineering. This quarter alone, Meesho processed nearly 725 million orders, averaging more than 90 orders every second, demonstrating the scale at which these systems now operate.

As AI continues to lower the cost of innovation, we believe it will help us build better products faster while maintaining disciplined capital allocation and creating long-term value."

Shares of Meesho Ltd ended at ₹188.40, down by ₹1.35, or 0.71%, on the BSE.