Meesho Q3 loss widens to ₹491 crore as festive-season expenses jump 44%

E-commerce firm Meesho Ltd on Friday (January 30) reported a wider net loss of ₹490.6 crore for the third quarter ended December 2025, compared with a loss of ₹37.43 crore in the year-ago period, as expenses rose sharply during the festive season.

Total expenses during the quarter increased by about 44% year-on-year to nearly ₹4,071 crore. A large part of the spending was accounted for by “other expenses,” which stood at ₹3,821.3 crore and made up around 94% of the company’s total expenditure for the quarter.

Revenue from operations grew 31% year-on-year to ₹3,517.5 crore in the December 2025 quarter, compared with ₹2,678.64 crore in the corresponding period last year.

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Meesho reported Net Merchandise Value (NMV) of ₹10,995 crore in Q3 FY26, marking a 26% year-on-year increase, driven by strong user growth and rising purchase frequency. The company saw a sharp expansion in activity during the quarter, with placed orders reaching 690 million, up around 36% year-on-year.

Annual Transacting Users increased 34% year-on-year to 251 million, making Meesho the largest e-commerce platform in India by both Annual Transacting Users and placed orders.

On a last twelve months basis, users transacted an average of 9.78 times per year, reflecting a 9% year-on-year increase. The rise in transaction frequency indicates growing repeat purchasing behaviour, particularly across markets that have historically been underpenetrated by e-commerce, alongside continued expansion of the overall user base.

NMV growth during the quarter was influenced by shifts in the festive calendar. Diwali fell in mid-October in FY26 compared with early November in the previous year, resulting in some festive shopping moving from Q3 into Q2. On a combined basis, Q2 and Q3 FY26 together delivered NMV of ₹21,510 crore, representing 37% year-on-year growth and providing a more comparable view of festive demand.

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Technology investments continued to support new consumer onboarding and conversion. Meesho enhanced its homepage experience for first-time e-commerce users by deploying deep-learning-based recommendation models that personalise feeds using limited onboarding signals.

On the financial front, Meesho reported positive free cash flow of ₹56 crore on a last twelve months basis, supported by NMV growth, a negative working capital cycle, and minimal capital expenditure under its asset-light operating model. As of December 31, 2025, the company’s cash balance stood at ₹7,277 crore, including ₹4,088 crore raised through its initial public offering in December FY26.

Shares of Meesho Ltd ended at ₹173.95, up by ₹5.70, or 3.39%, on the BSE.

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