Meesho swings to ₹490 crore Q3 loss as costs outpace revenue growth

Recently listed e-commerce firm reports higher logistics, employee and restructuring costs in the December quarter despite strong revenue growth

Meesho Ltd reported a sharp swing to loss in the December quarter (Q3 FY26) as higher logistics, employee and restructuring costs outweighed strong revenue growth at the recently listed e-commerce company.

 

The Bengaluru-based company posted a consolidated net loss of ₹490 crore for the three months ended December 31, compared with a loss of ₹37 crore a year earlier. Revenue from operations rose 32 per cent to ₹3,518 crore, up from ₹2,679 crore in the year-ago quarter.

 

Total expenses climbed to ₹4,071 crore from ₹2,823 crore a year earlier, driven largely by higher spending on fulfilment, marketing and employee benefits. Employee benefit expenses rose 20 per cent to ₹235 crore in Q3 FY26 from ₹195 crore in Q3 FY25. Other expenses rose sharply to ₹3,821 crore.

 

For the nine months ended December, Meesho reported revenue from operations of ₹9,095 crore, up from ₹6,990 crore a year earlier. The company posted a net loss of ₹1,191 crore for the period, compared with a loss of ₹2,550 crore in the corresponding period last year, reflecting higher operating costs, restructuring-related charges and tax expenses linked to internal reorganisation.

 

The results follow Meesho’s initial public offering in December, when the company raised ₹4,250 crore in fresh capital, alongside an offer for sale by existing shareholders. The shares were listed on Indian exchanges on December 10.

 

“Our Q3 results reflect the strength of Meesho’s flywheel, with more users transacting more frequently, driving platform growth while building long-term habits in previously underserved markets. Today, we serve 251 million consumers and enable business growth for 846,000-plus sellers annually, many of whom are first-time e-commerce users,” said Vidit Aatrey, founder and chief executive officer of Meesho, in a company statement.

 

“Becoming a public company changes how we are accountable, but it does not change what we optimise for, as platform health and disciplined growth remain our priority. Our north star is free cash flow per share, which captures the real cash generated after reinvestment and reflects the long-term economics of our business,” he added.

 

Meesho said it reported strong user growth in the third quarter of FY26, reflecting higher order volumes and increasing purchase frequency on the platform. Placed orders during the quarter rose 36 per cent year on year to 690 million, while annual transacting users grew 34 per cent to 251 million, making Meesho the largest e-commerce platform in India by both annual transacting users and placed orders.

 

On a last-twelve-month basis, users transacted an average of 9.78 times per year, up 9 per cent from a year earlier, indicating not only an expanding user base but also rising repeat purchasing behaviour, particularly in markets that have historically been underpenetrated by e-commerce.

 

Driven by strong user growth and rising purchase frequency, Meesho reported net merchandise value (NMV) of ₹10,995 crore in the third quarter of FY26, a 26 per cent increase from a year earlier. The performance, however, was influenced by a shift in the festive calendar, with Diwali falling in mid-October this year compared with early November last year, moving some festival-led demand into the second quarter.

 

As a result, a combined view of the second and third quarters shows NMV of ₹21,510 crore, up 37 per cent year on year. The company said technology investments, including deep-learning-based recommendation models and improved voice search, helped improve onboarding and conversion among first-time e-commerce users, particularly in regional-language markets.

 

On a last-twelve-month basis, Meesho reported positive free cash flow of ₹56 crore, supported by growth in net merchandise value. The company said its asset-light operating model, marked by minimal capital expenditure and a negative working capital cycle, continues to underpin cash generation. As of December 31, 2025, Meesho’s cash balance stood at ₹7,277 crore, including ₹4,088 crore raised through its initial public offering in December FY26.