Meesho posts wider losses despite strong revenue growth in Q3 FY26

On a consolidated basis, Meesho's net loss widened to Rs 490.68 crore in Q3 FY26, compared with a loss of Rs 37.43 crore in Q3 FY25.

Net sales rose 31.32% YoY to Rs 3,517.60 crore in Q3 FY26 from Rs 2,678.64 crore in the year-ago quarter.

The company reported pre-tax loss of Rs 478.59 crore in Q3 FY26, compared with a profit of Rs 15.45 crore in Q3 FY25.

Total expenditure increased 43.99% YoY to Rs 4,060.20 crore in Q3 FY26, significantly outpacing revenue growth. Employee expenses rose 20.64% YoY to Rs 235.17 crore. Interest costs surged 141.61% YoY to Rs 3.89 crore, while depreciation declined 7.06% YoY to Rs 10.92 crore.

Meesho's Annual Transacting Users surged 34% YoY to 251 million with net merchandise value (NMV) standing at Rs 10,995 crore, up 26% YoY. Over 9MFY26, it increased 37% YoY to Rs 30,189 crore.

The company witnessed 690 million orders placed on its platform in the quarter under review, up 36% YoY. The contribution margin as a percentage of NMV stood at 2.3%, down 104 bps QoQ and 198 bps YoY due to accelerated Valmo scale-up following 3PL industry consolidation. "This is expected to normalise in the coming quarters," the company filing said.

On a last twelve month basis, users transacted 9.78 times per year on average, growing 9% year-on-year, reflecting increasing purchase frequency.

On a last twelve months basis, free cash flow stood at Rs 56 crore, supported by growth in NMV. As of 31 December 2025, Meesho's cash balance stood at Rs 7,277 crore, including Rs 4,088 crore raised through initial public offering in Dec FY26.

Adjusted EBITDA marketplace margin for Q3FY26 was at -4.2% (Rs -460 crore) due to lower contribution margin and accelerated user growth and engineering investments.

Adjusted EBITDA for New Initiatives was at Rs 19 crore, up 44% QoQ and 30% YoY with continuous improvement in user adoption for financial services platform.

In a letter to the shareholders, Founder & CEO Vidit Aatrey said that the company has increased its investment into Advertising & Sales Promotion to 2.4% of NMV in Q3 FY26 from 1.3% of NMV in Q3 FY25.

The company expects significant improvement in Adjusted EBITDA margin in the next two quarters returning to Q1 FY26 levels; driven by logistics cost recovery and operating leverage on user growth and technology investments made in FY26.

The company said: "This marks our first quarter reporting as a public company and demonstrates our operating philosophy in action: continued growth in ATUs towards our mission of democratising internet commerce, and when forced to choose between near-term financial optimisation and long-term flywheel health, we chose the latter. We held order fulfillment charges stable, and increased user acquisition. Each decision positions us for stronger platform profitability in the long-term. These investments met our return thresholds; measured through payback periods, expected IRR against hurdle rates, and impact on long-term Free Cash Flow. 251 million ATUs, 9.78 purchase frequency, and 37% NMV growth for 9M FY26 validate such decisions made 12-18 months ago. Results lag strategy by several quarters in platform businesses. The growth we are capturing today compounds Meesho into a leadership position in value-led e-commerce over the next decade."

Meesho is Indias largest e-commerce platform by annual transacting users and placed orders.

Shares of Meesho rose 3.39% to settle at Rs 173.95 on Friday, 30 January 2026.

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