Meesho’s consolidated net loss narrowed 68% year-on-year to Rs 132.5 crore in the September quarter of the financial year 2026-27 (Q2 FY27), from Rs 411.4 crore, according to its stock exchange filing. Its operating revenue grew 34% to Rs 4,131.6 crore from Rs 3,073.7 crore, while its expenses grew a slower 24% to Rs 4,382.3 crore.

Meesho listed on the NSE and BSE in December 2025, following an initial public offering priced at Rs 111 per share. The company sells low-priced products, largely from small sellers, and says it doesn’t charge buyers a platform fee. Chief Executive Officer Vidit Aatrey said on the earnings call that such fees can cost the company the trust of mass-market shoppers.

Key financials

  • Quarter-on-quarter: Revenue rose 11% sequentially from Rs 3,712.8 crore in the June quarter, while the net loss remained broadly unchanged at approximately Rs 132 crore.
  • Other income: Rs 127.4 crore, down 30% year-on-year.
  • First half of FY27: Revenue grew 41% to Rs 7,844.4 crore. The net loss narrowed 62% to Rs 265.3 crore.

How Meesho makes money

Meesho reports two business segments:

  • Marketplace: This covers its e-commerce platform, ads, logistics and content commerce. It brought in Rs 4,119.9 crore, over 99% of revenue, up 34%. Its loss narrowed 65% to Rs 130.5 crore from Rs 370.7 crore.
  • New initiatives: This covers its local delivery network for daily essentials, digital financial services and AI services. Revenue increased more than fivefold to Rs 11.7 crore from Rs 2.3 crore a year earlier. Its loss more than tripled to Rs 41.6 crore from Rs 13.5 crore.

Meesho’s contribution margin rose to 6% of net merchandise value, CFO Dhiresh Bansal said on the earnings call. The metric reflects the contribution remaining after certain direct costs, including delivery expenses. He attributed the improvement mainly to cheaper logistics. He added that the 6% figure “is not to be assumed as going forward into the next quarter,” because Meesho passes cost savings back to buyers and sellers as lower prices.

Where did Meesho spend in Q2 FY27?

  • Other expenses: These rose 24% to Rs 4,079.9 crore and made up 93% of total spending. This line includes logistics, marketing and server costs.
  • Marketing: An analyst on the call noted that marketing spend rose almost 50% from the previous quarter. Bansal said Meesho increased marketing expenditure ahead of the festive season, including spending on TV advertisements.
  • Servers: Server costs rose because of a global shortage of GPUs. “GPU pricing has suddenly overshot significantly,” Bansal said. Meesho booked GPU capacity ahead of the festive season, and it also uses more compute-intensive AI models to rank its shopping feed. Bansal expects server costs, as a percentage of net merchandise value, to return to earlier levels by the January–March quarter. Meesho didn’t disclose how much it spent on servers.
  • Employee benefit expense: This rose 18% to Rs 280.9 crore, including Rs 51.3 crore in employee stock option costs.
  • Depreciation and amortisation: This more than doubled to Rs 20.2 crore from Rs 9.3 crore.

Other disclosures

  • Tax demand: Income tax authorities have raised a demand of Rs 1,499.7 crore against Meesho for assessment year 2023-24, along with a notice to start penalty proceedings. Meesho has filed an appeal. A separate tax demand of Rs 572.1 crore for the assessment year 2022-23 has been stayed by the Karnataka High Court.
  • Kirana Club: Meesho agreed in June to buy Kirana Club, a platform for neighbourhood grocery stores, for Rs 202.1 crore. Bansal said on the call that the deal closed on October 28.
  • Payments and grocery arms: During the quarter, Meesho invested Rs 100 crore in its payments arm, Meesho Payments, and Rs 75 crore in its grocery arm, Meesho Grocery.
  • AI subsidiary: Its board approved investing up to $100,000 in Meesho Networks, a US subsidiary set up to commercialise AI technologies.

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