Meesho, the Bengaluru-based worth e-commerce market, has reported a consolidated internet lack of Rs 132.4 crore for the July-September quarter of FY27, about 68% decrease than the Rs 411.4 crore loss it posted in the identical quarter final 12 months.

Income from operations rose 34% year-on-year to Rs 4,131.6 crore, from Rs 3,073.7 crore. The corporate introduced the leads to a regulatory submitting after its board permitted them at a gathering in Bengaluru.

Sequentially, the loss was nearly flat towards Rs 132.8 crore within the April-June quarter, whereas income grew about 11% from Rs 3,712.8 crore.

Complete bills rose 24% to Rs 4,382.3 crore from Rs 3,540.4 crore a 12 months earlier, and stood at Rs 3,959.2 crore within the earlier quarter.

Orders, customers and sellers

Orders positioned on the platform grew 17% to 819 million within the quarter, whereas internet merchandise worth (NMV), the worth of delivered orders after cancellations and returns, rose 23% to Rs 12,911 crore, in accordance with the corporate’s press release.

Annual transacting customers, the quantity of people that positioned a minimum of one order previously 12 months, rose 21% to 284 million. Every of them purchased about 10.4 occasions a 12 months on common, up 7% from 9.7 a 12 months earlier. First-time patrons grew 16% over the earlier quarter.

On the provision aspect, annual transacting sellers rose 60% to 1.13 million.

Development has slowed from the tempo of a 12 months in the past. Within the September 2025 quarter, Meesho’s NMV had grown 51% and positioned orders 55%. Within the June 2026 quarter, the figures had been 34% and 29%.

Why the quarter seems softer

Meesho mentioned a big a part of that slowdown comes from calendar timing. Its Mega Blockbuster Sale, the most important occasion of its 12 months, fell within the second quarter final 12 months however began within the third quarter this 12 months.

“Purchasing in India follows the competition calendar, not fiscal quarters,” the corporate wrote in its letter to shareholders. It mentioned Dussehra fell about 19 days later than final 12 months, which pushed a part of the festive build-up out of the September quarter.

To strip out the shift, the corporate in contrast the 90 days earlier than Dussehra in every year, a window that features the sale each occasions. On that foundation, NMV grew 33%. NMV additionally grew about 11% over the June quarter, in 1 / 4 with no sale.

The corporate warned that the impact will reverse within the December quarter, which is able to present stronger year-on-year development than the underlying pattern. It mentioned it’s going to share a mixed view of the second and third quarters with its third-quarter outcomes.

Margins and money

Contribution margin, which is market income minus prices straight tied to orders resembling logistics, cost gateway prices and order-processing employees, rose to six.0% of NMV from 4.6% within the earlier quarter and three.3% a 12 months earlier. In absolute phrases it was Rs 775 crore, towards Rs 349 crore a 12 months in the past, a bit of over twice as a lot.

Meesho credited greater promoting earnings from sellers and cheaper logistics. It mentioned deliveries grew to become about 15% sooner year-on-year due to larger community density, higher routing and associate allocation, and enhancements to Geo-India, its handle and site mannequin.

The corporate cautioned that the margin might not maintain at this stage within the close to time period, as a result of it plans to reinvest a part of the features into reducing sellers’ prices, bettering the person expertise and scaling newer companies.

Adjusted EBITDA for {the marketplace} was a lack of Rs 130 crore, or 1.0% of NMV, in contrast with a lack of Rs 371 crore, or 3.5% of NMV, a 12 months earlier. Together with new initiatives, consolidated adjusted EBITDA was a lack of Rs 172.1 crore.

Development spend on promoting and gross sales promotion rose to 2.9% of NMV from 2.1% within the June quarter, as the corporate introduced in new customers earlier than the festive season. Server prices rose to 2.3% of NMV from 1.9%, which Meesho mentioned mirrored GPU capability it reserved forward of its sale for AI workloads. It mentioned its GPU footprint rose 150%.

Meesho generated Rs 345 crore of free money circulation within the quarter, towards an outflow of Rs 226 crore within the June quarter. It mentioned this was helped by a seasonal working capital profit, because it collects cash from prospects earlier than it pays sellers and order volumes constructed up forward of the sale. Free money circulation during the last 12 months was detrimental at Rs 565 crore. Its money stability stood at Rs 7,048 crore on the finish of September.

What the CEO mentioned

“Our Q2 efficiency displays the power of Meesho’s working mannequin, with NMV rising 23% year-on-year to Rs 12,911 crore and Annual Transacting Customers reaching 284 million. Extra customers are purchasing on Meesho, and they’re purchasing extra often, at the same time as first-time patrons grew 16% quarter-on-quarter,” mentioned Vidit Aatrey, chairman, MD and CEO of Meesho.

“As we develop, the advantages of scale are more and more translating into stronger platform economics,” he mentioned, including that the corporate would reinvest effectivity features to construct “a bigger, extra environment friendly market that may generate sustainable free money circulation over the long run.”

Mall, content material commerce and AI

Meesho Mall, its commission-free part for branded merchandise, now has about 1,800 manufacturers. Its NMV grew 81% year-on-year, and 89% in Tier 3 and smaller cities. About half of Mall prospects within the quarter had been shopping for there for the primary time.

Content material commerce, the place creators drive gross sales by way of product movies, grew NMV by 160%. The variety of content material items producing orders rose 144% to 2.2 million, and greater than 4 lakh sellers are a part of this programme.

Its new initiatives, which embody monetary companies, grocery and AI services, posted an adjusted EBITDA lack of Rs 41.6 crore, wider than the Rs 13.5 crore loss a 12 months earlier.

The corporate mentioned engineering output, measured by its inside productiveness rating, rose 171% between March and September 2026. About 65% of its engineering pods are actually run by a single engineer directing AI brokers, and an AI code reviewer has minimize the time to approve a code change by 41%.

Half-year numbers and board choices

For the six months to September, Meesho’s consolidated income rose about 41% to Rs 7,844.4 crore, whereas its internet loss fell to Rs 265.3 crore from Rs 700.7 crore a 12 months earlier, in accordance with the monetary outcomes.

On the similar assembly, the board appointed Sudhir Sitapati, former MD and CEO of Godrej Client Merchandise, as a further impartial director for a five-year time period, topic to shareholder approval, in accordance with the board meeting outcome. Sitapati led Godrej Client from October 2021 to August 2026 and earlier spent greater than 20 years at Hindustan Unilever.

The board additionally permitted a further funding of as much as $100,000 in Meesho Networks LLC, an entirely owned US subsidiary arrange in Delaware to commercialise AI applied sciences.

The corporate additionally flagged warning on demand. It mentioned the geopolitical battle has lasted longer than most anticipated, pushing up uncooked materials and gasoline costs, and family budgets stay underneath strain.

Meesho listed on the inventory exchanges on 10 December 2025 after elevating Rs 5,421.2 crore in its IPO at Rs 111 a share. The provide included a contemporary problem of Rs 4,250 crore and was subscribed 79.03 occasions. For FY26, the corporate reported income of Rs 12,626.3 crore and a internet lack of Rs 1,357.7 crore.