Published: [October 29, 2026]
StartupFeed Quick Take
- Meesho Q2 FY27 net loss was Rs 132.4 crore, down 68% from Rs 411.4 crore
- Revenue rose 34% to Rs 4,131.6 crore and NMV rose 23% to Rs 12,911 crore
- Server costs climbed to 2.3% of NMV and are meant to fall back by the March quarter
Meesho cut its September-quarter net loss 68% to Rs 132.4 crore, and the Bengaluru company’s revenue grew 34% in the same three months.
Revenue from operations reached Rs 4,131.6 crore, from Rs 3,073.7 crore a year earlier. Net merchandise value, the worth of goods sold on the app, rose 23% to Rs 12,911 crore. Orders grew 17% to 819 million.
Against the June quarter the picture is flatter. The loss then was Rs 132.8 crore. Three months of 11% revenue growth moved the bottom line by Rs 39 lakh.
The 68% headline also owes something to tax. Before tax, the loss fell 63%, from Rs 330.5 crore to Rs 123.3 crore. A heavier tax charge last year did the rest.
Meesho Q2 Growth Looks Smaller Because the Sale Moved
The Mega Blockbuster Sale sat inside the September quarter last year. This year it started in the December quarter instead. So the 23% growth compares a quarter with the big sale against one without it.
Meesho’s shareholder letter of October 28 puts the festive-aligned figure at 33%. That count takes the 90 days before Dussehra in each year. Annual transacting users reached 284 million, up 21%, and sellers on the platform reached 1.13 million, up 60%.
The branded storefront, Meesho Mall, now carries about 1,800 brands. Its NMV grew 81%, and 89% in tier-3 and smaller cities. Content commerce NMV grew 160%, and the content pieces that produced orders rose 144% to 2.2 million.
Vidit Aatrey, who runs Meesho as chairman and chief executive, put the quarter this way:
“As we grow, the benefits of scale are increasingly translating into stronger platform economics.”
Vidit Aatrey, chairman, managing director and chief executive officer, Meesho. From the company statement, October 28, 2026.
Logistics Savings Pushed the Margin to 6%
Contribution margin reached 6.0% of NMV in the September quarter. It was 4.6% in the June quarter and 3.3% a year ago. In rupees, the marketplace kept Rs 775 crore after order-level costs.
Contribution is what is left after the direct cost of an order. Cheaper delivery did most of the work. Fewer returns to origin and a denser delivery network cut the cost of each parcel.
Management has warned against carrying the 6% figure into the December quarter. Savings and price cuts land in different months. The company expects the full-year margin to beat FY26 all the same.
A 25% yearly NMV growth target through FY31 also stands. Delivery speed improved 15% over the year, which is the other half of the same story.
| Measure | Q2 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|
| Contribution margin, % of NMV | 3.3% | 4.6% | 6.0% |
| Server costs, % of NMV | 1.9% | 1.9% | 2.3% |
| Ads and promotions, % of NMV | 2.9% | 2.1% | 2.9% |
| Net loss, Rs crore | 411.4 | 132.8 | 132.4 |
Server Bills and Ad Spend Took the Gains Back
Costs that sit below contribution rose to 7.0% of NMV, from 5.8% in the June quarter. Server and software bills reached 2.3% of NMV, against 1.9% a year ago. GPU capacity was booked early for the festive rush.
Spending on ads and sales promotions went to 2.9% of NMV, from 2.1% in the June quarter. That is the same share as a year ago. Both lines are seasonal, and both landed before the sale moved into October.
Adjusted Ebitda for the marketplace was a loss of Rs 130.5 crore, or 1.0% of NMV. New businesses, which include grocery, financial services and AI services, lost Rs 41.6 crore. Add them and the quarter’s adjusted Ebitda loss is Rs 172 crore.
Ebitda means earnings before interest, taxes, depreciation and amortisation. Server costs are meant to come back to normal by the March quarter. That date matters more than this quarter’s 6%.
Cash Improved and the Board Added a Consumer Veteran
Free cash flow for the quarter was positive at Rs 345 crore. The marketplace produced Rs 372 crore, and new businesses used up Rs 27 crore. A working capital swing of Rs 523 crore did much of it.
The board also added Sudhir Ganesh Sitapati as an additional director in a non-executive independent seat, its exchange filing shows. Sitapati runs Godrej Consumer Products as managing director and chief executive. His term is five years from October 28, 2026, subject to shareholder approval.
The same day brought a monitoring report on the IPO money. Of the funds raised, Rs 2,026.5 crore has been spent and Rs 2,075.6 crore is still unused. Crisil found no deviation from the stated plan.
Shares rose more than 2% in morning trade on Thursday, the day after the results.
What this means for you: If you sell on Meesho or run a D2C brand on Meesho Mall, the December quarter carries this year’s Mega Blockbuster Sale. Plan stock and ad budgets for a Q3 that now holds the full festive spike.
StartupFeed Insight
The 6% contribution margin is the number brokerages will model, but it is the server line that decides whether it holds. Costs not tied to orders went from 5.8% of NMV to 7.0% in three months, and GPU bookings for the festive rush are the reason. The company has told investors those costs come back to normal by the March quarter. That is the test. If server and software costs are still near 2.3% of NMV when Q4 FY27 is reported, the margin story is a one-quarter event, not a trend. Watch that line before the growth numbers.
By Saraswati Chaubey, Writer
Disclaimer: This article is for information only and is not investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. Please speak to a SEBI-registered advisor before investing.
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