Meesho narrowed its consolidated net loss by 54.1% year-on-year to Rs 132.8 crore in Q1 FY27, while operating revenue rose 48% to Rs 3,707 crore. The ecommerce company’s loss also declined sequentially from Rs 166.3 crore in Q4 FY26, while revenue increased from Rs 3,531 crore in the previous quarter. Including other income of Rs 107.6 crore, total income for the quarter stood at about Rs 3,815 crore.
The company’s operating performance showed growth across marketplace activity, user base and seller participation. Net merchandise value rose 34% year-on-year to Rs 11,614 crore in Q1 FY27, placed orders increased 29% to 72.5 crore, and annual transacting users grew 29% to 27.4 crore. Annual transacting sellers rose 81% to 10.4 lakh, with sellers from Tier II towns and beyond accounting for 45% of the platform’s seller base.
Meesho’s adjusted EBITDA loss improved to Rs 178.2 crore from Rs 230.1 crore in the year-ago quarter, although it widened slightly from Rs 167.5 crore in the previous quarter. The company said adjusted EBITDA loss for the marketplace business narrowed to Rs 139 crore, while losses from newer initiatives, including financial services and other emerging businesses, more than doubled to Rs 39 crore. Contribution margin improved to 4.6% of NMV from 4% in the prior quarter, with absolute contribution margin rising to Rs 531 crore from Rs 459 crore.
The company attributed the margin gains to stronger platform monetisation, lower cancellations and return-to-origin rates, and continued logistics cost optimisation. It also said AI is now being used across seller and engineering workflows. On the engineering side, Meesho said code authorship, testing and documentation have shifted to AI agents, allowing engineers to focus more on specifications and review; the company said the change has produced more than 2x productivity gains across engineering teams.
For MSME sellers, Meesho said AI-powered catalogue creation, demand intelligence and GenAI voice agents in local languages are simplifying onboarding and daily operations. Its newer businesses also expanded during the quarter: Meesho Mall, the branded marketplace, reported about 93% year-on-year NMV growth and now hosts more than 1,200 brands, while the content commerce business posted 141% NMV growth and active order-generating content pieces rose 143% to 17 lakh.
The company cautioned that marketing spends are likely to increase from Q2 as it ramps up user acquisition ahead of the festive season. It also said year-on-year NMV growth in Q2 may appear softer because the Meesho Mega Blockbuster Sale has shifted from Q2 to Q3 this year, making the impact largely timing-led rather than demand-led. The numbers show a platform still investing in new growth engines while trying to tighten marketplace unit economics.
