Date: July 23, 2026

Key Metrics

Q1 FY2027 Performance:

  • Annual Transacting Users: 274 million (YoY growth 29%)
  • LTM Frequency: 10.3 (YoY growth 9%)
  • Quarterly Placed Orders: 725 million (YoY growth 29%)
  • Net Merchandise Value: ₹11,614 Cr (YoY growth 34%)
  • Contribution Margin as % of NMV: 4.6%
  • LTM Free Cash Flow: Marketplace (₹447Cr), New initiatives (₹90Cr), Group (₹537Cr)
  • LTM Free Cash Flow to Equity: Group (₹164Cr)
  • Cash balance: ₹6,521 Cr

Sequential Comparison (Q4 FY2026 vs Q1 FY2027):

  • Annual Transacting Users: 264 Mn → 274 Mn
  • LTM Frequency: 10.1 → 10.3
  • Quarterly Placed Orders: 717 Mn → 725 Mn
  • Net Merchandise Value: ₹11,371 Cr → ₹11,614 Cr
  • Contribution Margin: 4.0% → 4.6%

Financial Results

Revenue and Profitability:

  • Q1FY27 Revenue from Operations (marketplace): ₹3,707 crores (48% YoY growth)
  • Contribution Margin – Marketplace: ₹531 crores (4.6% of NMV)
  • Adjusted EBITDA – Marketplace: (₹139 Cr) or (1.2% of NMV)
  • Adjusted EBITDA – New Initiatives: (₹39 Cr)

Quarterly Trend Analysis:

| Period | Contribution Margin (₹ Cr) | Contribution Margin % | Adjusted EBITDA (₹ Cr) | Adjusted EBITDA % |

| Q1 FY26 | 384 | 4.4% | (148) | (1.7%) |

| Q2 FY26 | 349 | 3.3% | (371) | (3.5%) |

| Q3 FY26 | 251 | 2.3% | (460) | (4.2%) |

| Q4 FY26 | 459 | 4.0% | (198) | (1.7%) |

| Q1 FY27 | 531 | 4.6% | (139) | (1.2%) |

Operational Highlights

User and Seller Growth:

  • Annual Transacting Sellers grew by 81% YoY to 1.04 million sellers
  • Tier 4 sellers grew 125% YoY, outpacing every other tier
  • Sellers from Tier 2 towns and beyond now make up 45% of total base
  • Prepaid orders as percentage of shipped orders reached approximately 37%

Platform Initiatives:

  • Meesho Mall: Over ~1,200 brands, grew NMV approximately 93% YoY, transacting consumers rose 88% YoY
  • Content Commerce: NMV grew 141% YoY, active order-generating content pieces grew 143% YoY to 1.7 million
  • TrustMesh algorithms reduced Cancellations and Return-to-Origin (RTO) rates
  • PRISM (Personalised Ranking and Intent Signal Module) improved conversion rates

Strategic Developments

Kirana Club Acquisition:

  • Acquisition of Kirana Club, a 3P marketplace connecting FMCG brands and distributors with retailers across Tier 2+ and rural India
  • Slated to close in Q2FY27
  • Described as building 'Meesho for Retailers' as the lowest-cost, most accessible channel for kirana stores

Technology Investments:

  • AI Blitz initiative delivered 2x+ productivity gains across engineering organization
  • Shifted code authorship, testing, and documentation to AI agents
  • Autonomous Software Development Lifecycle (SDLC) implementation

Cost Structure Analysis

Cost Efficiency:

  • Costs not directly attributable to Placed Orders: 5.8% of NMV (flat QoQ, 37bps improvement YoY)
  • Growth Spends (Advertisement and Sales Promotion): 2.1% of NMV in Q1FY27 vs 2.2% in Q1FY26
  • Server and Software costs: 1.9% in Q1FY27 vs 1.8% Q1FY26 (driven by AI infrastructure investment)
  • Other costs: 1.7% of NMV in Q1FY27 vs 2.2% in Q1FY26 (42bps improvement)

Logistics Costs:

  • Faced cost headwinds from fuel price escalation and increase in minimum wages in certain states
  • Cost inflation passed through to the ecosystem
  • Valmo Transportation Private Limited (VTPL) operates as aggregator of middle-mile and last-mile services
  • VTPL classified as Goods Transport Agency (GTA) under applicable GST law

Outlook

Q2 FY27 Expectations:

  • Growth spends expected to increase from ~2.1% of NMV due to festive season approaching
  • NMV growth optics will appear softer YoY due to timing shift of Meesho Mega Blockbuster Sale from Q2 to Q3
  • Flagship sale event moves to Q3 this year from Q2 last year

Macro Environment:

  • Crude prices moderated this quarter
  • Indian retail fuel prices largely unchanged since end of May
  • No meaningful price increases on the platform observed

Capital Allocation

  • LTM Free Cash Flow: Group (₹537Cr), improved from (₹633Cr) in Q4 FY26
  • LTM Free Cash Flow to Equity: (₹164Cr), improved from (₹264Cr) in Q4 FY26
  • Cash balance: ₹6,521 Cr
  • Investments governed by internal investment framework with long-term FCF return thresholds

Non-GAAP Reconciliation

Adjusted EBITDA Reconciliation (₹ Crores):

| Particulars | Q1 FY26 | Q1 FY27 |

| Adjusted EBITDA – Marketplace | (148.4) | (138.9) |

| Adjusted EBITDA - New Initiatives | (16.7) | (39.3) |

| Adjusted EBITDA – Unallocated | (2.4) | 0.0 |

| Adjusted EBITDA – Consolidated | (167.5) | (178.2) |

LTM FCF Reconciliation (₹ Crores):

| Particulars | Q1 FY27 |

| LTM FCF | (536.8) |

| LTM FCF as % NMV – Marketplace | (1.2%) |

| LTM FCFE | (164.4) |

| LTM FCFE as % NMV – Marketplace | (0.4%) |