Financial Performance Summary

Revenue and Growth Metrics:

  • Net Merchandise Value (NMV) grew 23% year-on-year to ₹12,911 crore for Q2 FY27
  • Marketplace Revenue from Operations grew 34% year-on-year to ₹4,120 crore
  • Placed orders increased 17% year-on-year to 819 million
  • Festive-aligned NMV grew 33% year-on-year over the 90 days preceding Dussehra

Profitability and Margins:

  • Net losses narrowed approximately 68% year-on-year to ₹132 crore (compared with ₹411 crore in Q2 FY26)
  • Contribution Margin expanded to 6.0% of NMV (compared with 4.6% in the previous quarter)
  • The improvement in margins was driven by logistics efficiencies and improved platform monetization

Cash Flow and Balance Sheet:

  • Generated ₹345 crore in quarterly free cash flow (compared with an outflow of ₹226 crore in the previous quarter)
  • Cash balance of ₹7,048 crore as of September 30, 2026
  • Seasonal working capital benefits supported cash flow generation

User and Seller Metrics

Consumer Engagement:

  • Annual Transacting Users grew 21% year-on-year to 284 million
  • Annual purchase frequency increased 7% year-on-year to 10.4 transactions per user
  • First-time buyers grew 16% quarter-on-quarter

Seller Ecosystem:

  • Annual Transacting Sellers increased 60% year-on-year to 1.13 million
  • Over 4 lakh sellers are part of Meesho's Content Commerce ecosystem

Business Segment Performance

Meesho Mall:

  • Recorded 81% year-on-year NMV growth
  • Now home to approximately 1,800 brands
  • Growth reached 89% in Tier 3+ cities
  • Approximately half of customers during the quarter were first-time Mall buyers

Content Commerce:

  • NMV grew 160% year-on-year
  • Active order-generating content increased 144% to 2.2 million pieces

Operational Efficiency and Technology

Logistics Improvements:

  • Deliveries became approximately 15% faster year-on-year
  • Improvements driven by greater network density, improved routing and partner allocation, and enhancements to Geo-India
  • Reduced delivery re-attempts, cancellations and Return-to-Origin rates

AI Implementation:

  • Engineering productivity increased 171% between March and September 2026
  • Number of experiments rose 73%
  • Approximately 65% of engineering pods now operate with a single engineer directing AI agents
  • Code approval times declined 41%
  • Time required to take a model to live testing reduced from 17 days to three days

Platform Enhancements:

  • Continued enhancements to Geo-India improved address intelligence
  • TrustMesh improvements enhanced fraud detection

Management Commentary

Vidit Aatrey, Chairman, Managing Director and Chief Executive Officer at Meesho, stated:

  • Q2 performance reflects the strength of Meesho's operating model
  • More consumers are shopping on Meesho, and they are shopping more frequently
  • Benefits of scale are increasingly translating into stronger platform economics
  • AI is fundamentally changing how Meesho builds and operates
  • Focus remains on reinvesting efficiency gains into better consumer and seller experiences
  • Goal is to build a larger, more efficient marketplace that can generate sustainable free cash flow over the long term

Strategic Focus

The company plans to reinvest part of the efficiency gains into:

  • Improving consumer and seller experiences
  • Scaling emerging growth opportunities
  • Accelerating innovation