Date: October 28, 2026

Financial Results (Standalone & Consolidated)

Marketplace Performance Q2 FY27:

  • Net Merchandise Value (NMV): ₹12,911 crores, up 23% YoY
  • Placed Orders: 819 million, up 17% YoY
  • Revenue from Operations (Marketplace): ₹4,119.9 crores, up 34% YoY
  • Contribution Margin: ₹775 crores (6.0% of NMV), up from 4.6% in Q1 FY27
  • Adjusted EBITDA: (₹130.5) crores (-1.0% of NMV), improved from (3.5%) in Q2 FY26

Quarterly Trend Analysis (₹ crores):

| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |

| NMV | 10,515 | 10,995 | 11,371 | 11,614 | 12,911 |

| Contribution Margin | 349 | 251 | 459 | 531 | 775 |

| Contribution % | 3.3% | 2.3% | 4.0% | 4.6% | 6.0% |

| Adj. EBITDA | (371) | (460) | (198) | (139) | (130) |

User and Seller Metrics:

  • Annual Transacting Users: 284 million, up 21% YoY
  • LTM Frequency: 10.4, up 7% YoY
  • First-time buyers: grew 16% QoQ
  • Annual Transacting Sellers: 1.13 million, up 60% YoY

Cash Flow and Balance Sheet:

  • Quarterly Free Cash Flow (Consolidated): ₹345 crores (Marketplace: ₹372 crores, New Initiatives: (₹27) crores)
  • LTM Free Cash Flow: (₹565) crores
  • LTM Free Cash Flow to Equity: (₹163) crores
  • Cash balance: ₹7,048 crores, up from ₹6,521 crores in Q1 FY27

Business Segment Performance

Meesho Mall:

  • Hosts ~1,800 brands
  • NMV grew 81% YoY in Q2 FY27
  • Tier 3+ cities growth: 89% YoY
  • Approximately half of customers bought on Mall for the first time
  • Shift from essentials to discretionary products (face serums, sunscreens, conditioners, face rollers)

Content Commerce:

  • NMV grew 160% YoY in Q2 FY27
  • Content pieces generating orders: 2.2 million, up 144%
  • Over 4 lakh sellers part of the ecosystem
  • Creator earnings based on purchase conversions

Cost Structure Analysis

Costs not directly attributable to Placed Orders: 7.0% of NMV (up from 5.8% in Q1)

  • Growth Spend (Advertisement and Sales Promotion): 2.9% of NMV (2.1% in Q1 FY27)
  • Server costs: 2.3% of NMV (1.9% in both Q2 FY26 and Q1 FY27)
  • Other costs including employee benefits: 1.8% of NMV (2.1% in Q2 FY26)

Server Cost Drivers:

  • GPU capacity reserved ahead of festive sale
  • GPU usage during sale doubled YoY
  • Peak compute capacity increased by 69%
  • Core systems maintained 99.99% availability during peak

Technology and AI Update

AI Agent Implementation:

  • AI engineer: 65% of pods now run by single engineer directing agents
  • AI code reviewer: Time to approve changes down 41%, caught 20% more bugs
  • AI data science researcher: Time to model testing cut from 17 days to 3
  • AI security analyst: Threats detected in under 10 minutes

Productivity Impact:

  • Engineering output rose 171% between March and September 2026
  • Number of experiments ran rose 73%
  • Code changes increased threefold
  • GPU footprint increased by 150%

New Initiatives Performance

Adjusted EBITDA - New Initiatives: (₹41.6) crores in Q2 FY27

  • Includes Financial Services, Grocery and AI services
  • Horizon 2 (H2) bets with capped funding
  • Separate budgets and economics from core marketplace

Seasonal and Festive Impact

Mega Blockbuster Sale (MBS) Timing:

  • Last year's MBS fell in Q2, this year's started in Q3
  • Dussehra fell about 19 days later than last year
  • Festive-aligned NMV growth (90 days before Dussehra): 33% YoY
  • Q2 and Q3 should be read together for comparable performance

Outlook Commentary

Q3 FY27 Expectations:

  • Growth spend to remain elevated through sale and Diwali period
  • Technology costs to stay higher until optimizations take effect
  • Q3 YoY growth expected to be stronger due to sale shift
  • Continued reinvestment of efficiency gains while improving FCF generation

Macro Environment:

  • Geopolitical conflict lasting longer than expected
  • Surge in raw material and fuel prices
  • Household budgets under pressure
  • Strong festive customer response despite challenges

Non-GAAP Reconciliation

Adjusted EBITDA to Restated Loss:

| Period | Adj. EBITDA - Marketplace | Adj. EBITDA - New Initiatives | Loss for the year |

| Q2 FY27 | (₹130.5 Cr) | (₹41.6 Cr) | (₹132.4 Cr) |

| Q2 FY26 | (₹370.7 Cr) | (₹13.5 Cr) | (₹411.4 Cr) |

LTM FCF Reconciliation:

  • Cash flows from operating activities: (₹625.0 Cr)
  • Purchase of property, plant and equipment: (₹113.3 Cr)
  • Cash Flow towards Exceptional items: ₹173.1 Cr
  • LTM FCF: (₹565.2 Cr)