Meesho Q3 FY26: Net Loss Rises 13x to ₹490 Cr Despite 32% Revenue Surge

Newly listed e-commerce platform Meesho reported a consolidated net loss of ₹490.7 crore for the third quarter of FY26, nearly 13 times higher than the ₹37.4 crore loss recorded in the same period last year. Losses also widened sequentially from ₹411 crore in Q2 FY26, even as revenue continued to grow.

The company’s total revenue rose 14% quarter-on-quarter to ₹3,518 crore from ₹3,074 crore in the July–September quarter, while registering a 32% year-on-year increase compared with ₹2,674 crore in Q3 FY25.

Total expenses climbed sharply during the quarter, rising 44% year-on-year to ₹4,071.3 crore, up from ₹2,822.8 crore a year earlier and ₹3,540.4 crore in the previous quarter. The surge in costs weighed on profitability despite strong growth in orders and users.

Founder’s Outlook

Founder and CEO Vidit Aatrey said the results reflected the strength of Meesho’s platform flywheel, with users transacting more frequently and driving growth in underserved markets.

He noted that the company now serves 251 million consumers and supports more than 846,000 sellers annually, many of whom are first-time e-commerce participants. Aatrey added that becoming a public company has increased accountability but has not changed Meesho’s focus on platform health and disciplined growth, with free cash flow per share remaining its long-term north star.

Operational Metrics

Orders placed on the platform rose 36% year-on-year to 690 million, while annual transacting users increased 34% to 251 million, with users transacting an average of 9.78 times. Net merchandise value (NMV) grew 26% year-on-year to ₹10,995 crore in Q3 FY26 and stood at ₹30,189 crore for the nine months ended December.

However, profitability metrics deteriorated. Contribution margin as a percentage of NMV declined to 2.3%, down 104 basis points quarter-on-quarter and 198 basis points year-on-year, largely due to the accelerated scale-up of Valmo following consolidation in the third-party logistics industry.

The company said this impact is expected to normalise in the coming quarters. Adjusted EBITDA marketplace margin for the quarter stood at -4.2%, or a loss of ₹460 crore, reflecting lower contribution margins alongside increased investments in user growth and engineering.

On the cash flow front, Meesho reported last twelve-month free cash flow of ₹56 crore and free cash flow to equity of ₹437 crore. The company ended the quarter with a cash balance of ₹7,277 crore, providing a strong liquidity buffer despite rising losses.