# Meesho Q2: Loss Narrows 68% YoY To ₹132 Cr, Revenue Jumps 34% — retained record

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source: [news](https://highsignal.app/data/news) (news:india-inc42)  published 2026-10-28 11:59 ingested 2026-10-29 03:04

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Meesho’s consolidated net loss narrowed 68% YoY to ₹132.4 Cr in Q2 FY27, while operating revenue rose 34% to ₹4,131.6 Cr
Revenue growth outpaced the 24% increase in expenses, helping narrow losses, alongside the absence of last year’s exceptional charges
Revenue grew 11% sequentially, but net loss remained largely unchanged. New initiatives’ segment loss widened to ₹41.6 Cr from ₹13.5 Cr a year ago
Ecommerce major Meesho reported a 68% decline in its consolidated net loss to ₹132.5 Cr in the September quarter (Q2 FY27) from ₹411.4 Cr in the year-ago period as its revenue growth outpaced increase in expenses.However, net loss remained largely unchanged from ₹132.8 Cr in the June quarter.
Operating revenue rose 34% YoY and 11% QoQ to ₹4,131.6 Cr. Including other income of ₹127.4 Cr, Meesho’s total income stood at ₹4,259 Cr in Q2 FY27, up 31% from ₹3,254.9 Cr a year ago.
Meesho incurred exceptional expenses in the last year quarter which it didn’t incur this year, leading to the sharp annual reduction in loss. In Q2 FY26, Meesho incurred exceptional expenses of ₹45 Cr towards a business combination and a vendor dispute settlement, besides a ₹64.4 Cr tax charge related to the business combination. Neither charge recurred in the quarter under review.
Before exceptional items and tax, its loss narrowed by 57% to ₹123.3 Cr from ₹285.5 Cr a year earlier.
“Our Q2 performance reflects the strength of Meesho’s operating model, with NMV growing 23% YoY to ₹12,911 Cr and Annual Transacting Users reaching 284 Mn. More consumers are shopping on Meesho, and they are shopping more frequently, even as first-time buyers grew 16% QoQ,” Meesho’s CEO Vidit Aatrey said.
Meanwhile, Meesho’s total expenses increased 24% to ₹4,382.3 Cr in Q2 FY27 from ₹3,540.4 Cr. Other expenses, the company’s largest cost bucket, increased to ₹4,079.9 Cr from ₹3,292.1 Cr a year ago. The results did not provide a further breakdown of this expense head.
Employee benefit expenses rose 18% YoY to ₹280.9 Cr, while depreciation and amortisation expenses more than doubled to ₹20.1 Cr.
Marketplace Loss Narrows, New Initiatives’ Loss Widens
Meesho’s marketplace segment, which includes its ecommerce marketplace, advertising, logistics and content commerce businesses, accounts for nearly all its operating revenue.
The segment’s revenue rose 34% YoY to ₹4,119.9 Cr, while its loss narrowed to ₹130.5 Cr from ₹370.7 Cr. Contribution margin of the marketplace vertical also grew to 6.0% of NMV compared to 3.3% in the year-ago period and 4.6% in the previous quarter.
Notably, with the festive season falling 19 days later, sales driven by this demand surge shifted more towards Q3 this year. Festive-aligned NMV – measuring the sales for 90 days before Dussehra – grew 33% YoY.
“As we flagged last quarter, our Mega Blockbuster Sale (MBS) moved from Q2 last year to Q3 this year, so Q2 will look softer than the underlying trend and Q3 stronger. The two are best read together,” the management said.
Meanwhile, revenue from new initiatives increased more than fivefold to ₹11.7 Cr from ₹2.3 Cr in Q2 FY26. However, the segment’s loss widened to ₹41.6 Cr from ₹13.5 Cr a year earlier and ₹39.3 Cr in the preceding quarter.
Meesho groups its low-cost local logistics network for daily essentials, digital financial services and AI services under new initiatives.
In particular, logistics efficiencies enabled deliveries that were 15% faster YoY, helping to increase the contribution margin, said the management.
During the September quarter, the parent company invested an additional ₹75 Cr in Meesho Grocery to support its growth and financial requirements.
It further cited its increasing adoption of AI as driving a 171% jump in engineering productivity between March and September 2026 and slashing code approval times by 41%.
Separately, Meesho said its proposed ₹202.1 Cr acquisition of Singapore-based Kirana Club and a direct 0.41% stake in its Indian subsidiary, Retail Pulse Labs, is expected to close within Q3.
Alongside the results, its board approved the appointment of Sudhir Ganesh Sitapati as an additional independent director for five years, effective October 28, subject to shareholder approval.
Shares of Meesho ended today’s trading 1.77% higher at ₹227.60 apiece on the BSE.
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