Meesho shares fall 4% despite 50% revenue growth, losses narrower in Q1

Meesho shares will be in focus on Friday, July 24, after the value commerce platform reported a strong operational performance for the June quarter, with robust revenue growth, improving profitability and expanding margins.

The company posted a 48% year-on-year increase in revenue from operations to ₹3,712.8 crore in Q1FY27, while its net loss narrowed 54% to ₹132.8 crore from ₹289.4 crore a year ago. Sequentially, the loss also reduced from ₹166.3 crore.

Net Merchandise Value (NMV) grew 34% YoY to ₹11,614 crore during the quarter, supported by higher user engagement and growth across key business segments.

Contribution margin continued to improve, rising to 4.6% in Q1FY27 from 4% in Q4FY26 and 2.3% in Q3FY26. The company also reported improvements in marketplace-adjusted EBITDA and free cash flow.

Annual transacting users increased 29% YoY to 274 million, while Meesho Mall's NMV surged 93% and Content Commerce NMV jumped 141% over the year.

The company processed nearly 725 million orders during the quarter, averaging more than 90 orders every second. It attributed part of the growth to AI-led initiatives, including AI-powered cataloguing, demand intelligence and multilingual voice agents, which helped annual transacting sellers rise 81% YoY to over 1.04 million.

Looking ahead, Meesho said it plans to significantly increase spending on new-user acquisition from the second quarter. It also said its flagship shopping event, the Meesho Mega Blockbuster Sale, will be held in Q3 this year, compared with Q2 last year.