The company’s consolidated net loss for Q3FY26 widened nearly 13 times to Rs 491 crore, compared with Rs 37 crore in the same quarter last year. On a sequential basis, losses also increased from Rs 411 crore reported in Q2FY26.
Despite the rise in losses, Meesho posted strong revenue growth. Revenue for the December quarter rose 32% year-on-year to Rs 3,518 crore, up from Rs 2,674 crore in Q3FY25. On a quarter-on-quarter basis, revenue grew 14%, compared with Rs 3,074 crore in the July–September period.
Notably, this marks Meesho’s first earnings announcement after its stock market debut on December 10, 2025.
Operational performance remained strong in the December quarter, with Meesho reporting a 34% year-on-year rise in Annual Transacting Users to 251 million. The company’s Net Merchandise Value (NMV) grew 26% YoY to Rs 10,995 crore, reflecting sustained demand on the platform.
On a cumulative basis, NMV for the nine months ended FY26 increased 37% YoY to Rs 30,189 crore. Order volumes also saw healthy growth, with 690 million orders placed during Q3, marking a 36% YoY increase.
However, profitability metrics came under pressure. The contribution margin as a percentage of NMV declined to 2.3%, down 104 basis points QoQ and 198 basis points YoY. The company attributed this drop to the accelerated scale-up of its logistics arm, Valmo, following consolidation in the third-party logistics (3PL) industry. Management expects margins to normalise in the coming quarters.
Cash flow and balance sheet strength
Despite reporting higher losses during the quarter, Meesho continued to generate positive cash flows, underscoring the strength of its financial position. The company reported a last twelve-month free cash flow of Rs 56 crore, while free cash flow to equity over the same period stood at Rs 437 crore.
In addition, Meesho maintained a healthy cash balance of Rs 7,277 crore, providing ample liquidity to fund growth initiatives.
Higher Ad spend signals growth push
In a letter to shareholders, Founder & CEO Vidit Aatrey said Meesho ramped up spending on advertising and sales promotion to 2.4% of NMV in Q3FY26, compared with 1.3% of NMV in Q3FY25.
According to Aatrey, the higher spends are focused on brand awareness, traffic acquisition, and customer incentives, where returns meet the company’s long-term FCF thresholds. He added that newer customer cohorts are showing stronger repeat usage, encouraging the company to accelerate investments to drive NMV growth.
Meesho stock performance and technical view
On Friday, Meesho shares closed 3.55% higher at Rs 174.15 on the NSE.
From a technical standpoint, trendline data shows the stock’s 14-day Relative Strength Index (RSI) at 53, indicating neutral momentum. An RSI below 30 typically signals oversold conditions, while readings above 70 suggest overbought territory.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
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