Meesho climbed 2% to close at ₹227.84 on the NSE after reporting financial performance for the second quarter of FY27. This optimism reflects a major reduction in its consolidated net loss, which fell to ₹132.4 crore in the quarter ended Sept. 30, 2026. This result reflects a significant drop compared with a net loss of ₹411.4 crore in the same period last year. The bottom-line improvement came from strong operational revenue growth and increased operational efficiencies in logistics networks.

Contribution margin expansion and key operational metrics

In Q2 of FY27, Meesho saw a 34.4% increase in consolidated revenue from operations year-on-year, bringing it to ₹4131.6 crore, against ₹3073.6 crore witnessed in Q2 of FY26. Income from total sources jumped 31% to ₹4259 crore, but total expenses witnessed a lesser rise of 24%.

The company’s Net Merchandise Value, reflecting the value of orders delivered successfully after returns and discounts, rose 23% year-on-year to ₹12,911 crore. The number of total orders increased 17% to 819 million orders, as did the number of annual transacting users, with a 21% jump to 284 million users and an average purchaser frequency of 10.4 transactions per year.

One of the standout features of Meesho’s financial performance in Q2 FY27 was the increase in its contribution margin to 6% of its Net Merchandise Value, compared to 4.6% in Q1 FY27 and 3.3% in Q2 FY26. Logistics cost efficiencies, higher order density, network redesign, and increased advertising monetization reflected a significant increase in contribution margin. 

With the working capital benefit, Meesho reported quarterly free cash flow worth ₹345 crore, whereas the prior quarter showed ₹226 crore. The company’s cash balance was ₹7,048 crore as at 30 September 2026.

Strategic growth verticals and Brokerage actions

Meesho Mall, the platform’s dedicated branded product arm, also managed to record decent growth with its Net Merchandise Value increasing by 81% YoY overall, and by 89% in Tier 3 and smaller cities, accounting for about 1800 brand partnerships. 

The specific commerce Net Merchandise Value rose 160% year-on-year. This was highlighted by management, which said that the timing of its core growth driver, Mega Blockbuster Sale, had moved to Q3 in FY27 from Q2 in the previous year, affecting year-on-year comparison by quarter. 

Net Merchandise Value increased by 33% over the last 90 days before Dussehra in both years. Headline international brokerages voiced a positive view on the long-term growth of Meesho after the earnings release. 

Jefferies also retained the stock rating at ‘Buy’ and has increased its price target from ₹240 to ₹285, on the back of robust monetization optionality in advertising, logistics and adjacent businesses, which should facilitate continued margin uplift, reaching management’s target of 25% CAGR until FY31. 

Top-line growth was ahead of expectations as slow festive sales affected revenue, but Nomura maintained its rating and highlighted that the company’s contribution margin improved by 140 basis points in the quarter.

Conclusion

Meesho’s Q2 FY27 results emphasize the company’s growing sales momentum and positive structural changes, highlighting its journey toward sustainable profitability. The contraction in its net loss to ₹132.4 crore, while its operating revenue growth was 34.4% and the contribution margin widened to 6%, reflects the impact of platform scale and logistics efficiencies. With ₹7,048 crore in the cash balance sheet, healthy revenue growth in branded products, and promising sentiment from brokerages on a future return in monetisation, Meesho is poised to solidify its standing in India’s growing e-commerce market.