Meesho's Q1 margins hit post-listing high as NMV grows 34% YoY

Meesho Limited, India's largest e-commerce platform by annual transacting users and placed orders, reported its Q1 FY27 results on July 23, 2026, posting its strongest contribution margin and adjusted EBITDA since its December 2025 listing.

Growth across core metrics

Net merchandise value (NMV) grew 34% year-on-year to ₹11,614 crore for the quarter ended June 30, 2026, up from ₹8,679 crore a year earlier. Placed orders rose 29% YoY to 725 million, while annual transacting users climbed 29% to 274 million, with purchase frequency improving to 10.3 transactions per user annually. Marketplace revenue from operations grew 48% YoY to ₹3,707 crore, aided by lower cancellations, reduced return-to-origin (RTO) rates, and stronger platform monetisation.

Margins improve despite cost pressure

Contribution margin expanded to 4.6% of NMV, up 54 basis points sequentially, while marketplace adjusted EBITDA improved to (1.2%) of NMV. Last twelve months free cash flow improved roughly 15%, narrowing to (₹537 crore) from (₹633 crore) in the prior quarter. The company said this came despite higher fuel costs and minimum wage increases in some states, which it treated as structural rather than temporary and passed through the ecosystem.

"Our Q1 performance reflects the strength of Meesho's operating model. We delivered 34% year-on-year NMV growth, while Contribution Margin expanded to 4.6%, Marketplace Adjusted EBITDA improved to (1.2%) of NMV, and Last Twelve Months Free Cash Flow improved by approximately 15%," said Dhiresh Bansal, Chief Financial Officer at Meesho. "AI is becoming foundational across every layer of our business, from product discovery and seller growth to logistics and engineering. This quarter alone, Meesho processed nearly 725 million orders, averaging more than 90 orders every second."

Seller base and new bets expand

Annual transacting sellers grew 81% YoY to over 1.04 million, with 45% based in Tier 2+ towns and Tier 4 seller growth at 125% YoY. Meesho Mall crossed 1,200 brands, growing NMV nearly 93% YoY, while content commerce NMV rose 141% YoY. The company's cash balance stood at ₹6,521 crore as of June 30.

Board approves governance and structural changes

Separately, Meesho's board, meeting the same day, approved changes to the company's articles of association creating formal nomination rights for founders Vidit Aatrey and Sanjeev Kumar, subject to shareholder approval, along with a nomination right for the company's two largest non-promoter investors holding at least 8% equity. The board also cleared an additional investment of up to ₹75 crore in subsidiary Meesho Grocery Private Limited and the acquisition of Meesho Payments Private Limited's remaining stake, making it a wholly-owned subsidiary.

Shares of Meesho Ltd closed 0.80% lower at ₹188.35 on the NSE Thursday. Despite the dip, the stock has gained over 3% year-to-date, outperforming the Nifty 500 index, which has slipped nearly 4% over the same period.