Meesho Q4 loss narrows 88% to ₹166 crore as revenue jumps 47%

Meesho closed FY26 with strong growth momentum and a sharp reduction in losses, as it shifts towards more sustainable unit economics and continues to invest in scale and technology.

The e-commerce platform reported an 88% year-on-year decline in its consolidated net loss to ₹166.3 crore in Q4 FY26, compared to ₹1,391.4 crore in the same period last year. The loss also reduced sequentially from ₹490.7 crore in the December quarter. Revenue from operations rose 47% year-on-year to ₹3,531.2 crore, marginally higher than ₹3,517.6 crore reported in the previous quarter.

For the full financial year, the Bengaluru-based firm reported a net loss of ₹1,357.7 crore, down 66% from ₹3,941.7 crore in FY25, reflecting steady progress in narrowing losses.

Even as costs remained elevated, growth outpaced spending. Total expenses increased 44% year-on-year to ₹3,807.1 crore in the March quarter, compared to ₹2,636.8 crore a year ago, though they declined sequentially from ₹4,071.3 crore, indicating improving cost discipline.

Operationally, the company posted a 43% year-on-year rise in net merchandise value (NMV) to ₹11,371 crore in the March quarter, with orders growing at the same pace to 717 million. More notably, losses narrowed by about 66%, helped by improving contribution margins and operating efficiencies, according to the company.

For the full year, NMV stood at ₹41,560 crore, up 39% from the previous year, while annual transacting users rose 33% to 264 million. Orders for the year climbed 45% to 2.67 billion, with frequency improving to 10.1 transactions per user, showing stronger repeat engagement. 

For the March quarter, contribution margin rose to 4% of NMV, while adjusted EBITDA loss (marketplace) improved by 245 basis points sequentially to negative 1.7% of NMV. The company attributed the margin recovery to a combination of structural and operational changes. Logistics costs stabilised after earlier disruptions, while improvements in its in-house network and routing systems reduced inefficiencies in last-mile delivery.

AI meets efficiency 

At the same time, Meesho continued to invest heavily in artificial intelligence (AI) to drive both demand and supply-side efficiencies. More than 75% of orders now come from personalised feeds, while its voice-based shopping assistant and address intelligence systems are helping onboard first-time users and reduce delivery friction.

“FY2026 has deepened our conviction that the Indian e-commerce market has far more depth than most people assume,” said Vidit Aatrey , founder and CEO, Meesho. “Every time we removed one of those barriers, the market got larger. What AI has changed is the pace at which we can now remove them.”

He added that accessibility improvements are bringing new cohorts online. “The result is that first-time buyers who had never placed an order online are now completing purchases on Meesho. We are still early in this journey, but the direction is clear.” 

The company’s AI-led initiatives are beginning to show measurable impact. Its voice shopping tool crossed 1.5 million users within a month of launch and delivered a 22% conversion lift for adopters. On the supply side, AI-driven seller support systems now handle around 300,000 calls a day, improving participation in promotions and sales events. 

Beyond core marketplace operations, newer segments are also scaling up. Meesho Mall grew 82% year-on-year in the fourth quarter, while content commerce more than doubled, with 1.4 million active order-generating content pieces.