Meesho’s consolidated net loss fell 68% year-on-year to ₹132.4 crore in the September quarter, or Q2 FY27, as revenue growth outpaced the rise in expenses. The e-commerce company’s operating revenue increased 34% to ₹4,131.6 crore, according to its Q2 FY27 financial results.
The improvement does not mean Meesho has become profitable. Its loss was almost unchanged from ₹132.8 crore in the June quarter, showing that the company’s annual improvement was stronger than its sequential progress.
Meesho’s total expenses rose 24% year-on-year to ₹4,382.3 crore. The company’s largest cost category, other expenses, increased to ₹4,079.9 crore from ₹3,292.1 crore, while employee benefit costs rose 18% to ₹280.9 crore. Depreciation and amortisation expenses more than doubled to ₹20.1 crore. (Meesho Q2 FY27 financial results)
Why did Meesho’s loss fall?
The lower annual loss was partly driven by stronger revenue and the absence of exceptional charges recorded in the year-ago quarter. Meesho had incurred ₹45 crore in exceptional expenses related to a business combination and a vendor dispute settlement in Q2 FY26. It also recorded a ₹64.4 crore tax charge connected to the business combination. Neither charge recurred in Q2 FY27.
Before exceptional items and tax, Meesho’s loss narrowed 57% to ₹123.3 crore from ₹285.5 crore a year earlier. This indicates that operating performance improved, although the company continued to spend more than it earned.
Including other income of ₹127.4 crore, Meesho’s total income reached ₹4,259 crore, up 31% from ₹3,254.9 crore a year earlier. (Meesho Q2 FY27 results)
Key Meesho Q2 FY27 numbers
| Metric | Q2 FY27 | Year-on-year change | Comparison or context |
|---|---|---|---|
| Operating revenue | ₹4,131.6 crore | Up 34% | Up 11% from Q1 FY27 |
| Consolidated net loss | ₹132.4 crore | Down 68% | ₹411.4 crore in Q2 FY26 |
| Total expenses | ₹4,382.3 crore | Up 24% | Revenue grew faster than expenses |
| Total income | ₹4,259 crore | Up 31% | Includes ₹127.4 crore other income |
| Loss before exceptional items and tax | ₹123.3 crore | Down 57% | ₹285.5 crore in Q2 FY26 |
| Net merchandise value | ₹12,911 crore | Up 23% | Management-reported figure |
| Annual transacting users | 284 million | Not disclosed in the results summary | First-time buyers rose 16% quarter-on-quarter |
Marketplace business grows, newer initiatives remain under pressure
Meesho said its marketplace segment—which includes the e-commerce marketplace, advertising, logistics and content commerce—generated nearly all of its operating revenue. The segment’s loss narrowed during the quarter, while losses from newer initiatives widened to ₹41.6 crore from ₹13.5 crore a year earlier.
The company said net merchandise value rose 23% year-on-year to ₹12,911 crore and annual transacting users reached 284 million. First-time buyers increased 16% from the previous quarter, according to CEO Vidit Aatrey’s Q2 commentary. (Vidit Aatrey, Meesho Q2 commentary)
Meesho’s revenue also rose 11% sequentially. However, the limited change in net loss from the June quarter suggests that higher scale has not yet translated into a clear quarter-on-quarter improvement in profitability.
Why Q2 may not show the full festive-season trend
Meesho management said its Mega Blockbuster Sale moved from Q2 last year to Q3 this year. As a result, management expects Q2 to appear softer and Q3 to appear stronger, adding that the two quarters should be assessed together. (Meesho management commentary on sale timing)
That timing shift limits a direct comparison between the two quarters. A stronger Q3 could improve revenue and transaction figures, but it would also bring additional spending on discounts, logistics, marketing and customer acquisition. The company’s next quarter will therefore be important for judging whether growth is translating into durable operating gains.
What does this mean for investors and consumers?
For investors, the results show improving annual economics but not a completed turnaround. Revenue growth exceeded expense growth, and the company avoided the exceptional charges that inflated its loss last year. Yet Meesho remained loss-making, and the near-flat sequential loss highlights continuing pressure from operating costs and newer businesses.
For consumers, the results do not indicate an immediate change in prices, delivery charges or product availability. Meesho’s growing user base and higher transaction value point to continued platform expansion, while the festive-sale timing could bring more promotions and activity in Q3. Any impact on consumers will depend on the company’s promotional and logistics strategy, which was not specified in the results summary.
Meesho’s Q2 performance therefore answers the question of whether it is still loss-making: yes. The company is losing substantially less than it did a year ago, but it has not yet reported a profit.
Key Factual ClarificationsEditorial Q&A
Is Meesho still loss-making?
Yes. Meesho reported a consolidated net loss of ₹132.4 crore in Q2 FY27, although that was 68% lower than the ₹411.4 crore loss recorded a year earlier.
Why did Meesho’s loss decrease in Q2 FY27?
Revenue grew 34% and outpaced the 24% increase in expenses. The company also did not repeat the ₹45 crore in exceptional expenses and ₹64.4 crore tax charge recorded in Q2 FY26.
Did Meesho’s loss improve compared with the previous quarter?
Only marginally. The net loss was ₹132.4 crore in Q2 FY27 compared with ₹132.8 crore in Q1 FY27.
How much revenue did Meesho report in Q2 FY27?
Meesho’s operating revenue rose 34% year-on-year and 11% sequentially to ₹4,131.6 crore.
What caused Meesho’s expenses to rise?
Total expenses increased 24% to ₹4,382.3 crore. Other expenses rose to ₹4,079.9 crore, employee costs increased 18% to ₹280.9 crore, and depreciation and amortisation expenses more than doubled to ₹20.1 crore.
Will Meesho’s Q3 results be stronger?
Meesho management said its Mega Blockbuster Sale shifted from Q2 last year to Q3 this year, so it expects Q2 to look softer and Q3 stronger. The two quarters should be assessed together, according to management.
