Meesho shares fell more than 6 per cent during the last trading session on Friday, after the e-commerce company reported strong revenue growth and a very significant reduction in net losses in the first half of Q1 FY27 when it reported its Q1 FY27 financial results.
The stock opened slightly lower at ₹188.30 before sliding further during the day. By 10:38 a.m., it was down to ₹180.04 and, at a low of ₹177.50, it was below the stock market.
Revenue Surges, Losses Narrow
Meesho reported a 48.3% year-on-year increase in revenue, rising to ₹3,713 crore in the April-June quarter from ₹2,504 crore in the same period last year.
The company also showed a sharp improvement in profitability. Net loss declined to ₹132.8 crore from ₹289.3 crore in the corresponding quarter of FY26.
Loss at EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) also improved. The EBITDA loss was reduced to ₹224.7 crore from ₹264.4 crore in the previous quarter, which shows better operational efficiency.
Marketplace Performance Remains Strong
Meesho’s core marketplace business continued to grow well.
Net Merchandise Value (NMV) increased 34% year-on-year to ₹11,614 crore. Marketplace revenue rose 48% year-on-year to ₹3,707 crore. Contribution margin rose 54 basis points to 4.6% of NMV. Marketplace Adjusted EBITDA improved to -1.2% of NMV from -9.2% a year ago, a sign of continued progress toward profitability. ₹75 Crore Investment in Grocery Business
The board of directors approved an investment of ₹75 crore in their wholly owned subsidiary Meesho Grocery Private Limited to advance their grocery business’ expansion.
In the company's view, new capital will be used to:
- Expand grocery operations.
- Improve operational efficiency.
- Strengthen product offerings.
- Meet regulatory and business requirements.
The investment will help to sustain the grocery vertical’s long-term growth.
Q2 Outlook
Meesho expects higher user growth and increased customer spending in the second quarter of FY27. However, NMV growth may be slower this year due to changing festive season timing.
Management expressed confidence in the fact that it is comfortable taking longer-term customer acquisition approaches and platform growth over short-term quarterly gains, and will have more momentum in the festive shopping period.
Why did stocks fall?
Despite strong revenue growth and improved profitability, the market was likely less optimistic about the company’s future. The low NMV growth in the upcoming quarter and continued losses probably weighed on market sentiment.
Meesho continues to deliver good top-line growth and operating metrics, but investors will be watching the company to see if it can maintain profitable growth and sustain growth in the e-commerce space.
In general, the new quarterly results show Meesho's growth is continuing, but the market reaction indicates that investors continue to be concerned about how to sustain earnings growth and execution.
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