Meesho reported a healthy rise in revenue for Q3 FY26 even as losses widened sharply, underscoring the trade-off between rapid market expansion and near-term profitability in India’s competitive e-commerce sector.
Q3 financials: Revenue up, losses widen
For the quarter ended December, Meesho posted revenue from operations of ₹3,517 crore, up more than 30% year-on-year, driven by demand across categories such as fashion, home essentials and lifestyle. Including other income, total revenue was close to ₹3,600 crore, reflecting growing platform activity, particularly from Tier II, Tier III and smaller towns.
Despite the top-line growth, total expenditure climbed to about ₹4,070 crore in Q3 FY26 — a rise of over 40% year-on-year. Higher spending on marketing, logistics, supply-chain operations and technology infrastructure contributed to the surge in costs.
The company reported a net loss of approximately ₹491 crore for the quarter, compared with a loss of around ₹37 crore in Q3 FY25 — nearly a 13-fold increase. The sharp widening of losses has raised questions about cost efficiency and the path to near-term profitability.
Growth-first strategy and cost pressures
Meesho has pursued a growth-first approach, prioritising scale, deeper market penetration and seller onboarding over immediate profitability. Investments in last-mile delivery, seller tools and platform capabilities have raised operating costs as the company seeks faster deliveries and improved buyer-seller experience.
The company also continues to subsidise certain services for sellers to expand its marketplace ecosystem and product assortment. While these measures aid merchant acquisition and selection, they exert pressure on margins in the short term.
Operational momentum remains strong
Operational metrics showed encouraging trends despite rising losses. Annual transacting users rose by more than 30% year-on-year, signalling growth in repeat customers and broader adoption outside metro centres.
Net merchandise value (NMV), which measures the total value of goods sold on the platform, increased by over 25% during the quarter. Higher order volumes indicate healthy consumer demand as the company works to improve unit economics.
Outlook: efficiency and monetisation in focus
Meesho’s Q3 performance highlights the tension common to fast-scaling digital platforms: sustaining revenue growth while reinining costs. Investors and industry watchers will be looking for evidence of improved operational efficiency and better monetisation to narrow losses.
Key levers for the company include logistics optimisation, lower customer-acquisition costs and enhanced monetisation from sellers. How effectively Meesho converts scale into sustainable profits will determine its trajectory in India’s intensely competitive e-commerce market.
