Meesho (MEESHO) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue from operations was ₹41,315.82 million and net loss narrowed to ₹1,324.46 million from ₹4,113.60 million in Q2 FY26; H1 revenue was ₹78,443.93 million and net loss was ₹2,652.81 million.

• Festive sales exceeded expectations, with record traffic and more first-time buyers despite seller-side supply disruptions; logistics efficiencies drove contribution-margin gains.

Financial highlights

• Q2 FY27 revenue from operations was ₹41,315.82 million, versus ₹30,736.72 million in Q2 FY26; total income was ₹42,590.02 million.

• Q2 FY27 loss before exceptional items and tax was ₹1,232.65 million; exceptional items were nil, versus ₹1,410.91 million in Q2 FY26.

• Contribution margin was 6%; sequential improvement was attributed mainly to logistics efficiencies, including lower RTO and network gains.

• Adjusted EBITDA margin was ~-1%; at ~30% growth, a normalized 20-day negative working-capital cycle could contribute ~+1.5% of NMV and support positive LTM FCF if margins hold or improve.

• H1 FY27 loss before tax was ₹2,561.00 million; other comprehensive income was ₹141.49 million and total comprehensive loss was ₹1,182.97 million for Q2.

Outlook and guidance

• FY27 contribution margin is expected to be substantially better than FY26; management aims to restore some lost logistics spread to FY25 levels while retaining reinvestment flexibility.

• Five-year NMV CAGR guidance of 25% through FY31 remains unchanged; it may be revisited with greater FY28 visibility.

• Server costs are expected to return to baseline as a share of NMV by Q4 FY27; operating leverage is still expected for FY27.

• Ad monetization as a share of NMV is expected to contribute more from FY28.