Meesho posts 12-fold jump in Q3 net loss to Rs 491 crore despite 31% revenue growth

Bengaluru: Meesho on Friday posted a 12-fold year-on-year increase in its consolidated net loss to Rs 490.7 crore for the quarter ended December 2025, compared to Rs 37.4 crore in the same quarter last year. In its first quarterly results post-IPO, the company's revenue from operations stood at Rs 3,517.6 crore for the December quarter, a 31% increase compared to Rs 2,678.6 crore.

The e-commerce platform's placed orders for Q3 FY26 stood at 690 million, up 36% year-on-year, while Annual Transacting Users grew 34% y-o-y to 251 million.

On a last twelve-month basis, users transacted 9.78 times per year on average, growing 9% y-o-y. Driven by strong user growth and increasing purchase frequency, Meesho reported Net Merchandise Value (NMV) of Rs 10,995 crore in Q3 FY26, representing 26% y-o-y growth.

On a last twelve months basis, free cash flow stood at Rs 56 crore.

Vidit Aatrey, Founder and CEO, Meesho, said, “Our Q3 results reflect the strength of Meesho’s flywheel, with more users transacting more frequently, driving platform growth while building long-term habits in previously underserved markets."

In a letter to shareholders, Aatrey said that they focus on Free Cash Flow because it reflects what actually remains after re-investment. "We monitor LTM FCF (Last Twelve Months Free Cash Flow) closely and consider it in our decision-making processes. Decisions such as investments into marketing and technology are evaluated through the lens of their impact on FCF generation in the long term," he said.

Meesho also said that it is deepening the integration of AI into its platform. It said AI-based voice search is getting better through new launches during the quarter, improving new user conversions. Meesho also expects significant improvement in Adjusted EBITDA margin in the next two quarters, returning to Q1 FY26 levels, driven by logistics cost recovery and operating leverage on user growth and technology investments made in FY26.