The company’s losses were up on a sequential basis as well, climbing from Rs 411 crore in Q2FY26 while the topline recorded a 14% quarter-on-quarter growth versus Rs 3,074 crore in the July-September quarter.
The company debuted on the exchanges on December 10 and this is its first earnings post the listing.
Q3 highlights
Meesho’s Annual Transacting Users surged 34% YoY to Rs 251 million with net merchandise value (NMV) standing at Rs 10,995 crore, up 26% YoY. Over 9MFY26, it increased 37% YoY to Rs 30,189 crore.The company witnessed 690 million orders placed on its platform in the quarter under review, up 36% YoY. The contribution margin as a percentage of NMV stood at 2.3%, down 104 bps QoQ and 198 bps YoY due to accelerated Valmo scale-up following 3PL industry consolidation. “This is expected to normalise in the coming quarters,” the company filing said.The last twelve-month (LTM) free cash flow stood at Rs 56 crore and LTM free cash flow to equity stood at Rs 437 crores with cash balance of Rs 7,277 crores.Adjusted EBITDA marketplace margin for Q3FY26 was at -4.2% (Rs -460 crores) due to lower contribution margin and accelerated user growth and engineering investments.
Adjusted EBITDA for New Initiatives was at Rs 19 crores, up 44% QoQ and 30% YoY with continuous improvement in user adoption for financial services platform.
In a letter to the shareholders, Founder & CEO Vidit Aatrey said that the company has increased its investment into Advertising & Sales Promotion to 2.4% of NMV in Q3 FY26 from 1.3% of NMV in Q3 FY25.
Also read: Nestle Q3 Results: Cons profit jumps 45% YoY to Rs 998 crore; Rs 7/share dividend declared
“Our expanded investments are deployed in awareness building, traffic acquisition and initial customer incentives where it justifies our long-term FCF return thresholds. We are continuously witnessing better year 1 and subsequent frequencies of our new cohorts of customers being acquired, leading to accelerated investments and thereby NMV growth,” the letter read.
Also read: Ambuja Cements Q3: Profit slumps 91% YoY to Rs 204 crore; revenue jumps 20%
Company speak
“This marks our first quarter reporting as a public company and demonstrates our operating philosophy in action: continued growth in ATUs towards our mission of democratising internet commerce, and when forced to choose between near-term financial optimisation and long-term flywheel health, we chose the latter. We held order fulfillment charges stable, and increased user acquisition. Each decision positions us for stronger platform profitability in the long-term. These investments met our return thresholds; measured through payback periods, expected IRR against hurdle rates, and impact on long-term Free Cash Flow. 251 million ATUs, 9.78 purchase frequency, and 37% NMV growth for 9M FY26 validate such decisions made 12–18 months ago. Results lag strategy by several quarters in platform businesses. The growth we are capturing today compounds Meesho into a leadership position in value-led e-commerce over the next decade”.
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