Meesho reported a robust Q2 FY27 with Net Merchandise Value (NMV) increasing by 23% YoY to ₹12,911 crore. Annual transacting users grew 21% YoY to 284 million. The company achieved a positive quarterly free cash flow of ₹345 crore, driven by improved logistics efficiency and a healthy contribution margin of 6.0%. The focus remains on democratizing internet commerce and strengthening its platform.
Meesho Reports Strong Q2 FY27 Performance
Meesho Limited has announced its financial and operational results for the second quarter of Fiscal Year 2027 (Q2 FY27), showcasing significant growth across key metrics. The company saw its Net Merchandise Value (NMV) rise by 23% year-over-year to reach ₹12,911 crore. This growth was supported by a 17% increase in Placed Orders, which totaled 819 million during the quarter.
User Growth and Engagement
The platform’s user base continued to expand, with Annual Transacting Users growing 21% YoY to 284 million. The Last Twelve Months (LTM) frequency also saw an increase, rising 7% YoY to 10.4. Annual Transacting Sellers grew an impressive 60% YoY to 1.13 million.
Financial Highlights and Profitability
Meesho achieved a Contribution Margin of 6.0% of NMV in Q2 FY27, up from 4.6% in Q1 FY27. This improvement was driven by revenue growth and enhanced logistics efficiency. The company reported a quarterly free cash flow of ₹345 crore, a significant turnaround, boosted by seasonal working capital benefits.
Strategic Initiatives and Future Outlook
The company highlighted progress in its strategic initiatives, including the expansion of Meesho Mall and Content Commerce. Meesho Mall witnessed an 81% YoY growth in NMV, while Content Commerce saw a 160% YoY growth. Meesho is also investing in AI agents to enhance engineering productivity and operational efficiency. The outlook for Q3 FY27 anticipates continued growth spending and elevated technology costs as optimization efforts continue.
Key Financial Metrics
| Metrics | Q2 FY2026 | Q1 FY2027 | Q2 FY2027 |
|---|---|---|---|
| Annual Transacting Users | 234 Mn (YoY 34%) | 274 Mn (YoY 29%) | 284 Mn (YoY 21%) |
| Placed Orders | 699 Mn (YoY 55%) | 725 Mn (YoY 29%) | 819 Mn (YoY 17%) |
| Net Merchandise Value | ₹10,515 Cr (YoY 51%) | ₹11,614 Cr (YoY 34%) | ₹12,911 Cr (YoY 23%) |
| Contribution Margin as % of NMV | 3.3% | 4.6% | 6.0% |
| Quarterly FCF – Consolidated | ₹373 Cr | (₹226 Cr) | ₹345 Cr |
Source: BSE
