Meesho reports wider losses despite 31% topline growth in Q3
Meesho’s maiden quarterly report as a public entity reveals a dual narrative: significant revenue expansion, alongside a sharp spike in losses. This comes as it focuses on long-term cash flow and further scaling Valmo.
Value ecommerce platform Meesho on Friday saw its consolidated losses widen to Rs 490 crore, even as it clocked 31% growth in its topline, in its first quarterly performance as a listed company.
The Bengaluru-based company clocked Rs 3,517 crore in operating revenue, as compared to Rs 2,678 crore it posted in the corresponding quarter in the previous year. On a sequential basis, its topline increased by about 14% from Rs 3,073 crore.
The company saw its losses widen to Rs 478 crore in the December quarter, as compared to a loss of just Rs 37 crore last year. However, its free cash flow stood at Rs 56 crore for the last 12 months, helped by its growth in Net Merchandise Value.
"Our north star is Free Cash Flow per share, which captures the real cash generated after reinvestment and reflects the long-term economics of our business," explained Vidit Aatrey, CEO at Meesho, in a press note shared with exchanges.
Shares of the company closed 2.87% higher at Rs 173 apiece on NSE.
Meesho runs a marketplace model where it acts as a platform that aggregates sellers, customers and logistics partners with no inventory or assets of its own.
It clocked a Net Merchandise Value (NMV) of Rs 10,995 crore in Q3 FY26, representing 26% year-on-year growth. This is after some festival shopping shifted to the second quarter from the third quarter owing to Diwali falling in mid-October this year.
It earns money by making a positive spread on logistics operations as well as charging sellers for advertisements and other value-added services provided by the platform. The company has doubled down on its in-house logistics network, Valmo, which does about 60% of business on the platform. In a filing earlier today, Meesho announced approval from the Ministry of Corporate Affairs to incorporate a unit under the name of “Valmo Transportation Private Limited” with an investment of Rs 15 crore.
It also saw its contribution margin worsen to 2.3% as a consolidation in the larger logistics industry accelerated Valmo's scale-up; this is expected to be normalised in the coming quarters.
The company listed on the Indian stock exchanges on December 10, 2025. The IPO was widely seen as a milestone for the Indian startup ecosystem, with shares opening at a 45% premium to the issue price and commanding a market capitalisation of over Rs 720 billion ($8.5 billion) at listing.
Edited by Jyoti Narayan