E-commerce major Meesho reported a significant improvement in its financial performance in Q1FY27, as it nearly halved it losses while revenue grew 48.3% during the period.The ecommerce marketplace posted a net loss of ₹132.8 crore in Q1 FY27, compared with ₹289.3 crore in the corresponding quarter of the previous fiscal year. Revenue for the quarter stood at ₹3,713 crore, marking a 48.3% year-on-year increase. Meesho reported a Net Merchandise Value (NMV) of ₹11,614 crore for the quarter, up 34% year-on-year, while marketplace revenue from operations rose 48% year-on-year to ₹3,707 crore. The company attributed the growth to lower order cancellations, reduced Return-to-Origin (RTO) rates and increased platform monetisation.Meesho will ramp up customer acquisition spending in the current quarter ahead of the festive season after its user base grew 29% year-on-year to 274 million Annual Transacting Users (ATUs) in the April-June quarter. The company said higher customer acquisition spending, along with the shift of its flagship sale to the third quarter from the second quarter last year, is expected to weigh on second-quarter performance, while the third quarter is expected to benefit.Total placed orders increased 29% year-on-year to 725 million, while average purchase frequency reached 10.3 transactions per user on a last twelve months (LTM) basis.Contribution margin stood at 4.6% of NMV, while Marketplace Adjusted EBITDA margin was -1.2% of NMV. Last twelve months free cash flow improved to negative ₹537 crore.Compared with the preceding quarter, contribution margin expanded by 54 basis points to 4.6% of NMV, driven by logistics and routing efficiencies, a higher share of prepaid orders, improved platform monetisation and operating discipline. Last twelve months free cash flow improved by around 15%, from negative ₹633 crore in the previous quarter to negative ₹537 crore. Total placed orders increased from 717 million to 725 million, while ATUs rose from 264 million to 274 million. The company said Marketplace Adjusted EBITDA margin also improved quarter-on-quarter toward break-even.Founder and Chief Executive Officer Vidit Aatrey said, “The most rewarding part of building a platform is seeing the value created for millions of users and sellers across the country as engagement and purchase frequencies deepen across cohorts.”Founder and Chief Technology Officer Sanjeev Barnwal said, “Technology has always been at the heart of our operating model, allowing us to build scalable systems, improve logistics efficiencies, and drive continuous optimization across our ecosystem.”The quarter reflected continued growth in user engagement, order volumes and monetisation, with improving unit economics positioning the company to step up customer acquisition ahead of the festive season.Published on July 23, 2026