Indian e-commerce and social commerce platform Meesho has reported a strong rise in revenue for the third quarter of the financial year 2025–26 (Q3 FY26), even as its losses widened significantly during the period. The latest financial numbers reflect Meesho’s aggressive growth strategy at a time when competition in India’s online shopping space continues to intensify.
For Q3 FY26, Meesho recorded revenue from operations of ₹3,517 crore, marking a year-on-year growth of over 30%. This growth highlights steady demand across categories such as fashion, home essentials and lifestyle products, especially from users in Tier II, Tier III and smaller towns, which remain Meesho’s core strength. Including other income, the company’s total revenue for the quarter stood at nearly ₹3,600 crore, underlining consistent expansion in platform activity.
However, this impressive top-line growth was overshadowed by a steep rise in expenses, which led to a sharp deterioration in profitability during the quarter.
Expenses Rise Faster Than Revenue
Meesho’s total expenditure rose to around ₹4,070 crore in Q3 FY26, registering a jump of over 40% compared to the same quarter last year. The surge in costs was largely driven by increased spending on marketing, logistics, supply chain operations and technology infrastructure.
With the company focusing on faster deliveries, improved seller tools and deeper market penetration, operational costs rose across multiple areas. Marketing and promotional spends saw a significant increase as Meesho continued to invest heavily in customer acquisition and brand visibility amid stiff competition from large e-commerce players.
As a result, Meesho’s net loss widened sharply to about ₹491 crore, compared to a loss of just around ₹37 crore in Q3 of the previous financial year. This translates to a nearly 13-fold increase in losses on a year-on-year basis, raising concerns around cost efficiency and near-term profitability.
Growth Strategy Driving Losses
Industry observers note that Meesho’s widening losses are closely linked to its growth-first approach. The company has been prioritising scale, platform expansion and user growth over immediate profitability. Significant investments in logistics capabilities, including better last-mile delivery and seller support, have increased operating costs during the quarter.
In addition, Meesho continues to subsidise services for sellers to strengthen its marketplace ecosystem. While this strategy helps onboard more merchants and expand product variety, it also puts pressure on margins in the short term.
Strong User and GMV Momentum
Despite rising losses, Meesho’s operational metrics remain encouraging. The platform continues to see strong growth in user engagement, particularly in non-metro regions. Annual transacting users increased by more than 30% year-on-year, indicating a growing base of repeat customers.
Meesho’s net merchandise value (NMV), which reflects the total value of goods sold on the platform, also grew by over 25% during the quarter. This signals healthy demand and increasing order volumes, even as the company works to optimise unit economics.
Profitability Under Watch
Meesho’s Q3 FY26 performance highlights the classic trade-off faced by fast-growing digital platforms in India — rapid scale versus financial discipline. While revenue growth and customer expansion remain strong, sustaining this momentum without ballooning losses will be critical in the coming quarters.
Going forward, investors and industry watchers will closely track how Meesho controls costs, improves operational efficiency and moves towards profitability. Measures such as better logistics optimisation, reduced customer acquisition costs and improved monetisation from sellers could play a key role.
Overall, Meesho’s latest quarterly results underline a business that is growing fast but still navigating the challenges of turning scale into sustainable profits in India’s highly competitive e-commerce market.