E-commerce platform Meesho reported a sharp reduction in losses for the fourth quarter of FY26, as improved user engagement and steady order growth lifted revenues and margins.

The company’s net loss for the quarter narrowed 88 per cent year-on-year to ₹166.35 crore, compared with the same period last year. Revenue rose 47 per cent to ₹3,531.21 crore, reflecting stronger traction among repeat users and higher purchase frequency.

Growth was broad-based, with net merchandise value (NMV) for the quarter increasing 43 per cent year-on-year to ₹11,371 crore. Order volumes also rose at a similar pace, with placed orders growing 43 per cent during the quarter.

For the full fiscal year FY26, Meesho’s NMV stood at ₹41,560 crore, marking a 39 per cent year-on-year increase. The company attributed the growth to a combination of new user additions, habit formation and increased purchase frequency across its platform.

Operationally, Meesho said temporary cost inefficiencies seen during the second and third quarters—arising from consolidation within the third-party logistics (3PL) ecosystem—are now easing. “Interim nodes built for disruption absorption were decommissioned,” the company said, indicating a return to more stable logistics operations.

The company also stepped up investments in artificial intelligence and machine learning capabilities, alongside expanding its engineering talent base during FY26. Despite a 33 per cent increase in employee costs in absolute terms, people costs not directly linked to order volumes remained stable as a percentage of NMV. Meesho expects these investments to deliver operating leverage in the coming quarters.

Looking ahead, the company flagged an uncertain macroeconomic environment, driven by geopolitical developments and pressure on input costs and consumer sentiment.

“The macro environment heading into FY27 is more uncertain than it has been in a while. Geopolitical developments and the resulting pressure on input costs and consumer sentiment are still playing out, and we don’t pretend to know how deep or how long any of it runs. What we do know is that consumption held up through Q4, and when spending tightens, it usually moves toward value rather than away from it. The macro will shape how the next two or three quarters look,” the company said.

In a separate development, the board approved further investment of up to ₹100 crore in its subsidiary, Meesho Payments Private Limited, through one or more tranches via a rights or further issue of capital.

The payments arm reported a turnover of ₹1,104.65 lakh and a net loss of ₹2,471.67 lakh, underscoring continued investments in building out financial services capabilities alongside the core commerce business.

Published on May 6, 2026