Meesho inched closer to profitability in Q2 FY27. The quarter saw the ecommerce giant rein in its losses, scale its revenues and improve its contribution margins. Yet macroeconomic volatility and loss-making new bets continued to weigh on its bottom line in Q2. 

The Marketplace Engine: As usual, Meesho’s core marketplace vertical accounted for the biggest chunk of its revenues in Q2, driven by a growing base of active transacting users and higher order frequency. What also came in handy were expanding margins, optimised logistics, strong user retention across Tier II+ markets and AI-driven automation. 

Costly New Bets: On the flip side, Meesho’s newer initiatives – hyperlocal logistics, digital financial services and AI services – continued to widen their losses. However, revenues from these emerging businesses also rose sharply. The management sees faster deliveries, logistics efficiencies and AI eventually making these ventures more viable going forward.

In line with this, the listed company has invested an additional ₹75 Cr in Meesho Grocery to support its growth and financial requirements.

The Festive Cheer: Going forward, critics will be closely watching Meesho’s Q3 results as the quarter will capture a bigger portion of the company’s festive sales. This is because its ‘Mega Blockbuster Sale’ shifted from Q2 last fiscal to Q3 this year. The leadership expects Q3 growth to appear stronger, although it will require continued elevated spending during the Diwali period.

As the ecommerce giant continues its march towards profitability, here’s how Meesho fared on the financial front in Q2 FY27… 

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