The corporate’s losses had been up on a sequential foundation as properly, climbing from Rs 411 crore in Q2FY26 whereas the topline recorded a 14% quarter-on-quarter progress versus Rs 3,074 crore within the July-September quarter.
The corporate debuted on the exchanges on December 10 and that is its first earnings submit the itemizing.
Q3 highlights
Meesho’s Annual Transacting Customers surged 34% YoY to Rs 251 million with web merchandise worth (NMV) standing at Rs 10,995 crore, up 26% YoY. Over 9MFY26, it elevated 37% YoY to Rs 30,189 crore.
The corporate witnessed 690 million orders positioned on its platform within the quarter underneath evaluation, up 36% YoY. The contribution margin as a share of NMV stood at 2.3%, down 104 bps QoQ and 198 bps YoY due to accelerated Valmo scale-up following 3PL business consolidation. “That is anticipated to normalise within the coming quarters,” the corporate submitting stated.
The final twelve-month (LTM) free money circulation stood at Rs 56 crore and LTM free money circulation to fairness stood at Rs 437 crores with money steadiness of Rs 7,277 crores.
Adjusted EBITDA market margin for Q3FY26 was at -4.2% (Rs -460 crores) due to decrease contribution margin and accelerated person progress and engineering investments.
Adjusted EBITDA for New Initiatives was at Rs 19 crores, up 44% QoQ and 30% YoY with steady enchancment in person adoption for monetary companies platform.
In a letter to the shareholders, Founder & CEO Vidit Aatrey stated that the corporate has elevated its funding into Promoting & Gross sales Promotion to 2.4% of NMV in Q3 FY26 from 1.3% of NMV in Q3 FY25.
Additionally learn: Nestle Q3 Outcomes: Cons revenue jumps 45% YoY to Rs 998 crore; Rs 7/share dividend declared
“Our expanded investments are deployed in consciousness constructing, site visitors acquisition and preliminary buyer incentives the place it justifies our long-term FCF return thresholds. We’re repeatedly witnessing higher 12 months 1 and subsequent frequencies of our new cohorts of shoppers being acquired, main to accelerated investments and thereby NMV progress,” the letter learn.
Additionally learn: Ambuja Cements Q3: Revenue slumps 91% YoY to Rs 204 crore; revenue jumps 20%
Firm converse
“This marks our first quarter reporting as a public firm and demonstrates our working philosophy in motion: continued progress in ATUs in the direction of our mission of democratising web commerce, and when pressured to select between near-term monetary optimisation and long-term flywheel well being, we selected the latter. We held order achievement fees secure, and elevated person acquisition. Every resolution positions us for stronger platform profitability within the long-term. These investments met our return thresholds; measured via payback durations, anticipated IRR towards hurdle charges, and impression on long-term Free Money Movement. 251 million ATUs, 9.78 buy frequency, and 37% NMV progress for 9M FY26 validate such selections made 12–18 months in the past. Outcomes lag technique by a number of quarters in platform companies. The expansion we’re capturing in the present day compounds Meesho right into a management place in value-led e-commerce over the following decade”.
(Disclaimer: The suggestions, options, views, and opinions given by the specialists are their very own. These don’t signify the views of The Financial Instances.)
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