Bengaluru: Meesho reported robust operational growth during Q4 FY26 as net merchandise value (NMV) increased 43 percent year-on-year to Rupees 11,371 crore. Order volumes during the quarter also rose 43 percent YoY to 717 million, supported by continued onboarding of new users and stronger engagement from existing consumers. The company said the quarter marked a recovery in profitability metrics as contribution margin improved to 4 percent of NMV, while Adjusted EBITDA (Marketplace) improved by 245 basis points sequentially to negative 1.7 percent of NMV.
FY26 User Base And Transactions Expand
For the full financial year FY26, Meesho reported NMV of Rupees 41,560 crore, up 39 percent year-on-year. Annual transacting users grew 33 percent to 264 million, while total orders rose 45 percent YoY to 2.67 billion. Transaction frequency improved to 10.1 orders per user annually, reflecting increasing customer retention and platform engagement. The company also emerged as the most downloaded shopping application in India during the year and maintained its position as the largest platform by annual transacting users and placed orders.
AI Investments Continue To Scale
Meesho said artificial intelligence investments played a major role in improving customer discovery and operational efficiency. The company’s recommendation engine PRISM enhanced personalized product discovery, while Trendpulse, its large language model-powered engine, helped identify regional demand trends. Vaani, Meesho’s AI-powered voice shopping assistant launched during Q4 FY26, crossed 1.5 million users within the first month and delivered a 22 percent conversion lift among adopters.
On the supply side, GenAI-powered seller voice agents were scaled to manage nearly 300,000 calls per day, helping sellers participate more effectively in promotional campaigns and sales events.
Margins Improve As Logistics Costs Ease
The company attributed margin recovery to logistics cost normalization and network optimization initiatives. Meesho said its Valmo network saw better route allocation and efficiency gains, while Atlas, its AI routing engine, was expanded across the entire network, reducing last-mile misroutes by 50 percent. Improvements in Geo-India, the company’s address intelligence platform, also helped lower delivery re-attempts and associated operational costs.
Meesho Mall continued to witness strong momentum, growing 82 percent year-on-year in Q4 FY26, while the company’s content commerce business expanded 105 percent YoY with 1.4 million active order-generating content pieces on the platform.
Disclaimer: This article is based solely on Meesho Limited’s Q4 FY26 press release and financial performance disclosure and does not constitute investment advice.
