Meesho narrows Q1 loss, but operating margin stays negative
Revenue grew faster than expenses sequentially, lifting operating margin by 1.16 percentage points; zero tax also aided the smaller net loss.
Filed 23 Jul 2026, 16:51 IST · after market close · Meesho Ltd (MEESHO)
Key takeaways
- Revenue grew +5.14% QoQ while expenses rose +4.00%, narrowing the operating margin loss by 1.17 percentage points.
- Net loss narrowed +20.14% QoQ to Rs 132.84 cr, but Rs 113.59 cr of other income offset much of the operating loss.
- Meesho's -6.05% operating margin was 18.98 percentage points below the 12.93% sector median across 145 reported peers.
Price around the results
Revenue growth outpaced costs in Q1FY27
Meesho's consolidated revenue grew +5.14% QoQ, faster than the +4.00% increase in expenses, helping narrow the operating loss to Rs 224.65 cr. The improvement flowed through to a +20.14% QoQ reduction in net loss, although the company remained loss-making at Rs 132.84 cr. This was the third consecutive quarter in which the operating loss narrowed, from Rs 538.89 cr in Q3FY26 to Rs 254.84 cr in Q4FY26 and Rs 224.65 cr in Q1FY27.
Other income remains important to reported profit
Operating margin improved by 1.17 percentage points to -6.05% because revenue grew faster than expenses. Other income of Rs 113.59 cr offset much of the operating loss, representing -85.51% of profit before tax because pre-tax profit remained negative. Interest fell -10.50% QoQ and tax moved to Rs 0.00 cr from Rs 6.26 cr, also reducing the reported loss.
Margin remains far below the consumer discretionary median
Meesho's -6.05% operating margin was 18.98 percentage points below the 12.93% median for the 145 Consumer Discretionary peers that had reported the same quarter. It ranked eighth from the bottom, despite the sequential improvement from -15.32% in Q3FY26 to -7.22% in Q4FY26.
Shares underperformed after the filing
The stock fell -1.96% on July 24, 2026, and the decline reached -3.63% by the next session and -3.58% by t+5. It underperformed the benchmark by -1.54% on the first reaction day and by -5.73% over five sessions.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹3,713 cr | ₹3,531 cr | +5.14% |
| Other income | ₹114 cr | ₹116 cr | -1.88% |
| Expenses | ₹3,937 cr | ₹3,786 cr | +4.00% |
| Operating profit | ₹-225 cr | ₹-255 cr | +11.85% |
| Operating margin (%) | -6.05% | -7.22% | — |
| Interest | ₹2 cr | ₹2 cr | -10.50% |
| Depreciation | ₹20 cr | ₹19 cr | +5.53% |
| Profit before tax | ₹-133 cr | ₹-160 cr | +17.02% |
| Tax | ₹0 cr | ₹6 cr | -100.00% |
| Net profit | ₹-133 cr | ₹-166 cr | +20.14% |
| EPS (₹) | ₹-0.28 | ₹-0.36 | +22.22% |
Operating margin of -6.05% compares with a Consumer Discretionary sector median of 12.93% across 145 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.96% | -1.54% |
| Next session | -3.63% | — |
| 5 sessions | -3.58% | -5.73% |
Volume on the results session was 1.30× its 20-day average.
What to watch
- Whether operating margin improves from -6.05% in the next quarter.
- Whether expenses continue to grow more slowly than revenue, versus +4.00% and +5.14% QoQ respectively.
- Whether net loss narrows further from Rs 132.84 cr without a similar reliance on Rs 113.59 cr of other income.