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
- Consolidated operating loss narrowed to Rs 244.30 cr from Rs 273.48 cr sequentially as revenue grew +5.14% and expenses grew +4.01%.
- Operating margin improved 1.16 percentage points to -6.58%, but remained 22.72 percentage points below the 22-peer sector median.
- Net loss narrowed +20.14% sequentially to Rs 132.84 cr, helped by tax falling -100.00% to zero while other income represented -85.51% of pre-tax profit.
Price around the results
Operating loss narrows as revenue growth outpaces costs
Meesho reported a consolidated operating loss of Rs 244.30 cr in Q1FY27, narrower than Rs 273.48 cr in Q4FY26. Revenue increased +5.14% sequentially, while expenses rose +4.01%, allowing the operating loss to narrow by +10.67%. Net loss also narrowed to Rs 132.84 cr from Rs 166.34 cr.
Margin recovery remains dependent on a loss-making base
The slower increase in expenses lifted operating margin by 1.16 percentage points to -6.58%. Other income of Rs 113.59 cr reduced the pre-tax loss, but represented -85.51% of pre-tax profit because operating performance remained loss-making. The tax rate moved up 3.91 percentage points to zero from -3.91% in the previous quarter, after tax expense fell -100.00%.
Three-quarter margin trend improves, but Meesho remains near the bottom of peers
Operating margin improved from -15.63% in Q3FY26 to -7.74% in Q4FY26 and -6.58% in Q1FY27, marking a third straight quarter of improvement. Even so, Meesho's margin was 22.72 percentage points below the 16.14% median for the 22 Consumer Discretionary peers that had reported.
Stock falls 1.80% after the results
On 24 Jul 2026, the stock fell -1.80% after the results, including a -0.34% opening gap. It underperformed the market by -1.37%, with traded volume at 1.29 times the reference level.
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 | ₹3,957 cr | ₹3,805 cr | +4.01% |
| Operating profit | ₹-244 cr | ₹-273 cr | +10.67% |
| Operating margin (%) | -6.58% | -7.74% | — |
| 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 -6.58% compares with a Consumer Discretionary sector median of 16.14% across 22 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.80% | -1.37% |
Volume on the results session was 1.29× its 20-day average.
What to watch
- Whether operating margin improves from -6.58%.
- Whether revenue growth remains above the +4.01% sequential expense-growth rate.
- Whether losses narrow without relying on Rs 113.59 cr of other income.