Meesho Limited has submitted the transcript of its Q4 FY26 Earnings Conference Call, held on May 06, 2026, to the stock exchanges under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The submission, signed by Company Secretary and Compliance Officer Rahul Bhardwaj (Membership No. A41649), was filed on May 12, 2026, and the transcript has been made available on the company's investor relations website.

Key Disclosure Details

The following table summarises the key parameters of the disclosure:

The call was moderated by Nilisha Barbora from Citi and featured Vidit Aatrey (Chairman, Managing Director and CEO), Sanjeev Kumar (Whole-Time Director and CTO), Dhiresh Bansal (CFO), and Karthik Chandrashekar (Head Corporate Development and Investor Relations).

Logistics Strategy and Valmo

Management addressed questions on the mix between in-house logistics arm Valmo and third-party logistics (3PL) partners. Vidit Aatrey stated that the company does not set a specific target for Valmo's share, instead prioritising cost efficiency across all logistics lanes. He noted that Valmo currently handles approximately 50% of order volumes and that its share increases naturally as it innovates and improves its cost structure. Aatrey also confirmed that the company is investing in state-of-the-art automation within sort centres, with experiments already underway at several locations, and that third-party partners are also competing on cost to retain volumes.

Dhiresh Bansal clarified that the one-time logistics headwinds experienced in Q2 and Q3 of FY26, amounting to approximately 145 basis points, were caused by a 3PL consolidation event around May of the prior year, which necessitated short-term capacity building at higher rates. He confirmed that this disruption is behind the company and that the baseline contribution margin has improved to the 4% exit rate seen in Q4. Key drivers of ongoing logistics cost improvement include the shift from cash-on-delivery (CoD) to prepaid transactions, volume-driven density improvements across last-mile and middle-mile legs, and continued innovations within Valmo.

User Acquisition, Frequency, and Financial Metrics

On user acquisition, Aatrey emphasised that investment decisions are governed by return-on-investment thresholds rather than fixed budgets. He highlighted that India's online transacting users represent approximately 30% of smartphone users, compared to over 80% in other emerging markets, supporting continued aggressive user acquisition. The company's annual transacting user base grew 33% year-on-year, reaching 264 million users. New user first-year frequency has nearly doubled over the last three years, driven by AI-led product improvements including the voice shopping agent Vaani, which has helped reduce customer acquisition costs (CAC), particularly for rural users.

The following table highlights key user and platform metrics discussed during the call:

Bansal noted that LTM (Last Twelve Months) Free Cash Flow (FCF) remains the key financial metric for assessing the company's trajectory, given that quarterly cash flows can be volatile depending on the timing of sale events relative to quarter-end. He added that while short-term EBITDA guidance was not provided, the overall FCF trajectory on a quarterly basis is expected to keep improving as margins and growth continue.

Monetisation and Advertising

Management reported that ad revenue as a percentage of Net Merchandise Value (NMV) has seen an uptick in Q4 versus the prior quarter. The Return on Ad Spend (ROAS) remains industry-best, described as multiples of what other e-commerce players offer in India or globally. The number of product catalogs live on ads grew by more than 40% year-on-year, and seller ad budgets have grown more than double over the last year. Aatrey noted that more than two-thirds of sellers, weighted by GMV, are active on the ads platform.

On revenue per order trends, management clarified that the decline from approximately ₹57 in FY24 to approximately ₹47 in FY26 is largely explained by the increasing share of prepaid orders (which carry lower revenue but also lower cost, leaving contribution margin net neutral) and accounting changes where first-order discounts are now netted against revenue rather than reported gross. Contribution margin was highlighted as the more instructive metric, with ad revenue improvements expected to flow directly to contribution margin given the high gross margin nature of the ads business.

Meesho Mall and Strategic Priorities

Management highlighted the continued scaling of Meesho Mall, which targets affordable and value-focused national, regional, and D2C brands for mass India rather than exclusively premium customers. Aatrey noted that many national brands are finding new consumer segments and new product selections through Meesho that they could not reach via traditional distribution channels such as Kirana stores or general trade. The contribution margin for Mall transactions is currently lower than the core marketplace, as the business is in an investment phase focused on onboarding brands and growing selection. Management indicated that the focus on maximising Mall contribution margin will come at a later stage of maturity.

On the macroeconomic environment, Aatrey observed that value-focused platforms historically tend to gain market share during high-inflation periods as consumer budgets tighten, characterising such an environment as a potential tailwind for Meesho's positioning.

The Board of Directors of Meesho Limited convened on May 06, 2026, and approved the audited standalone and consolidated financial results for the quarter and financial year ended March 31, 2026. The meeting commenced at 1:00 p.m. (IST) and concluded at 4:45 p.m. (IST). The statutory auditors, M/s S.R. Batliboi & Associates, LLP, issued an unmodified opinion on the financial statements. Subsequently, pursuant to Regulation 30 and 47 of SEBI Listing Regulations, Meesho published newspaper advertisements in Financial Express (English) and Vishwavani (Kannada) on May 07, 2026, confirming the audited financial results. On May 09, 2026, Meesho filed a further intimation under Regulation 30 of SEBI Listing Regulations confirming the completion of the additional investment in Meesho Payments Private Limited (MPPL) through a rights issue, with equity shares allotted on May 08, 2026. The company has also flagged increased uncertainty in the macroeconomic environment leading into FY27.

Consolidated Financial Performance

Meesho reported a significant rise in consolidated revenue from operations for FY26, reflecting strong growth in its marketplace business. On a year-on-year basis, Q4 revenue grew to ₹35,312.12 million from ₹23,999.75 million, while the Q4 net loss narrowed sharply to ₹1,663.45 million from ₹13,913.81 million in the same period last year. The net loss for the full year narrowed considerably compared to the previous fiscal year. The following table summarises the key consolidated financial metrics:

The consolidated net loss for FY26 stood at ₹13,577.38 million, a significant reduction from ₹39,417.05 million in FY25. Total comprehensive loss for the year was ₹13,607.01 million against ₹39,453.60 million in the prior year. Loss before tax for FY26 was ₹12,092.73 million, compared to ₹14,548.63 million in FY25, with exceptional items of ₹1,410.91 million recorded during the year, primarily comprising expenses towards business combination (₹1,024.68 million) and a full and final settlement in respect of a vendor dispute (₹386.23 million).

Consolidated Balance Sheet Highlights

The consolidated balance sheet as at March 31, 2026 reflects a materially strengthened equity position following the IPO and CCPS conversion. Key balance sheet metrics are presented below:

Consolidated Cash Flow Summary

For FY26, net cash used in operating activities was ₹38,753.36 million, compared to net cash from operating activities of ₹5,393.70 million in FY25, primarily driven by income taxes paid (net of refund) of ₹27,804.75 million. Net cash from investing activities was ₹2,472.71 million versus net cash used of ₹26,352.50 million in FY25. Net cash from financing activities was ₹41,014.44 million, supported by proceeds from issue of share capital (including securities premium) of ₹42,505.56 million. Cash and cash equivalents at the end of the year stood at ₹6,203.72 million, up from ₹1,470.58 million at the beginning of the year.

Segment-Wise Performance

The Group operates under two identified segments: Marketplace and New Initiatives. The Marketplace segment contributed ₹1,26,141.81 million in revenue for FY26, compared to ₹93,858.74 million in FY25. The New Initiatives segment contributed ₹121.67 million in FY26, up from ₹40.29 million in FY25. The Marketplace segment's principal activities include the marketplace for sellers and buyers, display of ads, logistics business, and content commerce. New Initiatives covers a low-cost local logistics network for daily essentials, digital financial services, and AI services.

Standalone Financial Highlights

On a standalone basis, Meesho reported revenue from operations of ₹63,809.23 million for FY26, compared to ₹93,175.47 million in FY25. The results include a significant exceptional item—a gain on demerger of ₹2,64,790.20 million—arising from the transfer of grocery and e-commerce undertakings to wholly owned subsidiaries Meesho Technologies Private Limited (MTPL) and Meesho Grocery Private Limited (MGPL) with effect from June 01, 2025. As consideration for the demerger, MTPL and MGPL issued equity shares and Compulsorily Convertible Preference Shares (CCPS) to the Company, recognised at fair value. The Company also recognised interest income on CCPS amounting to ₹10,852.88 million from the date of issuance up to March 31, 2026. Key standalone metrics are summarised below:

Consequently, standalone profit before tax for FY26 was ₹2,74,795.83 million, and net profit was ₹2,73,311.18 million. The standalone balance sheet as at March 31, 2026 reflects total assets of ₹3,44,181.41 million (versus ₹72,582.46 million as at March 31, 2025) and total equity of ₹3,31,541.98 million (versus ₹15,165.53 million), driven primarily by the recognition of investments in subsidiaries at fair value following the demerger.

Demerger — Net Assets Transferred

The carrying value of net assets transferred and consideration received in the demerger are detailed below:

Investment in Meesho Payments Private Limited

Following the Board's approval on May 06, 2026 for an investment of up to ₹100 Crores in Meesho Payments Private Limited (MPPL), a wholly owned subsidiary and Lending Service Provider, Meesho completed the transaction on May 08, 2026. A formal regulatory intimation under Regulation 30 of SEBI Listing Regulations was filed on May 09, 2026, confirming the allotment. The Company subscribed to 30,58,103 fully paid-up equity shares of face value of Re. 1/- each at a premium of ₹326/- per share through a rights issue, for a total cash consideration of Rs. 99,99,99,681. The transaction was carried out at arm's length basis, based on an independent valuation report. Meesho continues to hold 99.99% of the equity share capital of MPPL following the investment, as the rights issue did not alter the percentage shareholding. Key details of the transaction and MPPL are presented below:

MPPL is engaged in partnering with various regulated financial institutions to facilitate credit to buyers and sellers registered on the Meesho platform. Its turnover has grown consistently over the last three financial years, as shown below:

As MPPL is a subsidiary and a related party, the subscription qualifies as a related party transaction. The investment is intended to support the overall business operations and growth of MPPL, enabling it to enhance its capabilities, scale its operations, and effectively meet its business and regulatory requirements. Except to the extent of shareholding held by Vidit Aatrey, Promoter of the Company, none of the other promoters, promoter group entities, or group companies have any interest in MPPL. No governmental or regulatory approvals were required for the acquisition.

Macroeconomic Outlook

Meesho has flagged increased uncertainty in the macroeconomic environment leading into FY27. The company's acknowledgment of these headwinds comes as it transitions into the next fiscal year following a period of significant operational and structural changes, including its IPO, internal demerger, and logistics reorganisation.

Key Corporate Developments

During FY26, Meesho completed its Initial Public Offering (IPO) of 488,396,721 equity shares of face value of ₹1 each at an issue price of ₹111 per share (including a share premium of ₹110 per share). The issue comprised a fresh issue of 382,882,882 equity shares aggregating to ₹42,500.00 million and an offer for sale of 105,513,839 equity shares by selling shareholders aggregating to ₹11,712.04 million. The Company's equity shares were listed on the National Stock Exchange of India Limited and BSE Limited on December 10, 2025. The Board also approved a bonus issue in the ratio of 47.2509 equity shares for every 1 equity share held, and 2,182,749,485 CCPS were converted into equity shares in the ratio of 1:1. Additionally, Valmo Transportation Private Limited was incorporated as a wholly owned subsidiary to house the logistics business, and an internal reorganisation was approved on March 31, 2026 to streamline logistics operations across the Group. During the quarter ended March 31, 2026, 50,924,196 equity shares were allotted upon exercise of vested options under the Employee Stock Option Plan, 2024. The Company also noted a tax demand of ₹14,997.38 million for AY 2023-24, against which it has filed a rectification request and an appeal before the National Faceless Appeal Centre, Delhi. A similar demand of ₹5,720.69 million for AY 2022-23 is subject to an interim stay granted by the Hon'ble High Court of Karnataka.