Meesho Limited announced its financial results for the fourth quarter and full year ended March 31, 2026. In Q4 FY26, the company reported a Net Merchandise Value (NMV) of ₹11,371 crore, marking a significant year-over-year increase of approximately 43%. This growth was accompanied by a 43% YoY rise in orders, reaching 717 million. The company also witnessed a substantial improvement in its financial metrics. The contribution margin recovered to 4.0% of NMV, and Adjusted EBITDA (Marketplace) improved by 245 basis points quarter-over-quarter to -1.7% of NMV. These improvements are attributed to the normalization of logistics costs, network optimization, and operating leverage achieved through scale. For the full fiscal year 2026, Meesho continued its growth trajectory. Annual Transacting Users (ATUs) grew by 33% year-over-year to 264 million, with orders increasing by 45% YoY to 2.67 billion. The total NMV for FY26 reached ₹41,560 crore, a 39% increase year-over-year, with user purchase frequency rising to 10.1 transactions per user annually. Vidit Aatrey, Founder & CEO of Meesho, highlighted the untapped potential of the Indian e-commerce market and the role of AI in accelerating growth. He mentioned that over 75% of orders are now driven by personalized feeds, and AI-powered tools like Vaani (voice shopping agent) and GeoIndia are enhancing user experience and accessibility. The company is focusing on building technology infrastructure to further expand the market. Key highlights for the year include increased consumer engagement, with frequency rising to 10.1 transactions per consumer annually, and a rise in prepaid adoption to 35.3% by March 2026. Investments in AI and platform infrastructure, including the recommendation engine PRISM, LLM-powered Trendpulse, and AI shopping agent Vaani, have boosted conversion rates for new consumers. Supply-side AI tools are also enhancing seller engagement. Margin recovery was driven by structural and operational efficiencies, including logistics cost normalization, optimization of the Valmo network, and the scaling of AI routing engine Atlas. Meesho Mall and Content Commerce also showed strong growth, with Meesho Mall growing 82% YoY and Content Commerce increasing by 105% YoY in Q4 FY26.
