Meesho Ltd — earnings calls

Meesho reported continued NMV growth, with management noting sequential moderation driven by seasonal shifts such as Eid moving between quarters and lower year-on-year S&M spend increases compared to the prior year. Logistics costs faced pressure from fuel price hikes and minimum wage increases during the quarter, which management said were largely offset by efficiency gains, with cost per delivered order declining by about a rupee versus the previous quarter. Management also discussed new initiatives including Kirana Club, a low-cost local logistics network for grocery categories, and provided detail on the GTA reorganisation of Valmo's middle-mile and last-mile operations under VTPL.

Meesho management reported that contribution margin improved sequentially by about 170 basis points in Q4 FY26, with roughly 110 basis points of that coming from logistics cost improvement as the one-time logistics disruption from Q2 and Q3 FY26 was worked through. Management said ad revenue as a percentage of NMV continued to increase, seller ad adoption grew more than 40% year-on-year in terms of catalogs live on ads, and annual transacting users grew 33% year-on-year. Management also discussed cash balance volatility tied to end-of-quarter NMV timing and said the in-sourcing versus outsourcing mix for logistics (Valmo) is decided on a cost-efficiency basis rather than a fixed target.