Meesho Ltd.logistics lifts margin, festive beat, 25% NMV guide kept

Meesho's Q2 FY27 call, held on 28 October 2026, was a question-and-answer session built on its shareholder letter.

Management said the quarter's margin gain, with contribution margin near 6% according to an analyst, came mainly from logistics: fewer returns, denser orders, a redesigned middle mile and Valmo efficiencies. It cautioned against extrapolating because savings reach sellers and consumers with a lag and GPU server costs were not passed on, and said server costs should normalise as a share of NMV by Q4 FY27. The festive season beat expectations with all-time high traffic, although last year's festive sales fell in September and this year's in October.

The CFO said adjusted EBITDA margin is about minus 1%, a 20-day negative working capital cycle is worth about 1.5% of NMV, and trailing free cash flow should turn positive in a few quarters if margins hold. The five-year NMV growth guidance of 25% was kept, new initiatives remain capped at ₹200 crore a year including Kirana Club, and the company will not add platform fees.