Meesho Share Price Takes a Hit Following Tax Demand
On March 9, 2026, Meesho’s share price fell about 10%, marking a significant decline in the company’s market performance. This drop came in the wake of a substantial tax demand issued by the Income Tax Department, amounting to ₹1,499.73 crore for the assessment year 2023–24. The demand was issued under Sections 143(3) and 156 of the Income Tax Act, raising concerns among investors and stakeholders.
The tax demand has been a catalyst for the decline in Meesho’s share price, which opened at ₹147.60, reached an intraday high of ₹150.95, and fell to an intraday low of ₹143.20. This sharp fluctuation reflects the market’s reaction to the news and the uncertainty surrounding the company’s financial obligations. Meesho’s stock market debut on December 10, 2025, was initially promising, with a listing price of around ₹162.5, resulting in a listing gain of about 46%.
Meesho has indicated that it plans to contest the tax demand legally. The company has expressed its disagreement with the observations and adjustments made in the assessment order, stating that it believes it has adequate legal and factual grounds to contest the matter. In a recent statement, Meesho noted, “The company is currently evaluating the assessment order and does not concur with the observations and adjustments made.” This legal challenge could have further implications for the company’s financial stability and share price.
Historically, Meesho has faced tax scrutiny before. The company previously received a tax notice related to the fiscal year 2022, which resulted in a tax claim of ₹572 crore. Such disputes are not uncommon in the e-commerce sector, where tax authorities often challenge the accounting practices of large marketplaces regarding operational costs. Tax disputes involving large e-commerce marketplaces often arise due to the way companies account for certain operational costs.
As Meesho navigates this challenging situation, the market will be closely watching how the company responds to the tax demand and the potential legal ramifications. The outcome of the legal contest could significantly influence investor confidence and the company’s future share price performance.
Details remain unconfirmed regarding the exact impact of this tax demand on Meesho’s long-term financial health. Investors are advised to stay informed about further developments as the situation unfolds. The company’s ability to effectively manage this tax issue will be critical in determining its market position and share price trajectory in the coming months.
In summary, the recent tax demand has cast a shadow over Meesho’s financial outlook, leading to a notable decline in its share price. As the company prepares to contest the demand, the implications for its investors and market standing remain to be seen.
