Meesho Share Price Takes a Hit Following Tax Demand

Meesho Share Price Takes a Hit Following Tax Demand

On March 9, 2026, Meesho’s share price fell about 10%, a significant decline that has raised concerns among investors. The drop was triggered by the company receiving a tax demand of ₹1,499.73 crore for the assessment year 2023–24 from the Income Tax Department. This unexpected regulatory challenge has led to a swift reaction from traders, impacting the stock’s performance in the market.

The share price opened at ₹147.60 per share on the day of the announcement, with an intraday high of ₹150.95 and an intraday low of ₹143.20. The decline in share price is particularly notable given that Meesho’s stock market debut on December 10, 2025, was marked by a listing price of around ₹162.5, which had delivered about 46% listing gains from its IPO price band of ₹105 – ₹111 per share.

The tax demand issued under Section 143(3) and Section 156 of the Income Tax Act has raised alarms, as it follows a previous tax notice related to the fiscal year 2022, which resulted in a tax claim of ₹572 crore. Meesho has stated that it does not agree with the observations and adjustments made in the assessment order and believes it has adequate legal and factual grounds to contest the matter.

In response to the tax demand, Meesho plans to contest the issue legally, indicating that the company is prepared to challenge the Income Tax Department’s findings. The demand was raised through a scrutiny-based tax assessment, which has further complicated the situation for the company.

Meesho is recognized as one of India’s fast-growing online commerce platforms, connecting suppliers, resellers, and customers through its digital marketplace. However, the recent developments have put a spotlight on the company’s financial stability and regulatory compliance, leading to increased scrutiny from investors and market analysts.

As the situation unfolds, the market will be closely watching how Meesho navigates this legal challenge and its potential impact on the company’s future performance. The uncertainty surrounding the tax demand and its implications for the company’s financial health could lead to further volatility in the share price.

Details remain unconfirmed regarding the specific strategies Meesho will employ in its legal contestation, but the company’s commitment to addressing the tax demand is clear. Investors will be keen to see how this situation develops in the coming weeks and its potential effects on Meesho’s market position.