Meesho Share Price Takes a Hit Following Tax Demand

Meesho Share Price Takes a Hit Following Tax Demand

On March 9, 2026, the Meesho share price fell approximately 10%, a significant decline attributed to a tax demand issued by the Income Tax Department. The demand, amounting to ₹1,499.73 crore for the assessment year 2023–24, has raised concerns among investors and analysts alike.

The tax demand was issued under Section 143(3) and Section 156 of the Income Tax Act, which has led Meesho to announce plans to contest the demand legally. The company stated, “The company 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.” This statement reflects Meesho’s intention to challenge the tax authority’s findings vigorously.

On the day of the share price drop, Meesho’s stock opened at ₹147.60, reached an intraday high of ₹150.95, and fell to an intraday low of ₹143.20. This volatility highlights the immediate impact of the tax news on investor sentiment. The company had previously faced a tax notice related to the fiscal year 2022, which resulted in a tax claim of ₹572 crore, indicating ongoing scrutiny from tax authorities.

Meesho’s initial public offering (IPO) price band was set between ₹105 and ₹111 per share, and the company made its stock market debut on December 10, 2025, with a listing price of around ₹162.5. This debut resulted in a listing gain of about 46%, showcasing the initial investor confidence in the e-commerce platform. However, the recent tax demand has cast a shadow over this positive momentum.

Tax disputes involving large e-commerce marketplaces like Meesho often arise due to the way these companies account for certain operational costs. As such, the current situation may not only affect Meesho but could also set a precedent for other companies in the sector facing similar challenges.

As Meesho prepares to contest the tax demand, the outcome remains uncertain. The company is currently evaluating the assessment order and does not concur with the observations and adjustments made. Investors and market analysts will be closely monitoring the developments in this case, as they could have broader implications for the e-commerce industry in India.

Details remain unconfirmed regarding the potential impact of this tax demand on Meesho’s future operations and financial health. The resolution of this issue will be critical for the company as it seeks to maintain investor confidence and navigate the complexities of the Indian tax landscape.