Meesho Share Price Takes a Hit Following Tax Demand
On March 9, 2026, Meesho’s share price fell approximately 10%, a significant decline attributed to a hefty tax demand issued by the Income Tax Department. The demand totals ₹1,499.73 crore for the assessment year 2023–24, raising alarms among investors and market analysts alike.
The tax demand was issued under Section 143(3) and Section 156 of the Income Tax Act, which allows the authorities to assess and claim taxes owed by companies. In response to this development, Meesho has announced plans to contest the tax demand legally, asserting that it disagrees with the observations and adjustments made in the assessment order.
Meesho’s share price opened at ₹147.60, reaching an intraday high of ₹150.95 and an intraday low of ₹143.20. This fluctuation reflects the market’s reaction to the tax news, which has overshadowed the company’s recent performance. The stock market debut of Meesho on December 10, 2025, was marked by a listing price of around ₹162.5, resulting in a listing gain of about 46% from its IPO price band of ₹105 – ₹111.
This is not the first time Meesho has faced tax scrutiny; the company had 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, as tax authorities often question the accounting practices of large marketplaces regarding operational costs.
Meesho has 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 assertion indicates the company’s confidence in its position, although the outcome of the legal contest remains uncertain.
As Meesho prepares to challenge the tax demand, investors are left to ponder the potential implications of this legal battle on the company’s financial health and stock performance. Tax disputes involving large e-commerce marketplaces often arise due to the way companies account for certain operational costs, adding another layer of complexity to the situation.
Details remain unconfirmed regarding the timeline for the legal proceedings and how they may affect Meesho’s operations moving forward. The company’s ability to navigate this challenge will be closely monitored by market participants, as the outcome could have significant repercussions on its share price and overall market perception.
