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 experienced a notable decline of approximately 10%, closing at ₹132.84. This drop is attributed to a significant tax demand issued by the Income Tax Department, amounting to ₹1,499.73 crore for the assessment year 2023–24. The market reaction underscores the potential impact of regulatory challenges on investor confidence in the fast-growing e-commerce platform.
The tax demand was issued under Section 143(3) and Section 156 of the Income Tax Act, which has raised concerns among stakeholders regarding the company’s financial health and compliance with tax regulations. In response, Meesho has announced plans to contest the tax demand legally, indicating its disagreement with the observations and adjustments made in the assessment order.
Meesho’s share price opened at ₹147.60 on the day of the announcement, reaching an intraday high of ₹150.95 before plummeting to an intraday low of ₹143.20. This volatility reflects the immediate market response to the tax news, as investors reassess the company’s valuation in light of the new financial obligations. The company had previously faced a tax notice related to the fiscal year 2022, which resulted in a tax claim of ₹572 crore, further complicating its financial landscape.
The company’s initial public offering (IPO) was priced within a band of ₹105 to ₹111 per share, and it made its stock market debut on December 10, 2025, with a listing price of around ₹162.5, resulting in a listing gain of about 46%. However, the recent tax developments have overshadowed these initial successes, raising questions about Meesho’s future performance in the stock market.
Meesho has publicly stated that it does not agree with the tax demand and believes it has adequate legal and factual grounds to contest the matter. The company is currently evaluating the assessment order and does not concur with the observations and adjustments made. This legal battle could potentially impact its financial stability and operational strategies moving forward.
Tax disputes involving large e-commerce marketplaces like Meesho often arise due to the complexities surrounding the accounting of operational costs. As the company navigates these challenges, it will be crucial for investors to monitor developments closely, as the outcome of the legal proceedings may significantly influence the company’s market position and share price.
Details remain unconfirmed regarding the potential implications of this tax demand on Meesho’s future operations and financial strategies. As the situation evolves, stakeholders will be watching closely for updates that could affect investor sentiment and the overall performance of Meesho in the competitive e-commerce landscape.
