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. This drop comes in the wake of a tax demand issued by the Income Tax Department amounting to ₹1,499.73 crore for the assessment year 2023–24. The tax demand was issued under Section 143(3) and Section 156 of the Income Tax Act, which has led to uncertainty regarding the company’s financial outlook.
The share price opened at ₹147.60 and fluctuated throughout the day, reaching an intraday high of ₹150.95 and an intraday low of ₹143.20. This volatility reflects the market’s reaction to the news of the tax demand. Investors are closely monitoring the situation, especially given that Meesho had previously received a tax notice related to the fiscal year 2022, which resulted in a tax claim of ₹572 crore.
Meesho, which made its stock market debut on December 10, 2025, had an initial public offering (IPO) price band of ₹105 – ₹111 per share. The listing price was around ₹162.5, resulting in a listing gain of about 46%. However, the recent tax demand has overshadowed these initial gains, prompting questions about the company’s future performance.
The company has stated that it disagrees with the observations and adjustments made in the assessment order and believes it has adequate legal and factual grounds to contest the matter. A spokesperson for Meesho emphasized, “The company is currently evaluating the assessment order and does not concur with the observations and adjustments made.” This indicates that Meesho plans to contest the tax demand legally, which could lead to a prolonged dispute.
Tax disputes involving large e-commerce marketplaces often arise due to the way companies account for certain operational costs. This situation is not unique to Meesho, as other companies in the sector have faced similar challenges. The outcome of this dispute could set a precedent for how tax regulations are applied to e-commerce businesses in India.
As Meesho prepares to contest the tax demand, the market will be watching closely for any developments. The company’s ability to navigate this challenge will be crucial in determining its stock performance in the coming weeks. Investors are advised to stay informed about the situation as it unfolds.
Details remain unconfirmed regarding the potential impact of this tax demand on Meesho’s long-term financial health. The company has expressed confidence in its legal position, but the uncertainty surrounding tax regulations in the e-commerce sector continues to loom large.
