Meesho Share Price Falls Significantly
On March 9, 2026, Meesho’s share price experienced a notable decline, falling approximately 10% in response to a substantial tax demand issued by the Income Tax Department. The company’s stock opened at ₹147.60, peaked at an intraday high of ₹150.95, and dipped to an intraday low of ₹143.20, reflecting investor concerns regarding the financial implications of the tax claim.
The Income Tax Department has issued a tax demand of ₹1,499.73 crore for the assessment year 2023–24, which has raised eyebrows among investors and analysts alike. This demand was made under Section 143(3) and Section 156 of the Income Tax Act, indicating a serious scrutiny of the company’s financial practices. Meesho has previously faced tax challenges, including a notice related to the fiscal year 2022, which resulted in a tax claim of ₹572 crore.
Company’s Response
In light of the recent tax demand, Meesho has announced its intention to contest the claim legally. The company has expressed its disagreement with the observations and adjustments made in the assessment order, asserting that it possesses adequate legal and factual grounds to challenge the matter. A spokesperson for Meesho stated, “The company is currently evaluating the assessment order and does not concur with the observations and adjustments made.” This proactive stance aims to reassure investors amid the uncertainty surrounding the tax implications.
Meesho, which made its stock market debut on December 10, 2025, had initially seen a positive reception, with its shares listed at around ₹162.5, resulting in a listing gain of about 46%. The company’s IPO price band was set between ₹105 and ₹111 per share, reflecting strong investor interest in the burgeoning e-commerce platform. However, the recent tax demand has cast a shadow over its financial outlook.
The drop in Meesho’s share price has sparked discussions among market analysts regarding the broader implications for e-commerce companies facing similar tax scrutiny. Tax disputes involving large e-commerce marketplaces often arise due to the way companies account for certain operational costs, which can lead to significant financial repercussions. Investors are closely monitoring how Meesho navigates this challenge and its potential impact on future earnings.
Looking Ahead
As Meesho prepares to contest the tax demand, the outcome of this legal battle remains uncertain. The company’s ability to effectively address the tax issues could significantly influence its stock performance in the coming months. Investors are advised to stay informed about developments related to this situation, as the implications of the tax demand could extend beyond immediate financial metrics.
Details remain unconfirmed regarding the timeline for the legal proceedings and any potential resolutions that may arise from the contestation of the tax demand. As the situation unfolds, stakeholders will be keenly observing how Meesho manages this critical juncture in its operational history.
