Meesho Share Price Takes a Hit Following Tax Demand
On March 9, 2026, the Meesho share price fell approximately 10%, a significant decline that has raised concerns among investors. This drop followed the company receiving a staggering tax demand of ₹1,499.73 crore for the assessment year 2023–24 from the Income Tax Department.
The tax demand was issued under Section 143(3) and Section 156 of the Income Tax Act, which allows the tax authorities to assess and demand payment for taxes owed. In response to this demand, Meesho has announced plans to contest the tax claim legally, asserting that it disagrees with the observations and adjustments made in the assessment order.
On the day of the share price drop, Meesho’s stock opened at ₹147.60, reaching an intraday high of ₹150.95 before plummeting to an intraday low of ₹143.20. This volatility reflects the market’s reaction to the unexpected tax demand and the potential financial implications for the company.
Historically, 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, where tax authorities often challenge the accounting practices of large marketplaces regarding operational costs.
Meesho’s initial public offering (IPO) was priced within a band of ₹105 – ₹111 per share, and the company made its stock market debut on December 10, 2025, with a listing price of around ₹162.5. This initial performance resulted in a listing gain of about 46%, but the recent tax demand has raised questions about the sustainability of its stock price.
In light of the current situation, Meesho has stated, “The company is currently evaluating the assessment order and does not concur with the observations and adjustments made.” This statement underscores the company’s commitment to contest the tax demand, which includes interest, and to protect its financial interests.
As developments unfold, the uncertainty surrounding Meesho’s tax situation and its impact on the company’s financial health and share price remains a critical concern for investors. Details remain unconfirmed regarding the potential outcomes of the legal contest and how it may affect future operations.
