Meesho Share Price Takes a Hit Amid Tax Demand
On March 9, 2026, the Meesho share price fell by approximately 10%, a significant decline triggered by a substantial tax demand from the Income Tax Department. The company received a tax demand totaling ₹1,499.73 crore for the assessment year 2023–24, which has raised concerns 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 demand payment for taxes owed. 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.
On the day of the price drop, Meesho’s stock opened at ₹147.60, reaching an intraday high of ₹150.95 before falling to an intraday low of ₹143.20. This volatility reflects investor reactions to the news of the tax demand, which has overshadowed the company’s recent performance since its stock market debut.
Meesho, which launched its initial public offering (IPO) with a price band of ₹105 – ₹111 per share, saw a listing price of around ₹162.5 on December 10, 2025, resulting in a listing gain of about 46%. However, the recent tax demand has raised questions about the company’s financial health and future growth prospects.
Previously, Meesho had received a tax notice related to the fiscal year 2022, which resulted in a tax claim of ₹572 crore. The company is currently evaluating the latest assessment order and has expressed confidence in its legal standing, stating that it believes it has adequate grounds to contest the matter.
Tax disputes involving large e-commerce marketplaces like Meesho often arise due to the complex nature of accounting for operational costs. The company’s management has indicated that they are prepared to address these challenges head-on, but the outcome of their legal contest remains uncertain.
As the situation develops, investors and stakeholders will be closely monitoring Meesho’s response to the tax demand and any further implications it may have on the company’s share price and overall market position. Details remain unconfirmed regarding the timeline for the legal proceedings and any potential impact on the company’s operations.
