Meesho Share Price Takes a Hit Amid Tax Demand
On March 9, 2026, the Meesho share price fell approximately 10%, a significant decline attributed to a substantial tax demand issued by the Income Tax Department. This development has raised concerns among investors regarding the company’s financial stability and future performance in the stock market.
The tax demand amounts to ₹1,499.73 crore for the assessment year 2023–24, issued under Section 143(3) and Section 156 of the Income Tax Act. This unexpected financial burden has led to a sharp reaction in the market, with Meesho’s share price opening at ₹147.60, reaching an intraday high of ₹150.95, and dipping to an intraday low of ₹143.20.
Meesho, which made its stock market debut on December 10, 2025, at a listing price of ₹162.5, had previously enjoyed a listing gain of about 46%. However, the recent tax demand has overshadowed these initial successes, prompting the company to announce its intention to contest the tax claim legally. Meesho has stated that it does not agree with the observations and adjustments made in the assessment order, asserting that it has adequate legal and factual grounds to challenge the matter.
This tax demand is not the first for Meesho; 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 scrutinize the accounting practices of large marketplaces, particularly concerning operational costs.
Meesho’s management has emphasized that they are currently evaluating the assessment order and do not concur with the adjustments made. The company’s stance reflects a broader trend in the e-commerce industry, where tax disputes frequently arise due to complex financial structures and regulatory interpretations.
As the situation develops, investors are left to ponder the implications of this tax demand on Meesho’s future performance. The company’s ability to navigate this legal challenge will be crucial in determining its market position and investor confidence moving forward. Details remain unconfirmed regarding the potential outcomes of the legal proceedings and their impact on Meesho’s financial health.
In summary, the recent decline in the Meesho share price serves as a stark reminder of the challenges faced by companies in the rapidly evolving e-commerce landscape. As Meesho prepares to contest the tax demand, stakeholders will be closely monitoring the developments that follow.
