On March 9, 2026, Meesho’s share price fell about 10%, marking a significant decline in the company’s market performance. This drop came in the wake of a substantial 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 raised concerns among investors regarding the company’s financial health. Following the announcement, Meesho’s stock opened at ₹147.60, reached an intraday high of ₹150.95, and an intraday low of ₹143.20, reflecting the market’s reaction to the news.

Meesho has indicated its intention to contest the tax demand legally, asserting that it disagrees with the observations and adjustments made in the assessment order. A spokesperson for the company stated, “The company does not agree with the observations and adjustments made in the assessment order and believes it has adequate legal and factual grounds to contest the matter.” This legal battle could have significant implications for the company’s future and its share price.

This is not the first time Meesho has faced tax scrutiny; the company 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 large marketplaces often encounter issues related to the accounting of operational costs.

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 raised questions about the sustainability of such gains and the company’s overall valuation.

The tax demand includes interest, which could further complicate the financial situation for Meesho. Investors are closely monitoring the situation, as the outcome of the legal contest could significantly impact the company’s share price and investor sentiment.

As Meesho prepares to challenge the tax demand, uncertainties loom over the company’s future performance in the stock market. Details remain unconfirmed regarding the potential outcomes of the legal proceedings and their effects on the company’s financial standing.

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