Meesho Share Price Fall 10% After ₹1,499.7 Crore Income Tax Demand Order For AY24

Mumbai, March 9: Shares of Meesho Ltd came under heavy selling pressure on Monday, dropping 10% to ₹143.34 as of 1:31 pm IST, compared with the previous close of ₹159.26. The stock opened weaker at ₹147.05, moved up to ₹149.90, By early afternoon, it had slipped to a low of ₹143.34 so far, reflecting a clear shift in investor sentiment.

The decline followed a regulatory disclosure from the company confirming it had received an assessment order and tax demand notice from the Income Tax Department, a development that triggered immediate caution in the market.

Why The Share Price Moved

In a filing to the stock exchanges, Meesho said the Assessment Unit of the Income Tax Department issued an assessment order under Section 143(3) of the Income-tax Act, 1961, along with a demand notice under Section 156.

The order pertains to Assessment Year 2023–24, with tax authorities raising a demand of ₹14,99,73,82,840 roughly ₹1,499.7 crore including applicable interest. The demand follows certain adjustments and additions made to the income reported by the company, according to the disclosure.

Meesho said the order and related notice were received on March 6, 2026. The company also stated that it does not agree with the observations and adjustments cited in the assessment order and is currently reviewing the matter before taking further legal steps.

Stock Performance Snapshot

As of 1:31 pm IST on March 9, 2026, Meesho shares were trading 10% lower at ₹143.34 on the NSE, with the stock remaining near the session’s lows.

So far during the trading day, the stock has moved within a band of ₹149.90 on the upside and ₹143.34 on the downside. The slide erased early stability seen at the open and kept the counter under pressure through the session.

At the prevailing price, the company’s market capitalisation stood near ₹64.69K crore. The current level also marks the stock’s 52-week low, a notable contrast to its 52-week high of ₹254.40 recorded earlier in the cycle.

What This Means For Investors

The company said it is examining the assessment order in detail and believes there are adequate legal and factual grounds to challenge the demand.

Tax disputes of this nature typically move through multiple layers of appeals, beginning with tax appellate authorities and, in some cases, progressing to judicial forums. These processes often take time to reach final resolution.

Meesho, however, emphasised in its disclosure that the assessment order and demand notice are not expected to materially affect its financial position, operational activities, or overall business continuity.

Broader Market And Sectoral Context

The development comes at a time when tax scrutiny around digital commerce platforms has intensified, particularly as authorities examine evolving marketplace structures and revenue models.

E-commerce companies often operate with complex transaction flows involving sellers, platform commissions, logistics support, and incentives, which can lead to detailed assessments during tax reviews. Similar cases across the sector have historically moved through extended legal processes before reaching final clarity.

That backdrop tends to keep markets sensitive to regulatory updates involving large internet businesses.

About The Company

Meesho Ltd operates a social commerce and online marketplace platform that connects suppliers, small businesses, and individual resellers with consumers across India.

Founded in 2015, the company built its model around enabling small entrepreneurs and regional sellers to reach customers through digital channels, particularly in price-sensitive segments such as fashion, household goods, and lifestyle products.

The platform integrates product sourcing, logistics support, and payments infrastructure, allowing sellers to run online businesses without significant upfront investment.

Conclusion

Meesho’s stock decline on Monday followed the disclosure of a ₹1,499.7 crore tax demand linked to Assessment Year 2023–24 issued by the Income Tax Department. While the company has indicated that it intends to challenge the order and believes the matter will not materially impact its operations, the scale of the demand has clearly unsettled the market for now. Investors are likely to track the company’s legal response and any subsequent regulatory developments in the months ahead.

Source:https://www.nseindia.com/get-quote/equity/MEESHO/Meesho-Limited

https://nsearchives.nseindia.com/corporate/MEESHO_06032026223119_Final_Meesho_Disclosure_Reg_30_of_LODR_Regulation_06Mar2026.pdf