Meesho shares hit 10% lower circuit as firm gets Rs 1,500-crore income tax demand notice

Meesho shares hit 10% lower circuit as firm gets Rs 1,500-crore income tax demand notice

• Meesho shares fell 10% after Rs 1,500 crore tax demand notice
• Company plans to contest the income tax assessment order
• Meesho's Q3 loss widened to Rs 490.6 crore amid higher expenses

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E-commerce firm Meesho's shares have hit 10% lower circuit on March 9 as it has received an income tax demand notice of around Rs 1,500 crore, including interest, which the company plans to contest.

Meesho received the notice on March 6 for assessment year 2023-24.

"The Assessment Unit of Income Tax Department has raised a tax demand aggregating to Rs 14,99,73,82,840, including applicable interest," an exchange filing stated.

The filing said that the demand order is based on certain additions and adjustments to the income reported by the company.

"The company is currently evaluating the Assessment Order and does not concur with the observations and adjustments made in the Assessment Order. The company believes that it has adequate legal and factual grounds to contest the same and is taking necessary steps to protect its interest," Meesho said.

At 12:30 pm on March 9, Meesho shares on BSE were trading 10% lower at Rs 143.34 apiece.

The e-commerce firm said that a similar demand order was issued for the assessment year 2022-23 as well, which it disclosed in detail in the prospectus filed on December 5, 2025.

"As indicated therein, the High Court of Karnataka, by an order dated April 17, 2025, granted an interim stay on such demand notice and the matter is currently pending.

"The Assessment Order along with the Demand Notice does not have any major adverse impact on the company's financial position, operations, or other activities," the filing said.

The company has reported a widening of loss to Rs 490.6 crore for the third quarter ended December 2025, mainly due to a significant jump in expenses during the festive season.

The company had posted a loss of Rs 37.43 crore in the year-ago period.

Meesho's expenses increased by about 44% during the quarter, especially in the category of "other expense", which has been a significant portion of the total spending across the reported period.

The e-commerce firm posted expenses of close to Rs 4,071 crore during the quarter, out of which "other expenses" stood at Rs 3,821.3 crore, or about 94% of the total during the reported quarter.

Meesho posted a 31% increase in revenue from operations to Rs 3,517.5 crore during the quarter from Rs 2,678.64 crore in the December 2024 quarter.