Why Did Meesho Shares Hit 10% Lower Circuit Today?

Synopsis: Shares of Meesho hit 10% L.C after the Income Tax Department issued a tax demand of about Rs 1,499.73 crore for AY 2023–24. The company said it disagrees with the assessment and plans to challenge it legally. Despite the notice, Meesho stated the order is unlikely to materially impact its financial position or operations.

The shares of this company, which is an app-based marketplace that is operated under the brand of Meesho and connects sellers and end consumers and whose offerings span categories including fashion, accessories, electronics, home and kitchen items, health and fitness equipment, and office supplies, had their shares tumbling today after a tax notice was served to the company. 

With a market cap of Rs 64,718 crore, the shares of Meesho Ltd crashed about 10% in today’s trading session, hitting the lower circuit and reaching a low of Rs 143.20. When compared to its previous day’s closing price of Rs 159.10. 

About the Tax Notice 

The Income Tax Department gave Meesho an order for the years 2023–2024. They say that Meesho owes them a lot of money, about Rs 1,499.73 crore, plus interest. On March 6, 2026, the Income Tax Department sent this order. It is based on Section 143(3) of the Income Tax Act. They also sent a demand notice under Section 156.

The Income Tax Department changed the income that Meesho reported. This is why they want money. When the tax authorities and the company don’t agree on what income is taxable, this kind of thing usually happens. They might also not agree on what deductions are allowed.

Meesho said that it does not agree with the changes and observations made in the assessment order and is now looking over the notice. The company also said that it thinks it has enough legal and factual reasons to fight the demand and will do what it needs to do to protect its interests.

The company also said that a similar tax demand was made for the last assessment year (2022–23), which is now in court and has been put on hold by the Karnataka High Court. Meesho said that the most recent assessment order and demand notice are not likely to have a big negative effect on its finances, operations, or other activities.

Financials

The revenue from operations for the company stood at Rs 3,518 crore in Q3 FY26 compared to the Q3 FY25 revenue of Rs 2,679 crore, up by about 31 per cent YoY. However, the net loss stood at Rs 491 crore in Q3 FY26, up compared to the Rs 37 crore loss in Q3 FY25.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Why Did Meesho Shares Hit 10% Lower Circuit Today? appeared first on Trade Brains.