In a post-market exchange filing on Friday, Meesho said the assessment order relates to the 2023-24 assessment year. The Income Tax Department’s assessment unit has raised a tax demand totalling Rs 1,499.73 crore, including applicable interest.
Meesho said it is currently evaluating the assessment order and does not agree with the observations and adjustments made in it. “The company believes it has adequate legal and factual grounds to contest the same and is taking necessary steps to protect its interests,” it added.
The company also highlighted that a similar demand was issued for the previous assessment year (2022-23), which was disclosed in detail in its prospectus dated December 5, 2025. As noted, the High Court of Karnataka, by an order dated April 17, 2025, granted an interim stay on that demand, and the matter is still pending.
Meesho further stated that the assessment order and demand notice do not have any major adverse impact on its financial position, operations, or other activities.
Shares down 46% from December high
Meesho made a strong debut on the stock market in December, listing at Rs 162.50 per share on the NSE, a premium of over 46% from its IPO price of Rs 111. Its Rs 5,421-crore IPO was subscribed 79 times during the three-day public offering.
The stock initially surged, rallying up to 129% from its IPO price within seven sessions to hit a high of Rs 254.40. However, the rally lost momentum over the following months.On Monday, Meesho shares were locked in the lower circuit at Rs 143.34, down around 44% from its December high and roughly 12% below its listing price. The stock remains over 29% higher than its IPO price.
Ballooning losses
In January, Meesho reported a 13-fold year-on-year (YoY) jump in net loss to Rs 491 crore for October-December 2025-26, even as operating revenue rose 31% to Rs 3,517 crore.
The surge in net losses was driven largely by rising costs outpacing margins, fueled by the expansion of its logistics arm Valmo and increased spending on customer acquisition. The company said it will continue to monitor free cash flow as a key performance metric.
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