Meesho gets ₹1,500 crore tax demand for AY24, to contest order
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E-commerce platform Meesho, which recently got listed on December 10 last year, has received a tax demand of about ₹1,499.7 crore from the Income Tax Department for the assessment year 2023–24, according to a regulatory filing.
The demand arises from an assessment order issued under the Income-tax Act, 1961, along with a notice under Section 156, dated March 5, 2026. The company said it received the order on March 6 from the assessment unit of the tax department.
According to the filing, the tax authority has raised the demand after making certain additions and adjustments to the income reported by the company during the assessment proceedings under Section 143(3) of the Act.
Meesho said it is currently reviewing the order and does not agree with the observations and adjustments made by the tax authorities. The company added that it has sufficient legal and factual grounds to challenge the demand and will take appropriate steps to protect its interests.
“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 interests.”
The company also noted that a similar tax demand had been issued for the assessment year 2022–23, which was disclosed earlier in its prospectus filed in December 2025. In that case, the Karnataka High Court had granted an interim stay on the demand notice on April 17, 2025, and the matter remains pending.
Meesho said the latest assessment order and demand notice are not expected to have any major adverse impact on its financial position, operations or other activities. “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.”
For the October–December quarter of the current fiscal, Meesho posted a consolidated net loss of ₹491 crore, compared with a loss of ₹37 crore a year earlier. The bottom line was dragged down by a sharp deterioration in operating profitability, with adjusted EBITDA for the marketplace segment slipping to a loss of ₹460 crore from ₹21 crore in the year-ago quarter.
The Bengaluru-based firm, in its first quarterly results post-IPO, posted revenue from operations of ₹3,517.6 crore, up 32% year-on-year from ₹2,673.6 crore in Q3 FY26. It had reported revenue of ₹3,073.7 crore in the previous quarter.
Despite the deeper losses, the newly listed e-commerce firm ended the quarter with a cash balance of ₹7,277 crore, supported by ₹4,088 crore raised through its December IPO. Last twelve-month free cash flow stood at ₹56 crore, reflecting what the company described as the benefits of its asset-light model and negative working capital cycle.