Meesho freezes at 10% lower circuit, hits record low; here's why

Meesho share price today

 

Share price of Meesho hit an all-time low at ₹143.20, as the stock got locked in the 10 per cent lower circuit on the BSE in Monday’s intra-day trade amid heavy volumes. The stock fell below its previous low of ₹144.85 touched on February 4, 2026. 

Till 11:32 AM; as many as a combined 22.05 million shares of Meesho changed hands on the NSE and BSE. There were pending sell orders for a combined nearly 700,000 shares on these exchanges. 

At present levels, the stock trades 29 per cent higher when compared to its issue price of ₹111 per share. The stock made its debut on the exchanges on December 10, 2025, at ₹162.5, a premium of 46.4 per cent against the issue price. It hit a 52-week high of ₹254.65 on December 18, 2025.  FOLLOW STOCK MARKET UPDATES TODAY LIVE

 

Why did Meesho’s share price hit record low?

The e-commerce company informed the stock exchanges that it received an Assessment Order for the Assessment Year 2023–24, along with a Demand Notice from the Income Tax Department, raising a tax demand of ₹1,499.73 crore, including applicable interest. 

“The company has received an Assessment Order under Section 143(3) of the Income-tax Act, 1961 (IT Act) for the Assessment Year 2023-24 along with a Demand Notice under Section 156 of IT Act dated March 05, 2026, issued by the Assessment Unit of the Income Tax Department against Meesho Limited,” the company said in exchange filing. 

Meesho said 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. 

Meanwhile, a similar demand order was issued for the previous Assessment Year as well (i.e., 2022-23), which was duly disclosed in detail in the prospectus filed by the company dated 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 company said. 

Meesho said 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.

Meesho Q3 financial performance

For the October to December 2025 quarter (Q3FY26), Meesho reported a 12 times year-on-year (Y-o-Y) increase in its net loss to ₹490.7 crore compared to ₹37.4 crore in the year-ago period. In the preceeding quarter (Q2FY26), the company reported a loss of ₹411.4 crore.  

The Bengaluru-based company's revenue from operations stood at ₹3,517.6 crore, up 32 per cent Y-o-Y from ₹2,673.6 crore in the year-ago period. It had reported revenue of ₹3,073.7 crore in the previous quarter. 

However, on the outlook, the management expects significant improvement in Adjusted EBITDA margin in the next 2 quarters returning to Q1FY26 levels; driven by logistics cost recovery and operating leverage on user growth and technology investments made in FY26.

JM Financial Institutional Securities view on Meesho

 

Meesho is the largest e-commerce player in India by order volumes / annual transacting users. Simultaneously, the company also orchestrates the largest logistics platform in India, by number of shipments. Meesho operates a value-focused e-commerce marketplace, connecting consumers, sellers, logistics partners and content creators. 

Analysts at JM Financial Institutional Securities in January 2026 report said they expect Meesho to continue being the flagbearer of Indian e-commerce and the first digital commerce platform for a large cohort of Indian population. 

Key downside risks include plateauing of logistics cost limiting growth, higher competitive intensity, and limited ad-based monetisation. Key upside risks include monetisation through content and financing, better than expected growth, and ramp-up of commission revenue via Meesho Mall.  =======================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.